Grants For Daily Expenses Are Not Consideration For Services Rendered By Assessee, Not Liable To Tax: Kerala High Court
3 months, 3 weeks ago

Grants For Daily Expenses Are Not Consideration For Services Rendered By Assessee, Not Liable To Tax: Kerala High Court

Live Law  

The Kerala High Court stated that financial grants provided to the assessee for covering daily operational expenses do not qualify as payment for any services that the assessee might be providing and are not liable to tax. The Bench of Justice Gopinath P. observed that “The assessee has only received grants to meet its day-to-day expenses including salary, allowances etc. The bench observed that while the adjudicating authority accepts that the assessee is the owner of the goods, he proceeds to hold that the ownership of the goods vests in the General Education Department. There is nothing in the order which would indicate that the assessee had received any consideration from the Government, the KIIFB or the General Education Department as consideration for the supply of goods or services.

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History of this topic

Burden Is On Assessee To Show Entitlement For Capital Gains Tax Exemption On Sale Of Agricultural Land: Kerala High Court
4 days, 21 hours ago

Burden Is On Assessee To Show Entitlement For Capital Gains Tax Exemption On Sale Of Agricultural Land: Kerala High Court

Live Law  

The Kerala High Court stated that burden of proof is on assessee to prove that he is entitled to capital gains tax exemption on sale of agricultural land. Jayasankaran Nambiar and Easwaran S. observed that “it is significant in this regard to observe that the claim of the assessee, being for exemption from the levy of income tax as applicable …

Income Tax Act | Principal Commissioner Has Authority To Cancel Registration Of Assessee Without Waiting For Decision From Assessing Authority: Kerala HC
Trending News
1 week, 4 days ago

Income Tax Act | Principal Commissioner Has Authority To Cancel Registration Of Assessee Without Waiting For Decision From Assessing Authority: Kerala HC

Live Law  

The Kerala High Court stated that principal commissioner has authority to cancel registration of assessee without waiting for decision from assessing authority. Jayasankaran Nambiar and Easwaran S. observed that “the provisions of Section 12AA independently empower the Principal Commissioner to consider whether or not the circumstances mentioned in Section 12AA and 12AA of the Income Tax Act exist as a …

Reimbursements Received By Assessee Can't Be Considered As 'Consideration' Towards Any Taxable Service: CESTAT
3 weeks, 1 day ago

Reimbursements Received By Assessee Can't Be Considered As 'Consideration' Towards Any Taxable Service: CESTAT

Live Law  

The Kolkata Bench of Customs, Excise, and Service Tax Appellate Tribunal has stated that the reimbursements received by the assessee cannot be considered as 'consideration' towards any taxable service. The department considered the reimbursable expenses as 'consideration' towards rendering of the taxable service of 'supply of manpower' and accordingly demanded service tax from the assessee. The Tribunal held that the …

GST Registration And Payment Of Tax After Inspection Is Not Voluntary Conduct: Madras High Court
1 month, 3 weeks ago

GST Registration And Payment Of Tax After Inspection Is Not Voluntary Conduct: Madras High Court

Live Law  

The Madras High Court stated that GST registration and payment of tax after inspection is not a voluntary conduct. The Assistant Commissioner issued show cause notice arriving a sum of Rs.69,54,554/- as GST liability for the total value of Rs.3,86,36,410/- and rejected the cum-tax basis benefit claimed by the assessee. The Assistant Commissioner passed an order in original, demanding balance …

[Income Tax] Assessing Officer Not Only An Adjudicator But Also An Investigator, Cannot Remain Oblivious To Claim Without Enquiry: Kerala HC
1 month, 3 weeks ago

[Income Tax] Assessing Officer Not Only An Adjudicator But Also An Investigator, Cannot Remain Oblivious To Claim Without Enquiry: Kerala HC

Live Law  

The Kerala High Court stated that the Income Tax Commissioner can exercise Revisional Jurisdiction under Section 263 of the Income Tax Act, 1961. Jayasankaran Nambiar and Easwaran S. observed that “The role of the assessing officer under the Income Tax Act, 1961 is not only that of an adjudicator but also of an investigator and he cannot remain oblivious in …

