Independent Building with More than One Residential Units eligible for Capital Gain Exemption, rules ITAT [Read Order]

The Bangalore bench of the Income Tax Appellate Tribunal (ITAT) has held that an independent building with more than one residential unit within it shall be eligible for capital gain exemption under section 54F of the Income Tax Act, 1961.

The assessee in the instant case sold a property jointly held by him along with his brother for consideration of Rs.10 Crores, of which the assessee’s share was 50%. The assessee computed capital gain at Rs.3.21 crores and claimed exemption u/s 54F of the Act in respect of the above-said investments.

During the assessment proceedings, the Assessing Officer noticed that the house property constructed by the assessee consisted of the ground floor and 4 floors above it. The ground floor had a parking facility, one house (2 bedrooms house) on the first floor, and four 1 bedroom units on the 2nd, 3r d& 4th floors. He concluded that the assessee has constructed more than one residential house and hence he would be entitled to deduction under section 54F of the Act for construction of one residential house only. Accordingly, the AO allowed a deduction under section 54F of the Act for one residential unit only by adopting proportionate cost of construction of one residential house at Rs.27.10 lakhs and proportionate cost of land at Rs.5.94 lakhs.

The Tribunal bench comprising ITAT Vice President N V Vasudevan and Accountant Member B R Bhaskaran noted that the question of whether each floor of a single stand-alone building should be considered as a separate house was examined by the co-ordinate Bench in the case of Shri Bhatkal Ramarao Prakash vs. ITO. “The view taken in the case cited above is that an independent building can have a number of residential units and it will not lose the character of “one residential house”. The identical view has been expressed by another coordinate Bench in the case of Shri Chandrashekar Veerabhadraiah vs. ITO (ITA No.2293/Bang/2019 dated 07-12-2020 relating to AY 2015-16). Accordingly, we are unable to agree with the view taken by the tax authorities that each floor of the individual house/each portion in a floor is separate house property. Accordingly, we set aside the order passed by Ld CIT(A) on this issue and hold that the house property received by the assessee is “one residential house” only within the meaning of sec.54F of the Act. Accordingly, we are of the view that the reasoning given by the AO to reject the claim for deduction u/s 54F is not justified,” the bench said.

Subscribe Taxscan Premium to view the Judgment

Support our journalism by subscribing to Taxscan AdFree. Follow us on Telegram for quick updates.

ICAI opens Online Forms of CA Exams December 2021: Few days left to submit Form without Late Fee

The Institute of Chartered Accountants of India ( ICAI ) has opened the Online forms of CA Foundation, Final – old, Final-new, Intermediate (IPC) & Intermediate) Exams December 2021.

The Last Date for Online Submission of form without late fee is 30th September 2021 and the Last Date for Online Submission of form with late fee is October 3rd, 2021.

The Institute of Chartered Accountants of India (ICAI) had notified the dates for the next Chartered Accountants Foundation, Intermediate (IPC) (Old Scheme), Intermediate (New Scheme), Final (Old Scheme as well as New Scheme) Examinations.

The Foundation Course Examination under the New Scheme will be held on 13th, 15th, 17th & 19th December 2021. The Intermediate (IPC) under Old Scheme, Group I Examination will be held on 6th, 8th, 10th & 12th December 2021, and  Group II Examination will be held on 14th, 16th & 18th December 2021. The Intermediate (IPC) under New Scheme, Group I Examination will be held on 6th, 8th, 10th & 12th December 2021, and  Group II Examination will be held on 14th, 16th, 18th & 20th December 2021

The Final Course Examination under the Old Scheme as well as New Scheme, Group I Examination will be held on 5th, 7th, 9th & 11th December 2021, and  Group II Examination will be held on 13th, 15th, 17th & 19th December 2021.

The Insurance and Risk Management (IRM) Technical Examination from Modules I to IV will be held on 5th, 7th, 9th & 11th December 2021. International Trade Laws and World Trade Organisation (ITL & WTO) Part I for Group A will be held on5th & 7th December 2021 and  Group B will be 9th & 11th December 2021. The International Taxation will be held on 5th & 7th December 2021. Candidates of Foundation, Intermediate (IPC) (Old Scheme), Intermediate (New Scheme), and Final (Old & New Scheme) Examinations will be allowed to opt for English / Hindi medium for answering papers. Detailed information will be found in guidance notes hosted at https://icaiexam.icai.org. However the medium of Examinations will be only English in respect of Post Qualification Course viz.: Insurance and Risk Management (IRM) Technical Examination, International Trade Laws and World Trade Organisation (ITL & WTO) Part I and International Taxation – Assessment Test (INTT – AT).

