"26 December 2010" Archive

Kerala HC-No coercive recovery if first appeal ready for hearing

M/s. Hotel Leela Venture Ltd Vs Agricultural Income Tax & Commercial (Kerala High Court)

The assessee filed appeals before the Commissioner (Appeals) against the assessment orders for AYs 2004-05 to 2008-09. Though the appeals were ripe for hearing and the appellate authority had already posted the appeals for hearing on different dates, the AO without considering the pendency of the appeals issued demand notices...

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Service Tax- FAQ on CENVAT Credit Scheme

The CENVAT Credit Rules, 2004, introduced with effect from 10.9.2004, provides for availment of the credit of the Service Tax paid on the input services/Central Excise duties paid on inputs/capital goods/Additional Customs duty leviable under section...

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Posted Under: Income Tax |

Dispute Resolution Panel should pass a reasoned order/ directions assigning cogent and germane reasons

Delhi High Court held that the directions passed by the Dispute Resolution Panel (DRY), which is a quasi judicial body, should be well reasoned containing cogent and germane reasons and remanded back the non-speaking direction of the DRY for fresh adjudication....

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Posted Under: Income Tax |

Case remanded back to Dispute Resolution Panel (DRP) by ITAT Delhi as DRP directions found to be very laconic and non-speaking

GAP International Sourcing India Private Limited Vs Deputy Commissioner of Income Tax (Delhi High Court)

Recently, the Delhi bench of the Income-tax Appellate Tribunal remitted back the matter to the Disputes Resolution Panel (DRP) for reassessment since the directions of the DRP were found to be very laconic and non-speaking. The Tribunal, while setting aside such directions commented that the DRP has not considered the voluminous submissio...

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Taxability of packaged or canned software

Excise Duty :- Notification No. 30/2010- Central Excise (N. T) dated December 21, 2010 has been issued for levy of excise duty on packaged or canned software on Retail Sale Price basis. • Entry 93A has been inserted in Notification No. 49...

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Posted Under: Income Tax |

Levy of service tax on sale of residential complex not unconstitutional – Punjab and Haryana HC

M/s G.S. Promoters (hereinafter referred to as the Petitioner) is engaged in development and sale of residential flats. The petitioner enter into agreement for construction of flats with the contractors. The flats are ultimately sold to the customers. The petitioner filed the subject petition to seek declaration that the Explanation to Se...

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Posted Under: Income Tax |

HC upholds constitutionality of levy of service tax on residential complex

Punjab and Haryana High Court in the case of G.S. Promoters v. Union of India reported in MIT-2010-574-HC] upheld the constitutionality of the levy of service tax on the deemed service while selling residential complex by builder to buyer. ...

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Posted Under: Income Tax |

Service tax – Procedures related to Levy, Registration, valuation, Payment, Import and Export, Returns, Interest, Recovery and Penalty

Generally, the liability to pay service tax has been placed on the ‘service provider’. However, in respect of the taxable services notified under Sec.68(2) of the Finance Act,1994, the service tax shall be paid by such person and in such manner as ma...

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Posted Under: Income Tax |

Reimbursement of expenses cannot be subject matter of disallowance U/S. 40(a)(i)

DCIT Vs Lazard India Pvt. Ltd. (ITAT Mumbai)

The assessee is a company. It is engaged in the business of corporate and project finance and merchant banking. The assessee had taken premises at Bardy House, Veer Nariman Road, Fort, Mumbai-400 001 on rent. During the previous year, it incurred an expenditure of Rs. 30,94,066/- in connection with renovation of the aforesaid leasehold pr...

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Whenever assessee incurs expenditure for repair and maintenance of a building taken on lease for carrying on its business activity, it has to be allowed u/s 30(a)(i) provided same does not fall in capital field

DCIT Vs Chaya Lakshmi Creations (P.) Ltd. (ITAT Hyderabad)

The assessee has taken on lease a theatre complex consisting of five cinema theatres from M/s Satyam Sayi Corporation (P) Ltd,. During the assessment year under consideration, the assessee has incurred substantial amounts towards consultation charges, interior design, modernization, changing of floor tiles, false ceiling, landscaping, cha...

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