Co-operative society's mandatory reserve and share capital fixed deposits with banks-interest treated as business income under 80P(2)(a)(iii) deductio...
Income tax reassessment reopening after four years on investigation tip, without s.147 proviso disclosure failure, struck down as borrowed satisfactio...
CESTAT allowed the appeal substantially. It held that amounts recovered from tenants towards electricity, transmission and distribution losses, gas and air-conditioning, collected as a pure agent under Rule 5 of the Service Tax (Determination of Value) Rules, 2006, were not liable to service tax as bundled services; the demand of Rs. 2,32,48,096/- was set aside. Service tax of Rs. 7,010/- under RCM on legal services, already paid with interest and not contested, was upheld. Disallowance of CENVAT credit was restricted to Rs. 90,787/- (with interest), as voluntarily reversed; the balance disallowance was quashed. Demands on advances, being refundable loans, were set aside. Absence of intent to evade being established, all penalties imposed in the impugned order were vacated.
CESTAT allowed the appeal substantially. It held that amounts recovered from tenants towards electricity, transmission and distribution losses, gas and air-conditioning, collected as a pure agent under Rule 5 of the Service Tax (Determination of Value) Rules, 2006, were not liable to service tax as bundled services; the demand of Rs. 2,32,48,096/- was set aside. Service tax of Rs. 7,010/- under RCM on legal services, already paid with interest and not contested, was upheld. Disallowance of CENVAT credit was restricted to Rs. 90,787/- (with interest), as voluntarily reversed; the balance disallowance was quashed. Demands on advances, being refundable loans, were set aside. Absence of intent to evade being established, all penalties imposed in the impugned order were vacated.
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