CA, CMA vacancy in EY, Trivandrum

Ernst & Young has been invited applications from qualified CA, CMA candidates.

EY exists to build a better working world, helping to create long-term value for clients, people and society and build trust in the capital markets.

Job purpose: 

•    SAP FICO Functional consultant in the IT Consulting team to work on various SAP Implementation projects for our customers across the globe.

Your client responsibilities: 

•    Need to work as a team member in different phases of various ongoing SAP Implementation Projects and contribute effectively.
•    Interact and communicate with the onsite coordinators.
•    Completion of assigned tasks on time and regular status reporting to the manager/lead.

We are looking for candidates with the following: 

CA/ICWA (ICMA)/MBA Finance in a reputed institution with sound industry/domain experience and SAP relevant experience with 2 – 8 years.

You will need to have: 

Mandatory skills: 

Experience should be in End-to-end Implementation, Rollout, Support, upgrade, enhancements in most of the below areas – 

•    SAP Finance – FI – New General Ledger & Profit Center Accounting, FI – Accounts Payable, FI – Accounts Receivables, FI – Bank accounting and FI – Asset Accounting.
•    SAP Finance – Taxation and Withholding Taxes.
•    SAP Finance – Closing activities, Validations and Substitutions & Reporting.
•    Controlling – Cost element accounting, Cost Center Accounting and Internal Orders. 
•    Knowledge on CO-PA & Product Costing (Planning and cost object controlling).
•    FI integration with MM, SD, HR & PS. 

Should have Excellent communication skills.

Preferred skills: 

•    Exposure to S/4 HANA Finance – GL Accounting, New Asset Accounting and CO – Cost Element Accounting & Profitability Analysis.
•    S/4 HANA Finance – Central Finance. 
•    Exposure to FI – RAR (Revenue Accounting & Reporting)
•    Knowledge of SAP – BPC (Consolidation), Special purpose ledger, SOX, US GAAP, Various User Exits, Technical and Functional upgrade, Report painter, Report writer etc.
•    Experience on FIORI APPS, BO-DS, BW, HANA and other reporting tools. 
•    Prior client facing consulting experience.
•    SAP Finance/Controlling Certification is a plus.

For more details Click here.

CMA Exams June 2021 cancelled and merged with Dec 2021 Exams

The Institutes of Cost Accountants of India (ICMAI) on Saturday notified the Merging of Intermediate and Final Examination for June and December, 2021 session.

The Institute has decided to postpone the Intermediate and Final Examination of the Institute for June, 2021 session due to unavoidable circumstances. The Intermediate and Final Examination of Institute scheduled from 21st to 28th October, 2021 stands postponed and the June, 2021 Examination stands merged with the Intermediate and Final Examination for December, 2021 session, with the due carryover of all relevant benefits already available to the students including fee payment and subject wise exemption.

The examination form already submitted by the candidates/students for the Intermediate and Final Examination for June, 2021 session will remain the same for the Intermediate and Final Examination to be held in December, 2021. Candidates/students need not apply again.

“Candidates/students who have submitted examination application form for the Intermediate and Final Examination for June, 2021 session are allowed to change their examination center, group(s) by making online application and can add their additional group by payment of differential examination fee in Demand Draft along with their online submitted application form to be sent to the Examination Directorate within due date for appearing in the Intermediate and Final Examination to be held in December, 2021,” the ICMAI said. It is noteworthy, students who have not applied for the Intermediate and Final Examination for June, 2021 session may apply afresh by submitting an online examination application form for December, 2021 Examination.

Support our journalism by subscribing to Taxscan AdFree. Follow us on Telegram for quick updates.

Relief to Shell India: No TDS on consideration received from Resale / Use of Computer Software through EULAs/Distribution Agreements: ITAT [Read Order]

The Income Tax Appellate Tribunal (ITAT), Mumbai bench has held that Shell India not taxable in India for consideration received from resale/use of the computer software through EULAs/distribution agreements since the amount does not constitute ‘royalty’ within the meaning of section 195 of the Income Tax Act, 1961.

