Deduction Can't Be Availed On Expenditure Incurred For Overseeing Project Of Holding Company: Telangana High Court

The Telangana High Court has held that deductions cannot be availed on expenditures incurred for overseeing the project of holding a company.The bench of Justice P. Sam Koshy and Justice Laxmi Narayana Alishetty has observed that, as per Section 37 of the Income Tax Act, 1961, the prerequisites for allowing deduction are that the expenditure should have been incurred in respect of a business carried on by the assessee and should be spent wholly and exclusively for its own business. The bench...

Breakwater-Wall For Ship-Safety Not 'Plant And Machinery', GAIL Subsidiary Not Eligible For ITC: Bombay High Court

The Bombay High Court has held that the breakwater wall or accropode that are essential certainly do not qualify as plant and machinery. The breakwater wall can hardly be called “plant or machinery." Accropodes lose their identity when a breakwater wall is constructed using accropode.The bench of Justice K. R. Shriram and Justice Jitendra Jain has observed that Explanation to Section 17 also provides that “plant and machinery” should be used for making outward supply of goods or services. The...

Cellular Mobile Service Providers Not Obliged To Deduct TDS On Income Received By Distributors: Calcutta High Court

The Calcutta High Court has held that the cellular mobile service providers are not obliged to deduct the tax at source (TDS) on income received by distributors/franchisees from customers.The bench of Justice Surya Prakash Kesarwani and Justice Rajarshi Bharadwaj has relied on the decision of Supreme Court in the case of Bharti Cellular Limited Vs. Assistant Commissioner of Income Tax Circle-57, Kolkata and Anr. In Which It Was Held That The Assessees Would Not Be Under A Legal Obligation To...

Admission Fee Charged From Students Forms Part Of Corpus Donation: Gujarat High Court

The Gujarat High Court has held that the admission fee charged by the students forms part of the corpus donation of the trust.The bench of Justice Bhargav D. Karia and Justice Niral R. Mehta has observed that the donation is bound to have been given for material gain in securing admission; the same cannot be characterised as a donation towards a charitable purpose, and the appellant would not be entitled to have the benefit, but in the facts of the case, in the absence of any material on record,...

Income Tax Addition Can't Be Made On Cash Deposits During Demonetization Period: Delhi ITAT

The Delhi Bench of Income Tax Appellate Tribunal (ITAT) has held that the department is precluded from making any addition under Section 68 of the Income Act in respect of the cash deposits made into bank accounts during the demonetization period.The bench of Challa Nagendra Prasad (Judicial Member) and Avdhesh Kumar Mishra (Accountant Member) has observed that there cannot be any addition under Section 69A of the Income Tax Act in respect of cash deposits made by the assessee into its bank...

Bombay High Court Quashes Customs Duty Reassessment Against Patanjali Foods On Crude Palm Oil Import

The Bombay High Court has quashed the customs duty reassessment against Patanjali Foods on the import of crude palm oil for home consumption.The Bench of Justice K. R. Shriram and Justice Jitendra Jain has observed that the rate in force would be the rate that was in force on the date and time of presentation, and in Patanjali's case, since self-assessed bills of entry were already presented before the enhanced rate came into force, the rate payable would be USD 1163 PMT. The said notification...

CESTAT Weekly Round-Up: 30 June To 6 July, 2024

Hybrid/Pure Matrix Cards For PTN Equipment Classifiable Under CTI 8517 70 10: CESTAT Quashes Customs Duty Against Vodafone IdeaCase Title: Vodafone Idea Limited Versus Principal Commissioner of CustomsThe Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that Hybrid/Pure Matrix Cards for PTN Equipment would be classifiable under CTI 8517 70 10 as “parts of goods, and Small Form Factor Pluggable for Packet Transport Network (PTN) Equipment would be classifiable...

Direct Tax Weekly Round-Up: 30 June To 6 July, 2024

Delhi High CourtServices Provided By IMG Utilized By BCCI Outside India, Income Not Liable To Be Taxed: Delhi High CourtCase Title: International Management Group (Uk) Limited Versus Commissioner Of Income Tax-2, International Taxation, New DelhiThe Delhi High Court has held that services provided by International Management Group (IMG) are utilized by the Board of Control for Cricket in India (BCCI) outside India, so the income determined as Fee for Technical Services (FTS) cannot be deemed to...

Indirect Tax Weekly Round-Up: 30 June To 6 July, 2024

Bombay High CourtTransportation Of Machinery From JNPT To Factory Doesn't Constitute Supply, GST Not Payable: Bombay High CourtCitation: 2024 LiveLaw (Bom) 318Case Title: Fabricship Pvt. Ltd. Versus UOIThe Bombay High Court has held that transportation of machinery from Jawaharlal Nehru Port Authority (JNPT) to the factory of the assessee does not constitute supply, and hence GST is not payable.GST Regime At Nascent Stage; Bombay High Court Quashes Order Rejecting IGST RefundCitation: 2024...

Kerala High Court Quashes Order Demanding Late Fee For Delay In Filing GSTR-9C

The Kerala High Court has quashed the order demanding a late fee for delay in filing GSTR-9C.The bench of Justice Murali Purushothaman relied on the decision of Kerala High Court in the case of Anishia Chandrakanth v. the Superintendent, Central Tax & Central Excise, in which it was held that in view of Notification No. 07/2023-Central Tax and Notification No. 25/2023, there appears to be no justification in continuing with the notices for non-payment of the late fee for belated GSTR-9C...

AO Can't Review Its Own Order: Delhi High Court

The Delhi High Court has held that the Assessing Officer (AO) cannot review its own order.The bench of Justice Yashwant Varma and Justice Purushaindra Kumar Kaurav has observed in the extract of the impugned corrigendum that no new material has been found by the department, which would warrant reopening the assessment. The corrigendum has been issued merely on the basis of a change of opinion, as two different conclusions are being drawn on the basis of the same material, i.e., the audited final...

Transfer Of Depreciable Capital Assets Attracts Capital Gains Tax: Kerala High Court

The Kerala High Court has held that the transfer of the depreciable capital assets attracted capital gains tax under Section 45(4) of the Income Tax Act, in the absence of distribution of any capital asset among the partners following a dissolution of the appellant firm.The bench of Justice A.K. Jayasankaran Nambiar and Justice Syam Kumar V.M., while upholding the order of the tribunal that the charge of short-term capital gains had to be in accordance with the provisions of Section 45(4) of the...