Revisional power in block assessment upheld, undisclosed search income sustained, freight suppression addition restored, accrued lorry hire liability ...
Reassessment and fee-for-technical-services classification: reopening upheld, but certain reimbursements and mobilization charges fell outside treaty ...
Section 80P deduction for co-operative societies remains available despite nominal members and housing society status, with limited interest income tr...
Agreement to tolerate an act as a declared service requires an independent contractual arrangement specifically providing for tolerance and a direct nexus between that arrangement and consideration. Retention of life-insurance premiums following policy lapse for non-payment or repudiation for mis-declaration did not meet those requirements: the insurance contract contained no separate tolerance agreement, and the policy became void without further insurance service. The retained premium was therefore not consideration for a distinct declared service, and taxing it would also create double taxation. The service-tax demand, interest and penalties were unsustainable.
Agreement to tolerate an act as a declared service requires an independent contractual arrangement specifically providing for tolerance and a direct nexus between that arrangement and consideration. Retention of life-insurance premiums following policy lapse for non-payment or repudiation for mis-declaration did not meet those requirements: the insurance contract contained no separate tolerance agreement, and the policy became void without further insurance service. The retained premium was therefore not consideration for a distinct declared service, and taxing it would also create double taxation. The service-tax demand, interest and penalties were unsustainable.
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