Charitable Society Looking After Socio-Economic And Welfare Matters Of Ex-Servicemen, Their Families Can Levy Service Tax: Kerala HC
2 months, 3 weeks ago

Charitable Society Looking After Socio-Economic And Welfare Matters Of Ex-Servicemen, Their Families Can Levy Service Tax: Kerala HC

Live Law  

The Kerala High Court stated that services by charitable society who look after socio-economic and welfare matters of ex-serviceman and their families is liable to service tax. Jayasankaran Nambiar and Easwaran S. observed that “for an association like the assessee, the embarking on a transaction that is designed to earn income for its members, would have to be seen as …

Mistake Committed By Assessee Was Inadvertent & Technical; No Wrongful Availment Of ITC: Kerala High Court Quashes Demand Order
3 months ago

Mistake Committed By Assessee Was Inadvertent & Technical; No Wrongful Availment Of ITC: Kerala High Court Quashes Demand Order

Live Law  

The Kerala High Court while quashing the demand order stated that there has been no wrong availment of credit, and that the only mistake committed by the assessee was an inadvertent and technical one, where he had omitted to mention the IGST figures separately in Form GSTR 3B. Jayakumar observed that “……The mistake was also insignificant because it is not …

Mistake Committed By Assessee Was Inadvertent & Technical; No Wrongful Availment Of ITC: Kerala High Court Quashes Demand Order
3 months ago

Mistake Committed By Assessee Was Inadvertent & Technical; No Wrongful Availment Of ITC: Kerala High Court Quashes Demand Order

Live Law  

The Kerala High Court while quashing the demand order stated that there has been no wrong availment of credit, and that the only mistake committed by the assessee was an inadvertent and technical one, where he had omitted to mention the IGST figures separately in Form GSTR 3B. Jayakumar observed that “……The mistake was also insignificant because it is not …

Provisions Of Foreign Trade Policy Cannot By Itself Authorise Levy Of Interest U/S 28AA Of Foreign Trade Act: Kerala High Court
3 months, 2 weeks ago

Provisions Of Foreign Trade Policy Cannot By Itself Authorise Levy Of Interest U/S 28AA Of Foreign Trade Act: Kerala High Court

Live Law  

The Kerala High Court stated that the provisions of the Foreign Trade Policy cannot by itself authorise the levy of interest under Section 28AA of the Foreign Trade Act, 1992, as such levy must be supported by plenary legislation. The Bench of Justice Gopinath P. was considering a case where the assessee challenged the interest imposed upon him under the …

Grants For Daily Expenses Are Not Consideration For Services Rendered By Assessee, Not Liable To Tax: Kerala High Court
3 months, 3 weeks ago

Grants For Daily Expenses Are Not Consideration For Services Rendered By Assessee, Not Liable To Tax: Kerala High Court

Live Law  

The Kerala High Court stated that financial grants provided to the assessee for covering daily operational expenses do not qualify as payment for any services that the assessee might be providing and are not liable to tax. The Bench of Justice Gopinath P. observed that “The assessee has only received grants to meet its day-to-day expenses including salary, allowances etc. …

Not Considering Income Tax Assessee's Request For Personal Hearing Violates Natural Justice: Kerala High Court
3 months, 3 weeks ago

Not Considering Income Tax Assessee's Request For Personal Hearing Violates Natural Justice: Kerala High Court

Live Law  

The Kerala High Court held that the income tax authorities, by not considering a request for personal hearing has violated the principles of natural justice. The fundamental principle is that no one should be condemned unheard.” The Income Tax authority had passed a draft assessment and issued a show cause notice against Federal Bank asking why the assessment should not …

Amount Received In Advance For Services To Be Treated As Income Of Assessee, Chargeable Under Income Tax: Madras High Court
4 months, 1 week ago

Amount Received In Advance For Services To Be Treated As Income Of Assessee, Chargeable Under Income Tax: Madras High Court

