"26 November 2022" Archive

Entire consideration received by an entry provider not taxable as business income

DCIT Vs Nexus Software Ltd. (ITAT Ahmedabad)

ITAT Ahmedabad held that consideration received by the assessee, being an entry provider, as accommodation entry cannot be taxed entirely as business income....

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Cenvat Credit to purchaser cannot be denied on mere allegation of non-existence of seller

New Modern Technomech Private Limited Vs Commissioner of CGST & CX (CESTAT Kolkata)

CESTAT Kolkata held that Cenvat Credit cannot be denied alleging non-existence of seller as the Appellant being a bonafide purchaser of goods for a price which included the duty element and payment made by cheque and availed CENVAT Credit based on Cenvatable documents....

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Provisions of section 40A(3) doesn’t apply to payment made to a cottage industry

DCIT Vs Smt. A. Gandhimathi (ITAT Chennai)

ITAT Chennai held that payment towards purchase of wet grinders and accessories were mainly made to a cottage industry and accordingly such payment is not hit by the provisions of section 40A(3) as payment made to a cottage industry is excluded under rule 6DD(F) of the Income Tax Rules....

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Once application for SEZ LOP is accepted, unit attains SEZ status and entitled for exemption u/s 26 of SEZ Act

Renaissance Global Limited Vs Union of India (Bombay High Court)

Bombay High Court held that once the application for SEZ LOP is accepted and LOP is issued, the Unit attains the SEZ Status and therefore entitled to all the exemptions provided under section 26 of the SEZ Act which also includes exemption from payment of duties of customs....

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Net profit margins needs to be worked out for working capital adjustment

Arm Embedded Technologies Pvt. Ltd Vs DCIT (ITAT Bangalore)

ITAT Bangalore held that if for reasons given by CIT(A) working capital adjustment cannot be allowed to the profit margins, then the comparable uncontrolled transactions chosen for the purpose of comparison will have to be treated as not comparable in terms of Rule 10B(3) of the Rules. Matter remanded to re-compute the working capital adj...

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Suspicions of department cannot be base for revisionary proceedings

Trivikram Singh Toor Vs PCIT (ITAT Chandigarh)

ITAT Chandigarh held that suspicions entertained by the Revenue cannot be the basis of unsettling the valid order and hence revisionary order proceeded entirely on presumptions, conjectures and surmises is liable to be quashed....

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ESOP cross-charge is allowable expenditure u/s 37(1) of the Income Tax Act

Hewlett Packard (India) Software Operation Pvt. Ltd. Vs DCIT (ITAT Bangalore)

ITAT Bangalore held that expenditure of ESOP cross-charge is wholly and exclusively for the purpose of business, said amount remitted by the assessee to ultimate holding company, and hence allowable expenditure u/s 37(1) of the Income Tax Act....

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Key Features – TDS/TCS RPU 4.4 & FVU version 7.9

Key Features – Return Preparation Utility (RPU) version 4.4 e-TDS/TCS Return Preparation Utility Ver. 4.4 for Regular & Correction Statement(s) from FY 2007-08 onwards. 5 new section codes are added under Annexure I (i.e. deductee details) of Form 26Q which are as below: Section Nature of payment (description to be populated for thi...

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Posted Under: Income Tax |

Verify Aadhaar before accepting it as a proof of identity: UIDAI

Before accepting an Aadhaar either in physical or electronic form for establishing identity of an individual, entities should verify the Aadhaar....

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Posted Under: Income Tax |

FCRA: Act & Rules / Regulations-List of Agencies not treated as foreign source

List of agencies of the United Nations, and other international agencies and organizations notified by the Central Government to be not covered by the definition of ‘foreign source’, under section 2(1)(j)(ii) of the Foreign Contribution (Regulation) Act, 2010 ****** The United Nations System I. Secretariat 1. Office of Interna...

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Posted Under: Income Tax |

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January 2023