Arbitral Tribunal Acted With Patent Illegality, Against Indian Law In Awarding Reimbursement Of Service Tax Along With Interest: Calcutta High Court

The Calcutta High Court Bench of Justice Sabyasachi Bhattacharyya observed that award passed by Arbitral Tribunal was tainted with patent illegality and contravened the fundamental policy of Indian law. The award was challenged under section 34 of the Arbitration and Conciliation Act (act). The court set aside the award in which South Eastern Railway (railway) was directed to reimburse the respondent towards service tax and interest. Brief Facts The dispute emerged from the contract...

AO Can't Refer Assessee's File To Joint Commissioner For Levying Penalty U/S 271D Of IT Act Without Recording “Satisfaction”: Delhi HC

The Andhra Pradesh High Court has held that an Assessing Officer cannot refer an assessee's file to the Joint Commissioner of Income Tax for levying penalty under Section 271D of the Income Tax Act, 1961 without recording its “satisfaction”.Section 271D of the Income Tax Act prescribes the penalty to be imposed on a taxpayer for taking loan or deposits in contravention of Section 269SS. As per Section 269SS, all loans or deposits of over Rs.20,000 must be taken through banking...

[Income Tax] Non-Functionality Of TRACES Portal Can't Be Ground To Deny Benefit Of Statutory Rights To Assessee: MP High Court

The Madhya Pradesh High Court has made it clear that non-functionality of Income Tax Department's TRACES Portal cannot be grounds for denying the benefit arising to an assessee under statutory provisions of the Income Tax Act, 1961. A division bench of Justices Vivek Rusia and Anuradha Shukla thus held that an assessee' TDS refund cannot be denied merely on the ground that functionality of 'adjustment of refund' against outstanding demand made by the Department is not presently...

Due Date For Employer To Deposit Employee's Contribution To PF Not Governed By S.43B Income Tax Act: Rajasthan HC Reiterates

The Rajasthan High Court has reiterated that share of the employee in the provident fund deducted by the employer, has to be deposited as per the due date fixed by the EPF Act and ESI Act, and not as per Section 43B of the Income Tax Act, 1961. The Scheme framed under Employees' Provident Funds and Miscellaneous Provisions Act, 1952 (EPF Act) provides that employee's contribution shall be deposited with the Central government “within fifteen days of the close of every month”. ...

S.11A Central Excise Act | Revenue Can't Recover Refunded Cess Merely Because SC Judgment Permitting Refund Was Later Overruled: Sikkim HC

The Sikkim High Court recently criticized the Siliguri GST and Excise Commissionerate for seeking to recover the cess refunded to the claimants in terms of Supreme Court's judgment in M/s SRD Nutrients (P) Limited vs. CCE, (2018), on the basis of a subsequent judgment overruling it. The Apex Court in M/s SRD Nutrients (supra) had held that when payment of Excise Duty is exempt under the Central Excise Act, 1944, then the 2% Education Cess and Secondary and Higher Education Cess payable...

Taxpayer Can't Claim Credit Against Tax Payable In India If He Has Not Paid Any Tax In Country Where He Sourced Income: Mumbai ITAT

While observing that the assessee is a resident of India in terms of Article 4(2)(a) of the Indo-US DTAA, the Mumbai ITAT held that all his income derived in the USA, is chargeable to tax in India by virtue of the provisions of section 5 of the Income tax Act.Since the income tax return filed by the assessee in the USA, does not show that he is paid any tax in the USA, therefore, the ITAT clarified that in the absence of any payment of tax in the country of source, no credit is available against...

Capital Gains Arising Out Of Sale Of Long-Term Capital Assets Shall Be Taxable At Rate Of 20% U/S 112 Of IT Act: Mumbai ITAT Special Bench

While observing that the deeming fiction of section 50 cannot be imported u/s 112, the Mumbai ITAT in a split verdict ruled that capital gains u/s 50 of Income tax Act, arising out of sale of long-term capital assets, shall be taxable at rate of 20% u/s 112 of the Act. Section 50 of Income tax Act is a special provision for computation of capital gains in case of depreciable assets, whereas Section 112 deals with income arising from transfer of long-term capital asset. Relying upon...

Absence Of Controlling Interest Renders Sale Of Shares By Spanish Entity Not Taxable In India As Per Indo-Spain DTAA: Mumbai ITAT

The Mumbai ITAT held that capital gain arising out of transfer of shares of an Indian entity cannot be taxed at hands of foreign entity in India, if foreign entity has less than 10% shareholding in such Indian entity. The ITAT held so while referring to UN Model Convention commentary, which states that the provisions of Article 14(4) come into effect to prevent the case of indirect transfer of ownership of immovable property by transfer of shares owning these properties. The ...

Additions Made Under Income Tax Act Have No Bearing Under Black Money Act: Mumbai ITAT

The Mumbai ITAT held that any addition made as undisclosed foreign income and asset under the Black Money Act (BMA), shall not be repeated under the Income Tax Act. However, since there is no corresponding provision under the Income tax Act, the ITAT clarified that additions made under the Income tax Act have no bearing under the BMA. Single Third Member Bench comprising Narendra Kumar Billaiya (Accountant Member) observed that the entire BMA revolves around taxing only...

Assessee's Failure To Respond To Draft Assessment Order In Timely Manner No Grounds For AO To Exceed Limitation U/S 144C(4) Of IT Act: Delhi HC

The Delhi High Court has made it clear that an assessee's failure to timely respond to the 'draft assessment order' issued under Section 144C of the Income Tax Act, 1961 does not give leeway to the Assessing Officer (AO) to exceed the limitation period for passing the final assessment order. Section 144C prescribes special procedure whereby an 'eligible assessee' is issued a draft assessment order. The assessee is required to respond to the draft order within thirty days, by either...

Goods Shall Be Released Provisionally If Assessee Demonstrates Inclusion Of Transaction In GSTR-1 Return: Madras High Court

The Madras High Court stated that if the assessee is able to demonstrate that the transaction is included in the GSTR-1 Return, the goods shall be released provisionally. The Bench of Justice Mohammed Shaffiq directed the assessee to submit a copy of the GSTR-1 report, as it would reveal whether the subject transaction was disclosed as a zero-rated sale. Section 54 of the Central Goods and Services Tax Act, 2017 applies to persons who have paid a tax or any other amount, such as...

GST Exemption On 'Reinsurance Services' In Relation To Govt Insurance Schemes Applies With Retrospective Effect From July 01, 2017: Delhi HC

The Delhi High Court has held that GST exemption on foreign reinsurance services in relation to government insurance schemes applies with retrospective effect, from July 1, 2017 onwards. This was in light of the fact that though the exemption was notified only on July 27, 2018, the government regularized GST liability on such services for the period from July 01, 2017 till July 26, 2018. Entry 40 in Notification No.12/2017 exempts GST liability on reinsurance services provided to...