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Govt appoints Prof Abhai Maurya as first V-C of English & Foreign Languages University; Ashwini Kumar calls for early finalisation of Indo-South Africa Preferential Trade pact; First Indian Arctic Expedition team handed over National Flag by Union Minister Kapil Sibal; CBEC likely to issue Addl/JC order to fill up slots in Directorates; Rains flood NIC Hqs; Server remains down for 8 hours yesterday; Union Cabinet gives nod for mandatory use of jute packaging this fiscal but exempts exports + Scheme for stress reduction amongst defence personnel + Reforms in vocational training services + UNESCO convention against Doping in sports; Govt approves captive mining for production of gas through coal gasification and liquefaction + amendment to Aircraft Act, 1934; Rajendra B Raghuvanshi appointed Addl Solicitor General in Bombay HC; |
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| Dear Member, Sending you the following files: |
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CBDT issues transfer order of 18 Addl/JCIT + AC/DCIT; 2007-TIOL-226-ITAT-DEL.doc + Modi story.doc Income Tax - Assessee, engaged in the manufacturing of machines, enters into sale cum lease back transactions with two companies which are shown as finance transactions on account of change in method of accounting and accordingly reverses sale and profit entries in books of accounts thereby reducing the quantum of income - A.O. disallows reversal and instead makes addition of profit on the ground that assessee has not proved that purchasers have not claimed depreciation and thus its actual sale - In the instant case, delivery of machines have not been given thus it's a financing trannsaction and to give effect to the real transactions, assessee has rightly reversed sale and profit entries - Assessee's appeal allowed :ITAT; Income Tax - Assessment reopened for escapement of income - Addition made as per report of DI(Inv.) in consequence of a search conducted on a third party - Assessee objects to reopening on the ground that A.O. relied on report of DI(Inv.) and did not make an enquiry on his own and record satisfaction - Reopening of assessment u/s 147 can be done on the basis of specific information with A.O. leading to formation of opinion that income has escaped assessment and sufficiency of information is not to be looked into - A.O. in instant case had specific information in the form of report of DI(inv.) to form a belief that income has escaped assessment and there is a direct nexus between information in hand and formation of belief that income has escaped assessment - Assessee's appeal rejected :ITAT; Income Tax - Assessee, aggrieved by the opinion of chartered accountant with respect to its withholding tax liability, appeals to CIT - CIT adjudicates on merit and rejects the appeal - CIT can entertain an appeal u/s 248, which provides that any person deducting tax at source may deny his liability for same and appeal to CIT(A) for a declaration of his non-liability to make such deduction, only against a finding of authority concerned i.e. A.O. - CAs certificate issued under CBDT Circular No. 759 is for convenience of assessee tax deductors and not determinative of issue of withholding tax liability by overriding the authority of A.O. as envisaged u/s 195(2) - Assessee can't bypass A.O. for an appeal u/s 248 as cause of action for appeal arises only on determination of liability by A.O. - Assessee's appeal rejected :ITAT; 2007-TIOL-223-ITAT-JODHPUR.doc Income Tax - Assessee, a 100% EOU engaged in processing of handicrafts, claims exemption u/s10B - A.O. allows - CIT initiates revision proceedings u/s 263 and disallows on the ground that the processes used by assessee did not amount to manufacture or production within the meaning of Sec.10B - Assessee contends that recognition as 100% EOU by the competent authority automatically enables assessee to claim exemption u/s 10B - Exemption u/s 10B can be availed only on fulfillment of all conditions laid out in the section and its not enough that assessee is recognised as 100% EOU by competent authority, and the first and foremost condition is that assessee is engaged in manufacturing or production of thing, article etc. - Assessee in the instant case is not manufacturing or producing but only processing already manufactured products and thus not entitled to exemption :ITAT; |
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NOTIFICATION CBEC amends Rules to lay down fresh procedure for duty-free supply of certain specified goods from EoU to DTA for use in manufacture of export goods; Bandages and plaster of paris to attract lesser rate of 8% excise duty; Excise exemption to Crude palm stearin withdrawn; CASELAWS 2007-TIOL-1066-CESTAT-MUM.doc + director story.doc Section 35 of CEA'44 - Director of Pvt. Ltd. Company not filing an appeal before Commissioner(A) against imposition of penalty - appeal by company not sufficient - In absence of such appeal, adjudication order attains finality :Cestat; Printing machine cannot be treated at par with photocopier machine as both have different principles of working as also classification under ITC - Goods are capital goods in terms of the Exim policy and they are freely importable - Confiscation set aside. :Cestat; Central Excise - Manufacture - Marketability of the product in the form it is sought to be taxed is important for levying tax - In the absence of any evidence, the product cannot be taxed by the Revenue authorities :Cestat;
SERVICE TAX SECTION 2007-TIOL-1063-CESTAT-MUM.doc + st story.doc Appellate authority has not given any reasoning to set aside penalties imposed under s.78 of the Finance Act, 1994 - Point of limitation can be taken at any time - Matter remanded :Cestat; Service Tax - Business Auxiliary Service - Service Tax on overriding commission (ORC) received from Airlines is payable - Commissioner's order sustained and penalty reduced to Rs. 5 lakhs. :Cestat;
CUSTOMS SECTION NOTIFICATION Customs duty on Crude palm oil for soap manufacture reduced to 10%; Other crude Palm oil to attract 45%; CASELAWS 2007-TIOL-420-HC-DEL-CUS.doc + bail story.doc Bail in economic offence cases - unscrupulous elements on a prowl to maximise material gains by unlawful means, needs to be placed in shackles - Personal liberty of an individual though precious, is of little value if the larger interest of the people and the Nation are at stake - the petitioner by his alleged criminal act caused loss to the public revenue, he, by diverting non-edible grade crude palm oil, meant for manufacture of washing soap, to Vansapati ghee manufacturers played for his selfish gain with the health of public at large thereby adding to the gravity of the offence - Bail plea rejected: Delhi HC; Customs - Imports - Valuation - The FOB value determined by the Commissioner as the basis for normal price for assessment in terms of Section 14 (1) of the Customs Act is appropriate - RF and penalty imposed are reasonable - Penalty on CHA is not sustainable :Cestat; Customs -Imports - Exemption to Newsprint under Notification 21/2002 - Matter remanded to Asst.Commissioner with directions to consider the appellant's application for end-use certificate in accordance with law :Cestat; |
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Central Excise - a peep into history; CWC invites applications for its MD-post; Axon Infotech calls off merger with Kushal Software; Accentia bags decent UK order; Punj Lloyd to acquire 25.1 % stake in Pipavav Shipyard Ltd; GHIAL ties up with Apollo Hospitals for setting up medical centre at International Airport; |
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