Inland Haulage Charges Received By Shipping Companies Not Taxable As Business Profit: ITAT Mumbai

2 years, 4 months ago

Inland Haulage Charges Received By Shipping Companies Not Taxable As Business Profit: ITAT Mumbai

Live Law

The Mumbai Bench of ITAT has reiterated that the activity of Inland Haulage is directly connected with the transportation of goods in international traffic and thus, Inland Haulage Charges are not taxable as business profit in India in view of Article 8 of the India-UAE DTAA. The Bench, consisting of Vikas Awasthy and Gagan Goyal, held that since the activity of Inland Haulage was directly connected with the transportation of goods in international traffic, and since it was an integral part of operation of ships; hence, the Inland Haulage Charges cannot be disintegrated from profits derived from shipping business, as envisaged under Article 8 of the DTAA. Hence, the assessee contended that the Inland Haulage Charges were a part of the income derived from operation of ships in international traffic and thus, they were covered by Article 8 of the India-UAE DTAA. Thus, the ITAT ruled that the Inland Haulage Charges earned by the assessee were inextricably linked to the shipping business in international traffic. The ITAT, thus quashed the additions made by the AO on account of the gross receipts from shipping business and the Inland Haulage Charges received by the assessee.

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History of this topic

ITAT Weekly Round-Up: 11 To 17 August 2024

4 months ago

ITAT Weekly Round-Up: 11 To 17 August 2024

Live Law

ITAT Declines To Stay Cancellation Of Exemption Notification To Legal Initiative For Forest And Environment Trust Case Title: Legal Initiative For Forest And Environment Versus PCIT The Delhi Bench of Income Tax Appellate Tribunal has dismissed the stay application filed by assessee-LIFE Trust against the withdrawal/cancellation of registration for exemption granted under section 12A/12AA/12AB from FY 2013-14 onwards. ITAT Allows …

Freight Inward Charges Are Part And Parcel Of Purchase Of Goods, TDS Not Deductible: ITAT

1 year, 2 months ago

Freight Inward Charges Are Part And Parcel Of Purchase Of Goods, TDS Not Deductible: ITAT

Live Law

The Ahmedabad Bench of Income Tax Appellate Tribunal has observed that freight inward charges were part and parcel of the purchase of the goods. The bench of Suchitra Kamble and Waseem Ahmed has observed that the assessee was not under the obligation to deduct TDS of inward freight expenses incurred for Rs. The Assessing Officer has made the disallowance representing …

Tax Cases Weekly Round-Up: 12 March To 18 March, 2023

1 year, 9 months ago

Tax Cases Weekly Round-Up: 12 March To 18 March, 2023

Live Law

Supreme Court Case Title: Commercial Tax Officer Versus Neeraja Pipes Pvt. Gujarat High Court Case Title: Keenara Industries Private Limited Versus Income Tax Officer The Gujarat High Court has held that the reassessment notices were issued after the lapse of six years and are therefore time-barred. Case Title: Manishkumar Tulsidas Kaneriya Versus Assistant Commissioner Of Income Tax, Central 1, Rajkot …

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

2 years, 1 month 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 …

Sale Of Scrap By Trader, Not Engaged In Any Manufacturing Activity, Will Also Attract TCS: ITAT

2 years, 1 month ago

Sale Of Scrap By Trader, Not Engaged In Any Manufacturing Activity, Will Also Attract TCS: ITAT

Live Law

The Ahmedabad Bench of the Income Tax Appellate Tribunal has ruled that sale of scrap by a trader, who is not engaged in any manufacturing activity from which the scrap arose, will also attract TCS. A show-cause notice was issued to the assessee- Umeshkumar Harilal Shah, proposing to pass an order under Section 206C/206C of the Income Tax Act, 1961, …

Liquidated Damages Received By Shipping Company, Not Exempt Under 'Tonnage Tax Scheme': ITAT

2 years, 1 month ago

Liquidated Damages Received By Shipping Company, Not Exempt Under 'Tonnage Tax Scheme': ITAT

Live Law

The Visakhapatnam Bench of theIncome Tax Appellate Tribunal has ruled that liquidated damages received by a shipping company cannot be included in computation of tonnage tax and therefore, they are not exempt under the 'Tonnage Tax Scheme', as provided under Chapter XIIG of the Income Tax Act, 1961. Therefore, the ITAT ruled that though the liquidated damages may be an …

Inland Haulage Charges Received By Shipping Companies Not Taxable As Business Profit: ITAT Mumbai

2 years, 4 months ago

Inland Haulage Charges Received By Shipping Companies Not Taxable As Business Profit: ITAT Mumbai

