Damage On Account Of Right To Sue Is A Capital Receipt Not Chargeable To Tax: ITAT

The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has held that the damage on account of the right to sue is a capital receipt not chargeable to tax.The bench of Amit Shukla (Judicial Member) and Amarjit Singh (Accountant Member) has observed that Section 6 of the Transfer of Property Act clearly provides that "a mere right to sue cannot be transferred", even if it is to be treated...

Income Tax Act; Mere Uploading Of Notice On Assessee’s E-Portal Is Not Proper Service: ITAT

The Chandigarh Bench of the Income Tax Appellate Tribunal (ITAT) has held that mere uploading of notice on the assessee’s e-Portal of the Income Tax Department is not proper service as per the Income Tax Act.The bench of Sanjay Garg (Judicial Member) and Vikram Singh Yadav (Accountant Member) has observed that service of notice on the portal alone without compliance with Section 282 of...

Tax Cases Weekly Round-Up: 3 September To 9 September, 2023

Delhi High Court Delhi High Court Limits Adjustment Of Tax Refunds Against Disputed Demands At 20% Case Title: Jindal Stainless Ltd Versus DCIT The Delhi High Court has limited the adjustment of tax refunds against disputed demands to 20%. GST | Show Cause Notice Must Clearly Indicate Reasons For Which Registration Cancellation Is Proposed: Delhi High Court Case Title:...

Receipts From Provision Of Background Screening And Investigation Services To Clients In India Is Not Royalty/FTS: ITAT

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has held that receipts from the provision of background screening and investigation services to clients in India are not royalties or fees for technical services (FTS).The bench of G.S. Pannu (President) and Astha Chandra (Judicial Member) has observed that the services rendered by the assessee do not involve any technical skill...

Income Tax Raid, ITAT Finds Money Laundering, Directs Assessing Officer To Inform SEBI, PMLA Authorities

The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has directed the AO to share information on all persons allegedly involved in the racket of money laundering.The bench of Sandeep Singh Karhail (Judicial Member) and Prashant Maharishi (Accountant Member) has issued the directions to the AO to communicate vital details on 32,855 beneficiaries involved in accommodation...

No Income Tax Payable On Bonus Shares Under The Head ‘Income From Other Sources’: ITAT

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has held that income tax is not chargeable on bonus shares under the heading ‘income from other sources’.The bench of Anubhav Sharma (Judicial Member) and M. Balaganesh (Accountant Member) has observed that the bonus shares are issued only out of the capitalization of existing reserves in the company. The AO had not disputed the...

Interconnectivity Utility Charges Can’t Be Taxed As Royalty Under India-Austria Tax Treaty: ITAT

The Bangalore Bench of the Income Tax Appellate Tribunal (ITAT) has held that interconnectivity utility charges (IUC) cannot be taxed as royalty under the India-Austria Double Taxation Avoidance Treaty (DTAA).The bench of Beena Pillai (Judicial Member) and Chandra Poojari (Accountant Member) has observed that payments received by the assessee towards interconnectivity utility charges from...

ITAT Directs Dept. To Allow Interest Paid On Borrowings Against FD Income If Reasonable Link Exists

The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT), while remanding the matter back to the department, held that the interest paid on borrowings is allowable against FD income if any reasonable link exists.The bench of Amit Shukla (Judicial Member) and Padmavathy S. (Accountant Member) has directed the assessing officer to consider the movement in the FD account and the loan account...

Tax Cases Weekly Round-Up: 27 August To 2 September, 2023

Delhi High Court DGGI Can’t Be Stopped From Taking Intelligence-Based Enforcement Action When Investigation By Other Authority Is Going On: Delhi High Court Case Title: M/S. Hanuman Enterprises Pvt. Ltd. Versus The Additional Director General Directorate General Of GST Citation: 2023 LiveLaw (Del) 756 The Delhi High Court has held that the Directorate General of...

Licence Fee Received By Cricket Australia For Live And Non-Live Transmissions Rights Can’t Be Taxed As Royalty: ITAT

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has held that Cricket Australia is not liable to pay ‘royalty’ on licence fees received for live and non-live transmission rights.The bench of Kul Bharat (Judicial Member) and M. Balaganesh (Accountant Member) has relied on the decision of the Co-ordinate Bench of the Tribunal in the case of Fox Network Group Singapore Pte. Ltd....

AO Bound To Grant Advance Tax Credit That Was Left By The Taxpayer: ITAT

The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has held that the AO is bound to grant the credit of advance tax that was left by the taxpayer.The bench of Sandeep Singh Karhail (Judicial Member) and B.R. Baskaran (Accountant Member) has observed that the inadvertence on the part of the assessee to claim the credit for the advance tax while filing its return of income or filing...

HSBC Not Liable To Deduct TDS On Nostro Account Maintenance Charges: ITAT

The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has held that the assessee, HSBC, was not under obligation to withhold tax from Nostro Account Maintenance Charges in terms of Section 195 of the Income Tax Act and therefore could not be treated as an ‘assessee in default’.The bench of Rahul Chaudhary (Judicial Member) has observed that Nostro Account Maintenance Charges are in...