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FM expects interest rates on deposits to come down by 0.5%; Exports grow by 14% in June; Imports up by 37% during same period; Ramesh Chandra takes over as Railway Board Chairman + Ajay Shankar as new Secy of Industrial Policy and Promotion; CBEC : Seniority list a major bone of contention; IRS Association calls for GBM tomorrow; FM says area-based tax exemption to continue for some time; Tax rates may be cut in view of better compliance report; |
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| Dear Member, Sending you the following files: |
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2007-TIOL-418-HC-DEL-IT.doc + Woodward Governor story.doc Income Tax - Assessees, following mercantile system of accounting, seek adjustment of increase in liabilities due to exchange rate fluctuation in the year of fluctuation itself in cost of capital asset by virtue of Sec.43-A as it stood before its amendment - Revenue disallows on the ground that such liability is only notional and is to be taken into account only in the year of actual discharge of liability and that amendment to Sec.43-A has retrospective application on account of which adjustment is not to be made in the year of fluctuation - The question has been considered by a number of High Courts and even S.C. which have taken a consistent view that any gain or loss arising out of fluctuation in exchange rate of foreign currency if to be reflected in the year of fluctuation itself in cost of capital asset or trading account depending on whether foreign currency is held as capital asset or trading asset which view is also in line with the mercantile system of accounting and accounting standards laid down by ICAI - Moreover amendment to Sec.43-A is prospective as is explicitly laid down in amendment itself - Revenue's appeal dismissed : Delhi HC; Income Tax - Assessee, a dealer in shares, swtiches his method of valuation of closing stock from market price to cost price - A.O. disallows on the ground that it does not result in true determination of profits - Switching from one accepted method of accounting to another is allowed provided its bonafide and the changed method is followed thereafter - There is nothing to show that assessee changed its method for temporary gain - Revenue's appeal dismissed : Madras HC; Income Tax - Sec 80HHC benefits - Assessee claims deduction for excise duty, sales tax and additional liability arising out of forex fluctuation - Revenue disallows - Issue no longer res integra - Deductions allowable - Revenue's appeal dismissed : Madras HC; Income Tax - Assessee makes several payments in cash in a day to a party but not a single transaction exceeds Rs.2500 - A.O. disallows and adds the total payments made in cash to a party in a single day as it exceeds Rs.2500 - Violation of Sec.40A(3) - Sec.40A(3) as it stood at that time lays down that whenever a payment exceeding Rs.2500 with respect to expenditure is made in a single day, other than by way of crossed cheque or crossed draft, it is to be disallowed - The provision is invoked for a single transaction and not on clubbing of various transactions and in the instant case assessee has not made any payment in one transaction exceeding Rs.2500 - Revenue's appeal dismissed : P & H HC; |
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2007-TIOL-419-HC-MUM-CX.doc + scn hc story.doc No discretion for reducing mandatory penalty - penalty and interest liable even if the duty is paid before issue of Show Cause Notice - RINL is no more good law:HC; 2007-TIOL-1052-CESTAT-MUM.doc + sec 5a story.doc Sub-Section 1A inserted in Section 5A of the CEA'44 is not clarificatory in nature - assessee could forego exemption and pay duty prior to 13.5.2005 :Cestat; Unconditional exemption - Availment of Notification No 67/95-CE issued under Sec 5A - Assessee does not avail exemption on intermediate goods, pays duty and avails credit - Revenue disallows as it violates the spirit of the Notification - As long as the Revenue's interests are not prejudiced by such an activity, no fault can be attributed to the assessee - Revenue's appeal dismissed :Cestat; 2007-TIOL-1050-CESTAT-AHM.doc + invoice story.doc Parallel invoices and clandestine removal - statements of director and traders corroborated - charges proved - duty and penalty confirmed :Cestat;
SERVICE TAX SECTION ST - transport service - Availment of credit for payment of service tax on outward transport service - Sub-Rule 4 of Rule 3 of Cenvat Credit Rules 2004 - Since the appellant is treated as a service provider when it pays tax on transport service, an outward service, it cannot be denied the facility to avail credit for payment of tax on transport service - Commissioner's order set aside :Cestat; 2007-TIOL-1046-CESTAT-BANG.doc Service Tax - Mandap keeper - Valuation - Receipt of donations cannot be brought within the ambit of service tax - Stay granted :Cestat;
CUSTOMS SECTION NOTIFICATION DGFT amends policy to incentivise agri exports + exports of high technology products; CASELAWS Import of polyster fabric - Seizure of goods by DRI for lack of licences - Evidence establishes that the consignment were covered by valid licences - High Court directs Customs to dispose off goods and deposit the sum with the court - Delay in disposal - Theft of part of consignment - Customs for also deducting demurrage from the sale proceeds - Since the legally imported goods were wrongly seized and kept in the possession of the Customs authorities, it will have to bear the cost for the theft and the burden of demurrage cannot be passed on to the importer after the period ordered by the High Court for dispoal - Customs also needs to pay interest on the sum realised from the sale proceeds :HC; Customs - Imports - Control Unit, Monitor, X-ray module and Image Intensifier tube constituted an image intensifier entitled for benefit of Notification No. 21/2002-Cusdt. 1.3.2002 :Cestat; DEPB - The finding that the appellant was the mastermind in getting the DEPBscrips issued by JDGFT, Mumbai through manipulation of export documents is not substantiated - Penalty set aside :Cestat; |
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Protocol officers authorised to receive Central Excise refund claims from foreign missions; Treaty-making powers of Executive : Need for judicial intervention! FamilyCredit chooses Nucleus Software as strategic partner; Logix Microsystems acquires ReckonUp from Prize Corporation; Alok Indus ties up with NY firm; Vinati Organics signs contract worth Rs 240 Cr with BASF Corporation, USA; |
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