Tax
Assessment Order Passed Against Dead Person Is Nullity: Karnataka High Court
The Karnataka High Court, while quashing the assessment order, held that the assessment order under Section 147 read with Section 144 of the Income Tax Act amounts to nullity.The bench of Justice S. Sunil Dutt Yadav has observed that when the assessee dies during the pendency of the proceedings, proceedings are to be continued through the legal representatives of the deceased. The...
No Service Tax Payable On Amount Received By Automobile Dealer From Manufacturer As Trade Discount: Delhi CESTAT
The Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that no service tax is payable on an amount received by an automobile dealer from the manufacturer as a trade discount.The bench of Binu Tamta (Judicial Member) and P. V. Subba Rao (Technical Member) has observed that any amount received by an automobile dealer from the manufacturer as a trade...
Customs Brokers Not Liable Once Verification Of Address Is Completed: Delhi CESTAT
The Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that the responsibility of the customs broker under Regulation 10(n) does not include keeping continuous surveillance on the client to ensure that he continues to operate from that address and has not changed his operations. The bench of Rachna Gupta (Judicial Member) and P. V. Subba Rao (Technical...
Net Profit Shall Be Estimated @2.75% Of Total Turnover In Case Its Rate Is Highest In First Year Of Operation: Cuttack ITAT
Finding that the assessee has shown highest rate of net profit in its first year of business, the Cuttack ITAT directed for estimation of net profit @2.75% on the total turnover of the assessee after reduction of the airport rent cost, sheet cost and truck rent cost as there is no possibility of assessee earning any income out of the said expenses. The Bench of Manish...
Service Tax On Commission Paid To Foreign Commission Agents Is Payable Under RCM From 18.04.2006: Bangalore CESTAT
The Banglore Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that the service tax on commission paid to the foreign commission agents is payable under reverse charge only from April 18, 2006, and not from January 1, 2005.The bench of P.A. Augustian (Judicial Member) and Pullela Nageswara Rao (Technical Member) has observed that the appellant has discharged...
Service Tax Exemption On Laying Pipelines For Water Supply And Drainage: Ahmedabad CESTAT
The Ahmedabad Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that no service tax is payable on laying pipelines for water supply and drainage.The bench of Somesh Arora (Judicial Member) and C.L. Mahar (Technical Member) has observed that the appeals appear to be part of the investigation that has been carried out against M/s. Shree Hindustan Fabricators, and...
Rejection Of Belated Objections By DRP Does Not Extend Limitation Of Passing Final Assessment U/s 144(4): Delhi ITAT
The New Delhi ITAT held that once the DRP has chosen to reject the objections of assessee on the ground of delay, its resultant effect is confirmation of merits of draft order passed by the AO. However, the ITAT clarified that such rejection by DRP on ground of delay in no way extends the limitation of passing the final assessment order u/s 144(4) of the Act. The ITAT held so...
“Convenience Fee” & “Cancellation Fee” Not Connected To Business Promotion; CESTAT Quashes Service Tax Demand Against Yatra Online
The Chandigarh Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT), while quashing the service tax demand against Yatra Online, held that “convenience fee” and “cancellation fee” are recovered in the course of the provision of the service related to the booking of tickets for passage through air and not in connection with any business promotion.The bench of S. S....
Tax Demand on Post Sale Discounts Received By Way Of Financial Credit Notes Not Tenable: Madras High Court
The Madras High Court has quashed the order imposing tax demands on post-sale discounts received by way of financial credit notes on the ground that receiving a discount is not tenable in law.The bench of Justice Senthilkumar Ramamoorthy has observed that the assessing officer concluded that the taxable person is providing a service to the supplier while taking advantage of a discount...
Credit Available On Advance Tax Paid For Stock-Transferred: Kerala High Court
The Kerala High Court has held that the petitioner will be entitled to credit for the entire amount paid in terms of Circular No. 50/2006 for the goods in question, which were stock-transferred to its branch office in Pollachi.The bench of Justice Gopinath P. has observed that a combined reading of the provisions of Circular No. 50/2006 and the definition of input tax in Section 2(xxiii) of...
Reasonable Cause Excludes Operation Of Sec 271D: Bangalore ITAT Deletes Penalty
The Bangalore ITAT held that that Revenue Department cannot adopt the tactics of pick and choose while assessing the citizens of India, as it would be violative of Article 14 of the Constitution. Hence the ITAT deleted the penalty levied by AO u/s 271D on assessee for receiving excessive cash in contravention of taxation statute, upon sale of property. Section 271D of the...
Payment By Indian Entity To Its AE Abroad Is Not 'FTS' If Technical Skill Is Not Made Available By AE: Bangalore ITAT
The Bangalore ITAT held that payment made by Assessee (Indian entity) to its foreign AE (Parent entity) for obtaining administrative services will not be taxable as FTS/FIS in India in terms of Indo USA DTAA, in absence of 'make available' clause in the agreement between both the parties. Article 12(4) of India USA DTAA states that 'fees for included services' means payments of any...