Live Law

The Mumbai Bench of ITAT has reiterated that the activity of Inland Haulage is directly connected with the transportation of goods in international traffic and thus, Inland Haulage Charges are not taxable as business profit in India in view of Article 8 of the India-UAE DTAA. The Bench, consisting of Vikas Awasthy and Gagan Goyal, held that since the activity …

Commission Earned On Distribution Of Indian Mutual Fund Outside India, Not Taxable: ITAT Mumbai

2 years, 6 months ago

Commission Earned On Distribution Of Indian Mutual Fund Outside India, Not Taxable: ITAT Mumbai

Live Law

The Mumbai Bench of ITAT has ruled that the commission earned on distribution of Mutual Funds schemes of an Indian fund outside India cannot be taxed in India, if all the operations are carried out by the distributor outside India. Therefore, the AO ruled that the commission income received by the assessee was taxable in India under Article 23 of …

Accessing The Premises Of A JV Company For Technical Assistance Can't Be Treated As Permanent Establishment Under DTAA : Delhi ITAT

2 years, 9 months ago

Accessing The Premises Of A JV Company For Technical Assistance Can't Be Treated As Permanent Establishment Under DTAA : Delhi ITAT

Live Law

The Delhi Bench of ITAT, consisting of members N.K. The Assessing Officer held that during the relevant assessment years, FCC Rico Ltd.'s premises in India served as a branch and office of the Assessee and therefore the Assessee had a business connection in India under section 9 of the Income Tax Act, 1961 and a Fixed Place in India under …

Importers, govt. duel in Supreme Court over GST on ocean freight

2 years, 11 months ago

Importers, govt. duel in Supreme Court over GST on ocean freight

The Hindu

The government is engaged in a pitched legal battle in the Supreme Court against importers over its decision to levy Integrated Goods and Services Tax on ocean freight on a reverse charge basis. A hearing set for January 11 was postponed after two Judges on the Bench took ill. At the centre of the spat are two notifications issued on …

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'Hiring' Of Helicopters By Andaman & Nicobar Admin Not Exigible To Tax Under Central Sales Tax Act: Delhi High Court

3 days, 8 hours ago

'Hiring' Of Helicopters By Andaman & Nicobar Admin Not Exigible To Tax Under Central Sales Tax Act: Delhi High Court

Live Law

The Delhi High Court has held that the supply of helicopters by Pawan Hans Ltd. to the Andaman & Nicobar Islands administration, under an agreement executed in the year 2003, is not exigible to tax under the Central Sales Tax Act, 1956. Disagreeing with the Tribunal, the High Court said that the clauses pertaining to confidentiality and security were hardly …

Tax Court Control Transfer Administration Right Tribunal

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

3 days, 11 hours 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 …

Credit Form Mistake Assessee Igst Gstr Sgst

GST | Delhi HC Orders Refund Of Service Tax Paid On Ocean Freight, Cites Gujarat HC Judgment Declaring It Unconstitutional

4 days, 5 hours ago

GST | Delhi HC Orders Refund Of Service Tax Paid On Ocean Freight, Cites Gujarat HC Judgment Declaring It Unconstitutional

Live Law

The Delhi High Court on Thursday ordered the GST Department to refund the service tax paid by certain importers on ocean freight. The division bench also relied on judgment rendered by the Ahmedabad Bench of the CESTAT in Commissioner of Service Tax vs. Kiri Dyes and Chemicals Limited where it was held, “the issue whether Ocean Freight/ Sea Transportation service …

High Court Constitution Court Ocean Gujarat Freight High

[Taxation Law] Market Research, Promotional Activities, Training Or Deployment Of Software Are 'Auxiliary Functions' Under DTAA: Delhi HC

Top News

4 days, 9 hours ago

[Taxation Law] Market Research, Promotional Activities, Training Or Deployment Of Software Are 'Auxiliary Functions' Under DTAA: Delhi HC

Live Law

The Delhi High Court has reiterated that “activities such as market research, promotional activities, training or deployment of software would clearly not breach the threshold of auxiliary functions as are envisaged under the DTAA.” Double Taxation Avoidance Agreement was signed between India and the US to prevent International Double Taxation and encourage international trade. In its 72-page judgment, a division …

Business India Activities Financial Court Services Union

[Taxation Law] Market Research, Promotional Activities, Training Or Deployment Of Software Are 'Auxiliary Functions' Under DTAA: Delhi HC

Top News

4 days, 9 hours ago

[Taxation Law] Market Research, Promotional Activities, Training Or Deployment Of Software Are 'Auxiliary Functions' Under DTAA: Delhi HC