During the assessment proceedings, the Assessing Officer held that the payments made by the assessee in respect of the payments made to M/s. Shell International B.V. (SIBV) under the (1) Terms of agreement of the Service Order 1 for availing the HR helpdesk support services and ongoing support services are subject to TDS under section 195 of the Income Tax Act, 1961.

Judicial member Pavan Kumar Gadale and Accountant Member Shamim Yahya found that assessee’s plea that issue is squarely covered in favour of the assessee by the decision of Hon’ble Supreme Court in the case of Engineering Analysis Centre of Excellence Private Limited v. CIT is acceptable where the Court has elaborately examined the issue and has decided the issue in favour of the assessee. While relying on the above decision, the Tribunal held in favour of the assessee and observed that “Our answer to the question posed before us, is that the amounts paid by resident Indian end-users/distributors to non-resident computer software manufacturers/suppliers, as consideration for the resale/use of the computer software through EULAs/distribution agreements, is not the payment of royalty for the use of copyright in the computer software, and that the same does not give rise to any income taxable in India, as a result of which the persons referred to in section 195 of the Income Tax Act were not liable to deduct any TDS under section 195 of the Income Tax Act. The answer to this question will apply to all four categories of cases enumerated by us in paragraph 4 of this judgment.”

Subscribe Taxscan Premium to view the Judgment

Support our journalism by subscribing to Taxscan AdFree. Follow us on Telegram for quick updates.

NABL is Charitable Society, eligible for Income Tax Exemption, reiterates ITAT [Read Order]

The Delhi bench of the Income Tax Appellate Tribunal ( ITAT ) has reiterated that the National Accreditation Board for Testing and Calibration Laboratories ( NABL ), being a charitable entity, eligible for income tax exemption under section 11 of the Income Tax Act, 1961. The assessee, NABL, granted registration under section 12A of the…

Your free access to Taxscan has Expired

To read the article, get a premium account.

Taxscan Premium

Why should you subscribe?
  • Enjoy our website without interruptions from advertisements
  • Receive Daily newsletters
  • Receive realtime Telegram/Whatsapp news updates
  • Download original Judgements / Order / Notifications / Circulars, etc
  • Enjoy exclusive entry fees to Simplified series. (Webinars, Seminars, masterclasses, etc.)
  ₹1199 + GST for 1 year

Subscribe Now

LIVE from 4 PM WEBINAR – How to deal with issues on Input Tax Credit?

https://youtu.be/SeVTvrAW7mE Please click the link below to join the webinar: https://us02web.zoom.us/j/82101251707?pwd=aEhoc3R1WDZDMENvSmJnR3dQMktudz09 Passcode: 2022…

Your free access to Taxscan has Expired

To read the article, get a premium account.

Taxscan Premium

Why should you subscribe?
  • Enjoy our website without interruptions from advertisements
  • Receive Daily newsletters
  • Receive realtime Telegram/Whatsapp news updates
  • Download original Judgements / Order / Notifications / Circulars, etc
  • Enjoy exclusive entry fees to Simplified series. (Webinars, Seminars, masterclasses, etc.)
  ₹1199 + GST for 1 year

Subscribe Now

Alert for Income Tax Defaulters: All you Need to Know about New Provision Empowering Income Tax Officers to serve Notice

The Notice under Section 142(1) is usually served to call upon documents and details from the taxpayers and to take a particular case under assessment. The basic purpose is to inquire about the details of the assessee before making the assessment under the Act.

The Finance Bill, 2021 has brought the amendment in Section 142(1)(i) of the Income Tax Act which says that in section 142 of the Income Tax Act, in sub-section (1), in clause (i), after the existing proviso, the following proviso shall be inserted, namely “Provided further that a notice under this subsection for the purposes of this clause may also be served by the prescribed income-tax authority,”

Allowing prescribed authority to issue a notice under section 142(1)(i)

The Central Board of Direct Taxes (CBDT) has prescribed that the income-tax authority under the second proviso to section 142(1)(i) shall be an income tax authority not below the rank of Income-tax Officer who has been authorized by the board to act as such authority to serve notice to assessee.

Section 142 of the Act provides for the conduct of inquiry before assessment. Clause (i) of sub-section (1) of the said section gives the Assessing Officer the authority to issue a notice to an assessee, who has not submitted a return of income, asking for submission of return.

