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Commercial use of water cannot be subsidised for long : PM; Major relief for Reliance Energy; SC allows it to bid for Mumbai Sea Link Project + Trans Harbour Project; Competition Commission seeks dozens of additional staff to ge fully operational; Indian Air Force loses one trainer aircraft in Hyderabad; Three killed; Uniform tax structure on tourist buses : SC issues notice to all states; ESOP Valuation guidelines likely to take some more time! Nath says Govt to announce new contours of FDI Policy by month-end; Parliament approves Bill on tobacco warning CBI arrests Dir (Personnel) of Northern Coal Fields for accepting bribe of Rs 30,000/-; |
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| Dear Member, Also sending you the following files: |
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ORDERS CBDT promotes 32 DCs as JCs; CBDT transfers 12 Additional/Joint Commissioners CASE LAWS 2007-TIOL-280-ITAT-DEL.doc + samtel story.doc Income Tax - Sec 43B - Deduction for Customs duty paid and excise duty credited in PLA - Once liability is incurred and Customs duty paid, deduction is allowable u/s 43 but excise duty credited in PLA is not allowable deduction:ITAT; Gift tax - AO adds gifts received in taxable income of the assessee - Assessee says donor got the money from her father to gift the same to the assessee who is a childhood friend of her husband - Although the gift was made through a cheque but the source of fund and the identity of the father of the donar was established nor the occasion of giftuing such a huge sum was explained by the assessee - Assessee's appeal disallowed :ITAT; Income Tax - Assessee earns income from business of trading of building materials, rent and interest and claims deduction on account of salary and makes certain payments in cash for purchases - A.O. apportions salary amount under different heads of income in proportion to the income earned from each source and disallows the portion relating to rental and interest income and also disallows 20% of payments made for cash purchases treating the transactions being in excess of 20000/- in absence of any material placed by the assessee - Once the income is treated under the head of house property then only allowance that can be made is u/s 23 & 24 and if expenditure on account of salary has any nexus with rental and interest income it can be disallowed but expenditure having nexus with business income cannot be disallowed - Matter remanded to A.O. to verify the expenditure with reference to heads of income and decide the issue on merits - Disallowance u/s 40A(3) is to be made in case of cash payments for purchases in excess of Rs.20000/- but the issue is to be verified by the A.O. if such payments were made and assessee is to place relevant material for verification :ITAT; Income Tax - Hire-purchase transactions - A.O. treats them as finance transactions earning interest and charges interest tax - All hire-purchase transactions not to be treated as finance transactions but the genuineness of the transaction is to be looked into - In the instant case assessees are the real owners of the vehicle and merely because the vehicle was delivered to the hirer directly does not make him the owner and the entire transaction points to it being a hire purchase transaction with an option to the hirer to purchase on fulfilling the conditions of the agreement - Revenue's appeal dismissed:ITAT; Income Tax - Appellants get into an agreement to purchase a property and accordingly intimate appropriate authority to obtain a certificate in Form No. 37-I - Appropriate authority, finding the apparent sale consideration below the market price on the basis of the report of valuation officer, issues a pre-emptive purchase order u/s 269UD(1) for compulsory purchase of the said property by central government at the apparent sale consideration - Appellants file a writ which is dismissed by single judge - The power to examine the validity of such pre-emptive purchase orders made u/s 269UD(1) of Ch.XX-C by the court in exercise of its powers of judicial review under Article 226 is limited to cases where the court finds that relevant material has not been taken into consideration or irrelevant considerations have been taken into account or there is a violation of principles of natural justice or there is infraction of any statutory provision or the decision is such which no reasonable man would take on available material facts - Instant case is not covered by any of the conditions and thus there is no reason for interference by the court in the purchase order - Appeal dismissed : HC; |
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CIRCULAR Modification of the abstract of XT-I Diary; CASE LAWS 2007-TIOL-1331-CESTAT-MAD.doc + mrp story.doc Central Excise - MRP - repacking from bulk pack to retail packs would not, by itself, amount to 'manufacture'. Besides repacking from bulk pack to retail packs, there must be labeling/re-labeling or the affixing of a brand name also :Cestat; 2007-TIOL-1330-CESTAT-MUM.doc + fraud story.doc Fraudulent credit taken by consignor and duty payment effected therefrom while removing manufactured goods - Credit availed by consignee on such inputs proper as transaction is bonafide :Cestat; Central Excise - Modvat credit on invoices issued prior to registration - Revenue disallows it - Circular No.76/94 makes it clear that any document issued by a registered dealer prior to its registeration is acceptable if he is eligible to issue such document under Not.No.15/94 & 21/94 - All invoices issued to the assessee are in accordance with the above mentioned circulars - Revenue's appeal dismissed :Cestat; Central Excise - demand of duty on clandestine_ clearances - each and every gate pass has been examined by the Adjudicating Authority and conclusion drawn therefrom being supported with reason that there was no evidence of duty payment in respect of the gate passes in question - the Appellant was rightly been dealt under law - matter remanded for limited purpose of verification of duty paid on some of the - gate passes - Penalty of Rs 2.00 lakhs each on the co appellants does not call for interference - However, penalty of Rs 35 lakhs on the 1 st appellant may be decided afresh :Cestat;
SERVICE TAX SECTION ST - Construction service - Revenue writes to the appellant to deposit tax - Tax deposited but Commissioner imposes penalty under Sections 76 and 78 - Penalty under Sec 78 requires guilty state of mind for impositon of penalty - Given the delay of 11 months in paying the tax, pre-deposit ordered :Cestat; 2007-TIOL-1324-CESTAT-BANG.doc Service Tax - Transfer of technology is not taxable under consulting engineer :Cestat;
CUSTOMS SECTION 2007-TIOL-495-HC-DEL-NDPS.doc + ncb story.doc Accused has no right to inspect investigation file of NCB (this applies to Customs too) - when handwriting expert dies, fresh specimen handwriting can be taken for referring to another expert : HC; Rectification of mistake - gold bars ordered for release by the Tribunal were already disposed by the Department- order is not implementable - reasonable amounts of fine and penalty can be realized out of the sale proceeds and the balance amount should be released to the party after giving the appellant a reasonable opportunity of being heard :Cestat; 2007-TIOL-1326-CESTAT-BANG.doc Refund rejected without Show cause Notice - Letter cannot take the place of SCN :Cestat; |
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Goods destroyed - remission granted, but reverse the Cenvat Credit - Board overrules Larger Bench; Telecom security now dog airlines plugging for satcom; Venus Remedies get one more product registered in Ukraine; Moser Baer forays into PC peripherals market; Launches Optical Disk Drives; |
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