"17 November 2015" Archive

Incentive paid by BSNL to its franchisee is a trade discount not commission liable to TDS

ITO Vs General Manager Bharat Sanchar Nigam Ltd (ITAT Hyderabad)

ITAT held in ITO Vs General Manager Bharat Sanchar Nigam Ltd that the incentive offered by the BSNL to its franchisee was in the nature of trade discount not in the nature of commission because after the payment made by the franchisee to the BSNL all risks and rewards relate to the franchisee. ...

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Adjudicating Authority can reject transaction value if assessee fails to prove that relationship had not influenced price

Ansaldo STS Transportation Systems India Pvt. Ltd. Vs Commissioner of Customs (CESTAT Chennai)

The CESTAT Chennai in the case of Ansaldo STS Transportation Systems India Pvt. Ltd vs. Commissioner of Customs, Chennai held that if the importer had entered into transaction with related persons and failed to prove that the price had not been influenced by the relationship ...

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Processes carried on imported gensets resulting into creation of functional and more operational product Power Pack would constitute manufacture

M/s Quippo Energy Private Ltd Vs CE&ST (CESTAT Ahmedabad)

The CESTAT Ahmedabad in the case of M/s Quippo Energy Private Ltd. vs. Commissioner of CE & ST held that the activities carried on by the assessee on imported gensets results into existence of a more functional & operational product catering the needs of industrial consumers...

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Notice u/s 153C invalid if no satisfaction been recorded by Assessing Officer

M/s Shiv Associates Vs DCIT (ITAT-Ahmedabad)

ITAT-Ahmedabad In the case of M/s Shiv Associates v DCIT quashed the notice u/s 153C relying on the Judgment of the similar case related to the assessee in which the notices u/s 153C were quashed as no satisfaction was recorded by the AO....

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Mutual Transactions can’t come under section 2(22)(e)

ITO Vs Smt. Gayatri Chakroborty (ITAT Kolkata)

ITAT Kolkata held in case of ITO v Smt. Gayatri Chakroborty that where the transactions are mutual in nature or there is benefit or no benefit to each other, then these kind of transactions will not come under the purview of section 2(22)(e)....

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Without any supporting material A.O. cannot substitute market value

DCIT Vs Rama Capital and Financial Services Ltd. (ITAT Mumbai)

ITAT Mumbai held in the case of DCIT v. Rama Capital and Financial Services Ltd. that without any substantive ground reopening cannot be done on the basis of change of opinion. It Further held that without any supporting material, the A.O. cannot substitute market value....

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Principal of Consistency should be followed on principal laid down in case of Assessee’s Sister Concern

DCIT Vs The Indian Hotels Co. Pvt. Ltd. (ITAT-Mumbai)

ITAT Mumbai held In the case of DCIT v. The Indian Hotels Co. Pvt. Ltd. that principle of consistency should be followed when there were similar issues and the similar principal was laid down in the case of Assessee’s Sister Concern....

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Penalty Proceedings can’t be initiated without any corroborative evidence

Dasrathbhai Narandas Patel Vs ITO (ITAT Ahmedabad)

In the Case of the Dasrathbhai Narandas Patel v ITO, ITAT-Ahmedabad held that the assessment Proceedings are completely different from Penalty Proceedings and before initiating the penalty proceedings there should be some convincing and corroborative evidence....

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HC confirms penalty on custom official for clearance of Consignment without proper Verification

S.N. Ojha Vs Commissioner of Customs (Delhi High Court)

Delhi High Court held In the case of S.N. Ojha vs. Commissioner of Customs that apart from the statement recorded, there is sufficient corroboration by the fact that as many as 100 consignments were allowed to be cleared without proper verification....

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Disallowance u/s 40A (3) for aggregate cash payments of more than Rs. 20,000 in a single day to one person is applicable w.e.f. 01/04/2009

M/s. Pardeep Singh Wazir Vs The DCIT (ITAT Amritsar)

ITAT Amritsar held In the case of M/s. Pardeep Singh Wazir vs. The DCIT that Circular no. 1/2009, dated 27th March, 2009 issued by CBDT is effective from 01/04/2009 i.e. for the assessment year 2009-10 onwards....

