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CESTAT Chennai rules co-owners of commercial property cannot be treated as an 'association of persons' for service tax on rental income, setting aside demands and upholding individual assessment. The ruling clarifies that co-ownership does not trigger collective liability under service tax laws, benefiting small property owners.
ITAT Delhi rules that charitable trusts not claiming benefits under Section 11 are not subject to the Maximum Marginal Rate, even if structured as AOPs, and must be taxed at individual slab rates - affirming CBDT Circular No. 320 of 1982. This clarifies a critical tax liability distinction for non-exempt trusts receiving dividend income, impacting compliance strategies for trusts with substantial passive earnings.
ITAT Bangalore rules that registered societies under the Karnataka Societies Registration Act are not liable for taxation at the maximum marginal rate under Section 167B of the Income-tax Act. The ruling clarifies that such entities are taxed at slab rates, offering relief to welfare associations and similar bodies from higher tax burdens.
ITAT Mumbai held that payments for offshore software supply do not constitute 'royalty' under the India-Germany DTAA, shielding foreign entities from Indian tax liability. The tribunal also ruled that consortium contracts between foreign companies do not form an 'Association of Persons' (AOP), ensuring taxation on a receipt basis per treaty provisions rather than aggregate income.
ITAT Delhi holds that charitable trusts not availing exemption under Section 11 of the Income Tax Act must be taxed at individual slab rates, not as Associations of Persons (AOPs) under Section 167A. The ruling clarifies that trusts without defined beneficiaries or members are not AOPs, impacting tax liability calculations for non-exempt charitable entities.
CESTAT Chennai clarifies that co-owners renting property individually, without joint management or shared income pooling, cannot be taxed as an 'Association of Persons' under service tax laws. This ruling protects individual co-owners from collective tax liability, reinforcing the need for volitional joint enterprise to trigger AOP classification.