Rationale

This is necessary to bring into the fold of taxation non-filers or stop filers who have transactions resulting in income. However, this power was invoked only by the Assessing Officer before, September 13, 2021, now it can be invoked by Income Tax Officers also.

The Faceless Assessment Scheme seeks to eliminate the human interface between the taxpayer and the income tax department. The scheme lays down the procedure to carry out a faceless assessment through electronic mode.

The government is following a conscious policy of making all the processes faceless and digital by eliminating the person-to-person interface between the taxpayer and the Income Tax Officer. Accordingly, the Finance Act 2021 added a new second Proviso to empower the prescribed Income Tax authority to centralize the issue of notice under the said clause. Therefore, to enable centralized issuance of notices in an automated manner, the prescribed Income Tax Authority would now be empowered to issue a notice under Section 142(1) requiring a person to furnish his return of income.

Support our journalism by subscribing to Taxscan AdFree. Follow us on Telegram for quick updates.

No TDS on Interest from Bank Deposit for Scheduled Tribe Category: CBDT [Read Notification]

The Central Board of Direct Taxes ( CBDT ) has clarified that, no TDS on Interest from Bank Deposit for Scheduled Tribe Category.

The CBDT in the exercise of the powers conferred by sub-section(1F) of section 197A of the Income Tax Act, 1961 notified that no deduction of tax shall be made on the following payment under section 194A of the Act, namely payment in the nature of interest, other than interest on securities, made by a Scheduled Bank (hereinafter the ‘payer’) located in a specified area to a member of Scheduled Tribe  (hereinafter the ‘receiver’) residing in any specified area as referred to in s.10(26) of the Act, subject to the following conditions:

  1. the payer satisfies itself that the receiver is a member of Scheduled Tribe residing in any specified area, and the payment as referred above is accruing or arising to the receiver as referred to in section 10(26) of the Act, during the previous year relevant for the assessment year in which the payment is made, by obtaining necessary documentary evidences in support of the same;
  2. the payer reports the above payment in the statements of deduction of tax as referred to in sub-section (3) of section 200 of the Act;
  3. the payment made or aggregate of payments made during the previous year does not exceed twenty lakh rupees.

For the purposes of the said notification, ‘Scheduled Bank’ means a bank included in the Second Schedule of the Reserve Bank of India Act,1934.

Subscribe Taxscan Premium to view the Judgment

GSTR-3B Defaulters cannot file GSTR-1: GST Council

The Goods and Services Tax (GST Council), in its 45th meeting, has decided that GSTR-3B Defaulters cannot file GSTR-1.

The council with the objective to streamline the GST Compliance, the registered person shall not be allowed to furnish FORM GSTR-1, on his failure to furnish the return in FORM GSTR-3B.

Further, the late fee for delayed filing of FORM GSTR-1 to be auto-populated and collected in the next open return in FORM GSTR-3B.

The GSTR-3B is a self-declared summary GST return filed every month (quarterly for QRMP scheme). It must be filed by a registered taxpayer from July 2017 onwards. A separate GSTR-3B must be filed for every GSTIN. The GST liability must be paid on or before the date of filing GSTR-3B, earlier of its due date.

UDIN can be generated within 60 days of signing of Audit Report: ICAI

The Institute of Chartered Accountants of India (ICAI) council has decided that a Unique Document Identification Number (UDIN) can be generated within 60 days of the signing of Audit Report.

“ICAI Council has decided that UDIN can be generated within 60 days (in place of 15 days).  This is also in view of SQC and SA. Detailed Notification will be hosted soon,” CA Hari Ram Agarwal said.

It has been noticed that financial documents/ certificates attested by third persons misrepresenting themselves as CA Members are misleading the Authorities and Stakeholders. ICAI is also receiving a number of complaints of signatures of CAs being forged by non-CAs. To curb the malpractices, the Professional Development Committee of ICAI has implemented in a phased manner an innovative concept of UDIN i.e. Unique Document Identification Number.

[BREAKING] ICAI declares CA Exam Results

The Institute of Chartered Accountants of India ( ICAI ) has declared the results of the CA Final Examination, Foundation Examination held in July 2021.