Live Law

The Delhi High Court has reiterated that “activities such as market research, promotional activities, training or deployment of software would clearly not breach the threshold of auxiliary functions as are envisaged under the DTAA.” Double Taxation Avoidance Agreement was signed between India and the US to prevent International Double Taxation and encourage international trade. In its 72-page judgment, a division …

Business India Activities Financial Court Services Union

S.68 IT Act | Whether Assessee Discharged Burden To Substantiate Identity & Genuineness Of Share Application Money Is 'Question Of Fact', Not Law: Gauhati HC

5 days, 6 hours ago

S.68 IT Act | Whether Assessee Discharged Burden To Substantiate Identity & Genuineness Of Share Application Money Is 'Question Of Fact', Not Law: Gauhati HC

Live Law

The Gauhati High Court refused to entertain an appeal with respect to genuineness of credit received by an assessee from share application money, holding that the same would require it to venture into factual matrix of the case which is beyond its jurisdiction under Section 260A of the Income Tax Act, 1961. The appeal was preferred by the Revenue, following …

Law Appeal Court Question Fact Finding Assessee

Rule 8D Of IT Rules Can Be Invoked Only If Assessee's Computation Of Expenses Attributable To Earning Exempt Income Is Found Inadequate: Delhi HC

5 days, 9 hours ago

Rule 8D Of IT Rules Can Be Invoked Only If Assessee's Computation Of Expenses Attributable To Earning Exempt Income Is Found Inadequate: Delhi HC

Live Law

The Delhi High Court has held that recourse to Rule 8D of the Income Tax Rules, 1962 for computing disallowance under Section 14A of the Income Tax Act is available only if the Assessee's computation of expenses attributable to earning exempt income, is found to be inadequate. Aggrieved, the Assessee preferred an appeal before the Commissioner of Income Tax which …

Delhi Income Rule Expenditure Exempt Computation Earning

Regulatory Measures Under GST Laws Necessary To Prevent Tax Evasion, Not Violative Of Fundamental Right To Trade: Calcutta High Court

5 days, 10 hours ago

Regulatory Measures Under GST Laws Necessary To Prevent Tax Evasion, Not Violative Of Fundamental Right To Trade: Calcutta High Court

Live Law

The Calcutta High Court has held that regulatory measures under the Goods and Services Tax Act cannot be labeled as violative of an assessee's right to trade/ business under Article 19 of the Constitution. Justice Rajarshi Bharadwaj reasoned that such regulatory measures are “necessary to ensure compliance and prevent tax evasion”. Such discrepancies undermined the accuracy of the petitioner's declarations, …

Trade High Court Constitution Tax Tax Evasion Gst Goods

S.144C IT Act | AO Not Having Info About Pending Objections Before Dispute Resolution Panel No Grounds To Sustain Final Assessment Order: Delhi HC

6 days, 2 hours ago

S.144C IT Act | AO Not Having Info About Pending Objections Before Dispute Resolution Panel No Grounds To Sustain Final Assessment Order: Delhi HC

Live Law

The Delhi High Court has made it clear that a Final Assessment order passed by the Income Tax Authorities under Section 143 of the Income Tax Act, 1961 is not sustainable, if it is passed in ignorance of pending objections before the Dispute Resolution Panel. It said, “.notwithstanding the lack of information with the AO, if an objection has been …

Assessment Order Income Passed Objections Drp Final Assessment Order

Tax Weekly Round-Up: December 09 - December 15, 2024

1 week, 1 day ago

Tax Weekly Round-Up: December 09 - December 15, 2024

Live Law

HIGH COURTS Allahabad HC Assesee Cannot File For Requisite Documents Once Plea Is Accepted And Notice Is Issued: Allahabad High Court Case Title: M/s Laxmi Telecom v. State of U.P. Form 26B Under Income Tax Rules Not Required For Refund Once Form 5 Under 'Vivad Se Vishwas' Act Is Issued: Allahabad High Court Case Title: Dish TV India Limited v. …

Delhi Mumbai Tax Customs Income Tax Title Income

Karnataka HC ruling on taxing compensation could have national impact

1 week, 1 day ago

Karnataka HC ruling on taxing compensation could have national impact

New Indian Express

BENGALURU: A significant case pending before the Karnataka High Court could lead to a landmark ruling on the taxation of compensation for land acquired for national highway projects, potentially affecting landowners across India. The petitioner, Supriya Shetty, a businesswoman from Mangaluru, argues that tax deductions violate Section 96 of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation, …

Compensation Tax Land Acquisition Land Case Act Hc Ruling

Assessee Can Confine Settlement Under Direct Tax Vivad Se Vishwas Act To Disputes Which Were Subject Matter Of Its Appeal: Delhi HC

Trending News

1 week, 4 days ago

Assessee Can Confine Settlement Under Direct Tax Vivad Se Vishwas Act To Disputes Which Were Subject Matter Of Its Appeal: Delhi HC