Live Law  

The Madras High Court ruled that any amount received in advance for services should be treated as the income of the assessee and is, therefore, subject to income tax. However, if an assessee fails to adopt “Accounting Standards” properly for computation of income, the discretion is vested with the Assessing Officer under Section 145 of the Income Tax Act, 1961.” …

[Income Tax] Assessing Authority Can't Reassess Prior Years Without Inquiry While Determining Relevant Year's Assessment: Kerala High Court
4 months, 1 week ago

[Income Tax] Assessing Authority Can't Reassess Prior Years Without Inquiry While Determining Relevant Year's Assessment: Kerala High Court

Live Law  

The Kerala High Court stated that while determining the assessment of relevant years assessing authority cannot determine the assessment for earlier years without enquiry. observed that “…….we fail to understand how the assessing authority, as well as the First Appellate Authority, while considering assessment proceedings for the assessment years 2011-12 could have embarked upon an enquiry with regard to the …

Consequential Order Passed By Assessing Authority Beyond Terms Of Remand By Commissioner Is Unacceptable: Kerala High Court
4 months, 1 week ago

Consequential Order Passed By Assessing Authority Beyond Terms Of Remand By Commissioner Is Unacceptable: Kerala High Court

Live Law  

The Division Bench of Kerala High Court comprising Justices A.K. observed that “the concern of the Assessing Authority, while passing a consequential order, has to be limited to those specific issues that have been remanded to it for consideration by the Commissioner……….” Section 263 of the Income Tax Act, 1961 empowers the Commissioner of Income Tax to revise any order …

Assessment Order Downloaded From Common Portal Amounts To A Valid Service: Kerala High Court
8 months ago

Assessment Order Downloaded From Common Portal Amounts To A Valid Service: Kerala High Court

Live Law  

The Kerala High Court has held that the assessment order downloaded from the common portal amounts to a valid service.The bench of Justice A.K. The Kerala High Court has held that the assessment order downloaded from the common portal amounts to a valid service. The appellant contended that the assessment order was communicated to the appellant through the portal that …

Credit Available On Advance Tax Paid For Stock-Transferred: Kerala High Court
8 months, 3 weeks ago

Credit Available On Advance Tax Paid For Stock-Transferred: Kerala High Court

Live Law  

The Kerala High Court has held that the petitioner will be entitled to credit for the entire amount paid in terms of Circular No. 50/2006 and the definition of input tax in Section 2 of the KVAT Act indicates that the tax paid in terms of Circular No. In a notice issued to the petitioner under Section 25 of the …

Expenditure Incurred By Way Of Addition To Buildings, Electrical Fittings On Leasehold Premises Is Capital Expenditure: Kerala High Court
9 months, 3 weeks ago

Expenditure Incurred By Way Of Addition To Buildings, Electrical Fittings On Leasehold Premises Is Capital Expenditure: Kerala High Court

Live Law  

The Kerala High Court has held that the expenditure that was incurred by the appellant/assessee by way of addition to buildings and electrical fittings on leasehold premises was in the nature of capital expenditure and not revenue expenditure.The bench of Justice Dr. A.K. According to the Assessing Authority and the First Appellate Authority, the expenditure that was incurred by the …

Tax Weekly Round-Up: 30th December 2024 - 5th January 2025
10 months, 2 weeks ago

Tax Weekly Round-Up: 30th December 2024 - 5th January 2025

Live Law  

SUPREME COURT Motor Accident Claims - Tax Returns Can Be Accepted To Determine Income Only If They Are Appropriately Produced : Supreme Court Case name: New India Assurance Co. Ltd. V. Sonigra Juhi Uttamchand. Co-Accused Can Apply Separately For Compounding Of Offences Committed By Company Or HUF Under Income Tax Act: Delhi High Court Case title: Sumit Bharana v. UoI …

Affording Personal Hearing Is Mandatory In An Enquiry Under Section 148A(B) Of Income Tax Act: Kerala High Court
11 months, 2 weeks ago

