Exemption Allowable On Donations Made By One Charitable Trust To Other Charitable Institutions For Temporary Period: Delhi High Court

The Delhi High Court has held that exemption is allowable on donations made by one charitable trust to other charitable institutions for a temporary period.The bench of Justice Yashwant Varma and Justice Purushaindra Kumar Kaurav has observed that Section 11(3) of the Income Tax Act and the adverse consequences would have been attracted provided the incomes so accumulated were diverted for a purpose other than charitable or religious, or where they were not utilized for the purpose for which...

Non-Compete Fee To Be Treated As “Revenue Receipt” From 01.04.2003: ITAT

The Mumbai Bench of Income Tax Appellate Tribunal (ITAT) has held that the non-competitive fee received by the assessee is treated as 'revenue receipt' in the hands of the assessee but only post-amendment, i.e., w.e.f. 01.04.2003.The bench of Kavitha Rajagopal (Judicial Member) and Om Prakash Kant (Accountant Member) has observed that the amendment to Section 28(va) of the Finance Act, 2002 is only w.e.f. 01.04.2003 relevant to A.Y. 2004-05 onwards and does not have a retrospective effect for...

Under-Reporting And Misreporting Are Viewed As Separate And Distinct Misdemeanours; Delhi High Court Quashes Penalty

The Delhi High Court, while quashing the penalty, has held that both under-reporting and misreporting are viewed as separate and distinct misdemeanours.The bench of Justice Yashwant Varma and Justice Purushaindra Kumar Kaurav has observed that, as per Section 270A(1), a person would be liable to be considered to have under-reported their income if the contingencies spoken of in clauses (a) to (g) of Section 270A(2) were attracted. In terms of Section 270A(3), the under-reported income is liable...

Section 80G Deduction Allowable On CSR Expenditure: ITAT

The Mumbai Bench of Income Tax Appellate Tribunal (ITAT) has held that the deduction under Section 80G of the Income Tax Act is allowable on the expenditure in respect of corporate social responsibility (CSR).The bench of Kavitha Rajagopal (Judicial Member) and Om Prakash Kant (Accountant Member) has observed that the amendment brought about by the Finance Act, 2015, to Section 80G of the Act, which inserted the subclauses (iiihk) and (iiihl) to be the exception for qualifying a donation for...

[Central Excise Act] Fixing Consecutive Dates of Hearing on Very Short Notice Violative of Opportunity of Hearing U/S 33A: Allahabad High Court

The Allahabad High Court has held that fixing consecutive dates of hearing within the period of a week would be violative of the opportunity of hearing as envisaged under Section 33A of the Central Excise Act, 1994.Section 33A of the Central Excise Act provides that opportunity of hearing be given to a party in a proceeding under the Act, if desired by them. Further, it lays down the procedure for granting adjournment in adjudication proceedings to either of the parties on the condition that a...

Cash Deposits Made From Assessee's Parents Accumulated Savings And Income From Agricultural Activities; ITAT Deletes Addition

The Ahmedabad Bench of Income Tax Appellate Tribunal (ITAT) has deleted the addition made by the department as the cash deposits made from the assessee's parents accumulated savings and income from agricultural activities.The bench of Suchitra Kamble (Judicial Member) and Makarand V. Mahadeokar (Accountant Member) has observed that when the assessee provides a plausible explanation supported by affidavits, it is the duty of the revenue to conduct proper verification before making any adverse...

Computation Of 6 Assessment Years For Search Assessments U/S 153C Starts From Date Of Receiving Seized Documents: ITAT

The Delhi Bench of Income Tax Appellate Tribunal (ITAT) has held that the computation of six assessment years for search assessments under Section 153C of the Income Tax Act starts from the date of receiving seized documents.The bench of Saktijit Dey (Vice President) and Naveen Chandra (Accountant Member) has relied on the decision of the Supreme Court in the case of CIT vs. Jasjit Singh, in which it was held that under Section 153C, a third party would only have to furnish income tax returns...

Can't Examine Officials Of Tax Dept. On Enquiry Report Based On F-Forms Submitted By Dealer: Andhra Pradesh High Court

The Andhra Pradesh High Court has held that the assessee or petitioner does not have a right to cross-examine the officials of the Tax Department of Bombay on the F-Forms submitted by the dealer.The bench of Justice Ravi Nath Tilhari and Justice Harinath Nunepally has observed that the tax proceedings are of a quasi-judicial nature. The tax authorities are bound to comply with the principles of natural justice, though they are not strictly bound by the rules of evidence. The rule that requires...

Claim For Sales Tax Exemption In Respect Of Transit Sales To Be Justified By Showing Sale As Having Occurred In Transit: Kerala High Court

The 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.The bench of Justice A.K. Jayasankaran Nambiar and Justice Syam Kumar V.M. has observed that the petitioner/assessee cannot establish the transit sales by showing the sale as having occurred in transit since the E1 Forms relied on by the assessee have been accounted for only in a subsequent year, which could only be after the transportation of...

No Disallowance Under Section 14A Of Income Tax Act Is Warranted In Respect Of Investments Not Yielding Tax Free Income: ITAT

The Mumbai Bench of Income Tax Appellate Tribunal (ITAT) has held that disallowance has to be worked out on the basis of investment which yielded dividend during the year and not by factoring in the total amount of investment.The bench of Amit Shukla (Judicial Member) and Renu Jauhri (Accountant Member) has observed that no disallowance under section 14A of the Income Tax Act is warranted in respect of investments not yielding tax free income for the appellant. As per Section 14A, the...

ITAT Quashes Assessment Order Against Bret Lee As Reassessment Notice Not Served Within Limitation Period

The Chennai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that the royalty is not included in the transaction value of the imported raw materials to demand any differential customs duty.The bench of Sulekha Beevi C.S. (Judicial Member) and Vasa Seshagiri Rao (Technical Member) has observed that the royalty payment is only for providing technical assistance for the manufacture and sale of licensed products, and the import of raw materials is incidental to such...

CESTAT Cases Weekly Round-Up: 26 May To 01 June 2024

Set Top Boxes Satisfy Definition Of 'Inputs', Dish TV Entitled To 100% Credit: CESTATCase Title: M/s Dish TV India Ltd. Versus Commissioner of CGST, NoidaThe Allahabad Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT)has held that Dish TV is entitled to 100% credit as the set top boxes satisfy the definition of 'Inputs'.Dept. Can't Re-Determine MRP Of Laptops Imported By Acer India Supplied With Laptop Bag: CESTATCase Title: M/s. Acer India (Pvt.) Ltd. Versus Commissioner of...