Exemption Of Newspaper’s Income Utilised For Charity: Supreme Court Remands The Matter To AO

Case Title: PCIT Versus Servant of People Society

The Supreme Court has remanded the appeal in respect of the exemption of newspaper income used for charity.

Delhi High Court

Department Can’t Go Behind TRC Issued By The Other Tax Jurisdictions: Delhi High Court

Case Title: Blackstone Capital Partners (Singapore) VI FDI Three Pte. Ltd. Versus ACIT

Citation: 2023 LiveLaw (Del) 125

The Delhi High Court has quashed the reassessment and held that the department cannot go behind the Tax Residency Certificate (TRC) issued by the other tax jurisdiction.

The division bench of Justice Manmohan and Justice Manmeet Pritam Singh Arora has observed that the reason given for reopening the assessment, namely, to verify the nature and genuineness of the transactions of the assessee in the assessment year, was untenable in law as the return of income had been filed by the assessee within time with full particulars. The notice has been issued on borrowed satisfaction, which is impermissible in law.

Karnataka High Court

No GST Applicable On Supply Of Vouchers: Karnataka High Court

Case Title: M/s Premier Sales Promotion Pvt Ltd versus Union of India & Ors.

The Karnataka High Court has ruled that vouchers do not fall under the category of goods and services and therefore, the issue and supply of vouchers would not attract GST.

Gujarat High Court

Practice Of Not Responding To Request Of Adjournment, To Take Matter Up At Anytime, When AO Deems Fit Is Not Endorsable: Gujarat High Court

Case Title: Shree Siddhi Foods Versus ACIT

The Gujarat High Court has held that the practice of not responding to the request for adjournment and thereafter taking the matter up at any time when the Assessing Officer deems it appropriate was not endorsable.

Orissa High Court

Orissa High Court Allows Deduction To The Co-operative Society Involved In The Business Of Banking

Case Title: Cuttack Central Co-operative Bank Ltd. Versus Asst. Commissioner of Income Tax

The Orissa High Court has granted the deduction to the Co-operative Society engaged in the banking business.

The division bench of Chief Justice Dr. S. Muralidhar and Justice M. S. Raman has observed that the tribunal was justified in making further classification while interpreting Section 80P(4) of the Income Tax Act by treating it to be different from the primary agriculture rural development bank/co-operative societies.

ITAT

Credit For TCS Available To Assessee In Whose Hand Income Is Assessed To Tax: ITAT

Case Title: M/s Hotel Ashok Garden versus ITO

The Bangalore Bench of the Income Tax Appellate Tribunal (ITAT) has reiterated that credit for Tax Collected at Source (TCS) should be given to the assessee who is finally and lawfully assessed to tax in respect of the income on which TCS has been collected, irrespective of the person in whose name the TCS certificate has been issued.

Unmarried Daughter’s Jewllery And Mother’s Jewellery Can Be Kept In Family Home: ITAT Deletes Addition

Case Title: Shakun Devi Versus Joint Commissioner of Income Tax

The Allahabad Income Tax Appellate Tribunal (ITAT) has deleted the addition as the jewellery belonging to unmarried daughters will be kept along with the assessee’s jewellery in a family home where they are living together.

Section 14A Disallowance Not Warranted If No Exempt Income Is Earned: ITAT

Case Title: Indian Farmers Fertiliser Versus DCIT

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has held that the disallowance under Section 14A of the Income Tax Act is not warranted if no exempt income is earned.

The two-member bench of Anubhav Sharma (Judicial Member) and Anil Chaturvedi (Accountant Member) has observed that Section 14A envisages that there should be actual receipt of income, and hence Section 14A of the Act will not apply where no exempt income is received or receivable during the relevant previous year.

Expenses Incurred During Regular Course Of Business Cannot Be Treated As Capital Expenses: ITAT

Case Title: ACIT Versus Drishti Soft Solutions Pvt. Ltd.

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has held that expenses incurred during the regular course of business cannot be treated as capital expenses.

The two-member bench of Yogesh Kumar US (Judicial Member) and Anil Chaturvedi (Accountant Member) has observed that the payment was made towards the professional fee, which includes monthly retainer fees for the professional services.

CESTAT

Road Construction Services Are Excluded From The Taxable Service: CESTAT Quashes Service Tax Demand

Case Title: Apollo Construction Projects Pvt Ltd. Versus C.S.T.-Service Tax – Ahmedabad

The Ahmedabad Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has quashed the demand for service tax and held that the service provided for road construction is excluded from the taxable service, namely "Commercial or Industrial Construction Service."

When The Test Reports Are On Record, No Need To Go To The Websites And Wikipedia: CESTAT

Case Title: Pradipkumar P. Patel Versus C.C.

The Ahmedabad Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that when the test reports are available on record, there is no need to go to the website or Wikipedia.

No Excise Duty Payable On Manual Segregation Of Scrap: CESTAT

Case Title: The Commissioner, Central Excise & CGST, Alwar Versus M/s R.P. Industries

The Delhi Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that excise duty is not levied on manual segregation of scrap.

CESTAT Allows Service Tax Refund To Developer Of Residential Flats On Cancellation Of Booking

Case Title: M/s Ratnawat Infra Construction Company Versus Commissioner, Central Excise & CGST-Jaipur I

The Delhi Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has allowed the service tax refund to the developer of residential flats on cancellation of the booking.

Authorised Dealer Not Liable To Pay Service Tax On Incentives Out Of Dealership Agreement: CESTAT

Case Title: M/s Veer Prabhu Marketing Ltd. Versus Commissioner of Central Excise

The Delhi Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that the authorized dealer was not liable to pay service tax on various incentives that it received from Tata as per the dealership agreement.

AAAR

Permit Issued By Forest Dept. For Coal-Transit Taxable As "Public-Administrative-Services": AAAR

Appellant’s Name: Singareni Collieries Company Limited

The Telangana Appellate Authority of Advance Ruling (AAAR) has ruled that the permit issued by the forest department for coal transit is taxable as public administrative services.

AAR

Works Contract Services Of Construction Of Railway Under Bridge Exigible To 18% GST: Karnataka AAR

Applicant’s Name: S K Swamy and Company

The Karnataka Authority of Advance Ruling (AAR) has ruled that Indian Railways' contract services for the construction of the railway under the bridge are subject to 18% GST.