CESTAT Chandigarh held that imposition of penalty unjustified as tax paid along with interest before issuance of show cause notice.
ITAT Delhi restored the issue to the file of AO with the direction to find out from the relevant PF authorities and ESI authorities about the term ‘every month’ as mentioned in clause 38 of the employees provident fund scheme.
CESTAT Chennai held notebook computers imported for sale to Rajiv Ghandhi University of Knowledge Technologies, Hyderabad (RGUKT) i.e. institutional consumer and not ultimate consumer is assessable under section 4 based on transaction value and not based on Retail Sale Place.
CESTAT Chennai held that Diffused Silicon Wafer does not have capacity to perform the essential function of a Solar Cell and hence it cannot be classified under specific heading of Solar Cell i.e., CTH 8541 4011. However, Diffused Silicon Wafer can be classified under CTH 8541 9000 as parts of semi-conductor device.
ITAT Delhi held that were sufficient evidence on record that the business activity of the company was still subsisting and the service of the Vice President are indispensable. Accordingly, salary paid to Vice President is allowable u/s. 37(1).
ITAT Mumbai held that under regular provisions of section 36(1)(vii) of the Act, the provision for doubtful debt being in the nature of diminution in value of asset, it also attracts explanation (i) of the section 115JB of the Act. Accordingly, addition of book profit sustained.
Karnataka High Court held that deployment of ATM and other assets, without transfer of possession and effective control, for provision of ATM management service to banks is outside the purview of Value Added Tax.
Delhi High Court held that the main attribute of an arbitration agreement is thus consensus ad idem to refer the disputes to arbitration. Mere use of the word ‘arbitration’ or ‘arbitrator’ is not enough to construe an agreement to be an arbitration agreement.
ITAT Mumbai held that deduction u/s 36(1)(viia) of the Income Tax Act towards Provision for bad and doubtful debts allowable irrespective of rural advance and non-rural advances.
ITAT Delhi held that Compulsory Convertible Debentures are in the nature of borrowed fund and continued to be debt till conversion thereof into shares and consequently interest on Compulsory Convertible Debentures is allowable as revenue deduction u/s 36(1)(iii) of the Income Tax Act.
