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GST - Appellate Authority has not noticed the provisions of Section 12 of the Limitation Act, 1963 which mandates that the day on which the judgment complained of was pronounced, is also to be excluded: HCGST - If the Proper Officer was of the view that the reply filed was insufficient, he could have sought more clarification - Without providing any such opportunity, impugned order could not have been passed - Matter remanded: HCGST - Notice requiring petitioner to furnish additional information/clarification does not mention that petitioner had to appear for personal hearing - Since no opportunity of personal hearing was given, order is unsustainable: HCGST - For the purposes of DNB and FNB courses, petitioner clearly falls within the scope of an educational institution imparting education to students enrolled with it as a part of a curriculum - Services exempted: HCGST - Candidates appearing for the screening tests are not students of the petitioner - Petitioner's claim of exemption on such examination fees is unmerited: HCGST - NEET examinations are in the nature of an entrance examination - Petitioner would be entitled to the benefit of an exemption by virtue of Serial No.66(aa) of the 2017 Notification, which came into effect on 25.01.2018: HCBrisk voting reported from all 96 LS seats; PM casts vote in AhmedabadIndia calls back half of troops stationed at MaldivesIndia-Australia DTAA: Economic Statecraft through TaxRBI alerts against misuse of banking channels for facilitating illegal forex tradingTime Limit to file Appeal in GST Appellate TribunalEC censures Jagan Reddy & Chandrababu Naidu for MCC violationsI-T-Interest income earned by a co-operative society on its investments held with a cooperative bank would be eligible for claim of deduction under Sec.80P(2)(d) of the Act: ITATFrance tells Xi Jinping EU needs protection from China’s cheap importsI-T- Addition cannot be made merely for reason that assessee got property transferred through registered sale without making payment to vendor: ITATUK military personnel’s data hackedI-T- Addition which is not based on the reasons for reopening is un-sustainable sans notice u/s 148 of the ACT: ITATOxygen valve malfunction delays launch of Boeing’s first crewed spacecraftI-T- Re-assessment need not be resorted to, where no income has escaped assessment or where no evidence is put forth to establish escapement of income: ITATPulitzer prize goes to Reuters & NYTFM administers Oath to Justice Sanjaya Kumar Mishra as first President of GST TribunalDutch, Belgian students join Gaza sit-ins by US Univ studentsI-T- Penalty imposed u/s 271(1)(c) are not sustainable where additions based on which penalty was imposed, are themselves set aside : ITATGhana agrees to activate UPI links in 6 monthsECI calls for ethical use of social media platforms by political partiesCus - Technological innovation and advancements would result in obsolescence of raw materials imported duty free - Destruction of such imports allowed after intimation to Customs authority: CESTATED seizes about 20 kg gold from locker of a cyber scammer in HaryanaMinistry of Tourism participates in Arabian Travel Mart 2024 in DubaiST - No evidence has been adduced to negate the specific findings of adjudicating authority holding that the service tax on all these expenses, by including same in gross transaction value has been discharged by assessee: CESTATICG detains Iranian boat, with six Indians onboard, off Kerala coastCX - As assessee is able to prove that all the items in question have been used in fabrication of structures for installation of capital goods which were ultimately used in manufacture of their final product, CENVAT Credit is allowed to assessee: CESTAT
 
I-T - Expenditure strictly related to earning of income from other sources is to be allowed u/s 57(iii): ITAT

By TIOL News Service

BANGALORE, JAN 11, 2018: THE issue is - Whether expenditure only related to earning of income from other sources is to be allowed u/s 57(iii). YES is the answer.

Facts of the case:

During the course of search conducted in the case of Shri Priyakant Amin, Shri Pratap Wadhwa, M/s. STI Products India Ltd. and others, it was noticed that the companies, M/s. Amin Manilal & Co. Pvt. Ltd., M/s. Manilal Commodities Pvt. Ltd., M/s. Monarch Commodities Pvt. Ltd. And M/s. Sunisha Impex Pvt. Ltd. have claimed bogus business losses. It was also found that such companies carried out accommodation transactions in respect of bogus trading in textiles and Chana dal. The bogus business losses were found to be set off against the income from properties and interest income. It was also noticed that Shri Hasmukhray Ami was one of the directors of the companies M/s. Amin Manilal & Co. Pvt. Ltd., M/s. Manilal Commodities Pvt. Ltd., M/s. Monarch Commodities Pvt. Ltd. and M/s. Sunisha Impex Pvt. Ltd. These companies own immovable properties and substantial part of the income was derived from these immovable properties. The AO therefore disallowed the claim of business loss.

ITAT held that,

++ during the course of search conducted upon Shri Priyakant Amin, Shri Pradeep Wadhwa and M/s. STI Products Ltd., it has surfaced that the assessee companies were not doing any business and they were claiming bogus business losses. It was also noticed that business loss was claimed to be set off against income from house property and interest income. During the course of hearing, the AR advanced an argument that to keep the corporate structure, assessee is required to incur certain expenses. On this argument, a specific query was raised as to when the assessee has started its business. In response thereto, it was stated that assessee is contemplating to restart it, meaning thereby, the assessee has never undertaken any business of trading in textile and Chana dal. In the earlier years, the assessee claimed bogus business loss and claimed set off of same against income from house property. There is no intention whatsoever to revive its business. Therefore, the expenditure relating to keep corporate entity alive cannot be allowed as there was no intention of assessee to run a business. U/s 57(iii) of the Act, only those expenditure are to be allowed which are related to earning of income from other sources. Since the expenditure claimed by the assessee was not incurred to earn income from other sources, the same cannot be allowed.

(See 2018-TIOL-62-ITAT-BANG)


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