Affording Personal Hearing Is Mandatory In An Enquiry Under Section 148A(B) Of Income Tax Act: Kerala High Court

Live Law  

The Kerala High Court has held that affording a personal hearing to the assessee is mandatory in an inquiry under Section 148A of the Income Tax Act.The bench of Justice A.K. The Kerala High Court has held that affording a personal hearing to the assessee is mandatory in an inquiry under Section 148A of the Income Tax Act. Jayasankaran Nambiar …

GST Evasion Prosecution Does Not Depend Upon Completion Of Assessment: Kerala High Court
1 year, 3 months ago

GST Evasion Prosecution Does Not Depend Upon Completion Of Assessment: Kerala High Court

Live Law  

The Kerala High Court has held that prosecution for offences under Section 132 of the CGST Act does not depend upon the completion of the assessment.The bench of Justice Mohammed Nias C.P. The Kerala High Court has held that prosecution for offences under Section 132 of the CGST Act does not depend upon the completion of the assessment. The petitioner …

Kerala High Court Rejects Assessee ’s Claim For Service Tax Refund To Meet VAT Demand On Pest Control Contract
1 year, 3 months ago

Kerala High Court Rejects Assessee ’s Claim For Service Tax Refund To Meet VAT Demand On Pest Control Contract

Live Law  

The Kerala High Court has rejected the assessee's claim for a service tax refund to meet the VAT demand on the pest control contract.The bench of Justice Anu Sivaraman has observed that the claim of the petitioner that the service tax authorities must be directed to meet the demand for VAT, if any, found payable by the petitioner cannot be …

TDS Paid From Assessee’s Own Account Can’t Form Part Of Consideration Of Service Charges Paid To Overseas Service Provider, No Service Tax Payable: CESTAT
1 year, 4 months ago

TDS Paid From Assessee’s Own Account Can’t Form Part Of Consideration Of Service Charges Paid To Overseas Service Provider, No Service Tax Payable: CESTAT

Live Law  

The Bangalore Bench of Customs, Excise, and Service Tax Appellate Tribunal has held that the TDS amount paid to the Income Tax Department by the appellant from his own account cannot form part of the consideration of the service charges paid to the overseas service provider, and service tax is not payable.The bench of D. M. Misra and Pullela Nageswara …

Expenses Towards Advertisement, Brokerage And Commission, Incurred By A Real Estate Developer; Deductible As Revenue Expenditure: Delhi High Court
2 years, 4 months ago

Expenses Towards Advertisement, Brokerage And Commission, Incurred By A Real Estate Developer; Deductible As Revenue Expenditure: Delhi High Court

Live Law  

The Delhi High Court has ruled that The bench of Justices Manmohan and Manmeet Pritam Singh Arora observed that the dispute involving the year of deduction, which was sought to be postponed by the revenue department, was revenue neutral, having no tax affect and that it did not put the revenue department at any disadvantageous position. The Court noted that …

Supreme Court Quarterly Digest on Tax [July - September, 2022]
2 years, 4 months ago

Supreme Court Quarterly Digest on Tax [July - September, 2022]

Live Law  

Arbitration and Conciliation Act, 1996 - Relief related to tax concessions are not arbitrable. Commissioner of Service Tax New Delhi v. Quick Heal Technologies Ltd, 2022 LiveLaw 660 Finance Act 1994; Section 65B - Definition of "service" - does not include activities listed as "deemed" sale under Article 366 of Constitution Commissioner of Service Tax New Delhi v. Quick Heal …

Affordable Residential Apartments Attracts 1.5% GST: Kerala AAR
2 years, 4 months ago

Affordable Residential Apartments Attracts 1.5% GST: Kerala AAR

Live Law  

The Kerala Authority of Advance Ruling has held that affordable residential apartments attract 1.5% GST.The bench of Sreeparvathi and Abraham Renn has held that a new tax structure for the real estate sector was introduced with effect from 01.04.2019 onwards by the amendment of Notification No. The 20 residential units in the project would qualify as "Affordable Residential Apartments" as …

