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Monday 23 November 2015

Where credit note is not issued post sale by the seller in respect of discounts allowed by him and entire tax collected on sale has been paid , the buyer need not reverse input tax credit for discounts allowed but for which no credit note reversing the tax is issued by the seller. The department’s contention that ITC is allowed only on proportionate purchases net of discount held not tenable. Held by Delhi High Court in Challenger Computers Ltd. On 21-08-2015 [52 PHT 171] [63 taxmann.com 120]


As per Notification No. 02/2015 dated 04-11-2015, by CESTAT Reigonal Bench Chandigarh shall hear the appeals arising on Service tax, Excise and Customs issues from Union territory of Chandigarh, states of Punjab and Haryana, J&K and Himachal Pradesh w.e.f. 01-12-2015


Held by SC in Woodward Governor India (P.) Ltd.312 ITR 254 that an enterprise has to report outstanding liability relating to import of raw material using closing rate of foreign exchange and any difference, loss or gain, arising on conversion of said liability at closing rate should be recognized in profit and loss account for reporting period . Bombay High Court in Vassantram Mehta & Co. (P.) Ltd. [2015] 63 taxmann.com 102 (Bombay) 17-04-2015 has followed the same


Held by Kerala High Court in Thomas George Muthoot on 03-07-2015 that disallowance shall be attracted even on payments not payable on 31st March. High Court has approved Calcutta High Court in Crescent Exports and Gujrat High Court in Sikandarkhan N Tunvar. Allahabad High Court in Vector Shipping Services disapproved by Kerala High Court.


Held by Kerala High Court in Thomas George Muthoot on 03-07-2015, that 40(a)(ia) 2nd Proviso inserted w.e.f AY 2013-14 shall not operate retrospectively. 40(a) (ia) 2nd Proviso says that if assessee furnished a certificate from CA that deductee has paid tax on payment escaping TDS, no disallowance shall be made. Held by High Court that provisions are not curative in nature. Hence Allied Motors (SC) 224 ITR 677 and Alom Extrusion (SC) 317 ITR 306 is not applicable. However subsequent Delhi High Court Judgement in Ansal Land Mark Township dated 26-08-2015 has held the amendmend to be curative and hence held applicable prospectively. It may further be noted that SC in Vegetable Products 88 ITR 192 has held that view favourable to assess should be adopted in case of ambiguity.