Live Law

The Delhi High Court has held that under the Direct Tax Vivad Se Vishwas Act, 2020, an Assessee is entitled to confine the settlement of disputes which were subject matter of its appeal, and exclude the disputes which were subject matter of the Revenue's appeal for the same assessment year. It thus allowed a real estate company's plea against the …

Appeal Tax Income Tax Settlement Disputes Act Matter

Pendency Of Revenue's Appeal Regarding Classification Of Imported Goods No Ground To Insist On Provisional Assessment U/S 18 Customs Act: Delhi HC

1 week, 4 days ago

Pendency Of Revenue's Appeal Regarding Classification Of Imported Goods No Ground To Insist On Provisional Assessment U/S 18 Customs Act: Delhi HC

Live Law

The Delhi High Court has ruled in favour of an importer who was aggrieved by insistence on provisional assessment of duty by the Customs Department, despite an order of the CESTAT with respect to classification of its imported goods. Nonetheless, the Revenue continued to insist on provisional assessment of Petitioner's goods under Section 18 of the Customs Act. Petitioner argued …

Customs Assessment Order Goods Provisional Petitioner Cestat

[IT Act] Section 80IB Doesn't Mandate Setting Off Losses Of One Eligible Unit Against Profits Of Another Eligible Unit: Mumbai ITAT

1 week, 6 days ago

[IT Act] Section 80IB Doesn't Mandate Setting Off Losses Of One Eligible Unit Against Profits Of Another Eligible Unit: Mumbai ITAT

Live Law

The Mumbai ITAT recently clarified that an industrial undertaking was not required to set off the losses incurred by it in one eligible unit against the profits earned from another eligible unit for the purpose of calculating deduction u/s 80-IB. As per Section 80-I of Income tax Act, 1961, where the gross total income of an assessee includes any profits …

Loss Income Industrial Department Act Total Bench

Genuine Short-Term Capital Loss From Sale Of Shares Can't Be Prevented From Being Set Off Against Long-Term Capital Gain: Mumbai ITAT

1 week, 6 days ago

Genuine Short-Term Capital Loss From Sale Of Shares Can't Be Prevented From Being Set Off Against Long-Term Capital Gain: Mumbai ITAT

Live Law

The Mumbai ITAT held that a taxpayer is not prevented from arranging her affairs within the legal framework and through legitimate means to reduce his tax liability. While pointing that the Income Tax Statute does not require the assessee to pay more tax, the Division Bench of Saktijit Dey and Amarjit Singh observed that “short-term capital loss derived by assessee …

Loss Sale Capital Term Bench Shares Gain

[Income Tax Act] Placing Funds In One Account Before Transferring It To Another Does Not Attract S. 69A: Allahabad High Court

2 weeks, 3 days ago

[Income Tax Act] Placing Funds In One Account Before Transferring It To Another Does Not Attract S. 69A: Allahabad High Court

Live Law

The Allahabad High Court has upheld the finding of the Income Tax Appellate Tribunal and Commissioner of Income Tax that when an agreement between parties specifies a direct transfer of money, doing so indirectly by keeping the funds in a distinct account before sending them to the final account, does not place the money under the definition of 'unexplained money' …

Tax Court Income Tax Bank Income Agreement Tribunal

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

2 weeks, 6 days 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 …

Policy Trade Interest Foreign Act Scheme Levy

Only Income From Investment Made By Charitable Institution In Violation Of S.13(1)(d) Income Tax Act Is Liable To Tax: Telangana HC

3 weeks ago

Only Income From Investment Made By Charitable Institution In Violation Of S.13(1)(d) Income Tax Act Is Liable To Tax: Telangana HC

Live Law

The Telangana High Court has held that the benefit of exemption under Section 11 of the Income Tax Act, 1961, can be denied only on income from such investments made by charitable or religious institutions, which are in violation of Section 13 of the Act. In the case at hand, the Andhra Pradesh State Civil Supplies Corporation Limited, a charitable …

Tax Court Investment Violation Companies Income Act

Tax Monthly Digest: November 2024

3 weeks ago

Tax Monthly Digest: November 2024

Live Law

SUPREME COURT DRI Officers Can Issue Show-Cause Notices Under Customs Act : Supreme Court Allows Review Against 'Canon India' Judgment Case Details : COMMISSIONER OF CUSTOMS vs. M/S CANON INDIA PRIVATE LIMITED Case no. A division bench of Justices Vibhu Bakhru and Swarana Kanta Sharma ruled, “Assessee's contention that E4e Healthcare is functionally dissimilar to the assessee and therefore, could …

