Service Tax Not Payable On Revenue Sharing Arrangement Between Exhibitors & Distributors Of Films: CESTAT

The Mumbai Bench of Customs, Excise, and Service Tax (CESTAT) has held that the no service tax is payable on revenue sharing arrangements between exhibitors and distributors of films.The bench of Justice Dilip Gupta (President) and C. J. Mathew (Technical Member) has observed that the theatre owner screens or exhibits a movie that has been provided by the distributor. Such an exhibition is not a support or assistance activity but is an activity of its own accord. The activity cannot fall under...

Kopiko Is A Sugar Confectionary, Classifiable Under Heading 1704: CESTAT

The Ahmedabad Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that 'Kopiko (cappuccino and espresso varieties)' contains more than 74% sugar and glucose and is classifiable under heading 1704. The bench of Ramesh Nair (Judicial Member) and Raju (Technical Member) has observed that the product 'Kopiko' is described in heading 1704 and the description given in 2101 is more general for the reason that the sugar confectionery is a specific product, whereas the...

Bombay High Court Imposes Fine On JAO & Chief Commissioner For Disregarding Binding Judgement

The Bombay High Court has imposed a fine of Rs. 25000/- on the Jurisdictional Assessing Officer (JAO) for disregarding the binding judgment passed in the case of Hexaware Technologies Limited vs. Assistant Commissioner of Income Tax & 4 Ors., in which it was held that under the faceless assessment scheme introduced by Section 151A of the Income Tax Act, 1961, the National Faceless Assessment Centre (NFAC) has exclusive jurisdiction to issue reassessment notices.The bench of Justice G. S....

Section 80-IA(7) Deduction Can't Be Denied For Failure To Digitally File Audit Report: Delhi High Court

The Delhi High Court has held that the deduction under Section 80-IA(7) of the Income Tax Act cannot be denied for the mere failure of the assessee to digitally file an audit report.The bench of Justice Yashwant Varma and Justice Ravinder Dudeja has observed that Audit Report was duly furnished to the AO and was available to be scrutinised and examined by that authority during the assessment proceedings, the provisions of Section 80-IA(7), as it stood prior to the amendments introduced in 2020,...

Amount Paid For Obtaining Mining Rights In E-Auctions Can't Be Construed As Income; Delhi High Court Quashes Reassessment Order

The Delhi High Court has quashed the reassessment order and held that the amount paid for obtaining mining rights in e-auctions cannot be construed as income.The bench of Justice Yashwant Varma and Justice Tara Vitasta Ganju has observed that the Department of Mines and Geology had merely provided to the AO the total amount paid by the petitioner for obtaining mining rights in the e-auctions that were conducted. The said amount clearly cannot be counted as the income of the assessee for the...

Rehabilitation Allowance received On Account Of Re-Development Of Society Can't Be Treated As Income: Mumbai ITAT

Referring to the decision of the Bombay High Court in case of Sarfaraz S. Furniturewall [Writ Petion No. 4958 of 2024], the Mumbai ITAT held that rehabilitation allowance paid by the developer to its resident customer who had suffered hardship due to dispossession on account of re-development, cannot be treated as income in hands of recipient. Single Bench of Prashant Maharishi (Accountant Member) observed that “It is undisputed fact that assessee is also receiving the hardship...

Import Of Floodlight For World Cup On Duty Exemption, SCN To Pay Duty, On Assumptions And Presumptions: CESTAT

The Chennai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that the customs duty exemption is allowable on the use of flood lights installed in the stadium for all matches, including the conduct of one-day international matches.The bench of Sulekha Beevi C.S. (Judicial Member) and Vasa Seshagiri Rao (Technical Member) has observed that the ad hoc exemption order was issued with certain conditions. The second condition of the order states that the goods shall not...

Software Expenses Are 'Revenue In Nature' If Fixed Capital Did Not Undergo Any Change Consequent To Acquisition Of Licensed Software: Mumbai ITAT

Referring to the decision in case of DCIT v/s M/s First Advantage Private Limited [ITA No. 6659/Mum/2013], the Mumbai ITAT held that software license expenses incurred by assessee to carry out its routine operations in a more efficient manner, has to be treated as revenue expenditure. The ITAT held so after finding that the fixed capital of assessee did not undergo any change as a consequence of the acquisition of the licensed software. The Division Bench of Sandeep Singh Karhail ...

Gift Received From Non-Resident Brother Is Exempt From Taxation In India : Mumbai ITAT

Finding that Assessee has proved identity, creditworthiness and genuineness of the gift received as well as relationship with donor, the Mumbai ITAT held that gift from brother is not chargeable to tax in the hands of the assessee being relative of the donor. Single Bench of Prashant Maharishi (Accountant Member) observed that “the amount of Rs. 20,00,000/- received by the assessee clearly shows that above amount is not the income of the assessee. Despite above information being...

Applications For Condonation Of Delay, Should Not Be Too Hyper-Technical: Kerala High Court

The Kerala High Court has held that the applications for condonation of delay should have been considered without being too hyper-technical and in a judicious manner.The bench of Justice Gopinath P. has observed that the delay in filing the audit report in Form-10B can at best be 30 days, as the law only requires that the audit report be uploaded at least a month before the due date for filing returns. The Commissioner exercised his jurisdiction under Section 119(2)(b) of the Income Tax Act,...

ESOP Employee Without Any Contractual Obligation is , Perquisite', Taxable As Salary U/s 17(2) : Madras High Court

While pointing out that the payment by FPS was not made towards the ESOPs as the Assessee continues to hold the ESOP (Employee Stock Option Purchase) even after the receipt of the compensation, the Madras High Court held the receipt in hands of Assessee qualifies as perquisite and taxable under the head 'Salaries'. Hence, the High Court refuses to allow 'Nil' certificate of tax deduction u/s 192 in reference to such compensation, which is to be treated as perquisite in lieu of ...

Income Declaration Scheme 2016, Assessee Deposited Amount, Dept. Claim Erroneous; Bombay High Court

The Bombay High Court has directed the department to issue certificates as the assessee deposited all amounts under the Income Declaration Scheme, 2016 (IDS).The bench of Justice G. S. Kulkarni and Justice Somasekhar Sundaresan has observed that the petitioner or assessee in fact complied with all the requirements under the IDS, and the appropriate amount of tax deposited is sufficient to accept the case of the petitioner. Thus, the assessment order cannot be held to be legal. It would be...