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India's share in global trade goes up to 1.5%; CBEC notifies new Services and expansion of a few existing services from June 1, 2007; YOU Telecom to pump in Rs 400 Cr to spread broadband service to tier-II cities; Delhi HC says no to UB chief Vijay Mallya's plea for quashing summons of Enforcement Directorate; |
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| Dear Member, Sending you the following files : |
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2007-TIOL-136-ITAT-DEL.doc + dlf story.doc Assessee is into real estate development business - Transfer some land held as stock in trade towards capital of a new partnership firm - Shows profits derived out of such transfer in books but claims exemption - Such transfer is covered within extended definitin of Sec 2(47) - Profits derived out of such transfer is to be taxed - Revenue's appeal upheld :ITAT; Assessee is an investment company - Earns business income and dividend income - Claims deduction for interests paid on borrowed funds utilised for purchase of shares - Revenue disallows interest expenditure u/s 14A as borrowed funds were utilised to earn tax exempt dividend income - A part of interest expenses which was incurred to acquire stock in trade to be allowed as business expenditure but the amount of dividend received on shares held as stock in trade to be reduced and only balance to be allowed - Issue restored to the AO for working out the details of interest to be allowed :ITAT; Loss return filed - AO disallows certain expenses, leading to a major reduction in losses - Penalty u/s 271(1)(c) levied - Assessee argues since its income is in negative, no penalty can be levied - CIT(A) upheld penalty for furnishing incorrect particulars - There is major difference between the furnishing of inaccurate particulars of income and furnishing of incorrect computation of taxable income and this is a case of incorrect computation of income - No penalty is called for - Assessee's appeal upheld : ITAT; AY 1970-71 - Penalty u/s 271(1)(c) levied - Limitation - Sec 275 prescribes period within which the AO can impose penalty - If AO cannot do it due to some practical difficulties, the period of limiation cannot be extended and the existence of a reasonable cause for the failure of the AO to levy penalty within the limitation is irrelevant - Assessee's appeals allowed :ITAT; |
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2007-TIOL-674-CESTAT-MUM.doc + pump story.doc Liquidated damages received pursuant to cancellation of orders cannot be treated as additional consideration for inclusion in Assessable value No evidence has been brought on record to establish that the price of the pumps under the new agreement was influenced by payment of liquidated damages. In fact, the price of 8 pumps has gone up from Rs.7.21 crores originally contracted to Rs.24.21 crores under the new agreement. Tribunal decisions in Faridkod Co-operative Sugar Mills Ltd. 2004(171)ELT174(Tri), Spring Fresh Drinks 1991(54)ELT333(Tri) and Inox Air Products Limited, 2001(134)ELT224(Tri) relied upon - Appeal allowed : Cestat; Appellant at the time of seizure itself had contended that the glazed tiles in question are yet to be inspected and hence no production slips were prepared - such a stand taken even during adjudication and in appeal proceedings - there is no evidence produced by the department to prove that the assessee had intended to clear the goods without payment of duty - No reason for confiscating the goods or imposition of penalty : Cestat;
SERVICE TAX SECTION TRU letter explaining the changes notified from June 1, 2007 Works Contract (Compositin Scheme of payment of ST) Rules 2007 notified Export of Services Rules amended Export of Services Rules amended Rule 2A of Service Tax (Determination of Value) Rules amended related to Works Contract Telecommunication Service notified; Telecommunication Service notified Not No 16/2005 rescinded; Commercial or industrial construction service related to Works Contract notified Sec 65 and Sec 66 amended; Abatement for property tax allowed for ST on immovabale property; New Services to come into effect from June 1, 2007; CBEC notifies new Services from June 1; Industry given option to pay service tax on 2% of total value of works contract; Property tax abatement given for ST on immovable property; Service Tax - Respondents engaged in providing "consulting engineer" & "management consultancy" services - refund claim filed on the ground that they had paid service tax erroneously on Sales Commission for the period July 2001 to March 2002 - documents submitted revealed that their customers have paid the entire amount including service tax hence claim is hit by principle of unjust enrichment - Refund not allowable. Commissioner(A)'s contention that Service Tax on sales commission is chargeable to tax only w.e.f 01.07.2003 under the head BAS and what ever is paid is refundable is erroneous as it is based on presumption and assumptions - Revenue appeal allowed :Cestat; ST - Cable Operator Service - Assessee is a registered welfare society and provides this service only to its members for a monthly fee - Revenue demands tax and levies penalty u/s 76 - Case remanded for examining the facts from the angle of Cable Television Network (Regulation) Act, 1995, under which no person shall operate a cable television network unless registered as a "Cable Operator" and also whether a society can legitimately operate a cable television network :Cestat;
CUSTOMS SECTION 2007-TIOL-675-CESTAT-MUM.doc + capital goods story.doc When the fact remains that "capital goods" is defined in the FTP, there is no need for going into the meaning of the word "plant" as given by the Apex Court in the IT Act, Employees Liabilities Act etc. - Engines since not capital goods, cannot be imported without valid licence : Cestat; |
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Provisional Assessment - permanent mis-assessment; Reduce social and economic strife through population control; 2007-TIOL-91-SC-CT.doc + sc fert story.doc Horn and Hoof - crushed bone? Fertilisers? - Issue remanded to Tribunal; Amendment in ECB policy : RBI notifies curbs on funds going into real estate sector; ABB India wins Rs 289 crores order for Delhi Metro Rail; Network 18 and Viacom Inc form JV; i-flex selected by Malaysian Public Bank; L&T builds one of the world's largest FCC Regenerators & Combustors; 3i Infotech launches new Global Development Centre in Chennai; IVRCL bags orders worth Rs 551 Cr; |
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