Delhi Supreme Court Writ Petition Writ Jurisdiction Tax Court Uttar Pradesh

AO Cannot Assess 'Other Incomes' If No Addition Is Made On Account Of 'Reasons' For Which Reassessment U/S 147 Of IT Act Was Initiated: Delhi HC

3 weeks, 1 day ago

AO Cannot Assess 'Other Incomes' If No Addition Is Made On Account Of 'Reasons' For Which Reassessment U/S 147 Of IT Act Was Initiated: Delhi HC

Live Law

The Delhi High Court has made it clear that an Assessing Officer cannot assess other incomes of an Assessee in a case where no addition is made on account of the “reasons” for which reassessment under Section 147 of the Income Tax Act, 1961 was initiated. Section 147 empowers the AO to assess or reassess income and also any other …

Reassessment Assessment Income Act Reasons Assess Assessee

Trader Not Liable To Pay Social Welfare Surcharge On Customs Duty Which Is Exempted Under MEIS Scheme: Orissa High Court

3 weeks, 4 days ago

Trader Not Liable To Pay Social Welfare Surcharge On Customs Duty Which Is Exempted Under MEIS Scheme: Orissa High Court

Live Law

The Orissa High Court has held that Social Welfare Surcharge leviable on customs duty will be nil where a trader is exempted from paying customs duty under the Merchandise Exports from India Scheme. It relied on Union of India v. Modi Rubber Ltd. where the issue before the Supreme Court was- where there had been partial exemption of duty payable, …

India Court Social Welfare Customs Duty Pay Act

Delhi, Mumbai airports get HC notice in Airports Authority’s revenue sharing plea

3 weeks, 6 days ago

Delhi, Mumbai airports get HC notice in Airports Authority’s revenue sharing plea

Live Mint

New Delhi: The Delhi high court’s division bench on Wednesday issued notices to Delhi International Airport Ltd and Mumbai International Airport Ltd, subsidiaries of GMR Airports Ltd and Adani Airport Holdings Ltd, respectively, in response to a petition filed by the Airports Authority of India over the revenue-sharing model. Under the operation, management, and development agreement, the JVs were required …

International Delhi Mumbai Airport Airports Revenue Agreement

S.99A Customs Act | Final Report Containing Audit Findings Can Be Drawn Only After Apprising Auditee Of 'Objections': Delhi High Court

4 weeks ago

S.99A Customs Act | Final Report Containing Audit Findings Can Be Drawn Only After Apprising Auditee Of 'Objections': Delhi High Court

Live Law

The Delhi High Court has held that pursuant to an audit in respect of assessment of imported or exported goods under Section 99A of the Cutoms Act, 1962, the proper officer is liable to apprise the auditee of the objections which according to it arise in respect of the assessment. However, before such a report is finally drawn or issued, …

Court Regulation Audit Objections Regulation 5 Auditee

S.99A Customs Act | Final Report Containing Audit Findings Can Be Drawn Only After Apprising Auditee Of 'Objections': Delhi High Court

4 weeks ago

S.99A Customs Act | Final Report Containing Audit Findings Can Be Drawn Only After Apprising Auditee Of 'Objections': Delhi High Court

Live Law

The Delhi High Court has held that pursuant to an audit in respect of assessment of imported or exported goods under Section 99A of the Cutoms Act, 1962, the proper officer is liable to apprise the auditee of the objections which according to it arise in respect of the assessment. However, before such a report is finally drawn or issued, …

Court Regulation Audit Objections Regulation 5 Auditee

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

4 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. …

Services Order Goods Ged Assessee Consideration Tax Kerala

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

4 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. …

Kerala Services Order Goods Ged Assessee Consideration

Assessing Officer Not Required To Examine Commercial Expediency Of Transaction When Evaluating Assessee's Explanation U/S 68 Of IT Act: Delhi HC

1 month ago

Assessing Officer Not Required To Examine Commercial Expediency Of Transaction When Evaluating Assessee's Explanation U/S 68 Of IT Act: Delhi HC

Live Law

The Delhi High Court has made it clear that once an assessee offers explanation about nature and source of a credit transaction standing in its books, the burden of proof to show that such explanation is unsatisfactory shifts on the Assessing Officer.A division bench of Justices Vibhu Bakhru and Swarana Kanta Sharma further held that in evaluating the transaction so …

Nature Tax Court Income High Source Transaction

Recourse To Section 147 Of Income Tax Act Not Barred In Cases Where Assessing Officer Is Empowered To Proceed U/S 153C: Delhi High Court

1 month ago

Recourse To Section 147 Of Income Tax Act Not Barred In Cases Where Assessing Officer Is Empowered To Proceed U/S 153C: Delhi High Court

