Tax
CSR Expenditure Is Mandatory, Does Not Justify Disallowance Of Section 80G Deduction: ITAT
The Delhi Bench of Income Tax Appellate Tribunal (ITAT) has held that expenditures under corporate social responsibility (CSR) are mandatory and does not justify disallowance of these expenditures under Section 80G of the Income Tax Act if other conditions of Section 80G are fulfilled. The bench of Anubhav Sharma (Judicial Member) and M. Balaganesh (Accountant Member) has observed that the voluntary nature of donation is by nature the fact that it is not on the basis of any reciprocal promise of...
Receipts From CRM Services Not Taxable In India As Royalty Or FTS: ITAT
The Delhi Bench of Income Tax Appellate Tribunal (ITAT) has held that receipts from Customer Relationship Management (CRM) services are not taxable in India as royalty or Fee for Technical Services (FTS).The bench of Saktijit Dey (Vice President) and Brajesh Kumar Singh (Accountant Member) has observed that on November 26, 2019, the assessee filed a revised return of income, declaring income of Rs. 2,94,91,40,080 towards the subscription fee from CRM services and Rs. 2,69,11,689 towards interest...
Opening And Closing Stock Of The Year Is To Be Valued By Applying Same Methodology: Kerala High Court
The Kerala High Court has held that the stipulation under Clause 16 of the Income Computation and Disclosure Standards (ICDS) for the adoption of first-in, first-out (FIFO) or weighted average cost for valuation of the stock or inventory cannot be applied in the Assessment Year 2017-2018 for the valuation of the opening stock, as the opening and closing stock of the year are to be valued by applying the same methodology.The bench of Justice Dinesh Kumar Singh has observed that the substitution...
Expenditure Incurred By Way Of Addition To Buildings, Electrical Fittings On Leasehold Premises Is Capital Expenditure: Kerala High Court
The Kerala High Court has held that the expenditure that was incurred by the appellant/assessee by way of addition to buildings and electrical fittings on leasehold premises was in the nature of capital expenditure and not revenue expenditure.The bench of Justice Dr. A.K. Jayasankaran Nambiar has observed that the assessing authority and the First Appellate Authority have clearly relied on the written submissions given by the assessee to find that the nature of the expenses incurred by the...
Place Of Outbound Shipment Outside India, No Service Tax On Freight Margin Recovered From Customer: CESTAT
The Ahmedabad Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that the place of provision of service for outbound shipment shall be outside India. Hence, there will be no service tax on the freight margin recovered by the applicant from the customer.The bench of Somesh Arora (Judicial Member) and C.L. Mahar (Technical Member) has observed that the place of provision of service for transportation of goods shall be the place of destination of the goods, as per Rule...
Clandestine Removal Cannot Be Substantiated Without Any Corroborative Evidence: CESTAT
The Kolkata Bench of Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that clandestine removal cannot be substantiated without any corroborative evidence.The bench of R. Muralidhar (Judicial Member) and K. Anpazhakan (Technical Member) has observed that the names of the probable buyers were available in the print out taken from the CPUs. However, no enquiry was caused at the buyer's end and with the transporters by the investigation. No receipts of any consideration towards...
Long-Term Capital Gains Exempted From Income Tax, Non-Disclosure Doesn't Amount To Loss Of Revenue: Gauhati High Court
The Gauhati High Court has held that the long-term capital gains are exempt from income tax, and the non-disclosure while computing the long-term capital gains cannot result in causing prejudice to the department.The bench of Justice Kaushik Goswami has observed that the Principal Commissioner of Income Tax has initiated the proceedings simply on the basis of the proposal of the subordinate authority and has not applied his mind after perusal of the records called for by him, and the very...
'Transit Rent' Can't Be Considered As 'Revenue Receipt', Not Liable To Be Taxed: Bombay High Court
The Bombay High Court has held that 'Transit Rent' is not to be considered a revenue receipt and is not liable to be taxed. As a result, there will be no question of the deduction of TDS from the amount payable by the developer to the tenant.The bench of Justice Rajesh S. Patil has observed that the ordinary meaning of rent would be an amount that the tenant or licensee pays to the landlord or licensee. In the present proceedings, the term used is “transit rent," which is commonly referred to...
“Reason To Believe” U/S 148A(C) Income Tax Act Amended To “Info Which Suggests”; Thorough Consideration Of Assessee's Reply Not Necessary: Allahabad HC
The Allahabad High Court has held that a pointwise consideration of objections that may be raised by an assessee in response to a notice issued to him under Section 148 A(b) is not necessary while passing an order under Section 148A(d) of the Income Tax Act, 1961.Section 148A of the Income Tax Act, 1961 relates to procedure of inquiry to be followed by an Assessing Officer prior to issuance of notice under Section 148 of the Act for income that may have escaped assessment. Section 148A provides...
S.75(4) CGST | Allahabad HC Directs Commissioner To Take Disciplinary Action Against Adjudicating Authorities Violating PONJ Without Justifiable Reasons
While dealing with the non-compliance of mandatory provision for opportunity of hearing under Section 75(4) of the Central Goods and Services Tax Act, 2017, the Allahabad High Court directed the Commissioner, Commercial Tax, Uttar Pradesh to take remedial action, including disciplinary proceedings against erring adjudicating authorities for violating principles of natural justice without justifiable reasons.An order under Section 74(9) (Determination of tax not paid or short paid or erroneously...
Direct Taxes Weekly Round-Up: 19 To 25 May 2024
Delhi High CourtAssessee Can't Be Obstructed From Availing DTVSV Act Benefits Even When Limitation Period For Appeal Hasn't Expired: Delhi High CourtCase Title: PT Bukaka Teknik Utama Versus Commissioner Of Income Tax (IT), Delhi - 2The Delhi High Court has held that the assessee can't be obstructed from availing of the benefits of the Direct Tax Vivad se Vishwas Act, 2020 (DTVSV Act) even where the time limit for an appeal has not expired.'Co-Ordinated Investigation' For Prevention Of Tax...
CESTAT Cases Weekly Round-Up: 19 To 25 May 2024
Bus Meant For Carrying Passengers, Can't Be Called Means Of Transport Of Goods, Service Tax Payable: CESTATCase Title: M/s. Rajasthan State Road Transport Corporation Versus Commissioner of Central Excise and Service Tax CommissionerateThe Delhi Bench of Customs, Excise and Service Tax Appellate (CESTAT) has held that service tax is payable on buses meant for carrying passengers and cannot be called means of transport of goods.Broomsticks Made Up Of Plastic Not Using Vegetable Material Taxable...