Notice U/S 153C Income Tax Act Can Be Issued Only If Incriminating Material Has 'Bearing On Total Income' Of Non-Searched Assessee: Delhi HC

The Delhi High Court has made it clear that assessments under Section 153C of the Income Tax Act, 1961 can be made on a non-searched entity only when the Assessing Officer has incriminating material which “has a bearing” on its total income.Section 153C allows the Revenue department to proceed against a party other than the person who is being searched, if incriminating articles belonging...

Skill Development Programmes Approved By Govt Qualify For Service Tax Exemption: CESTAT

The Kolkata Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that Skill Development Programme approved by the Ministry of Labour and Employment, Government of India is eligible for the exemption from payment of service tax. K. Anpazhakan (Technical Member) stated that the programme undertaken by the assessee is approved by the Government and hence...

[Income Tax] Filing Of Form 10-IC Prior To Filing Of Return Not Mandatory, Delay May Be Condoned In “Genuine Hardship”: Allahabad High Court

The Allahabad High Court has held that filing of Form 10-IC prior to filing of income tax return is not mandatory and the delay in filing the Form may be condoned in cases where “genuine hardship” is shown to exist. Form 10-IC, under the Income Tax Act, is required to filed only if a Domestic Company chooses to pay tax at concessional rate of 22% under Section 115BAA of...

Gujarat High Court Upholds Validity Of GST Advisory On Interest For Delayed Tax Payment

The Gujarat High Court has upheld the validity of the GST advisory on interest for delayed tax payment. Justices Bhargav D. Karia and Pranav Trivedi stated that the reference to Section 79 of the GST Act in the advisory is only to put the assessee on guard as to such outstanding liability as per the record of the Authority so that the assessee can either make the payment of...

Placement Services To MNCs By Educational Trust Liable To Service Tax Under 'Manpower Recruitment Services': CESTAT

The Bangalore Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that placement services to MNCs by the educational trust is liable to service tax under 'manpower recruitment services'. P.A. Augustian (Judicial Member) and R. Bhagya Devi (Technical Member) was addressing the issue of whether the recruiting facility to MNCs and other recruiting...

India-UK DTAA | Consideration For Availing Services That Require Technical Expertise Not FTS Unless Recipient Absorbs Technology: Delhi HC

The Delhi High Court has made it clear that consideration paid for merely availing services that require technical expertise would not qualify as 'Fees for Technical Service' under Article 13 of the India-UK DTAA.A division bench of Justices Vibhu Bakhru and Tejas Karia observed that unless the recipient absorbs the technology and exploits it independently, it cannot qualify as 'FTS' which...

Transfer Of Approvals/Allotments Acquired From Government Involves Business Support Services, Attracts Service Tax: CESTAT

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that the transfer of approvals/allotments acquired from government involves business support services, attracts service tax. Dr. Rachna Gupta (Judicial Member) and P.V. Subba Rao (Technical Member) stated that the approvals and allotments so obtained are not 'profit a prendre' hence cannot...

Penalty U/S 122(1A) GST Act Can Be Imposed Retrospectively Even If SCN Was Issued After Its Enactment: Delhi High Court

The Delhi High Court has made it clear that Section 122(1A) of the Goods and Services Tax Act 2017 can be imposed retrospectively, provided the show cause notice had been issued to the assessee when the provision was introduced.Section 122 contemplates penalties for certain offences under the GST Act, including fraudulent availment of input tax credit.Section 122(1A) was introduced by the...

Stem Cell Banking Services Qualify As "Healthcare Services" In Service Tax Exemption Notification : Supreme Court

The Supreme Court held that stem cell banking services, including enrolment, collection, processing, and storage of umbilical cord blood stem cells, constitute “Healthcare Services” which were exempted from service tax as per the notifications issued by the Ministry of Finance in 2012 and 2014 under the Finance Act, 1994.Holding so, a bench comprising Justice JB Pardiwala and Justice...

[S.69 CGST Act] Fake Supplier Addresses Indicate Prima Facie GST Evasion: Himachal Pradesh High Court Refuses To Quash Complaint

The Himachal Pradesh High Court stated that fake supplier addresses indicate prima facie GST evasion and refused to quash complaint under Section 69 of CGST Act. “When the officials went to the addresses mentioned in the invoices and found that no such entity existed, it was sufficient to infer that the invoices were fake, and the material shown to have been supplied as per...

Movement Of Goods To CFAs In Other States Is Stock Transfer, Not Inter-State Sale; Central Sales Tax Not Leviable: CESTAT

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that movement of goods to carrying and forwarding agents in other states is stock transfer, not inter-state sale, central sales tax not leviable. Justice Dilip Gupta (President) and P.V. Subba Rao (Technical Member) stated that “the supplies made from the stockyards/warehouses...

S.107 GST Act | Impugned Order “Automatically Stayed” Once Appeal Is Filed & Pre-Deposit Is Made; No Attachment Of Bank Account: Delhi HC

The Delhi High Court has observed that once an appeal is filed by the assessee under Section 107 of the Central Goods and Services Tax Act 2017 and pre-deposit is made, there is “automatic stay” of the impugned order raising demand.A division bench of Justices Prathiba M. Singh and Rajneesh Kumar Gupta thus interdicted the bank from attaching the account of an assessee, who had preferred...