Tax
No Service Tax Exemption On Race Tracks Not Meant For Public Use: CESTAT
The Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that no service tax exemption on race tracks is meant for public use.The bench of Rachna Gupta (Judicial Member) and Hemambika R. Priya (Technical Member) has observed that the race track constructed by the appellant is definitely a "road'. But to avail the benefit of Notification No. 17/2005, the...
Colourable Devices To Evade Tax Can't Be Tax Planning, Rules Telangana High Court
The Telangana High Court has held that tax planning may be legitimate, provided it is within the framework of the law. Colorable devices cannot be part of tax planning, and it is wrong to encourage or entertain the belief that it is honorable to avoid the payment of tax by resorting to dubious methods. It is the obligation of every citizen to pay the taxes honestly without resorting...
Responsibility Of Customs Broker Does Not Include Keeping Continuous Surveillance On Client: 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) of the Customs Brokers Licensing Regulations, 2018 does not include keeping continuous surveillance on the client.The bench of Dilip Gupta (President) and P.V. Subba Rao (Technical Member) has observed that the responsibility of the...
Aircraft Used Only For Providing Non-Scheduled Passenger Services Entitled For Customs Exemption: CESTAT
The Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that the aircraft used only for providing non-scheduled passenger services is entitled to customs exemption.The bench of Binu Tamta (Judicial Member) and P. V. Subba Rao (Technical Member) has observed that the conditions of exemption notification were not complied with as the appellant therein had not...
Unsettled Claims As Well As IBNR Would Amount To Contingent Liabilities; Section 37 Deduction Allowable: Delhi High Court
The Delhi High Court has held that the deduction under Section 37 of the Income Tax Act is allowable on unsettled claims as well as Incurred But Not Reported (IBNR), which would amount to contingent liabilities.The bench of Justice Yashwant Varma and Justice Purushaindra Kumar Kaurav has observed that if the historical trend indicates that a large number of sophisticated goods were...
Auction By Based On Non-Existent Order; Punjab & Haryana High Court Imposes Cost On Income Tax Authorities
The Punjab and Haryana High Court has held that the auction proceedings based on a quashed ex-parte income tax appellate tribunal (ITAT) order by the tax recovery officer are void ab initio.The bench of Justice Sanjeev Prakash Sharma and Justice Sudeepti Sharma has directed the respondent department to restore the properties of the petitioner-HUF from the auction purchasers and...
AO's Failure To Make Proper Enquiry On Bogus Claim Of LTCG By Sale Of Shares; Calcutta High Court Upholds Revision Order
The Calcutta High Court has upheld the revision order passed by the Principal Commissioner of Income Tax (PCIT) under Section 263 of the Income Tax Act, as the AO failed to make a proper inquiry on the bogus claim of long-term capital gain (LTCG) by the sale of shares.The bench of Chief Justice T.S. Sivagnanam and Justice Hiranmay Bhattacharyya has observed that in the order under Section 263...
Income From Reselling Of Subscription Based Product Is Royalty: ITAT
The Mumbai Bench of Income Tax Appellate Tribunal (ITAT) has held that the income from the reselling of subscription-based products is royalty.The bench of Kavitha Rajagopal (Judicial Member) and Om Prakash Kant (Accountant Member) has observed that the assessee has sold not only the digital product but also all copyrights therein, which squarely falls under the definition of 'royalty' both...
Redemption Fine And Penalty Can Be Imposed On Re-export Of Prohibited Goods: CESTAT
The Chennai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that a redemption fine and penalty can be imposed on the re-export of prohibited goods. Section 125 enables the Customs Officer to grant an option to the owner or the person from whose possession the goods have been seized to pay a fine in lieu of confiscation. In an adjudication proceeding as in...
Direct Tax Cases Weekly Round-Up: 02 To 08 June 2024
Delhi High CourtOnce Issue Of Arm's Length Remuneration Settled By TPO, Question Of Ascertaining Existence Of PE Is Academic; Delhi High Court Quashes Reassessment ProceedingsCase Title: Progress Rail Locomotive Inc. (Formerly Electro Motive Diesel Inc.) Versus Deputy Commissioner Of Income-TaxCitation: 2024 LiveLaw (Del) 671The Delhi High Court, while quashing the reassessment...
Indirect Tax Cases Weekly Round-Up: 02 To 08 June 2024
Kerala High CourtClaim For Sales Tax Exemption In Respect Of Transit Sales To Be Justified By Showing Sale As Having Occurred In Transit: Kerala High CourtCitation: 2024 LiveLaw (Ker) 336Case Title: M/S.I.T.I.LTD Versus State Of KeralaThe Kerala High Court has held that a claim for exemption in respect of transit sales must be justified by showing the sale as having occurred in transit.Time...
Rotary Car Parking System Is Civil Structure, GST ITC Not Admissible: AAR
The Tamil Nadu Authority of Advance Ruling (AAR) has ruled that input tax credit (ITC) is not admissible on rotary car parking systems.The bench of D. Jayapriya and A. Valli observed that the Rotary car parking system is an infrastructure with the aim of catering to the need for greater urban density and compactness in cities and to make better use of scarce land. The Rotary car parking...