Payment Made By Assessee To Non-Resident Supplier Amount To "Royalty" And Liable To Deduct TDS: ITAT
2 years, 5 months ago

Payment Made By Assessee To Non-Resident Supplier Amount To "Royalty" And Liable To Deduct TDS: ITAT

Live Law  

The Ahmedabad Bench of the Income Tax Appellate Tribunal has held that the payment made by the assessee to the non-resident supplier would amount to royalty and there is an obligation on the part of the assessee to deduct tax at source.The two-member bench of T.R. The Ahmedabad Bench of the Income Tax Appellate Tribunal has held that the payment …

Tax Cases Weekly Round-Up: 28 August To 3 September, 2022
2 years, 6 months ago

Tax Cases Weekly Round-Up: 28 August To 3 September, 2022

Live Law  

Delhi High Court Case Title: Rithala Education Society Versus Union Of India Citation: 2022 LiveLaw 816 The Delhi High Court held that the significance of issuing a show cause notice prior to issuing a re-assessment notice has been lost because the order under Section 148A of the Income Tax Act was made without taking into account the detailed reply filed …

Karnataka High Court Quashes CBIC Circular Imposing GST On Annuity Payments Awarded By Highway Authorities To concessionaires
2 years, 7 months ago

Karnataka High Court Quashes CBIC Circular Imposing GST On Annuity Payments Awarded By Highway Authorities To concessionaires

Live Law  

The Karnataka High Court has quashed the circular issued by the Central Board of Indirect and Customs clarifying that GST is not exempt on the annuity paid for the construction of roads and allowed the Writ Petition filed by the petitioner. As a consideration for the construction and maintenance of the roads for the contract period, the petitioners are paid …

Just Because The Ratio For Payment Of Service Tax Not Adhered To, Assessee Not Liable To Pay Double Tax As Penalty: Karnataka High Court
2 years, 9 months ago

Just Because The Ratio For Payment Of Service Tax Not Adhered To, Assessee Not Liable To Pay Double Tax As Penalty: Karnataka High Court

Live Law  

The Karnataka High Court has ruled that merely because the ratio in which service tax was required to be paid by the service recipient and the service provider was not strictly adhered to, the assessee cannot be made liable to pay double tax by denying him the CENVAT Credit. The revenue department averred that with effect from 20.06.2012, the ratio …

Failure Of Assessee To Give Proper Reasons For Not Appearing Before The Tax Authorities: ITAT Imposes Cost
2 years, 9 months ago

Failure Of Assessee To Give Proper Reasons For Not Appearing Before The Tax Authorities: ITAT Imposes Cost

Live Law  

The Banglore Bench of the Income Tax Appellate Tribunal consisting of B.R. Baskaran has imposed a cost of Rs.10,000 on the assessee for the failure to give proper reasons for not appearing before the tax authorities. The ITAT noted that CIT had passed the ex-parte order without hearing the assessee since the assessee had not appeared before him despite being …

Is GST Leviable On Services Provided By Association To Its Members? Kerala High Court Issues Notice On KHCAA's Plea
3 years, 5 months ago

Is GST Leviable On Services Provided By Association To Its Members? Kerala High Court Issues Notice On KHCAA's Plea

Live Law  

The Kerala High Court has issued notice on a plea moved by the Kerala High Court Advocates' Association challenging the Goods and Services Tax (GST) levied on the goods and services provided by the Association to its own members.Justice Bechu Kurian Thomas observed while admitting the plea:"I am satisfied that the petitioners have made out a prima facie case, which …

Non Consideration Of Reply Filed By Assessee Amounts To Violation Of Natural Justice Principles: Kerala High Court
3 years, 9 months ago

Non Consideration Of Reply Filed By Assessee Amounts To Violation Of Natural Justice Principles: Kerala High Court

Live Law  

A Division Bench of the Kerala High Court while allowing an appeal on Thursday observed that non consideration of a reply filed by the assessee amounts to violation of the principles of natural justice, when the existence of such reply is within the knowledge of the assessing officer.The appellant M/S. A Division Bench of the Kerala High Court while allowing …