It is noteworthy that for accessing the result at the above-mentioned websites the candidate shall have to enter his/her registration no. or PIN no. along with his/her roll number. Further facilities have been made for candidates of Intermediate Examination (Old Course & New Course)  desirous of knowing their results with marks on SMS.

The institute had that arrangements have also been made for the candidates of Final Examination (Old Course & New Course) and Foundation Examination desirous of having results on their email addresses to register their requests at the website i.e. icaiexam.icai.org from 11th September 2021. All those registering their requests will be provided their results through e-mail on the e-mail addresses registered as above immediately after the declaration of the result.

Support our journalism by subscribing to Taxscan AdFree. Follow us on Telegram for quick updates.

LIVE : WEBINAR – ITC under GST – Restricting the scope of restriction

https://youtu.be/chRFvSGaHCY Please click the link below to join the webinar: https://us02web.zoom.us/j/84460427615?pwd=SlQrL2gzRUFYT2R5VnRPYWpRcWpxdz09…

Your free access to Taxscan has Expired

To read the article, get a premium account.

Taxscan Premium

Why should you subscribe?
  • Enjoy our website without interruptions from advertisements
  • Receive Daily newsletters
  • Receive realtime Telegram/Whatsapp news updates
  • Download original Judgements / Order / Notifications / Circulars, etc
  • Enjoy exclusive entry fees to Simplified series. (Webinars, Seminars, masterclasses, etc.)
  ₹1199 + GST for 1 year

Subscribe Now

CBDT notifies exception to Faceless Assessment Scheme [Read Order]

The Central Board of Direct Taxes (CBDT) notified that Assessment Orders to be passed by National Faceless Assessment Centre (NaFAC) under section 144B except in cases assigned to Central Charges, International Tax Charges and pendency could not be created on ITBA because of technical reasons.

The Faceless Assessment Scheme, 2019 (the Scheme) has been incorporated in the Act vide the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020. Section 144B of the Act pertaining to Faceless Assessment has been inserted by the said amendment w.e.f. April 1, 2021.

The Central Board of Direct Taxes vide Order dated 13th August 2020 (the Order) read with the order under section 119 of the Act regarding. mutatis mutandis application of Orders, Circulars etc. issued in order to implement the Scheme to Faceless Assessment under section 144B of the Act, dated 31 March 2021 directed that all the Assessment Orders shall be passed by the National Faceless Assessment Centre (NaFAC) under section 144B of the Act except as under Assessment orders in cases assigned to Central Charges and assessment orders in cases assigned to International Tax Charges.

In partial modification of the said Order, the CBDT in the exercise of powers under section 119 of the Act, directed that in addition to the above exceptions the exception namely “Assessment Orders in cases where pendency could not be created on ITBA because of technical reasons or cases not having a PAN, as the case may be,” shall be added The Central Board of Direct Taxes clarifies that assessment in cases transferred by the Principal Chief Commissioner or the Principal Director General in charge of National Faceless Assessment Centre (NaFAC) u/s 144B(8) of the Act shall be handled as per the procedure specified in the letter F.No. 225/97/2021/ITA-11 dated 06 September 2021.

Subscribe Taxscan Premium to view the Judgment

Support our journalism by subscribing to Taxscan AdFree. Follow us on Telegram for quick updates.

Notice for Assessment or Reassessment Valid without following section 148A procedure due to COVID-19 Lockdown: Chhattisgarh HC [Read Order]

The Chhattisgarh High Court while presiding over 4 petitions upheld the validity of the section 148 notices issued between March 1, 2021, to June 30, 2021 without following section 148A procedure due to COVID-19 lockdown.

