ITAT Calcutta Allows Exemption Registration To Income Tax Bar Association, Sets Aside CIT Order

The Calcutta Bench of Income Tax Appellate Tribunal (ITAT) has allowed the exemption registration to the income tax bar association as the registration application was not time-barred.The bench of Rajpal Yadav (Vice President) and Sanjay Awasthi (Accountant Member) has observed that the procedure adopted by the CIT (Exemption) was incorrect to grant a provisional certificate to the assessee at the first stage and then to deny the regular certificate under Section 80G(5)(iii) of the Income Tax...

RPM Is Most Appropriate Method To Benchmark Transaction Of Purchase Of Solar Goods: ITAT

The Delhi Bench of Income Tax Appellate Tribunal (ITAT) has held that the Resale Price Method (RPM) is the most appropriate method to benchmark the transaction of the purchase of solar goods.The bench of Vikas Awasthy (Judicial Member) and Pradip Kumar Kedia (Accountant Member) has observed that where there is no value addition made before reselling the product, RPM is the most appropriate method. Except for suspicion, the revenue has not been placed on record, and there is no documentary...

Income Tax Deduction Allowable On Expenditure Incurred On Warranty Claim: ITAT

The Delhi Bench of Income Tax Appellate Tribunal (ITAT) has held that the income tax deduction is allowable on expenditures incurred on warranty claims.The bench of Kul Bharat (Judicial Member) and M. Balaganesh (Accountant Member) has relied on the decision of the Supreme Court in the case of Rotork Controls India (P) Ltd., in which it was held that if the facts establish or show that defects existed in some of the items manufactured and sold, then the provision made for warranty in respect of...

Unreasoned Orders By Judicial/ Quasi-Judicial Authorities Violate Natural Justice: Rajasthan High Court Quashes Commercial Tax Assessment Order

The Rajasthan High Court has set aside an assessment order passed by the Commissioner, Commercial Taxes Department, Jaipur (“CCT”) under the Rajasthan Value Added Tax Act, 2003. The Court observed that the assessment order was unreasoned and was passed without any application of mind, violating the principles of natural justice.The assessee had filed his returns for the assessment year 2014-15 claiming input tax credit (“ITC”). However, the demand for ITC was turned down by CCT by passing an...

Service Tax Exemption On Services Of Providing Vehicles On Hire Basis To GTA: CESTAT

The Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that the service tax exemption on services of providing vehicles on a hire basis to the Goods Transport Agency (GTA).The bench of Rachna Gupta (Judicial Member) and Hemambika R. Priya (Technical Member) has observed that the definition of GTA is given under Section 65B(26) of the Finance Act. A person can be said to be a goods transport agency if they provide services in relation to the transportation of...

Deduction Of Trade Discount From Assessable Value Is Admissible On Sale Transactions: CESTAT

The Mumbai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that the deduction of trade discount from assessable value is admissible on sale transactions.The bench of S.K. Mohanty (Judicial Member) and M.M. Parthiban (Technical Member) has observed that the transaction value should be considered as the price at which the CNG were supplied by the appellants to Brihanmumbai Electric Supply and Transport (BEST), and such a price should be considered as the value for...

No Service Tax Exemption On Race Tracks Not Meant For Public Use: CESTAT

The Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that no service tax exemption on race tracks is meant for public use.The bench of Rachna Gupta (Judicial Member) and Hemambika R. Priya (Technical Member) has observed that the race track constructed by the appellant is definitely a "road'. But to avail the benefit of Notification No. 17/2005, the appellant should have constructed a road meant for public use, i.e., a public road or place. The race track...

Colourable Devices To Evade Tax Can't Be Tax Planning, Rules Telangana High Court

The Telangana High Court has held that tax planning may be legitimate, provided it is within the framework of the law. Colorable devices cannot be part of tax planning, and it is wrong to encourage or entertain the belief that it is honorable to avoid the payment of tax by resorting to dubious methods. It is the obligation of every citizen to pay the taxes honestly without resorting to subterfuges.The bench of Justice P.Sam Koshy and Justice Laxmi Narayana Alishetty has relied on the decision of...

Responsibility Of Customs Broker Does Not Include Keeping Continuous Surveillance On Client: CESTAT

The Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that the responsibility of the customs broker under Regulation 10(n) of the Customs Brokers Licensing Regulations, 2018 does not include keeping continuous surveillance on the client.The bench of Dilip Gupta (President) and P.V. Subba Rao (Technical Member) has observed that the responsibility of the customs broker under Regulation 10(n) does not include keeping continuous surveillance on the client to...

Aircraft Used Only For Providing Non-Scheduled Passenger Services Entitled For Customs Exemption: CESTAT

The Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that the aircraft used only for providing non-scheduled passenger services is entitled to customs exemption.The bench of Binu Tamta (Judicial Member) and P. V. Subba Rao (Technical Member) has observed that the conditions of exemption notification were not complied with as the appellant therein had not used the aircraft for rendering any 'Air Transport Service' within the meaning of Rule 3(9) of the Aircraft...

Unsettled Claims As Well As IBNR Would Amount To Contingent Liabilities; Section 37 Deduction Allowable: Delhi High Court

The Delhi High Court has held that the deduction under Section 37 of the Income Tax Act is allowable on unsettled claims as well as Incurred But Not Reported (IBNR), which would amount to contingent liabilities.The bench of Justice Yashwant Varma and Justice Purushaindra Kumar Kaurav has observed that if the historical trend indicates that a large number of sophisticated goods were being manufactured in the past and if the facts established show that defects existed in some of the items...

Auction By Based On Non-Existent Order; Punjab & Haryana High Court Imposes Cost On Income Tax Authorities

The Punjab and Haryana High Court has held that the auction proceedings based on a quashed ex-parte income tax appellate tribunal (ITAT) order by the tax recovery officer are void ab initio.The bench of Justice Sanjeev Prakash Sharma and Justice Sudeepti Sharma has directed the respondent department to restore the properties of the petitioner-HUF from the auction purchasers and subsequent purchasers, assignees, or persons to whom interest has been devolved. The bench held that any transfer of...