Live Law

S.153C Income Tax Act doesn't bar AO's jurisdiction to reopen assessment u/S 147 when information against assessee is received from search conducted on another person: Delhi High CourtThe Delhi High Court has held that Section 153C of the Income Tax Act, 1961 does not by itself preclude an Assessing Officer from reopening assessments under Section 147/148 of the Act, on …

Delhi Jurisdiction Tax Court Assessment Income Tax Income Tax Act

Transfer Pricing-Assessee's Objections On 'Functional Dissimilarity' Not Adjudicated: Delhi HC Asks TPO To Determine Comparable Entity Afresh

1 month ago

Transfer Pricing-Assessee's Objections On 'Functional Dissimilarity' Not Adjudicated: Delhi HC Asks TPO To Determine Comparable Entity Afresh

Live Law

The Delhi High Court recently directed a Transfer Pricing Officer to determine afresh the inclusion of a comparable entity with respect to an assessee, this time taking into consideration the latter's objections on 'functional dissimilarity' of the two. A division bench of Justices Vibhu Bakhru and Swarana Kanta Sharma ruled, “Assessee's contention that E4e Healthcare is functionally dissimilar to the …

Healthcare Court Services High Itat Functional Assessee

Assessee Entitled To CENVAT Credit For Service Tax Paid On GTA Services Used To Transport Goods To Buyer's Premises: CESTAT

1 month ago

Assessee Entitled To CENVAT Credit For Service Tax Paid On GTA Services Used To Transport Goods To Buyer's Premises: CESTAT

Live Law

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal has stated that the assessee is entitled to CENVAT credit of the service tax paid on the goods transport agency services received by the assessee to transport the goods from its factory to the buyer's premises sold on FOR destination basis. Subba Rao has observed that ““place of …

Transport Tax Services Service Tribunal Commissioner Goods

Amount Received By Assessee Under Agreement To Not Carry On Competitive Business Is In Nature Of 'Capital Receipt', Not Exigible To Tax: Telangana HC

1 month ago

Amount Received By Assessee Under Agreement To Not Carry On Competitive Business Is In Nature Of 'Capital Receipt', Not Exigible To Tax: Telangana HC

Live Law

The Telangana High Court has held that the amount received by the developer of Hepatitis-B vaccine, under a co-marketing agreement with PFIZER Company, is a capital receipt not liable to tax. The development comes in an appeal preferred by the Revenue against an ITAT order holding that Rs.6 crores received by the assessee from PFIZER was a capital receipt since …

Tax Income Capital Revenue Agreement Assessee Receipt

Can't Fault AO's Estimation Of Undisclosed Deposits In Foreign Bank When Assessee Fails To Produce Account Statement: Delhi HC

1 month ago

Can't Fault AO's Estimation Of Undisclosed Deposits In Foreign Bank When Assessee Fails To Produce Account Statement: Delhi HC

Live Law

The Delhi High Court has made it clear that it cannot fault the estimation of an Assessing Officer regarding the quantum of deposits made by an assessee in an undisclosed foreign bank, when the latter himself fails to produce the account statement. We find it difficult to accept that any interference with the estimation of the deposit made in the …

Bank Account Produce Deposit Assessee Ita

Tax Weekly Round-Up: November 11 To November 17, 2024

1 month ago

Tax Weekly Round-Up: November 11 To November 17, 2024

Live Law

HIGH COURTS Allahabad HC 1. : ITA 1092/2018 The Delhi High Court has held that in order to invoke Section 263 of the Income Tax Act, 1961, the Principal Commissioner must satisfy “twin conditions”, i.e. Assessing Authority Can't Reassess Prior Years Without Inquiry While Determining Relevant Year's Assessment: Kerala High Court Case Title: Kings Infra Ventures Ltd. v. The Assistant …

Delhi Court Customs Income Tax Title Income Tax Act Kerala High Court

Tax Quarterly Digest: July To September 2024

1 month, 1 week ago

Tax Quarterly Digest: July To September 2024

Live Law

Because Of Refund Due From Assessment Proceedings, Can't Escape Liability Of Depositing Tax Realized: Allahabad High Court The Allahabad High Court has held that a registered dealer cannot withhold the tax realised by him from a purchasing dealer only because he had deposited an excess amount of tax at the time of the transaction. Compensation To Discontinue Commodity Brokerage Business …

India Singapore Justice Mumbai Supreme Court High Court Bombay High Court

Scrutiny Notice Was Issued In Amalgamating Company's Name Despite Dept Knowing Of Amalgamation: Calcutta HC Declines To Apply S.292B Of Income Tax Act