Mr. P.K.Tulsyan, counsel for the petitioners submitted that the petitioners have filed the income tax return for the Assessment Year 2017-18 and Financial Year 2016-17. Subsequent thereto on the basis of some information available initially scrutiny was done however no concealment was found but again a notice under Section 148 of the Income Tax Act, 1961 has been issued. On the date when the notice under Section 148 of the Income Tax Act is issued, the power to issue the notice was preceded with a new provision of law, and thereby Section 148 is to read with Section 148-A of the Income Tax Act, 1961. As per the amended Finance Act, 2021, which was published in the Gazette on 28th March, 2021, section 2 to 88 was notified to come into force on 1st day of April 2021 and accordingly the new Section 148A was inserted which prescribed that before issuing the notice under Section 148 of the Income Tax Act, the Assessing Officer was bound to conduct an enquiry giving an opportunity of hearing to the assessee with the prior approval of specified authority and show cause notice in detail was necessarily specifying the particular date for hearing. Since the operation of Section 148A came into being on 01st April, 2021, as such, the notice issued to the petitioners on 28.06.2021 under Section 148 of the Income Tax Act, without following the procedure under Section 148A without giving an opportunity of hearing would be illegal and contrary to the provisions of Section 148A and it cannot be sustained. The respondents though have placed reliance on certain notification of the Ministry of Finance but when the law has been enacted by the Parliament then in such case the notification issued by the Ministry of Finance would not override even to extend the period of operation of a section of the old Act of Section 148 of the Income Tax Act. Section 148A came in between which required certain obligations to be performed by the Assessing Officer, therefore without giving any opportunity of hearing the notice under Section 148 of the Act, 1961 would be alleged.

On the other hand, the respondents submitted that because of the pandemic and lockdown of all activities including the normal working of the office, a lot of people could not file their return and submit the necessary papers with the department in respect of their income tax. As such, the Ministry of Finance in the exercise of power under the Finance Act issued the notification whereby the application of old provisions of Section 148 of the Income Tax Act was extended initially until 30th April, 2021 and thereafter was further extended until 30th day of June, 2021. The single-judge bench of Justice Goutam Bhaduri while dismissing the petitions held that the people could not file their return or comply with the various mandates of the Income Tax Act. Considering such a situation for the benefit of the assessee and to facilitate the individual to come out of the woods the time limit framed under Income Tax Act was extended. Likewise, certain rights which were reserved in favour of the Income Tax Department were also preserved and were extended at parity. Consequently the provisions of Section 148 which was prevailing prior to the amendment of the Finance Act, 2021 was also extended. Here, in this case, the power to issue the notice under Section 148 which was prior to the amendment was also saved and the time was extended. As a result, the notice issued on 28.06.2021 would also be saved. Therefore, no interference is required to be made in the said issuance of notice.

Subscribe Taxscan Premium to view the Judgment

Relief to Reliance Industries: ITAT quashes Revision Order of Pr. CIT(A) as AO conducted Proper Enquiry [Read Order]

In a relief to the Reliance Industries, the Mumbai Bench of Income Tax Appellate Tribunal (ITAT) ruled that the revision by Pr. CIT(A) was not justified in case AO conducted the proper enquiry.

As per the provisions of Section 263 of Income Tax Act, 1961, the revenue authorities namely Pr. Commissioner of Income Tax or Commissioner of Income Tax is vested with the supervisory powers of suo-moto revision of any order passed by the Assessing Officer. For the said purpose, the appropriate authority may call for and examine the record of any proceedings under the Act and may proceed to revise the same provided two conditions are satisfied namely the order of the assessing officer sought to be revised is erroneous, and it is prejudicial to the interest of the revenue. If one of the conditions is absent i.e. if the order of the Income-tax Officer is erroneous but is not prejudicial to the revenue or if it is not erroneous but it is prejudicial to the revenue.

The Pr. CIT observed that AO did not apply his mind to the issue, is without much substance. Merely because the similar adjustment was made in subsequent years, the same would not lead to a conclusion that the orders passed in earlier years would require revision unless it was shown that the order was erroneous as well as prejudicial to the interest of the revenue.

The division bench headed by Vice President Mahavir Singh and Accountant Member, Manoj Kumar Aggarwal noted that an order was passed by AO under section 143(3) read with section 147 of the Act. One of the reasons to reopen the case was the allegation of AO that income from assets given on lease, though offered to tax under normal provisions, was not routed through Profit & Loss Account which has led to short-computation of Book Profits under MAT provisions. However, the assessee well explained the fact that the accounting treatment given by the assessee was in accordance with mandatory AS- 19 which mandate the assessee to reflect investment in asset under finance lease as ‘Lease Receivable’ in Balance Sheet on the asset side under the head ‘Loans & Advances’. The Tribunal held that the subject matter of the proposed revision was already deliberated upon by AO and a possibility was taken in the matter. That view could not be said to be contrary to law, perverse or unsustainable in law, in any manner and the same would be a possible view keeping in mind the assessee’s submissions during reassessment proceedings. This being the case, the assessment order could not be subjected to revision u/s 263, and the action of Ld. Pr. CIT in invoking jurisdiction u/s 263 could not be sustained in the eyes of law.

