Dependent Agent PE unresolved for lack of factual inquiry; arm's-length distribution accepted; royalty claim rejected; 15% refund interest (Section 24...
Exemption under s.10(23C)(iiiad) upheld; appeal allowed, interest and dividends excluded from annual receipts, disallowance deleted, capital gains exe...
CESTAT allowed the appeal and set aside the demand of service tax levied under the "Real Estate Agent Services" category against the Appellant, holding the transactions to be principal-to-principal sales of developed land/plotted property with no consideration for agency services; consequently, the tax demand, and related interest and penalties, were not sustainable. The Tribunal also observed that the Appellant had borne development risk, paid landowners fixed consideration, and retained profits as principal. With respect to the demand under "Construction of Residential Complex Service," the Appellant had already discharged tax and interest prior to the SCN, and therefore penalties in that regard were held not imposable. Appeal disposed of.
CESTAT allowed the appeal and set aside the demand of service tax levied under the "Real Estate Agent Services" category against the Appellant, holding the transactions to be principal-to-principal sales of developed land/plotted property with no consideration for agency services; consequently, the tax demand, and related interest and penalties, were not sustainable. The Tribunal also observed that the Appellant had borne development risk, paid landowners fixed consideration, and retained profits as principal. With respect to the demand under "Construction of Residential Complex Service," the Appellant had already discharged tax and interest prior to the SCN, and therefore penalties in that regard were held not imposable. Appeal disposed of.
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