Tax
CBDT Exempts Activity Of Investment In Financial Product By Non-Resident Where Income Received In Offshore Banking Unit
The Central Board of Direct Taxes (CBDT) has exempted the activity of investment in financial products by non-residents where income is received in the account of the non-resident maintained with the Offshore Banking Unit.The Board empowered under section 10(4G)(ii) of the Income-tax Act, 1961 notified the activity of investment in a financial product by the non-resident, in accordance with...
GST ITC Refund Can't Be Rejected Merely On Ground Of Non-Supply Of Authenticated Document: Delhi High Court
The Delhi High Court has held that an input tax credit (ITC) refund cannot be rejected merely on the grounds of the non-supply of authenticated documents.The bench of Justice Sanjeev Sachdeva and Justice Ravinder Dudeja has observed that the petitioner had uploaded documents; however, the system did not register the documents that were uploaded by the petitioner. The appellate authority...
Dept.'s Action Denying Immunity Benefit Merely Because Section 270A Penalty Was Initiated Is Erroneous: Rajasthan High Court
The Rajasthan High Court has held that the department's action of denying the benefit of immunity on the ground that the penalty was initiated under Section 270A of the Income Tax Act for misreporting of income is not only erroneous but also arbitrary and bereft of any reason, as in the penalty notice, the respondents have failed to specify the limb, "under-reporting" or "misreporting" of...
Areca Nuts Have Limited Shelf-Life, Risk Of Contamination: Madras High Court Directs Verification Of Certificate Of Origin
The Madras High Court has directed the verification of certificate of origin within 30 days and in case of failure of verification within time release the seized areca nut is subject to providing a bond for 100% of the value of goods but without insisting on a bank guarantee.The bench of Justice Senthilkumar Ramamoorthy has observed that areca nuts have a limited shelf-life and the risk...
Employee Accepted Salary After TDS Deduction, Employer Responsible For Non-Deposit: Delhi High Court
The Delhi High Court has held that the employee accepted salary after TDS deduction and the employer is responsible for non-deposit of TDS.The bench of Justice Rajiv Shakdher and Justice Girish Kathpalia has observed that the petitioner/employee, having accepted the salary after the deduction of income tax at source, had no further control over it in the sense that thereafter it was the duty...
Order Cancelling GST Registration With Retrospective Effect Bereft Of Reasons, Liable To Be Quashed: Delhi High Court
The Delhi High Court has quashed the order cancelling GST registration with retrospective effect, bereft of reasons.The bench of Justice Sanjeev Sachdeva and Justice Ravinder Dudeja has observed that one of the consequences of cancelling a taxpayer's registration with retrospective effect is that the taxpayer's customers are denied the input tax credit availed in respect of the supplies made...
Supreme Court Dismisses UP Govt.'s Appeal Against Allahabad HC Order Quashing Demand Of Rs. 235.52 Crores Against VIVO
On Thursday(January 4), the Supreme Court dismissed a Special Leave Petition filed by the State of Uttar Pradesh against the order of the Allahabad High Court quashing the demand of Rs. 235.52 Crores raised against Vivo Mobile India Private Limited raised by GST Authorities vide order under Section 74(9) of the Goods and Service Tax Act 2017.In the peculiar facts of the case, the bench...
Service Tax Not Payable On Demat Or Depository Charges: CESTAT
The Ahmedabad Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that service tax is not payable on demat or depository charges collected from sub-brokers.The bench of Ramesh Nair (Judicial Member) and Raju (Technical Member) has observed that demat or depository charges are collected by the sub-brokers and paid to the depository participants who are authorised to...
There Cannot Be Sale Without Purchase: ITAT Deletes Addition
The Delhi Bench of Income Tax Appellate Tribunal (ITAT) has deleted the addition made by the AO as there cannot be a sale without a purchase.The bench of Saktijit Dey (Vice President) and Pradip Kumar Kedia (Accountant Member) has observed that the exclusion of purchases from the trading results is not permissible without corresponding exclusion of the sales in such trading activity for...
Once Deduction Claim Of Education Cess Is Withdrawn, Assessee Immuned From Imposition Of Section 270A Penalty: Rajasthan High Court
The Rajasthan High Court has held that once the deduction claim for education cess is withdrawn, the assessee is immune from the imposition of a penalty under Section 270A of the Income Tax Act.The bench of Justice Vijay Bishnoi and Justice Munnuri Laxman has observed that neither in the assessment order nor in the subsequent show-cause notices, the Assessing Officer specify that the case of...
Use Of Trademark Incidental To Advertisement Or Publicity Is A Business Income, Not Royalty And FTS: Delhi High Court
The Delhi High Court has held that the use of trademarks incidental to advertisement or publicity was held as neither royalty nor fees for technical services (FTS) but as business income.The bench of Justice Vibhu Bakhru and Justice Amit Mahajan has observed that merely because the extensive services rendered by the assessee in terms of the Strategic Oversight Services Agreements (SOSA)...
Scrutiny Notices Issued By NaFAC Addl. CIT Instead Of AO Under Central Charge Is Valid: Karnataka High Court
The Karnataka High Court upheld the validity of scrutiny notices issued by the National Faceless Assessment Centre (NaFAC) Addl. CIT instead of the Jurisdictional Assessing Officer (JAO) under central charge.The bench of Justice B. M. Shyam Prasad has observed that if the right to call in question the jurisdiction is left open to be raised at any stage, the proceedings will remain...