ITAT & AAR Weekly Round-Up: 21 To 27 July 2024

ITAT Allows Depreciation Claim On Non Compete Fee, Deletes Penalty

Case Title: Metro Tyres Limited Versus ACIT

The Delhi Bench of Income Tax Appellate Tribunal (ITAT) has allowed the claim of depreciation on non-competing fees.

Long Term Capital Gain On Sale Of Shares By Mauritius Company Is Not Liable To Be Taxed In India: ITAT

Case Title: M/s. Superb Mind Holdings Ltd. Versus Assistant Commissioner of Income Tax

The Delhi Bench of Income Tax Appellate Tribunal (ITAT) has held that long-term capital gain on sale of shares by Mauritius Company is not liable to be taxed in India.

Bank Charges & Bank Guarantee Charges Wrongly Included As Interest: ITAT

Case Title: Advance Valves Pvt.Ltd. Versus ACIT

The Delhi Bench of Income Tax Appellate Tribunal (ITAT) has held that bank charges and bank guarantee charges do not partake in the character of interest and had been wrongly included as interest while making disallowance under section 14A of the Income Tax Act.

AAR

ITC Available On Capital Goods Used For Transmission Of Electricity From Power Station Of DISCOM To Factory Premises: Gujarat AAR

Applicant's Name: M/s Elixrr Industries Pvt Ltd.

The Gujarat Authority of Advance Ruling (AAR) has ruled that the Input Tax Credit (ITC) available on capital goods used for transmission of electricity from power stations of Distribution Companies (DISCOM) to factory premises.

Deduction Of Nominal Amount From Employee's Salary For Availing Food Facility Is Not 'Supply': Gujarat AAR

Applicant's Name: Alleima India Private Limited

The Gujarat Authority of Advance Ruling (AAR) has ruled that deduction of nominal amount from employee's salary for availing food facility is not 'supply' under the provisions of Section 7 of the CGST Act, 2017.

GST Payable On Advance Received Against Supply Portion Of Work Contract: Gujarat AAR

Applicant's Name: M/s. Vijai Electricals Ltd.

The Gujarat Authority of Advance Ruling (AAR) has held that the GST is payable in advance received against the supply portion in respect of the work contract.