I.  Useful Contrubitions:

[Contribution by Respected CA Bimal Jain Ji and contributor is available at bimaljain@hotmail.com ] ] 

1.  An article - "No direct Nexus required of Input Services vs. Output Services for Refund on Export"

(Click here for detail)  

  II.  Useful Case Laws: 

1. Vodafone West Ltd. Vs. ACIT, S.A. No. 86/Ahd/2012, Date of Pronouncement: 11.01.2013, ITAT - Ahmadabad

Sec. 254(2A) Third Proviso: Tribunal has the power to grant unlimited stay of demand

The assessee is seeking extension of stay beyond 365 days. The assessee argued that on similar facts the matter is pending before the Supreme Court in case of Idea Cellular Ltd and Bharti Cellular Ltd wherein ad interim order had been passed. In CIT vs. Ronuk Industries Ltd 333 ITR 99 (Bom) & Tata Communications Ltd 138 TTJ 257 (Mum) (SB) it has been held that the Tribunal has power to extend the period of stay beyond 365 days under the Third Proviso to sec. 254(2A) even if the delay in disposing off the appeal is not attributable to the assessee as there may be several other reasons for not disposing of the appeal by the ITAT. In Qualcomm Incorporated (ITAT Del) (ITA No. 3696 to 3702/Del/2009) it was held that as there was a cleavage of opinion between the Bombay High Court and the Karnataka High Court and there was no decision of the jurisdictional High Court on the issue, the view favourable to the assessee has to be adopted. Consequently, the stay has to be extended subject to certain conditions.

(Please click here for judgment)

2.  ACIT Vs. Al Hind Tours & Travels Pvt. Ltd., I.T.A Nos. 373-376/Coch/2011, Date of order: 14.12.2012, ITAT - Cochin

Discount given to small time agents, retail customers & group passengers for purchase of tickets by an IATA agent is not liable to TDS under section 194H.

It cannot be said that these small time travel agents are providing any service to the assessee herein either by acting on its behalf or during the course of sale of flight tickets. On the contrary, they act on behalf of the travelling public or their respective customers. Thus, they provide service only to their customers by identifying the best available rates for the flight tickets ordered by their respective customers. Accordingly, in our view, the commission income ceded by the assessee herein in respect of the tickets psurchased by the small time travel agents on behalf of their respective customers, would partake the character of “Discount” only. Accordingly, in our view, such discount payments will not be attracted by the provisions of sec. 194H of the Act.

(Please click here for judgment)      
 

 Golden Rules:

"Success means what better you have in life
but a successful person means
how many lives are better because of you" 

  Thanks & Regards

  Team - Voice of CA