"26 February 2018" Archive

Interest Tax applicable on finance charges from hire purchase of vehicles

The Commissioner of Income Tax Vs. M/s. The Kerala State Financial Enterprises Ltd. (Kerala High Court)

Finance charges like interest received from hire purchase of vehicles are like other interest subject to tax under the Interest Tax Act, the Kerala High Court has said. ...

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A Detailed Discussion on Taxability under the Head “Income from House Property”

ncome from House Property covers the rent earned from the House property which is chargeable to tax. Sometimes, the owner may have to pay tax on 'deemed rent' in case the property is not let out or vacant. The income from house property would be taxable if it satisfies the following three essential conditions:...

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Posted Under: Income Tax |

Have you filed your Income Tax return?

Income Tax Department has identified a large number of persons who have not filed Income Tax Returns for A.Y. 2016-17 and 2017-18, although, they have made high value transactions / deposited large amount of cash in bank accounts....

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Posted Under: Income Tax |

Cenvat Credit not available on Tyres used in material handling equipments

M/s Hindustan Zinc Limited Vs. CCE (CESTAT Delhi)

Vehicles are not meant to be used for movement of materials in the mines. Consequently, we are of the view that such goods cannot be covered under capital goods since they are in the nature of motor vehicle other than dumper and dipper. Consequently, tyres of such vehicle can also not be allowed for availing cenvat credit....

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Addition U/s. 69 for Jewellery duly reflected in Books with evidenced source not sustainable

Smt. Kusum Bhura Vs. I.T.O. (ITAT Kolkata)

The Kolkata bench of Income Tax Appellate Tribunal, in its recent order said that Investment in Jewellery cannot be treated as Unexplained when it is reflected in the books & the source of Fund is evidenced through Bank A/c. ...

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Let PNB fraud not halt business lending: ASSOCHAM

SSOCHAM today cautioned against allowing the alleged fraud in the Punjab National Bank (PNB) to halt the entire system of corporate lending as demoralisation would set in among the top functionaries and employees of the state-owned banks, something the country can ill-afford at a time when the credit growth was about to recover and econom...

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Posted Under: Income Tax |

Conflict of judicial opinion does not entitle Dept to seek reference to Special Bench

DDIT Vs. Reliance Communication Ltd (ITAT Mumbai)

Reference to Special Bench would continue to be moved by the parties upon every subsequent non-jurisdictional High Court decision, thus, leading to a number of cases being referred to constitute Special Bench. However, correct decision is to follow the judicial hierarchy and maintain judicial discipline. ...

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PNB Scam: Not prudent to draw any conclusion against CAs and profession before anything gets established: ICAI

Till the time disciplinary inquiry is concluded, and the role of all those who acted in fiduciary responsibility is established in the matter, it would not be prudent to draw any conclusion against the profession. ...

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Formulate rational policy for processing IT Returns sent to AO: HC

Tata Projects Limited Vs. Deputy Commissioner of Income­ tax (Bombay High Court)

Yet again, Section 143(1D) of the Income Tax Act came under the scrutiny of a Constitutional Court. This time, it was the High Court of Bombay, which held categorically while considering many writ petitions in Tata Projects Limited vs. Deputy Commissioner of Income Tax Range 2(3)(2) & Ors., that Section 143(1D) of the Income Tax Act...

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Without marketability Excise duty not leviable on Semi- Finished Granules, Extracts and Oils

M/s The Himalaya Drug Co. Vs. CCE (CESTAT Delhi)

i. In these factories, the raw materials, which are various parts of herbs like barks, flowers, fruits roots, leaves etc. are converted into granules, extracts and oils which are in a semi-finished stage. The grievance of the Department is that, the goods prepared in Delhi factory are marketable, so the excise duty was demanded. ...

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