"28 November 2012" Archive

Service Tax on Renting of Immovable Property – Section 66E(A)

Renting has been defined w.e.f. 1.7.2012 in section 65B(41) as allowing, permitting or granting access, entry, occupation, usage or any such facility, wholly or partly, in an immovable property, with or without the transfer of possession or control of the said immovable property and includes letting, leasing, licensing or other similar ar...

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No Misconduct by CA if arbitrator of client accepts controversial balance sheet

Ameyas Infraprojects (P.) Ltd. Vs Ajay B. Garg (Bombay High Court)

Considering the fact that the dispute between the partners in respect of the accounts of the said firm was referred to the arbitrator who was an independent person and the said arbitrator looking to the entire evidence has accepted the balance-sheet audited by the 1st Respondent as correct, we see no reason to interfere with the prima fac...

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‘No concession no perquisite’ is for employee and not for employer for TDS Deduction – SC

Regional Dir. ONGC Ltd. Vs Assn. of Sc. & Tech. Offr. ONGC Ltd. (Supreme Court in India)

Scheme of the Act provides that after the employer deducts from the salary of the employee the tax and pays the same to the Central Government, a Tax Deduction Certificate is furnished to the employee and it is for the employee to claim before the Assessing Officer in the assessment proceedings and get a determination done and in case he ...

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Service tax can be demanded only if residential complex comprises more than 12 residential units

A.S. Sikarwar Vs Commissioner of Central Excise, Indore (CESTAT Delhi)

Hon'ble Supreme Court and the Hon'ble Supreme Court has dismissed the appeal filed as reported at 2012 (25) J514 (SC). So we consider that this matter is no longer res integra and service tax can be demanded under section 65(105)(zzzh) only if the building concerned has more than 12 residential units in the building and such levy will no...

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Foreign travel expenditure on Pleasure Trip not allowable

Creamline Dairy Products Ltd. Vs DCIT (ITAT Hyderabad)

The main issue is with regard to allowability of foreign travel expenditure. The assessee claimed foreign travel expenditure at Rs. 20,35,971. As the assessee not furnished details of expenditure relating to business and pleasure trips, the Assessing Officer disallowed 80% of foreign travel expenses at Rs. 16,28,777. On appeal, the CIT(A)...

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Service in relation to IPL sponsorship not liable to service tax for period prior to 1-7-2010

Kingfisher Airlines Ltd. Vs Commissioner of Service Tax, Mumbai-I (CESTAT Mumbai)

As per Section 65(105)(zzzn) the activity undertaken by the applicant is a sponsorship activity but same is specifically exempt if same is undertaken in relation to sponsorship of the sports events. The above said activity came into taxable event with effect from 1.7.2010 when an exemption for sponsorship of sports event has been withdraw...

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Manpower Supply Service not include deputation of employees for onsite development of software

IDS Systems (P.) Ltd. Vs Commissioner of Central Excise, Bangalore (CESTAT Bangalore)

Activities of the appellant may not deserve to be considered as 'supply of manpower' but as rendering of 'information technology software service' and in the light of the stay granted in the case of ASM Technologies Ltd. (supra), the appellants are eligible for waiver of pre-deposit. As regards, the denial of CENVAT credit,...

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Jurisdictional AO may verify position & take such action as may be warranted in law u/s. 172(7)

Income-tax Officer (International Taxation) Vs Albatross Shipping Ltd. (ITAT RAjkot)

Admittedly, the Rajkot Bench of the Tribunal in the case of I.T.O V/s M/s CMA CGM Agencies (India) Pvt. Ltd. (supra) on identical facts relied on by the ld. counsel of the assessee, quashed the order passed u/s 172(4) of the Act with the observation that the jurisdictional AO may verify the position and take such action as may be warrant...

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ITAT set aside disallowance u/s. 14A as Assessee not provided complete details of expenses

Holcim (India) (P.) Ltd. Vs Income-tax Officer, Ward-12 (4), New Delhi (ITAT Delhi)

In the instant case, the assessee denied incurring any expenditure for earning income, which did not form part of total income during the course of assessment proceedings even when huge investments were made by the assessee in the shares for having controlling interest . In terms of the aforesaid decision of the Hon'ble jurisdictional Hi...

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Services not in the course of business of manufacturing are not entitled to input credit

Pfizer Ltd. Vs Commissioner of Central Excise, Belapur (CESTAT Mumbai)

After examining the records, I am of the view that the services in relation to Convention services, Memberships of Clubs & Association Services, Health Club & Fitness Centre Services and House Keeping services are not entitled for input service credit....

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