Tax
Assessee Can't Indefinitely Seek Time In Response To SCN: Kerala High Court
The Kerala High Court has held that the assessee cannot indefinitely seek time in response to a show cause notice.The bench of Justice Dinesh Kumar Singh has observed that petitioners cannot go on asking for a time one after another in response to the show cause notice issued one after another. There is no violation of the principles of natural justice.Information was flagged in the case of...
Actual Interest Expenditure Had To Be Adjusted Against Income Earned By Way Of Interest: Delhi High Court
The Delhi High Court has held that actual interest expenditure had to be adjusted against the income earned by way of interest.The bench of Justice Rajiv Shakdher and Justice Girish Kathpalia has observed that the assessee has parked its surplus funds in fixed deposits of the bank from which it earned interest income. At the same time, the assessee has also paid interest to the bank. The...
CBIC Notifies Creation Of Principal Bench Of GSTAT At New Delhi
The Central Board of Indirect Taxes and Customs (CBIC) has notified the creation of the principal bench of the Goods and Service Tax Appellate Tribunal (GSTAT) at New Delhi.“The Government has invoked the powers under section 109(3) of the Central Goods and Services Tax Act, 2017 (“the CGST Act”). This supersedes a previous Notification No. S.O.1359(E) dated March 13, 2019, with...
Tax Cases Monthly Round Up: December 2023
Delhi High Court High-End KPO Services Provider Can't Be Compared With ITeS, Which Is BPO Services Provider: Delhi High Court Case Title: PCIT Versus Future First Info. Services Pvt. Ltd. Citation: 2023 LiveLaw (Del) 1301 The Delhi High Court has held that the high-end knowledge process outsourcing (KPO) services provider cannot be compared with the information...
Tax Cases Weekly Round-Up: 24 To 30 December, 2023
Delhi High Court Refund Application Could Not Be Uploaded Due To Technical Glitches, Refund Can't Be Denied: Delhi High Court Citation: 2023 LiveLaw (Del) 1351 Case Title: M/S Sethi Sons (India) Versus Assistant Commissioner And Ors. The Delhi High Court has held that the refund application was filed twice on the GST portal but could not be uploaded due to...
18% GST Applicable On F-18 Drugs Used For Cancer Diagnosis: AAR
The Uttar Pradesh Authority of Advance Ruling (AAR) has held that 18% GST is applicable on F-18 drugs used for cancer diagnosis.The bench of Amit Kumar and Harilal Prajapati has observed that F18 is a radioisotope and fluorodeoxyglucose (18F-FDG) is a compound. The products being radioactive and compounds of the radioisotope 18F merit classification under heading 2844 only, although they...
Goods Used In Fabrication Of Structures Embedded To Earth To Be Treated As 'Inputs': CESTAT Allows Cenvat Credit To SAIL
The Kolkata Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has allowed the cenvat credit to the Steel Authority of India Limited (SAIL).The bench of R. Muralidhar (Judicial Member) and K. Anpazhakan (Technical Member) has observed that the 'plates' used for the fabrication of capital goods are inputs for the capital goods, and hence they are eligible for the credit...
ITAT Deletes Additions Against Unsuspecting Investor In A 'Penny Stock' To Make Quick Profit
The Mumbai Bench of Income Tax Appellate Tribunal (ITAT) has held that the assessee was an unsuspecting investor who transacted in a 'penny stock' with a view to earning a quick profit, and since his involvement in any dubious transaction relating to price rigging or connection with exit providers could not be shown, the transaction could not be treated as a 'pre-arranged' one even if there...
ITAT Deletes S. 68 Addition Towards Cash Receipts Subsequently Converted Into Sale Of Jewellery
The Chennai Bench of Income Tax Appellate Tribunal (ITAT) has deleted the addition under Section 68 of the Income Tax Act towards cash receipts, which were subsequently converted into the sale of jewellery.The bench of Mahavir Singh (Vice President) and Manjunatha. G (Accountant Member) has observed that there cannot be any reason for uniform sales on all days, months, or years. There may...
Empty Liquor Bottles Can't Be Included In Scrap, TCS Not Applicable: Madras High Court
The Madras High Court has held that empty liquor bottles cannot be included in scrap, and TCS is not applicable.The bench of Justice C. Saravanan has observed that the petitioner is neither the owner of the bottle nor generates scrap as is contemplated under the Income Tax Act, 1961. The activity of opening and uncorking is not a “mechanical working of material." Therefore, the invocation...
All You Need To Know About GST Applicability On Supplies Of Restaurant Service Through E-Commerce Operators
The GST Council in its 45th meeting held on 17th September 2021 recommended notifying “Restaurant Service” under section 9(5) of the CGST Act, 2017. Accordingly, the tax on supplies of restaurant services supplied through e-commerce operators shall be paid by the e-commerce operator.Here are 7 points you need to know about the applicability of GST on supplies of restaurant services...
Appellant Not Required To Deposit 10% Of Entire Disputed Amount Including Penalty, Fine, Interest: Karnataka High Court
The Karnataka High Court has set aside the order passed by the Appellate Authority to deposit 10% of the entire amount in dispute, which included tax, interest, a fine, a fee, and a penalty.The bench of Justice Sachin Shankar Magadum has observed that while filing the appeal under Section 107(6) of the GST Act, the appellant is required to deposit only 10% of the disputed tax amount and not...