AO's Failure To Make Proper Enquiry On Bogus Claim Of LTCG By Sale Of Shares; Calcutta High Court Upholds Revision Order

The Calcutta High Court has upheld the revision order passed by the Principal Commissioner of Income Tax (PCIT) under Section 263 of the Income Tax Act, as the AO failed to make a proper inquiry on the bogus claim of long-term capital gain (LTCG) by the sale of shares.The bench of Chief Justice T.S. Sivagnanam and Justice Hiranmay Bhattacharyya has observed that in the order under Section 263 of the Act, which shows that the PCIT has applied its mind, it came to the prima facie conclusion that...

Income From Reselling Of Subscription Based Product Is Royalty: ITAT

The Mumbai Bench of Income Tax Appellate Tribunal (ITAT) has held that the income from the reselling of subscription-based products is royalty.The bench of Kavitha Rajagopal (Judicial Member) and Om Prakash Kant (Accountant Member) has observed that the assessee has sold not only the digital product but also all copyrights therein, which squarely falls under the definition of 'royalty' both under Article 12 of the Double Taxation Avoidance Treaty (DTAA) between India and Ireland and provisions...

Redemption Fine And Penalty Can Be Imposed On Re-export Of Prohibited Goods: CESTAT

The Chennai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that a redemption fine and penalty can be imposed on the re-export of prohibited goods. Section 125 enables the Customs Officer to grant an option to the owner or the person from whose possession the goods have been seized to pay a fine in lieu of confiscation. In an adjudication proceeding as in the present case these are the provisions which would come into play. If the owner gets the goods released...

Direct Tax Cases Weekly Round-Up: 02 To 08 June 2024

Delhi High CourtOnce Issue Of Arm's Length Remuneration Settled By TPO, Question Of Ascertaining Existence Of PE Is Academic; Delhi High Court Quashes Reassessment ProceedingsCase Title: Progress Rail Locomotive Inc. (Formerly Electro Motive Diesel Inc.) Versus Deputy Commissioner Of Income-TaxCitation: 2024 LiveLaw (Del) 671The Delhi High Court, while quashing the reassessment proceedings initiated by the income tax department against the Caterpillar Group, held that once the issue of arm's...

Indirect Tax Cases Weekly Round-Up: 02 To 08 June 2024

Kerala High CourtClaim For Sales Tax Exemption In Respect Of Transit Sales To Be Justified By Showing Sale As Having Occurred In Transit: Kerala High CourtCitation: 2024 LiveLaw (Ker) 336Case Title: M/S.I.T.I.LTD Versus State Of KeralaThe Kerala High Court has held that a claim for exemption in respect of transit sales must be justified by showing the sale as having occurred in transit.Time Limit To Avail ITC Is Till 30th November In Each Financial Year From Beginning Of GST Regime: Kerala High...

Rotary Car Parking System Is Civil Structure, GST ITC Not Admissible: AAR

The Tamil Nadu Authority of Advance Ruling (AAR) has ruled that input tax credit (ITC) is not admissible on rotary car parking systems.The bench of D. Jayapriya and A. Valli observed that the Rotary car parking system is an infrastructure with the aim of catering to the need for greater urban density and compactness in cities and to make better use of scarce land. The Rotary car parking system provides additional space to park the vehicles depending upon the number of storeys built or preferred....

Infant Food Products Containing Milk And Other Ingredients Subject To 18% GST: AAR

The Rajasthan Authority of Advance Ruling (AAR) has ruled that infant food products containing milk and other ingredients are subjected to 18% GST.The bench of Mahipal Singh and Mahesh Kumar Gowla has observed that, as per Chapter 19, milk products are one of the constituents of the final product, whereas Chapter 4 deals with milk products only. The principle or dominant item of the applicant is the manufacturing of infant milk formula containing cereals, protein supplements, etc., which is a...

Delhi High Court Quashes Reassessment Notice Issued After 10 Years

The Delhi High Court has quashed the reassessment notice which was issued beyond 10 years.The bench of Justice Yashwant Varma and Justice Purushaindra Kumar Kaurav has observed that any action for reassessment pertaining to an AY prior to April 1, 2021, can be sustained only if it is compliant with the timeframes specified under Section 149(1)(b), Section 153A, or Section 153C, as the case may be, and on the basis of those provisions as they existed prior to the commencement of the Finance Act,...

18% GST Applicable On ZlD Treated Water: AAR

The Gujarat Authority of Advance Ruling (AAR) has ruled that 18% GST is applicable on Zero Liquid Discharge (ZLD) treated water.The bench of Amit Kumar Mishra and Milind Kavatkar has observed that the water obtained from the Common Effluent Treatment Plant (CETP), which has further undergone the processes of ultrafiltration and reverse osmosis in the ZLD plant, has a small amount of dissolved minerals and chemicals and is virtually free from all types of toxic materials. This treated water is...

5% GST Payable On Mix Mukhwas And Roasted Til & Ajwain: AAR

The Gujarat Authority of Advance Ruling (AAR) has ruled that 5% GST is payable on Mix Mukhwas, Roasted Til, and Ajwain.The bench of Amit Kumar Mishra and Milind Kavatkar has observed that both the products, Mix Mukhwas and Roasted Til and Ajwain, mainly comprise sesame seeds, with 60% of the first product and 97% of the second product. The process undertaken on the said seeds of cleaning, mixed with a salt and citric acid solution for slating purposes, roasting, and adding turmeric powder does...

Time Limit To Avail ITC Is Till 30th November In Each Financial Year From Beginning Of GST Regime: Kerala High Court

The Kerala High Court has held that the time limit to avail ITC is November 30th in each financial year from the beginning of the GST regime.The bench of Justice Dinesh Kumar Singh has observed that prior to the amendment in Section 39 by the Finance Act 2022, the date for furnishing the return under Section 39 was September 30th. Considering the difficulties in the initial stage of the implementation of the GST regime, the Legislature made the amendment and extended the time for filing the...

Shed Of 500 Mtr. On Agricultural Land Can't Be Considered As Residential House, Section 54F Exemption Not Allowable: ITAT

The Delhi Bench of Income Tax Appellate Tribunal (ITAT) has denied the exemption under Section 54F of the Income Tax Act on the 500-meter shed made on agricultural land that cannot be considered a residential house.The bench of Kul Bharat (Judicial Member) and B. R. R. Kumar (Accountant Member) has observed that the size of the residential house is not a criteria for claiming exemption under Section 54F. The very fact that there existed any residential house and whether the assessee constructed...