'Unfortunate' : Kerala High Court Pulls Up CBSE For Expressing Inability To Check Overcharging Of School Fees
4 years, 3 months ago

'Unfortunate' : Kerala High Court Pulls Up CBSE For Expressing Inability To Check Overcharging Of School Fees

Live Law  

The Kerala High Court on Wednesday pulled up the Central Board of Secondary Education for "washing their hands off" on the issues pertaining to collection of excessive fees by affiliated schools amid the pandemic. The Government Pleader has been asked to obtain instructions from the competent Authority as to: how it shall ensure that Schools do not charge fees, more …

Centre must borrow and pay States’ GST dues: Kerala
4 years, 6 months ago

Centre must borrow and pay States’ GST dues: Kerala

The Hindu  

Kerala has rejected the two options for Goods and Services Tax compensation mooted by the Centre at the 41st GST Council meeting earlier this week. Kerala wants the Centre to take a loan and provide GST compensation and this has the approval of Chief Minister Pinarayi Vijayan and other Ministers,” Finance Minister T.M. Lashing out at the Centre for “betraying” …

'Closure Of Branch Irrelevant Where Assessee Chooses Determination Of Tax Liability Under Compounding Provision': Kerala HC [Read Judgment]
4 years, 9 months ago

'Closure Of Branch Irrelevant Where Assessee Chooses Determination Of Tax Liability Under Compounding Provision': Kerala HC [Read Judgment]

Live Law  

"Closure of branch is irrelevant where the assessee chooses determination of tax liability on a compounding basis", ruled the Kerala High Court on Friday. As it existed in the subject assessment years: Explanation 8:- Where a dealer who had opted and paid tax under this clause during previous years with respect to a branch that had remained closed during the …

Kerala HC Stays GST Levy On TCS Amount Collected By Vehicle Dealers [Read Order]
6 years, 2 months ago

Kerala HC Stays GST Levy On TCS Amount Collected By Vehicle Dealers [Read Order]

Live Law  

In a temporary relief to motor vehicle dealers, the High Court of Kerala has stayed the levy of Goods and Services Tax on the amount collected by them as Tax Collected at Source from vehicle purchasers.As per Section 206C of the Income Tax Act, 1961, dealers have to collect 1% amount of the value of the vehicle as TCS from …

GST : No Detention Of Goods If There Is Bona Fide Dispute On Tax Rate, Holds Kerala HC [Read Judgment]
6 years, 2 months ago

GST : No Detention Of Goods If There Is Bona Fide Dispute On Tax Rate, Holds Kerala HC [Read Judgment]

Live Law  

A single bench of Kerala High Court in N.V.K.Mohammed Sulthan Rawther and Sons v. Union of India,held that the process of detention of the goods under section 129 of the Goods and Services Tax Act cannot be resorted to when the dispute is bona fide, especially, concerning the exigibility of tax and,more particularly, the rate of that tax.The judgment was …

GST Council meeting: Group of ministers formed to look into Kerala's demand for calamity cess, says Arun Jaitley
6 years, 5 months ago

GST Council meeting: Group of ministers formed to look into Kerala's demand for calamity cess, says Arun Jaitley

Firstpost  

GST Council, the highest decision making body of the Goods and Services Tax regime, on Friday decided to set up a seven-member Group of Ministers to suggest on cess demand for Kerala flood rehabilitation New Delhi: GST Council, the highest decision making body of the Goods and Services Tax regime, on Friday decided to set up a seven-member Group of …

No person can be prejudiced because of an act of a Court: Supreme Court [Read the Judgment]
9 years, 7 months ago

No person can be prejudiced because of an act of a Court: Supreme Court [Read the Judgment]

Live Law  

A Supreme Court Bench comprising Justice Vikramajit Sen and Justice Shiva Kirti Singh, while ordering refund of license fee due to non-utilization of license for full term, in the event of unforeseeable circumstances, observed that no person can be prejudiced because of an act of a Court.“We hold that a party is entitled to seek a remission in the. A …

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