Tax
Arranging Package Tour Can't Be Classified As Tour Operator Service, No Service Tax Payable: CESTAT
The Ahmedabad Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that no service tax is payable on arranging package tours.The bench of Ramesh Nair (Judicial Member) and C.L. Mahar (Technical Member) has observed that the service cannot be classified under Tour Operator Service as arranging the package tour does not involve all the activities that are required...
AO Not Empowered To Summarily Reject Section 197 Application: Patna High Court
The Patna High Court has held that a demand pending against the assessee would not clothe the Assessing Officer with the power to summarily reject an application under Section 197 of the Income Tax Act. The bench of Chief Justice K. Vinod Chandran and Justice Partha Sarthy has observed that Section 197 only clothes the Assessing Officer with the power to satisfy himself that the total income...
Taxpayer Can't Be Mulcted With Unjust Penalty Due To Minor Discrepancy Of PIN Code In GST Registration: Madras High Court
The Madurai Bench of Madras High Court has held that the taxpayer cannot be mulcted with an unjust penalty due to a minor discrepancy in the PIN code in the GST registration, and the tax invoices are to be construed as a minor violation of the provisions of the respective GST enactments.The bench of Justice C. Saravanan has observed that the imposition of a penalty for technical venial breach...
NRIs Not Exempted From Mandatory Faceless Procedure: Telangana High Court
The Telangana High Court has held that the NRIs are not exempted from following mandatory faceless procedure.The bench of Justice Sujoy Paul and Justice Namavarapu Rajeshwar Rao has observed that the taxpayer is nowhere distinguished between NRIs and Indian citizens. The reassessment notice issued under Section 148 must comply with the requirement of the scheme whether or not the taxpayer is...
Income Tax Additions Can't Be Based On Generalised Report By Investigation Wing: ITAT
The Mumbai Bench of Income Tax Appellate Tribunal (ITAT) has held that income tax additions cannot be based on the generalized report given by the Investigation wing.The bench of Anikesh Banerjee (Judicial Member) and B.R. Baskaran (Accountant Member) has observed that the assessee has purchased the shares from the market in physical form, got it transferred to his name, and later...
ITAT Deletes Income Tax Addition On Interest Income Received Out Of FDs
The Mumbai Bench of Income Tax Appellate Tribunal (ITAT) has deleted the addition on the interest income received out of the fixed deposits.The bench of Kavitha Rajagopal (Judicial Member) and B R Baskaran (Accountant Member) has observed that AO has failed to corroborate the fact that the FD made by the assessee is out of the surplus funds held by the assessee in a case where the assessee...
ITAT Allows Section 54F Deduction On Construction Of The New Dwelling/Residential Unit
The Chennai Bench of Income Tax Appellate Tribunal (ITAT) has allowed the deduction under Section 54F of the Income Tax Act on construction of the new dwelling/residential unit.The bench of Aby T. Varkey (Judicial Member) and Amitabh Shukla (Accountant Member) has observed that the assessee had discharged the burden to prove construction of a residential house/dwelling unit (first floor...
GST Not Payable On Consideration against 'Works Contract ' Executed In Maldives: Telangana High Court
The Telangana High Court has held that GST is not payable on consideration received towards 'works contract service of construction' executed in the Maldives.The bench of Justice Sujoy Paul and Justice Namavarapu Rajeshwar Rao has observed that the location of immovable property is located in the Maldives or outside India. Hence, the place of supply shall determine the 'location of...
Goods In Transit Without Documents, Can Survey Business Premises To Find Correctness Of Transaction: Allahabad High Court
The Allahabad High Court has held that if the goods in transit are not accompanied by proper documentation, including e-way bill, the authorities can survey the business premises of the assesee to determine the correctness of the transaction. However, it was held that if the e-way bill was produced before passing of seizure order under Section 129 of the Goods and Service Tax Act, 2017,...
Contribution For Community Services By Employer Under MOU With Workers Union Is Business Expenditure : Bombay HC
The Bombay High Court recently held that contribution to public welfare fund, if connected with or related to carrying on assessee's business, or if it results in benefits to assessee's business, should be allowable deduction u/s 37. The High Court held so while deciding on the taxability of the contribution made by the employer/assessee (Tata Engineering & Locomotive) to its...
Allahabad High Court Holds Deputy Commissioner Of Income Tax Guilty Of Contempt
The Allahabad High Court has held Retired Deputy Commissioner Of Income Tax Range 2 guilty of contempt of Court under Section 12 of the Contempt of Courts Act, 1971 for assuming jurisdiction in respect of the assesee-applicant in respect of a different assessment year when the Writ Court had directed that he has no jurisdiction in respect of the assesee. While directing...
Vague Notice With Inaccurate Particulars Of Income Vitiates Penalty Proceedings: ITAT
The Ahmedabad Bench of Income Tax Appellate Tribunal (ITAT) has held that the AO failed to specify whether the penalty was for concealment or inaccurate particulars in the notice issued under Section 274 and Section 271(1)(c) of the Income Tax Act.The bench of Suchitra Kamble (Judicial Member) and Makarand V. Mahadeokar (Accountant Member) has observed that the penalty notice must clearly...