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PM's Economic Council expects GDP growth rate to be around 9% this fiscal; Withdrawal of CVD on liquor and wine by India : EU withdraws WTO petition; Flag Telecom shops US-based Yipes Communications for USD 300 mn; Pawar says Govt to continue importing wheat; PM says pvt sector has failed to exploit defence procurement policy; PM for converting LoC into a line of peace with Pak; |
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| Dear Member, Sending you the following files: |
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2007-TIOL-206-ITAT-MUM.doc + Mashreq bank story.doc Income Tax - Assessee, a non-resident banking Co. incorporated in UAE, claims deduction of expenses from income attributable to its PE - Revenue disallows certain deductions while computing profits on the basis of restrictions to allowances under the provisions of IT Act - Assessee contends that in view of Article 7(3) of India-UAE tax treaty, all expenses of PE are to be allowed without applicability of restrictions of IT Act - Tax treaty is to be read as a whole and Article 25(1) clearly stipulates that tax laws applicable in contracting states will continue to be applicable unless a contrary provision is expressly provided for in the agreement - There is no provision in the agreement for non applicability of restrictions to allowances laid out in the domestic act - Assessee's appeal rejected :ITAT; Income Tax - Assessee, engaged in bottling of liquor, incurres expenditure on repair of plant and machinery and treats it as revenue expenditure - Revenue disallows on the ground that it's a capital expenditure - Expenditure leading to addition of capital asset or benefit of enduring nature on capital account is to be treated as capital expenditure - Expenditure incurred by assessee is on current repairs allowable u/s 31 - Revenue's appeal rejected :ITAT; Income Tax - Assessee, a partnership firm, running a rice mill and earns income by job charges, collected for processing of paddy - A.O. includes this also in total turnover for computation of deduction u/s 80HHC - Definition of word turnover includes consideration received for sale and purchase of goods and consideration on account of processing does not come within its ambit - Assessee's appeal allowed :ITAT; Income Tax - Assessee seeks exemption of income u/s 10B - Revenue disallows on the ground that the income is not derived out of 100% EoU - Exemption u/s 10B are allowed only on incomes derived from 100% EoU and having direct nexus with such undertaking - Interests earned in the instant case don't have a direct nexus with the income of EoU - Assessee's appeal dismissed:ITAT; Income Tax - Assessee claims deduction of interest income in computation of benefits u/s 80HH & 80I - A.O. allows but subsequently disallows in rectification proceedings - Claim of the assessee can't be disallowed in rectification proceedings u/s 154 where the issue is debateable - Revenue's appeal dismissed :HC; |
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Central Excise - Arrest and Prosecution - Board issues instructions; Section 4 of CEA'44 - Valuation - Bonus to dealers is an admissible deduction, however commission to agents, freight and transportation charges are not admissible deductions :Cestat; There is no infirmity in the Dy.Commissioner adjudicating demand notices in excess of monetary limits laid down by Board's Circular. Board's circulars fixing monetary limits have administratively limited the powers and the action of the Dy.Commr can at best be treated as administrative irregularity and cannot be treated as legal infirmity - SC decision in Pahwa Chemicals followed. Administrative direction of the CBEC allocating different works to various classes of officers cannot cut down jurisdiction vested in them by statute and may be followed by them at best as a matter of propriety. :Cestat; Cenvat Credit availed on molasses contained in the quantity of Rectified Spirit which is lost during the manufacture of denatured spirit - whether admissible or not - as there are two views of the Tribunal, Matter referred to President for constitution of Larger Bench :Cestat; 2007-TIOL-953-CESTAT-AHM.doc + excise story.doc Central Excise - Charges of clandestine removal are required to be proved beyond doubt by production of sufficient and affirmative evidence and not on the basis of assumptions and presumptions :Cestat; EOUs - eligibility of furnace oil under the exemption Notifications 1/95 CE and 53/97 Cus for the period prior to the amendment of these Notifications to include furnace oil- since furnace oil is a consumable, the same is entitled for procurement/import without payment of duty even before the amendment. :Cestat;
SERVICE TAX SECTION ST - Consulting service - Demand raised by Revenue on total contract price - Assessee's agreement with the foreign buyer indicates total payments to be made for supply of machinery and equipment and also supervision services - Since supervision service qualifies as taxable service, pre-deposit ordered :Cestat; ST - telecom service - Demand raised and penalty levied for failure to pay tax on interconnection charges - Since the issues have not been discussed in the Commissioner's order and the Board Circular 91/2007 has clarified that no tax is leviable on such charges, the matter remanded for fresh considertaion :Cestat; Service not rendered in India – taxability – pre deposit ordered:Cestat;
CUSTOMS SECTION cnt07_068.doc + dbk_sch_1.pdf +dbk_sch_2.pdf + dbk_sch_3.pdf +dbk_sch_4.pdf + dbk_sch_5.pdf CBEC notifies new drawback rates; 2007-TIOL-126-SC-CUS.doc + sc story.doc Customs - Before rejecting invoice price, Revenue has to give cogent reasons for such rejection - Strict rules of evidence do not apply to adjudication proceedings :SC; 2007-TIOL-959-CESTAT-MAD.doc + raj story.doc Customs – Imports – Provisional release of absolutely confiscated goods ordered subject to the conditions mentioned in the order:Cestat; Customs - Refund - Inclusion of stevedoring charges in assessable value - Assessee pays duty under protest - Later goes to Tribunal for other Bills of Entry - Tribunal rules in favour of the importer - Refund claim filed - Since the assessment order not challenged, refund rejected - Although the importer eligible for refund but forefeits right as it failed to challenge the assessment order - Commissioner (A) order upheld :Cestat; |
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Central Excise - Arrest and Prosecution - Board issues instructions; DoT mulls strategy to tackle alien Net telephony-based threat to national security; The Kutch tremor! Lurking Trojan Horse and recovery of erroneous refunds! Industry agrees to positive discrimination in employment of SC/STs; PMO reviews progress; Are U looking for post-retirement jobs? Applications invited for 8 posts of Member in CAT; Import of Rubber Chemicals - Anti-dumping investigation on; OECD urges govt and industry to overhaul consumer protection for internet shoppers; Venus Remedies signs another in-licensing deal with Chinese firm; Mastek acquires insurance-focused IT Company in USA; |
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