Tax Cases Weekly Round-Up: 25 September To 1 October, 2022

Delhi High Court Physical Verification Of Business Premises For GST Registration Without Issuing Notice Is Violation Of Principle Of Natural Justice: Delhi High Court Case Title: Curil Tradex Pvt. Ltd. Versus The Commissioner Citation: 2022 LiveLaw (Del) 905 The Delhi High Court has held that the physical verification of business premises for GST registration without...

Tax Cases Monthly Round-Up: September 2022

Indirect TaxesSupreme Court Disputes Related To Tax Concessions Are Not Arbitrable: SupremeCourt Case Title: M/s Shree Enterprise Coal Sales Pvt Ltd. Versus Union Of India Citation: 2022 LiveLaw (SC) 774 The Supreme Court has held that disputes related to tax concessions are not arbitrable. The division bench of Justice Dhananjaya Y Chandrachud and Justice Hima Kohli...

Revenue Can't Characterize Preference Shares As Debt Instrument Ignoring Legal Consequences: ITAT

The Bangalore Bench of the Income Tax Appellate Tribunal (ITAT) has reiterated that premium on redemption of preference shares is exigible to tax under the head 'Income from Capital Gains', liable to tax to the extent actually received on the redemption of shares. The Bench of N.V. Vasudevan (Vice President) and Padmavathy S (Accountant Member) held that the revenue authorities...

AO Treated Sundry Creditors As Bogus Based On His personal belief: ITAT Deletes Addition

The Kolkata Bench of the Income Tax Appellate Tribunal (ITAT) has held that AO treated the sundry creditors as bogus at the instance of the report of the inspector for a few sample cases was based on AO's personal belief and not by virtue of any concrete facts and evidence placed on record.The two-member bench of Rajpal Yadav (Vice-President) and Girish Agrawal (Accountant Member) has...

Charitable Organisation Should spend grant As Per Terms And Conditions, not on whims and fancies: ITAT

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has held that the assessee is not free to use the funds voluntarily as per its own whims and fancies and that the same has to be spent as per the terms and conditions of the grant.The two-member bench of Yogesh Kumar U.S. (Judicial Member) and Shamim Yahya (Technical Member) has observed that the grants are given specifically...

No TDS On Payment Of FTS To Non-Resident Not Having PE In India: ITAT

The Kolkata Bench Income Tax Appellate Tribunal (ITAT) ordered no TDS on payment of fees for technical services (FTS) to non-residents not having a Permanent Establishment (PE) in India.The two-member bench of Rajpal Yadav (Vice President) and Rajesh Kumar (Accountant Member) has observed that the payment made to non-resident recipients not having any permanent establishment in India and...

Tax Cases Weekly Round-Up: 18 September To 24 September, 2022

Delhi High Court Reassessment Notices Issued Between 1st April 2021 To 30th June,2021 Not Time Barred: Delhi High Court Case Title: Touchstone Holdings Private Limited Versus Income Tax Officer Citation: 2022 LiveLaw (Del) 890 The Delhi High Court has held that the reassessment notices issued between 1st April 2021 and 30th June 2021, will be deemed to have been issued...

Agricultural Land Cultivated Only For A Few Days: ITAT Allows Exemption

The Pune Bench of the Income Tax Appellate Tribunal (ITAT) has allowed the income tax exemption under Section 54B even when the land was cultivated only for a few days during the relevant years.The two-member bench of S.S. Vishwanethra Ravi (Judicial Member) and Inturi Rama Rao (Accountant Member) has observed that part of the land could not be used for agricultural purposes but grass was...

AO Not Justified In Disallowing The Claim Of Interest Expense : ITAT

The Kolkata Bench of the Income Tax Appellate Tribunal (ITAT) has held that the AO is not justified in disallowing the claim of interest expense and treating it for capitalization in the project cost.The two-member bench of Rajpal Yadav (Vice President) and Girish Aggarwal (Accountant Member) has directed the AO to allow the claim of interest expenses of Rs.41,06,890.The appellant/assessee is...

Ola Not Liable To Deduct Withholding TDS On Payments To Drivers: ITAT

The Chandigarh Bench of the Income Tax Appellate Tribunal (ITAT) has held that Ola is not liable to deduct withholding TDS on the payments to drivers.The two-member bench of Sudhanshu Shrivastava (Judicial Member) and Vikram Singh Yadav (Accountant Member) has observed that the AO and the CIT(A) erred in concluding that the assessee was providing transportation services which were...

TDS Exemption On Payments To Agents Of Foreign Shipping Companies: ITAT

The Delhi Income Tax Appellate Tribunal (ITAT) has held that the payments to agents of foreign shipping companies are exempt from TDS deduction.The two-member bench of Saktijit Dey (Judicial Member) and N.K.Billaiya (Accountant Member) has observed that provisions of section 172 of the Income-tax Act, 1961 apply to payments made to agents of foreign shipping companies; therefore, provisions...

Transfer Of Non-Self Generated Goodwill At Book Value; No Tax Can Be Levied Despite Withdrawal Of Tax Exemption: ITAT

The Chennai Bench of the Income Tax Appellate Tribunal (ITAT) has ruled that, where a goodwill is acquired by incurring cost and it is transferred at book value, no tax can be levied on transfer of the goodwill despite withdrawal of exemption on capital gains tax on conversion of a sole proprietary concern into a company, for violation of the conditions provided in Section 47(xiv)(b) of...