1 month, 1 week ago

Scrutiny Notice Was Issued In Amalgamating Company's Name Despite Dept Knowing Of Amalgamation: Calcutta HC Declines To Apply S.292B Of Income Tax Act

Live Law

The Calcutta High Court has refused to apply Section 292B of the Income Tax Act, 1961 to a scrutiny notice issued in an amalgamating company's name, despite the Assessing Officer being aware about the company's amalgamation. Sivagnanam and Justice Hiranmay Bhattacharyya noted that “the fact of amalgamation was well within the knowledge of the assessing officer.” It thus dismissed the …

Income Tax Act Company Notice

Factual Examination Of Dispute Regarding 'Addition' Of Unexplained Cash Credit U/S 68 Of IT Act Is Beyond Scope Of Appeal U/S 260A: Calcutta HC

1 month, 1 week ago

Factual Examination Of Dispute Regarding 'Addition' Of Unexplained Cash Credit U/S 68 Of IT Act Is Beyond Scope Of Appeal U/S 260A: Calcutta HC

Live Law

The Calcutta High Court has held that it cannot indulge in factual examination of the material produced or not produced by an assessee-company to explain the share capital and premium received by it, in an appeal filed under Section 260A of the Income Tax Act. Sivagnanam and Justice Hiranmay Bhattacharyya thus refused to interfere with an ITAT order which deleted …

Income Share Itat Share Capital Share Premium

Assessee Is Not Responsible For Disclosing Individual Transactions In ST-3 Returns: CESTAT

1 month, 1 week ago

Assessee Is Not Responsible For Disclosing Individual Transactions In ST-3 Returns: CESTAT

Live Law

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal has stated that ST-3 Return does not require transaction wise details. If the officer does not do so, and any tax escapes assessment, the responsibility for it rests on the officer.” The assessee/respondent provided taxable construction services and paid service tax accordingly. There is neither any responsibility on …

Tribunal Date Officer Stat Returns Assessee Service Tax

Punjab Roadways Cannot Deprive Himachal Pradesh Govt Of Passenger Tax, Interest On Delayed Payment When Its Buses Are Plying On Territory: HC

1 month, 1 week ago

Punjab Roadways Cannot Deprive Himachal Pradesh Govt Of Passenger Tax, Interest On Delayed Payment When Its Buses Are Plying On Territory: HC

Live Law

The Himachal Pradesh High Court recently directed the Punjab Roadways to clear the interest due upon it for delayed payment of passenger tax and surcharge to the HP government. A division bench of Acting Chief Justice Tarlok Singh Chauhan and Justice Satyen Vaidya observed that the body first failed to deposit any tax with the authorities of Himachal Pradesh despite …

High Court Tax Interest Himachal Pradesh Himachal Passenger Tax Petitioner Punjab

[S.263 IT Act] Revisionary Power Can Be Invoked When Order Meets Twin Conditions Of Being Erroneous, Prejudicial To Interest Of Revenue: Delhi HC

1 month, 1 week ago

[S.263 IT Act] Revisionary Power Can Be Invoked When Order Meets Twin Conditions Of Being Erroneous, Prejudicial To Interest Of Revenue: Delhi HC

Live Law

The Delhi High Court has held that in order to invoke Section 263 of the Income Tax Act, 1961, the Principal Commissioner must satisfy “twin conditions”, i.e. A division bench of Justices Vibhu Bakhru and Swarana Kanta Sharma observed, “Twin conditions have to be met for assuming jurisdiction under Section 263 of the Act, and the PCIT has to form …

Court Income Tax Case Interest Revenue Held Commissioner

Hotel Replacing Damaged Furniture, Carpets Is Current Expenditure Allowable U/S 37 Income Tax Act: Telangana HC

1 month, 1 week ago

Hotel Replacing Damaged Furniture, Carpets Is Current Expenditure Allowable U/S 37 Income Tax Act: Telangana HC

Live Law

The Telangana High Court has held that the expenditure incurred by a hotel on replacement of damaged items is a current expenditure, allowable under Section 37 of the Income Tax Act, 1961. The replacement of existing damaged carpets, mattresses and lamp shades does not come under the capital in nature but it comes only under current expenditure…allowable under Section 37 …

High Court Tax Court Income Tax Income Tax Act Income Capital

Hotel Replacing Damaged Furniture, Carpets Is Current Expenditure Allowable U/S 37 Income Tax Act: Telangana HC

1 month, 1 week ago

Hotel Replacing Damaged Furniture, Carpets Is Current Expenditure Allowable U/S 37 Income Tax Act: Telangana HC

Live Law

The Telangana High Court has held that the expenditure incurred by a hotel on replacement of damaged items is a current expenditure, allowable under Section 37 of the Income Tax Act, 1961. The replacement of existing damaged carpets, mattresses and lamp shades does not come under the capital in nature but it comes only under current expenditure…allowable under Section 37 …