Subscribe Taxscan Premium to view the Judgment

Relief to Myntra: Advertisement Charges paid to Non-Resident Company can’t be considered as ‘Royalty’, rules ITAT [Read Order]

In a major relief to Myntra Designs Pvt. Ltd, the Bangalore Bench of Income Tax Appellate Tribunal (ITAT) ruled that no Income tax chargeable on payments towards advertisement charges made to non-resident companies cannot be considered as “royalty payments”.

The assessee, M/s. Myntra Designs Pvt. Ltd. has filed these three appeals challenging the common order passed by CIT(A) and they relate to the assessment years 2012-13 to 2015-16. In all the three years, the CIT(A) has confirmed the demand raised by the AO under section 201(1) or 201(1A) treating the assessee as an ‘assessee in default’ for non-deduction of tax at source from the payments made to M/s Facebook Ireland towards advertisement fees.

The AO noticed that the assessee has made payments to M/s Face Ireland Ltd. towards advertisement charges. The AO noticed that the assessee had made the above-said payments without deducting tax at source under section 195 of the Act. Hence the AO initiated proceedings under section 201(1) of the Act treating the assessee as an ‘assessee in default.

The Coram of Judicial Member George George K and Accountant Member B.R. Baskaran ruled that the payments made by the assessee the non-resident company M/s Facebook, Ireland cannot be considered as “royalty payments” and hence they do not give rise to any income chargeable in India under Indian Income Tax Act in all the three years under consideration. “There is no requirement to deduct tax at source from those payments u/s 195 of the Act. Hence the assessee herein cannot be considered as an assessee in default u/s 201(1) of the Act. Accordingly, we set aside the orders passed by Ld CIT(A) for the years under consideration and direct the AO to delete the demand raised u/s 201(1) of the Act and also the consequential interest charged u/s 201(1A) of the Act in all the three years under consideration,” the ITAT said.

Subscribe Taxscan Premium to view the Judgment

Support our journalism by subscribing to Taxscan AdFree. Follow us on Telegram for quick updates.

GST: E-Way Bill not required for Transportation of ‘Used Personal Vehicle’, rules Kerala High Court [Read Order]

The Kerala High Court ruled that the E-Way Bill is not required for transportation of ‘Used Personal Vehicle’.

The Respondents, VST, and Sons have filed the writ petition challenging the detention of the ‘RANGE ROVER’ motor vehicle belonging to the respondent while being transported from Coimbatore to Thiruvananthapuram as ‘used personal effect’ of the respondent. The vehicle was detained on the allegation that the same was transported without the E-way bill as contemplated under Rule 138 of the Kerala Goods and Service Tax Rules, 2017. By the impugned judgment, the learned Single Judge allowed the writ petition and quashed notices.

The court has heard Adv. Mohammed Rafiq, the Senior Government Pleader for the appellant, and Advocate A.Kumar, the counsel for the respondents.

The division bench of Justice S.V. Bhatti and Justice Bechu Kurian Thomas recalled a decision by the Court in a similar matter related with KUN Motor Company wherein it was held, “We do not understand how the State could take a contention that if the car had been driven into the State of Kerala from the UT of Puducherry (Puducherry), then there could not have been detained under Section 129, since then there would have been no question of uploading of E-way bill. We cannot also comprehend how an intra-State sale would be converted to an inter-State sale merely for reasons of it being transported in the carriage.”

The court while quashing the detention and ordering the release of the vehicle held that used vehicles, even if it has run only negligible distances are to be categorized as ‘used personal effects.

Subscribe Taxscan Premium to view the Judgment

Support our journalism by subscribing to Taxscan AdFree. Follow us on Telegram for quick updates.

ITAT grants Partial Relief to Google, Expedites Final Hearing [Read Order]

The Income Tax Appellate Tribunal (ITAT), Bangalore has granted partial relief to Google Ireland where the Tribunal expedited the hearing and posted the matter for final hearing on 16th September 2021.

