"29 January 2023" Archive

Power of GST officers to seize cash during search operations?

You may have noticed in many cases of GST search seizure and inspection that many time offices pressurize the taxable person to pay tax immediately or they may seize assets or cash, bank account etc. In this article we will discuss whether GST officer have power to seize cash during search operation or not?? Provision […]...

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No royalty if payment made by Google India to Google Ireland for purchase of online advertisement space for resale to Indian Advertisers

Google India Pvt. Ltd. Vs JDIT (ITAT Bangalore)

Purchase of online advertisement space for onward resale to Indian advertisers did not amount to Royalty as unless the non-resident, who was engaged in sale of online advertisement space, had a PE in India, no portion of receipts earned by it from sale of online advertisement space in India could be brought to tax in India as Act read wit...

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Jharkhand HC upheld Conviction of Former Minister under PMLA

Anosh Ekka Vs Directorate of Enforcement (Jharkhand High Court)

Anosh Ekka Vs Directorate of Enforcement (Jharkhand High Court) It is argued on behalf of the appellant that since both the cases i.e. the present case under PMLA and that under PC Act arise out of the same transaction, therefore, the benefit of Section 427 of the Cr.P.C should have been extended to the appellant. […]...

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Section 80P(2)(d) deduction eligible on Interest Income Earned by Co-op Society from Co-op Bank

Bhairabnala Samabay Krishi Unnayan Samity Ltd. Vs ITO (ITAT Chennai)

Bhairabnala Samabay Krishi Unnayan Samity Ltd. Vs ITO (ITAT Chennai) As far as section 80P(4) of the Act, it only provides that provisions of section 80P shall not be applied in relation to any co­operative bank other than agricultural credit society or any agricultural rural bank. In simple words such cooperative Bank cannot claim deduc...

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Treating Advance Amount as Security Deposit – Invocation of extended period of limitation valid

Applied Solar Technologies (India) Pvt. Ltd. Vs Commissioner, Central Goods & Service Tax (Audit-II) (CESTAT Delhi)

There is no error in the finding recorded by the Commissioner in this regard, as indeed the appellant did try to evade payment of service tax by treating the amount as a security deposit when in fact it was clearly an advance, which fact was very specifically mentioned in the Agreement. The intention to evade payment of service tax by sup...

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Subscription revenue from Chemical Extract Service & Publication division not qualify as Royalty

American Chemical Society Vs  DCIT (ITAT Mumbai)

American Chemical Society Vs  DCIT (ITAT Mumbai) The brief facts of the case pertaining to the issue, as emanating from the record, are: The assessee is a Corporation based in USA, established to promote and support development of knowledge in the field of chemistry and is organised into various divisions including Chemical Abstracts Ser...

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Avoidance Applications Survive CIRP & Can Be Heard After Resolution Plan Approval

Tata Steel BSL Limited Vs Venus Recruiter private Limited & Ors (Delhi High Court)

CIRP and avoidance applications, are, by their very nature, a separate set of proceedings wherein, the former, being objective in nature, is time bound whereas the latter requires a proper discovery of suspect transactions that are to be avoided by the Adjudicating Authority. The scheme of the IBC reinforces this difference. Accordingly, ...

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Analysis of Income Tax Act 1961 Section 40A(3)

Section 40A(3) is a provision of the Act dealing with the taxability of payments that can be considered as expenditure. Under this provision, any expenditure in the form of allowance or reimbursement, made by an employer to his employees, shall be treated as income in the hands of the employees when the amount of expenditure incurred is n...

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Share transaction through banking channels on stock exchange with STT payment not bogus

PCIT Vs Rajat Finvest (Delhi High Court)

The fact that shares were traded on stock exchange after paying securities transaction tax, and that money had been received through banking channels only demonstrated that they were not bogus transactions....

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Unrealized Interest on borrower accounts Classified as NPA not Taxable

DCIT Vs State Bank of India (Successor to State Bank of Bikaner & Jaipur) (ITAT Mumbai)

A.O. held that since the assessee is maintaining its books of accounts on accrual basis, the income in respect of bad and doubtful debt was required to be taxed on accrual basis except for the exceptions provided under rule 6EA of Income-Tax rules, 1962 read with Section 43D of the Act....

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