Transaction value and connected person treatment in excise valuation: proprietary concerns not inter connected undertakings, relief on valuation and c...
Appointment of Registrars as adjudicating officers under Companies Act reallocates territorial jurisdiction and sets appeal route to Regional Director...
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Cross country pipeline classification and ITC entitlement: pipelines outside factory treated as immovable, ITC disallowed under Section 17 restriction...
In determining taxable income of a freight forwarding and handling intermediary, only the net service charges retained constitute "real income," since freight components billed and collected from customers are payable onward to airlines/shipping lines and are not the assessee's compensation. Where the tax authorities treated gross receipts as income and made an addition for the difference with returned income, they were required to allow corresponding freight remittances evidenced on record, even if not routed through the profit and loss account, as the amounts were pass-through. Additions cannot rest merely on transaction value without proving it represents consideration for services. The appellate relief deleting the addition was upheld. - ITAT
In determining taxable income of a freight forwarding and handling intermediary, only the net service charges retained constitute "real income," since freight components billed and collected from customers are payable onward to airlines/shipping lines and are not the assessee's compensation. Where the tax authorities treated gross receipts as income and made an addition for the difference with returned income, they were required to allow corresponding freight remittances evidenced on record, even if not routed through the profit and loss account, as the amounts were pass-through. Additions cannot rest merely on transaction value without proving it represents consideration for services. The appellate relief deleting the addition was upheld. - ITAT
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