The Assessing Officer has assessed an income of Rs.93.66 crores as royalty and passed an order against the assessee-Company and demanded approximately 33 crores rupees as tax. The assessee challenged the above order on appeal and filed an application for a stay where a stay of demand was granted. The assessee challenged the final assessment order by filing an appeal before the Tribunal on 19-04-2021 along with the present Stay application, which was finally disposed by the High Court on 17th April 2021 wherein the Court quashed all the Tribunal orders and directed the department to start the proceedings afresh.

The assessee contended before the Tribunal that the assessing officer has passed the impugned assessment order in order to give effect to the order passed by the Tribunal. However, the said order of the Tribunal has since been set aside by the Hon’ble High Court of Karnataka and therefore, the entire tax demand raised on the assessee by the impugned assessment order deserves to be set aside. It was also contended that the assessee deserves a full stay of the outstanding demand.

The bench comprising Judicial Member Beena Pillai and Accountant Member B R Bhaskaran has partly allowed the stay application and held that “the order so passed by ITAT has been set aside by Hon’ble High Court of Karnataka and the entire matter has been remanded back to the Tribunal, meaning thereby, status quo ante has been restored. The effect is that the earlier appeal filed by the assessee in IT(IT)A No.2845/Bang/2017 has been revived and pending before the Tribunal for final disposal. When enquired with the Registry, they informed us that the above-said appeal has been posted for hearing on 16th September, 2021.” “In view of the above discussed legal position, a specific query was posed to the counsel as to the legal effect of the impugned demand. He submitted that the assessee seeks to stay on a safer course. The Ld A.R, in the alternative, submitted that the assessee may be granted an early hearing of the appeal. Having regard to the rival submissions, we are of the view that the balance of convenience is in favor of granting an early hearing of the appeal of the assessee. Accordingly, we direct the registry to post the appeal of the assessee numbered as IT(IT)A No.166/Bang/2021 for a final hearing on 16th September, 2021. Since the date of hearing is announced in the open court in the presence of both the parties, the registry may desist from sending formal notice of hearing to the parties,” the Tribunal said.

Subscribe Taxscan Premium to view the Judgment

Support our journalism by subscribing to Taxscan AdFree. Follow us on Telegram for quick updates.

SEBI directs Investors to link PAN with Aadhaar before Sep 30

The Securities Exchange Board of India ( SEBI ) has directed the investors to link PAN with Aadhaar before September 30th, 2021.

As per Central Board of Direct Taxes (CBDT) notification G.S.R 112(E) dated February 13, 2020, the Permanent Account Number (PAN) of a person allotted as of July 01, 2017, shall become inoperative if it is not linked with Aadhaar by September 30, 2021, or any other date specified by CBDT.

Since, PAN is the sole identification number for all transactions in the Securities Market, in view of the said CBDT notification, all SEBI registered entities including Market Infrastructure Institutions (MIIs) should ensure compliance of said notification and accept only operative PAN (i.e., linked with Aadhaar number) by the client while opening new accounts post September 30, 2021, or any other date specified by CBDT. Also, all the existing investors are advised to ensure linking of their PAN with the Aadhaar number prior to Sept 30, 2021, or any other date specified by CBDT for continual and smooth transactions in the securities market and to avoid any consequences of noncompliance of said notification on their transactions in the securities market.

Support our journalism by subscribing to Taxscan AdFree. Follow us on Telegram for quick updates.

CBIC extends Timelines for Filing of Application for Revocation of Cancellation of GST Registration [Read Notification]

The Central Board of Indirect Taxes and Customs ( CBIC ) has extended the Timelines for Filing Applications for the Revocation of Cancellation of GST Registration.

Timelines for filing of the application for revocation of cancellation of registration to 30.09.2021, where the due date of filing of the application for revocation of cancellation of registration falls between 01.03.2020 to 31.08.2021.

The extension would be applicable only in those cases where registrations have been canceled under clause (b) or clause (c) of sub-section (2) of section 29 of the CGST Act. The extension of the closing date of the late fee amnesty scheme and extension of time limit for filing of the application for revocation of cancellation of registration will benefit a large number of taxpayers, especially small taxpayers, who could not file their returns in time due to various reasons, mainly because of difficulties caused by COVID-19 pandemic, and whose registrations were canceled due to the same. Taxpayers are requested to avail the benefit of these extensions at the earliest to avoid the last-minute rush.

Subscribe Taxscan Premium to view the Judgment

Support our journalism by subscribing to Taxscan AdFree. Follow us on Telegram for quick updates.