High Court Court Income Tax Income Tax Act Capital Hotel Damaged

[Tamil Nadu General Sales Tax] Assessee Liable For Tax On Proceeds From Sale Of Unredeemed Articles By Auctioneers: Madras High Court

1 month, 1 week ago

[Tamil Nadu General Sales Tax] Assessee Liable For Tax On Proceeds From Sale Of Unredeemed Articles By Auctioneers: Madras High Court

Live Law

The Madras High Court stated that assessee is liable to tax on consideration received from sale of unredeemed articles by auctioneers. Admittedly, the assessee has not filed the returns and hence, the basis of assessment would be irrelevant.” Under Section 12 of the Tamil Nadu General Sales Tax Act, 1959 if a dealer fails to submit a return, the assessing …

Tax Penalty Sale Assessment Assessee Unredeemed Articles

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

1 month, 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.” …

Tax Income Tax Income Service Department Advance Received

Mistake On Part Of AO Resulting In Under Assessment Of Income No Ground To Re-Open Assessment U/S 147 Of Income Tax Act: Delhi HC

1 month, 1 week ago

Mistake On Part Of AO Resulting In Under Assessment Of Income No Ground To Re-Open Assessment U/S 147 Of Income Tax Act: Delhi HC

Live Law

The Delhi High Court has made it clear that once scrutiny assessment is held under Section 143 of the Income Tax Act but due to a mistake of the Assessing Officer there is under assessment of income, reopening assessment under Section 147 of the Income Tax Act, 1961 is not permissible. At the outset, the High Court observed that escapement …

High Court Assessment Income Tax Income Tax Act Income

High Court Rules on Income From Leasing of Property, Sets a Precedent for Tax Law

2 months ago

High Court Rules on Income From Leasing of Property, Sets a Precedent for Tax Law

Live Law

The Bombay High Court has ruled that assessee's income from leasing properties should be considered as income from profits and gains of business, not income from house property. The court found that the assessee's business is primarily focused on the letting out of properties, and that the income being taxed is derived from the rental income received from these properties.

Business Law Finance Income Tax Mumbai

High Court Rules on Goodwill as Expenditure, Allows Depreciation on Acquisition

2 months ago

High Court Rules on Goodwill as Expenditure, Allows Depreciation on Acquisition

Live Law

The Delhi High Court has ruled that goodwill is not 'income' but rather 'expenditure' for acquisition of assets and therefore, an assessee is entitled to charge depreciation on the amount spent towards it. The court cited Commissioner of Income Tax, Kolkata v. Smifs Securities Ltd. (2012) to support its decision.

Law Finance Legal Tax Delhi

Software Expenses Are 'Revenue In Nature' If Fixed Capital Did Not Undergo Any Change Consequent To Acquisition Of Licensed Software: Mumbai ITAT

4 months ago

Software Expenses Are 'Revenue In Nature' If Fixed Capital Did Not Undergo Any Change Consequent To Acquisition Of Licensed Software: Mumbai ITAT

Live Law

Referring to the decision in case of DCIT v/s M/s First Advantage Private Limited, the Mumbai ITAT held that software license expenses incurred by assessee to carry out its routine operations in a more efficient manner, has to be treated as revenue expenditure. The Bench found that the taxability of software license expenditure was decided in favour of assessee by …

Nature Software Revenue Tribunal Bench License Expenditure

Income Tax Deduction Allowable To Interest Income 'Attributable' To Cottage Industry Business: ITAT

4 months ago

Income Tax Deduction Allowable To Interest Income 'Attributable' To Cottage Industry Business: ITAT

Live Law

The Chennai bench of Income Tax Appellate Tribunal has held that the income tax deduction allowable to interest income 'attributable' to cottage industry business.The bench of S.S. Viswanethra Ravi and S. R. Raghunatha has observed that the assessee is a 'cottage industry' and the interest income earned by the assessee is in its regular course of. The Chennai bench of …

Society Tamil Nadu Industry Tax Bank Interest Interest Income

Direct Tax Weekly Round-Up: 11 To 17 August 2024

4 months ago

Direct Tax Weekly Round-Up: 11 To 17 August 2024

Live Law

Delhi High Court Failure Of Dept. Value Of Shares Allotted Under Employees Stock Purchase Scheme Can't Be Treated As Perquisite As Per Sec 17: Delhi High Court Case Title: Ravi Kumar Sinha vs. CIT While emphasizing that no tax can be levied on notional income, the Delhi High Court held that Valuation Report obtained by employer could have no application …

Delhi Court Assessment Income Tax Title Income 2024