Weekly Round-Up of Tax Cases: May 15 To May 21

Supreme Court GST Council Recommendations Not Binding On Centre & States; Both Parliament & State Legislatures Can Legislate On GST : Supreme Court Case Title : Union of India and Anr versus M/s Mohit Minerals Through Director Citation : 2022 LiveLaw (SC) 500 In a significant verdict, the Supreme Court held that the recommendations of the GST council are not binding on...

Husband Entitled Capital Gain Exemption For Asset Bought In The Name Of The Wife: ITAT

The Jaipur Bench of the Income Tax Appellate Tribunal (ITAT) consisting of Dr. S. Seethalashmi (Judicial Member) and Rathod Kamlesh Jayantbhai (Accountant Member) held that the husband was entitled to a capital gain exemption for assets bought in the name of the wife. The assessee, Kaushlendra Singh, sold immovable property for a consideration of Rs.14,75,000. The value of which...

No Further Verification Required If Cash Deposit Is Up To Rs 2.5 Lakhs During The Demonetization: ITAT Delhi

The Delhi Bench of ITAT, consisting of judicial member Chandra Mohan Garg, has held that no further verification is required in the case of an individual earning income from salary, who has deposited an amount of up to Rs 2,50,000 during the demonetization period. The assessee Aniket Agarwal filed his income tax return, which was selected for limited scrutiny to verify the cash...

Consideration Paid For Purchase Of Advertisement Space Does Not Amount To 'Royalty' Under Income Tax Act: ITAT Chennai

The Chennai Bench of ITAT has ruled that consideration paid for purchase of advertisement space does not amount to 'royalty' under the Income Tax Act, 1961. The Bench, consisting of members Mahavir Singh (Vice President) and Dr. M. L. Meena (Accountant Member), held that the Finance Act, 2016 recognizes providing advertising space as a 'specified service', which is subject...

Subscription Money Received In Advance By DTH Operators Is Taxable Only When Services Are Provided To The Subscribers: Chennai ITAT

The Chennai Bench of ITAT has ruled that subscription money received in advance by the DTH operators is not taxable. The Bench, consisting of members V. Durga Rao (Judicial Member) and Manoj Kumar Aggarwal (Accountant Member), held that the subscription money received by DTH operators is taxable only when the said amount is accrued to them, i.e., when the services are rendered by...

Weekly Round Up Of Tax Cases : 1 May To 7 May, 2022

Supreme CourtSupreme Court Saves Over 90,000 Income Tax Reassessment NoticesIssued After 2021 Amendment By Deeming Them As Notices Under Section 148A Case Title: Union of India v. Ashish Agarwal Citation : 2022 LiveLaw (SC) 444 The Supreme Court, on Wednesday, directed that reassessment notices under Section 148 of the unamended Income Tax Act which were issued beyond...

Capital Gain Exemption Can't Be Denied To Wife For Mere Presence of Husband's Name In Purchase Document: ITAT

The Banglore Bench of the Income Tax Appellate Tribunal (ITAT) headed by N.V. Vasudevan (Vice-President) and B.R. Baskaran (Accountant Member) has ruled that the capital gain exemption cannot be denied to the wife for the mere presence of the husband's name in the purchase document.The appellant/assessee is an individual, and she filed her return of income for the year...

Assessing Officer Cannot Apply Wrong Method In Absence Of Audited Financials Of AE: Delhi ITAT

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) consisting of Yogesh Kumar (Judicial Member) and Dr. B.R.R. Kumar (Accountant Member) has held that the AO cannot give benefit to the assessee for non-cooperation in providing audited financials of associated enterprises (AE). The appellant/assessee company, Olympus India, incorporated on October 20, 2009, is a wholly...

Additions Cannot Be Made To Assessee's Income On Basis Of Document Declared By The CESTAT As 'Dumb Document': Ahmedabad ITAT

The Ahmedabad Bench of ITAT has ruled that additions cannot be made to assessee's taxable income under the Income Tax Act, 1961 on the basis of documents that are declared as 'dumb documents' by the CESTAT in the service tax proceedings before it. The Bench, consisting of members Madhumita Roy (Judicial Member) and Waseem Ahmed (Accountant Member), held that though the proceedings...

Subscription Fee Towards Cloud Services Not Taxable As Royalty: Delhi ITAT

The Delhi Bench of ITAT, consisting of members Anubhav Sharma (Judicial Member) and R.K. Panda (Accountant Member), has ruled that subscription fee received towards Cloud Services is not taxable as royalty. The Microsoft Corporation, USA is the ultimate parent entity of the Assessee MOL Corporation which is incorporated in the United States of America. Due to certain License...

Routine Business Support Services Are Not Taxable As Fees For Technical Services: Delhi ITAT

The Delhi Bench of ITAT, consisting of members Astha Chandra (Judicial Member) and N.K. Billaiya (Accountant Member), has ruled that routine business support services are not taxable as fees for technical services (FTS) since they do not make any technology or skill available to the recipient of the services. The Bench held that when a tax rate is prescribed under the Double...

Mere Ignorance Of Law With Respect To Compulsory Audit Under Section 44AB Is Not A Reasonable Cause For Deleting Penalty: ITAT Hyderabad

The Hyderabad Bench of ITAT, consisting of members S.S. Godara (Judicial Member) and A. Mohan Alankamony (Accountant Member), has ruled that mere ignorance of law with respect to the provisions of Section 44AB of the Income Tax Act for compulsory audit of accounts, cannot be said to be a reasonable cause under Section 273B for deleting the penalty imposed on the Assessee for failure to...