CST & VAT : Demand raised upon an SEZ unit for payment of purchase tax under section 9(5) Gujarat VAT Act is invalid and impermissible vide Gujarat SEZ Act
Monday 6 October 2014
ITAT disallows sales commission as assessee failed to demonstrate nature of services rendered by age
IT: Where assessee engaged in business of import and sale of modular kitchen and appliances, claimed deduction of sales commission and foreign travel expenses, in view of fact that assessee utterly failed to demonstrate nature and extent of service rendered by agent and similarly, in respect of foreign travel expenses, full details were not brought on record, revenue authorities were justified in rejecting aforesaid claims raised by assessee
Transfer of land to Govt. without any compulsory acquisition would attract TDS under sec. 194-IA and
IT : Where assessee transferred its land to Government at agreed/negotiated price exceeding Rs. 50 lakh, tax was liable to be deducted on sale consideration under section 194-IA
Assessment in case of search could be initiated even if no undisclosed income was unearthed during s
IT : Once proceedings under section 153A is initiated pursuant to search, order of assessment in respect of six years stands reopened and, therefore, in absence of any valid assessment order in existence, revisional proceedings under section 263 cannot be initiated in such a case
Tribunal can extend stay beyond 365 days after passing speaking order that delay not attributable to
Excise & Customs : Tribunal has power to extend stay beyond 365 days only if it is satisfied that delay in disposal of appeal was not attributable to assessee and any such extension must be by way of a speaking/reasoned order
Comparables chosen by TPO were improper due to functional differences, high turnover and brand value
IT/ILT : Where TPO made addition to assessee's ALP in respect of rendering IT Enabled Services (ITES) to its AE, in view of fact that certain comparables selected by TPO were improper on account of functional difference, brand value, high turnover etc., impugned addition was to be set aside and, matter was to be remanded back for disposal afresh
NTPC’s act of inviting bids to develop coal mines only from parties having experience in that field
CL : Where NTPC, a thermal power generator, invited bids for development of its captive coal mine project from Mine Developer and Operators (MDO) who had experience in developing and operating coal/lignite mines only, it could not be termed as unfair or discriminatory and, therefore, there was no violation of provisions of section 4 on its part
HC quashed reassessment notice as revenue failed to prove any non-disclosure on the part of assessee
IT : Where Assessing Officer failed to record its satisfaction that income had escaped assessment by reason of failure on part of assessee to disclose fully and truly all material facts necessary for its assessment, assumption of jurisdiction under section 147 was invalid
Department had to consider details furnished by assessee in estimating taxable turnover for works co
CST & VAT : Where Assessing Authority determined taxable turnover on basis of estimation made as per rule 10(2)(a), Appellate Authority was directed to consider appeal looking to details produced by assessee
Taxable services provided by JV to its members and vice-versa are liable to ST as they are distinct
ST LAWS : Section 66D of the Finance Act, 1994 – Negative List of Services – Clarification on Levy of Service Tax on Taxable Services Provided (A) by Members of Joint Venture (JV) to JV and Vice Versa; and (B) Inter se Between Members of JV
Excess premium paid by builder while refunding booking amount to be deemed as interest; attracts sec
IT : Where assessee, a builder, having collected certain booking amount from purchasers of flats, sold those flats subsequently to some other parties at a higher price, amounts refunded by assessee to original purchasers with a margin amounted to payment of interest within meaning of section 2(28A)
No penalty if there was mass unawareness in service providers about taxability of certain services
Service Tax : Where there was mass unawareness about liability to pay service tax and department had issued 200 notices to different service providers on same issue, there was no intention to evade service tax on part of assessee (in not paying service tax) and hence, penalties were not leviable
No re-assessment on change of opinion that interest couldn’t be set-off against Sec. 10A profits wit
IT : Assessing Officer having completed assessment under section 143(3), read with section 147, could not initiate reassessment proceedings merely on basis of change of opinion that in absence of declaration under section 10A(8), amount of set off against interest receipts was to be brought to tax as 'income from other sources
AO isn’t bound to follow directions of CIT(A) for those years which aren’t pending under appeal, rul
IT: Where appeal before Commissioner (Appeals) pertained to assessment year 2007-08, direction passed by Commissioner (Appeals) for subsequent assessment years would not be binding upon Assessing Officer
High Court can’t dismiss appeal on merits in case of non-appearance of assessee for hearing, rules S
Excise & Customs : High Court cannot dismiss appeal on merits where appellant remained absent or left unrepresented on hearing; High Court can only dismiss appeal without going into merits
No re-assessment if interest is set off against profits eligible for sec. 10A but declaration isn’t
IT : Assessing Officer having completed assessment under section 143(3), read with section 147, could not initiate reassessment proceedings merely on basis of change of opinion that in absence of declaration under section 10A(8), amount of set off against interest receipts was to be brought to tax as 'income from other sources
HC accepts personal bond instead of bank guarantee for granting stay considering financial condition
CST & VAT : Where against order of assessment, assessee filed appeal before Appellate Assistant Commissioner and said authority directed assessee to deposit certain amount and furnish bank guarantee as a condition for grant of stay, assessee was permitted to execute a personal bond instead of furnishing bank guarantee
Fees paid to overseas Hotel Management Institute for providing degree, books and study materials was
IT/ILT : Where assessee, conducting hotel management course in association with international acclaimed institutions, paid certain amount to those institutions towards study curriculum which included teachers textbooks, teaching aids, associated marketing tools and materials etc., since there was no transfer of any technical know how or technical services, amount in question did not fall in category of technical fee requiring deduction of tax at source at time of making payment
No demand alleging clandestine removal of goods without proving excess purchase of raw materials by
Excise & Customs : For upholding demand on charge of clandestine removal, department must find out : (i) excess production details; (ii) excess raw materials purchases; (iii) dispatch particulars from transporters; (iv) realization of proceeds; (v) finished product receipt details by buyers; and (vi) excess power consumption
Billing and accounting services provided to electricity Cos could be categorized as 'Business Suppor
Service Tax : Services provided by way of spot billing, maintaining accounts and Software development and implementation and maintenance to electricity companies/department is Business Support Services and not Business Auxiliary Services.
Interest on tax refund was taxable in year of receipt even if ITAT’s decision was pending on such is
IT : Where in current year department had refunded excess tax paid by assessee along with interest on basis of Tribunal's decision in respect of earlier year, liability to pay tax on interest arose in year of receipt irrespective of pendency of appeal against said decision
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