ITSC Empowered To Make Income Tax Addition: Delhi High Court

The Delhi High Court has held that the Income Tax Settlement Commission (ITSC) does not lack jurisdiction to make an addition, which has also been duly recorded in the terms of settlement.The bench of Justice Yashwant Varma and Justice Purushaindra Kumar Kaurav has observed that the objective of the settlement provisions is to strike a balance between the voluntary disclosure of income by the assessee and the income escaping assessment in order to expedite the closure of tax disputes.The dispute...

Order Of ITSC Final And Conclusive For AY For Which Application Has Been Filed: Delhi High Court

The Delhi High Court has held that the order of the Income Tax Settlement Commission (ITSC) is final and conclusive for a particular assessment year (AY) for which the application has been filed.The bench of Justice Yashwant Varma and Justice Purushaindra Kumar Kaurav has observed that the order of the ITSC is deemed to be conclusive for all the matters pertaining to the concerned AY for which the settlement application has been accepted and processed by the ITSC. If the Income Tax Department is...

Filing Appeal In Tax Matters Require Legal, Technical Assistance: Kerala High Court Condones 11 Days Delay

The Kerala High Court, while condoning the delay of 11 days, observed that filing an appeal in tax matters may require legal and technical assistance.The bench of Justice Murali Purushothaman has observed that the reason for not filing the appeal on time was the non-availability of the legal consultant.The bench observed, “the taxation laws and the procedures involved in filing an appeal may be beyond comprehension for a layman assessee.”The petitioner/assessee is a cooperative society. The...

Licence Fees Received Towards Live Transmissions Of Cricket Matches Held In Australia, Not Taxable In India As Royalty: Delhi ITAT

The Delhi Bench of Income Tax Appellate Tribunal (ITAT) has held that the licence fees received by the assessee towards live transmissions of cricket matches held in Australia are not taxable in India as royalty.The bench of G.S. Pannu (Vice President) and Anubhav Sharma (Judicial Member) have observed that Balkrishna Industries Limited (BAL) as sponsor did not have any exclusive rights in the use of the logo of the assessee or the event of Big Bash League. The logo was to be used in restricted...

No Provisions Of Appeal Provided Against An Order Passed By State GST Officer Under IGST Act: Allahabad High Court Admits Writ Petition

The Allahabad High Court has admitted the writ petition stating that the IGST Act lacks provision for appeals provided against an order passed by the state GST Officer.The bench of Justice Saumitra Dayal Singh and Justice Anish Kumar Gupta while admitting the writ petition noted that order passed under the IGST Act, the appeal shall lie before the Central Tax Officer. However, Section 6(3) of the UPGST Act, 2017, specifically excludes the jurisdiction of the Central Tax Officers to...

Service Tax Exemption On Quality Assurance Charges for Testing Rifles: CESTAT

The Chennai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that no service tax is payable on the quality assurance charges for testing rifles.The bench of P. Dinesha (Judicial Member) and M. Ajit Kumar (Technical Member) has observed that the assessee is engaged in an activity that is purely in the public interest and is undertaken as per mandatory and statutory functions. He drew attention to Rule 22 of the Arms Rules, 1962, which states that proof testing of...

Services Provided By IMG Utilized By BCCI Outside India, Income Not Liable To Be Taxed: Delhi High Court

The 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 accrue in India and therefore cannot be taxed in India.The bench of Justice Yashwant Varma and Justice Purushaindra Kumar Kaurav observed that the Tribunal clearly erred in holding that the advice and consultancy services rendered by IMG enabled...

No Service Tax Payable On TDS Paid On Behalf Of Foreign Service Provider: CESTAT

The Chennai Bench of Custom, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that no service tax payable on TDS is paid on behalf of a foreign service provider.The bench of P. Dinesha (Judicial Member) and M. Ajit Kumar (Technical Member) has observed that TDS deposited to the Income Tax Department in relation to the payment made to the foreign service provider over and above the invoice value of the services is not liable to service tax. The appellant and assessee are service...

CESTAT Upholds Adjustment Of Excess Paid Service Tax Towards Subsequent Tax Liability

The Ahmedabad Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has upheld the adjustment made by the appellant/assessee of excess paid service tax towards the subsequent tax liability.The bench of Ramesh Nair (Judicial Member) and C. L. Mahar (Technical Member) has observed that the appellant is entitled either to a refund of 50% of the excess paid service tax or to an adjustment against the excess paid towards the future tax liability. As a result, the adjustment made by...

GST Appeal Filed Online Is Within Time, Karnataka High Court Condones Delay In Physical Filing

The Karnataka High Court has condoned delay in the physical filing of the appeal as the appeal was filed via online mode within time.The bench of Justice S. Sunil Dutt Yadav observed that Rule 108(3) was amended to the extent that the date of appeal would be the date of issuance of acknowledgment, which was on June 3, 2022, and the change is in contradistinction to the earlier requirement, which provided that the date of appeal would be the date of furnishing a certified copy of the order if...

Non-Mentioning Of Service Tax Registration In Invoice Is Procedural Lapse, Cenvat Credit Can't Be Denied: CESTAT

The Ahmedabad Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that cenvat credit cannot be denied for the non-mentioning of service tax registration in the invoice.The bench of Ramesh Nair (Judicial Member) and C. L. Mahar (Technical Member) has observed that the entire basis for denial of cenvat credit is wrong and the credit was wrongly denied. The only discrepancy in the invoice is that the service provider has not mentioned the service tax registration, which...

Gujarat High Court Allows Section 54 Deduction On Cash Transaction Of Sell And Purchase Of Residential Property

The Gujarat High Court has allowed the deduction under Section 54 of the Income Tax Act on the cash transaction of the sale and purchase of residential property.The bench of Justice Bhargav D. Karia and Justice Niral R. Mehta, while quashing the order of the Interim Board for Settlement Commission, denied the deduction of Rs. 2.4 crore with respect to the cash transaction of the sale and purchase of the residential property.Section 54 of the Income Tax Act offers capital gains exemption to...