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...

Claim Of Advertisement Expenditure By Hospital Violative Of Indian Medical Council Act 1956: ITAT

The Visakhapatnam Bench of Income Tax Appellate Tribunal (ITAT) has held that the claim of advertisement expenditure by hospitals is violative of the Indian Medical Council Act 1956 professional conduct, Etiquette and Ethics Regulations, 2002.The bench of Duvvuru Rl Reddy (Judicial Member) and S Balakrishnan (Accountant Member) has observed that Chapter 6 of the Indian Medical Council Act, 1956, professional conduct, etiquette, and ethics Regulations, 2002, prohibits even institutions and...

Income Tax Deduction Allowable To Interest Income 'Attributable' To Cottage Industry Business: ITAT

The Chennai bench of Income Tax Appellate Tribunal (ITAT) has held that the income tax deduction allowable to interest income 'attributable' to cottage industry business.The bench of S.S. Viswanethra Ravi (Judicial Member) and S. R. Raghunatha (Accountant Member) has observed that the assessee is a 'cottage industry' and the interest income earned by the assessee is in its regular course of its operations and does forms part of the revenue 'attributable' to the operations of the society as a...

CESTAT Weekly Round-Up: 11 To 17 August 2024

No Service Tax Payable On Laying Down Water Supply Pipelines For Govt.: CESTATCase Title: M/s Electrosteel Castings Limited Versus Commissioner of Service Tax, KolkataThe Kolkata Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that the assessee is not liable to pay service tax for the activity undertaken by them for laying down the pipelines for government/government undertakings for supply of water from KWA in Thiruvananthapuram City.Arranging Package Tour Can't...

ITAT Weekly Round-Up: 11 To 17 August 2024

ITAT Declines To Stay Cancellation Of Exemption Notification To Legal Initiative For Forest And Environment Trust (LIFE)Case Title: Legal Initiative For Forest And Environment (LIFE Trust) Versus PCITThe Delhi Bench of Income Tax Appellate Tribunal (ITAT) has dismissed the stay application filed by assessee-LIFE Trust against the withdrawal/cancellation of registration for exemption granted under section 12A/12AA/12AB from FY 2013-14 onwards. The registration was cancelled on account of...

Direct Tax Weekly Round-Up: 11 To 17 August 2024

Delhi High CourtFailure Of Dept. To Frame Fresh Assessment Should Not Place Assessee In Disadvantageous Position: Delhi High CourtCase Title: Ramesh Chawla Versus ITOThe Delhi High Court has held that the failure or inability of the department to frame a fresh assessment should not place the assessee in a more disadvantageous position than in what he would have been if a fresh assessment was made.Interest Receipts From Non-Convertible Debentures Of Indian AE Are Not Subject To Dividend...

Indirect Tax Weekly Round-Up: 11 To 17 August 2024

Delhi High CourtSCN Lacks Reason For Proposing GST Registration Cancellation: Delhi High Court Revokes CancellationCase Title: Scope Promoters P. Ltd. Versus Commissioner Of Central Goods And Services Tax Delhi & Anr.The Delhi High Court has revoked the GST registration cancellation on the grounds that the show cause notice lacked the reason for proposing to cancel the petitioner's GST registration. It merely stated that proceedings for cancellation of the GST registration have been...

TDS Deducted By Company Already Deposited With Interest: Bombay High Court Quashes Notice Against Directors

The Bombay High Court has quashed the issuance of process served on the directors of the company, M/s. Hubtown Ltd., for offenses punishable under sections 276B and 278B of the Income Tax Act for delay in depositing the TDS as the TDS deducted by the company had already been deposited with interest as provided under section 201(1A).The bench of Justice Prithviraj K. Chavan has observed that the department has chosen not to invoke the provisions of Section 221 read with Section 201 (1) of the...

West Bengal Customs Commissioner Has Jurisdiction Over West Bengal And Sikkim: Calcutta High Court Upholds Seizure

The Calcutta High Court has upheld the seizure and held that the Commissioner of Customs (Preventive), West Bengal, has jurisdiction over the whole of the States of West Bengal and Sikkim.The bench of Chief Justice T.S. Sivagnanam and Justice Hiranmay Bhattacharyya has observed that if the Commissioner of Customs (Preventive), West Bengal, exercises jurisdiction over the whole of the States of West Bengal and Sikkim apart from the Union Territory of Andaman and Nicobar Islands, it cannot be said...

SEZ Unit In India Is A Territory Deemed To Be Outside India, No Excise Duty Payable On Manufacturing Goods: CESTAT

The Ahmedabad Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that the SEZ Act exempts all duties in respect of the goods manufactured in the Special Economic Zones (SEZ). The bench of Ramesh Nair (Judicial Member) and Raju (Technical Member) has observed that since the SEZ unit has been excluded from the levy of the duty of excise, the same exclusion shall apply in respect of the levy of Special Additional Excise Duty (SAED) and Additional Duty of Excise (AED)....

SCN Did Not Indicate Specific Allegation Of Non-Compliance Of Statutory Provision In Invoice: Delhi High Court Quashes SCN And Restores GST Registration

Finding that no document is annexed with the impugned show cause notice (SCN) which provides any clue as to which allegation is sought to be raised against the assessee, the Delhi High Court quashed the SCN. The High Court also clarified that issuance of the show cause notice would be rendered meaningless in absence of any specific allegation. The Division Bench of Justice Vibhu Bakhru and Justice Sachin Datta observed that “The purpose of issuance of the show cause notice is to...