Daily Updates (Income Tax Case Laws + Service Tax) 27-08-2015
Nitesh More
Income Tax Case laws
1. Printers, scanners, modems and routers are integral parts of
computer system; depreciable at rate of 60%
2. Unutilized excise duty in PLA is deductible under sec. 43B
3. No additions on TDS default as it is completely tax neutral for deductor
earning exempt income
4. NOTIFICATION NO.73/2015 [F.NO.187/13/2015 (ITA.I)]
RBI Updates
Second and fourth
Saturday of every month declared as public holiday for banks
Service
Tax Updates
5. Free-home delivery of food isn't liable to service-tax
In Detailed
1.Printers, scanners, modems and routers are integral parts of computer system; depreciable at rate of 60%
August 26, 2015[2015] 60 taxmann.com 85 (Hyderabad - Trib.)/[2015] 38 ITR(T) 148 (Hyderabad - Trib.)
IT : Any device used along with computer whose functions are integrated with computer, would come within ambit of expression 'computer', and depreciation is to be allowed at 60 per cent on it
IT : Disallowance made by Assessing Officer for non-deduction of tax at source for amounts which were already paid before end of current year by assessee company, was unjustified
IT : Adjustment made in respect of prior period would be allowable where major part of receipt was offered to tax in earlier years
IN THE ITAT HYDERABAD BENCH 'B'
Ushodaya Enterprises Ltd. v. Deputy Commissioner of Income-tax*
2. Unutilized excise duty in PLA is deductible under sec. 43B
August 26, 2015[2015] 60 taxmann.com 411 (Delhi - Trib.)
IT : Amount deposited in PLA (Personal Ledger Account) which remained unutilized at the end of the year is allowed to be deducted under Section 43B
[2015] 60 taxmann.com 411 (Delhi - Trib.)
IN THE ITAT DELHI BENCH 'I-1'
Maruti Suzuki India Ltd. v. Additional Commissioner of Income-tax, Rang-6 New Delhi
3. No additions on TDS default as it is completely tax neutral for deductor earning exempt income
IT : Where assessee's total income is exempt under section 10(26), for assessee's lapse of not complying with his tax withholding obligations, there cannot be any occasion to invoke section 40(a)(ia) to treat relevant amount disallowable as an income of assessee on standalone basis
• Disallowance under section 40(a)(ia) does make good of lapses in deduction of tax at source, when such tax deductions are due; this provision is not for purpose of penalizing assessee for failure to deduct tax at source
[2015] 60 taxmann.com 360 (Guwahati - Trib.)
IN THE ITAT GUWAHATI BENCH
Tamchikusuk v. Additional Commissioner of Income-tax, Range, Tezpur, Assam
4. NOTIFICATION NO.73/2015 [F.NO.187/13/2015 (ITA.I)]
SECTION 120 OF THE INCOME-TAX ACT, 1961, READ WITH SECTION 6 OF THE BLACK MONEY (UNDISCLOSED FOREIGN INCOME AND ASSETS) AND IMPOSITION OF TAX ACT, 2015 - INCOME-TAX AUTHORITIES - JURISDICTION OF
NOTIFICATION NO.73/2015 [F.NO.187/13/2015 (ITA.I)], DATED 24-8-2015
In exercise of the powers conferred by clause (b) of sub-section (4) of section 120 of the Income-tax Act, 1961 (43 of 1961) read with section 6 of the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 (22 of 2015), the Central Board of Direct Taxes hereby directs that the Additional Commissioners of Income-tax or the Joint Commissioners of Income-tax, as the case may be, shall exercise the powers and perform the functions of the Assessing Officers under the said Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015, in respect of territorial areas or persons or classes of persons or incomes or classes of incomes or cases or classes of cases, in respect of which such Additional Commissioners of Income-tax or Joint Commissioners of Income-tax have been authorised by the Principal Chief Commissioner of Income-tax or the Chief Commissioner of Income-tax or the Director General of income-tax or the Principal Commissioner of Income-tax or the Commissioner of Income-tax in pursuance to the directions of the Board under sub-sections (1) and (2) of section 120 of the said Income-tax Act, 1961.
5. Free-home delivery of food isn't liable to service-tax
August 25, 2015
CLARIFICATION ON LEVY OF SERVICE TAX ON FOOD SOLD BY WAY OF PICK-UP OR HOME DELIVERIES
LETTER C.NO.ST-20/STD/MISC./SEVOTTAM/62/12/4693, DATED 13-8-2015
Please refer to your office letter dated 22-7-2015 (received in this office on 23-7-2015) on the above cited subject where under Clarification as to whether Service Tax is payable on food sold by way of Pick-up or Home deliveries has been sought.
It is clarified that in case of the transaction involving Pick -up or the Home Deliveries of the food sold by the Restaurant, the dominant nature of the transaction is that of sale and not service as the food is not served at the Restaurant and further no other element of service which is offered at the Restaurants, be it ambience, live entertainment, if any, air conditioning, or personalized hospitality is offered. The Service Tax can be levied if there's an element of 'Service' involved which would typically the case where food is served in restaurant.
The above transaction is not liable to Service Tax, being sale in nature, only if, no amount is charged for such free delivery of food.
This is issued with prior approval of the Additional Commissioner.
Sincerely
yours
CA. VINAY MITTAL, FCA
Candidate Central Council Election 2015 (CIRC)
34 Navyug Market, 2nd. Floor
Ghaziabad -201001
Mbl. 09310556351, 09910691575
Email id vnc...@gmail.com
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