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No set-off of business losses of non 10A units while computing deduction u/s 10A

DCIT Vs M/s. Makino India Pvt. Ltd. (ITAT Bangalore)

ITAT Bangalore held In the case of DCIT vs. M/s. Makino India Pvt. Ltd. that the relief under Section 10A is in the nature of exemption even though termed as deduction. The profits from such 10A units are neither subject to the charge of income tax nor includible in total income. ...

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Reopening u/s 263 justified in case AO ignored the fact that assessee shown business income while he cease to be in business by letting out his entire factory premises

M/s Jagdamba Sahakari Sakhar Karkhana Ltd. Vs CIT (ITAT Pune)

ITAT Pune held In the case of M/s Jagdamba Sahakari Sakhar Karkhana Ltd. vs. CIT that it is not justified to show the rental income from the leasing out of its entire factory premises and industrial unit as income from business & profession as the assessee has not carried out any business...

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Depreciation is allowed while calculating exemption u/s 11 in absence of any specific exclusion

ITO (E) Vs M/s Calorex Foundation (ITAT Delhi)

ITAT Delhi held In the case of ITO (E) vs. M/s Calorex Foundation that application of income is not computation of income and the provisions of application of income would come into play after only the income chargeable to tax is determined...

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Mere bonafide mistake in calculating reversal of ITC does not attract penalty-Punjab VAT Tribunal

In one of my cases namely M/s Shree Ganesh Roller Flour Mills Vs. The State of Punjab. Appeal No. 38 of 2015 decided on 10.09.2015 it has been decided by Punjab VAT Tribunal that mere bonafide mistake in calculating reversal of ITC does not attract penalty. The matter remanded back to DETC(A) for passing a […]...

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Posted Under: Income Tax |

Effective rate of Service tax from 15th November, 2015 is 14.50%

Central Government has imposed a new levy in the name of Swachh Bharat Cess (SBC). (Notification No. 21/2015 – Service Tax dated 06th November,2015). Rate of SBC is 0.50% and it will be levied on the value of taxable services. Now the new rate of service tax plus SBC would be 14.50%. Kindly charge 14.50% on the invoices raised on or aft...

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Posted Under: Income Tax | ,

Impact of imposition of Swachh Bharat Cess: Part 2

This festive season, service sector has witnessed imposition of Swachh Bharat Cess (SBC) in very hasty move by government. It was promised at the time of the budget that it would only be imposed on some services. Govt has gone back on its word. Further they have been left with very little time to prepare for this new tax. This owed to lac...

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Posted Under: Income Tax |

For claiming deduction u/s 54F mere bank statement showing withdrawal of amount is not sufficient

Shri M.S Lakshmana Rao Vs DCIT (ITAT Hyderabad)

ITAT Hyderabad held in Shri M.S Lakshmana Rao Vs DCIT that if the assesse had not deposited the capital gain amount under the capital gain account scheme in bank then the assesse should not be barred of the exemption of sec 54 ...

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Principle of Neutrality in Taxation in GST

In the previous article, it was discussed in detail that what is meant by Principle of Destination and Origin Based Taxation and how they work. In this article I would dwell upon another key aspect of taxation i.e. Principle of Neutrality in Taxation. This principle is one of the key foundation principles alongwith the concept of destinat...

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Posted Under: Income Tax |

Proposed Refund Process under GST – Happiness on the Way to Exporters

Refund mechanism under GST: simplified and tech-based:-The report says that GST law shall provide for the cases in which refund claim can be filed. It states some of such cases as excess payment of tax by mistake, export of goods and services under rebate claim, refund of accumulated credit in case of exports, finalization of provisional ...

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Posted Under: Income Tax |

P&H HC issues Notice for dissolution of 50 Companies

Whereas the Official Liquidator attached to the Hon'ble High Court of Punjab and Haryana has moved the following application Under Section 481 of the Companies Act, 1956 for dissolution of the Companies enlisted below....

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Posted Under: Income Tax |

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November 2020