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Subvention amount received from parent company is not a revenue receipt

January 3, 2017 6760 Views 1 comment Print

SC held that amount received as subvention/grant from parent company by a loss making subsidiary cannot be considered as revenue receipt in the hands of subsidiary company as grant was made by parent company to protect its investment made in subsidiary.

Reference made to TPO without passing a speaking order is invalid

January 1, 2017 2605 Views 0 comment Print

HC held that a reference to TPO can be made only after passing a speaking odder disposing off objections raised by assessee. In the present case since, the reference was made without passing such a speaking order, the reference so made was invalid.

Unintentional errors in filling appeal should be overlooked and be disposed -off on merits

December 28, 2016 3949 Views 0 comment Print

Bombay HC held that an unintentional error on the part of assessee while filling an appeal, more so when the department also acted ignoring the error, would not result in rejecting assessee’s appeal being time barred.

Service revenue need not to be include service tax-Sec 145A(a)(ii) not applicable to service revenue

December 24, 2016 2527 Views 0 comment Print

Sec 145A(a)(ii) has no applicability on service revenue which follows that service revenue need to be inclusive of service tax. It also held that service tax which has not even been claimed as deduction cannot be disallowed by recasting profit and loss account of assessee.

ALP not to be tested with growth in business rather by applying suitable method to transaction itself

December 13, 2016 1213 Views 0 comment Print

ITAT Delhi held that as to whether a transaction is entered into at an Arm’s Length Price or not must depend upon the facts of each case relating to the transaction per-se i.e. the transaction itself as the profit is only a possibility of the desired result with or without the aid of international transaction.

Compensation for Loss of opportunity to do business is a capital receipt

December 9, 2016 4825 Views 1 comment Print

ITAT held that compensation received for loss of business activity is a capital receipt as it is injury to the profit making apparatus and not the loss of profits. Therefore, in the present case , non-supply of land by supplier which was to be used by the consortium was injury to profit making apparatus and hence capital receipt.

6 Suggestions on Revised Model Draft GST Law

December 4, 2016 3586 Views 0 comment Print

As per draft law (revised draft),input tax credit to receiver shall be available only when the supplier has paid the tax on supplies made to receiver and the same get matched (i.e. matching of output supplies with input supplies declared by supplier and buyer respectively).Once the credit get matched it will reflect in electronic credit ledger of buyer

S. 254 Rectification application liable to be set aside if case relied not brought to bench’s attention during hearing

November 30, 2016 907 Views 0 comment Print

ITAT held that application under the provisions of sec.254(2) seeking rectification of order passed by tribunal is maintainable only in cases where it was established that specific attention of the bench was drawn to a particular decision and the decision was specifically relied upon but not considered by the Tribunal.

6 Quick thoughts on revised Model GST Law

November 27, 2016 4489 Views 0 comment Print

Simple definition of capital goods has been given in revised draft which states that capital goods means goods, value of which is capitalized in books of accounts of person claiming credit and which are used or intended to be used in course or furtherance of business.

Section 54F exemption not allowed for unutilised amount not deposited in specified bank account

November 25, 2016 6082 Views 1 comment Print

The Honble Bombay HC in the above stated case held that when the wordings of law are quite clear then law should be applied in its letter and no space could be made for logical or beneficial or constructive interpretation.

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