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India outsources visa work in New York; Arjun Sengupta elected Chairman of Inter-Governmental Working Groups of Human Rights Council on Right to Development; Govt issues Draft Procurement Preference Policy; proposes minimum 20% of the value of total purchases by all Govt Depts from SMEs; Defence Minister says no unilateral ceasefire in J & K during Ramzan; China building world's largest IT hub and software park; |
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| Dear Member, Also sending you the following files: |
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2007-TIOL-301-ITAT-DEL.doc + raghav story.doc Income or transactions not disclosed on or before the date of search - would not have been disclosed but for the search - to be treated as undisclosed income : ITAT; Income Tax - Assessee's are partners in a firm which credits their accounts by way of interest and remuneration due to them but assessee's don't offer the same to tax unless actually withdrawn on the ground that they are following cash system of accounting thus only that amount withdrawn is received by them and subjected to tax - A.O. makes addition of entire amount credited to the account of the assessee in the year of credit only on the ground that once the share of partner is determined by a firm and credited to his account, the same is implied to be received by him and withdrawal of such amount is not the basis of offering the receipt to tax - Amount credited to the accounts of the partners will be deemed to be received by the partner even if following cash system of accounting and will not depend on withdrawal of the amount by the partner as the amount has been unconditionally made available to the partners since there is nothing in the partnership deed that prevents partners from withdrawing the amount credited to their account - Revenue's appeal allowed : ITAT; Income Tax - Assessee, following mercantile system of accounting, claims deduction of liability accrued though not paid due to a dispute with the creditor - A.O. disallows on the ground that liability will accrue only on settlement of dispute or court decree till that time no claim can be made even if assessee follows mercantile system of accounting - In case of mercantile system of accounting liabilities are taken on accrual basis and allowed deduction even if discharged at a later date and the only condition to be fulfilled is that liability should have definitely accrued in the relevant accounting year and is capable of being ascertained with reasonable certainty - Liability in the instant case had accrued and was capable of being ascertained with reasonable certainty when a recovery suit was filed by the creditor of assessee - Reference in favour of assessee : HC; Income Tax - Assessee shows a sum as receivables in the balance sheet on account of theft of raw material - A.O. rejects the same and makes addition on the ground that the claim was rejected by the insurance co. as fraudulent - No question of fact lies and once it has been established that the claim of assessee with regard to theft is false then the raw material is to be treated in the same manner as similar raw material is used in preceding years - Reasonable inference drawn by lower authorities - Assessee's appeal dismissed : HC; Income Tax - Search - Loose papers related to purchase of a plot found - Seller's statement recorded and additions made - Seller later retracts his statement - He again goes back to his original statement of receiving huge price in cash for the deal - CIT(A) deletes the statement on the basis of facts like the seller's statement cannot be relied upon and the guideline for registration of fair value was much less than the value being alleged by the Revenue - Tribunal went by the CIT(A) order and dismissed the appeal - HC also did not find any substantial question of law - It's true that the HC which heavily borrowed words from the orders of lower appellate authorities and could have noted so as a courtesy but the questions framed by the Revenue do not constitute any substantial questions of law - Appeal dismissed : Supreme Court; |
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INSTRUCTION Fixation of Rate of Interest for delayed payment of Central Excise Duty/Service Tax;
CASE LAWS 2007-TIOL-161-SC-CX.doc + elgi story.doc Excise valuation in 1991 - discount allowed even if a small part of the sale did not have the same discount as the majority of sales; Abatement from retail price has to be allowed for calculating AV; When factory gate price is ascertainable, depot price cannot be taken as value :SC; Central Excise - valuation - the appellants have not received any raw materials or dies free of cost and have supplied the finished goods to M/s. Hindustan Lever on a principal to principal basis - the case of the appellants is squarely covered by the ratio of the decision of the Hon'ble Supreme Court in the case of Union of India & Others vs. Cibatul Limited - there is no justification to base the assessment on the value of the stock indicated in the balance sheet :Cestat; 2007-TIOL-1384-CESTAT-BHUBANESWAR.doc Central Excise - duty on scrap generated from the dismantled capital goods - department has not proved that the scrap has arisen out of capital goods on which credit has been taken - _assessee prepared to pay the duty on the Aluminium trimmings and scrap generated in dismantling - order of Commissioner (Appeals) modified:Cestat; Central Excise - Cenvat Credit on duty paid on the storage tanks manufactured in the factory - appellant opted not to avail the exemption under Notification No 67/95 CE - revenue can not deny the credit on the ground that the storage tanks are exempted under Notification No 67/95 - The intention of this Notification is clearly not to break the chain of credit on the inputs including the inputs used in the manufacture of capital goods which are used in the manufacture of final goods :Cestat; Central Excise - Cenvat Credit - Credit availed without receiving the goods - the supplier has merely traded the invoices - credit was rightly denied - penalty under Section 11 AC / interest under Section 11 AB not applicable as the said sections were not in force at the material time - penalty under Rule 173Q reduced :Cestat;
SERVICE TAX SECTION Service Tax - penalty under Sections 76 and 77 of the Finance Act 1994 - the late payment by the assessee was not account of any mala fide intention - The Act provides for waiver of penalty where sufficient cause is shown - penalty reduced :Cestat; ST - Scientific & Technical Consultancy Service - Tax demanded on technical knowhow fee paid to a French company - Since the Commissioner (A) has rightly noted that the levy notified in July 2001 was only prospective, no tax can be collected for the prior period - Revenue's appeal dismissed :Cestat;
CUSTOMS SECTION 2007-TIOL-1389-CESTAT-MUM.doc + cha story.doc As per Regulation 8 of CHALR, 2004 examinations are to be conducted twice a year which means to say four exams in two years - Appellant to be given two more chances to clear the exam for continuing with the CHA licence - Tribunal :Cestat; Anti-dumping duty on Vetrified tiles- effective from the date of imposition of the provisional anti-dumping duty in view of Notification 73/03 specifically providing for retrospective levy - Three Member Bench ruling in NITCO Tiles Ltd followed :Cestat; Customs - Revenue declines to assess Bill of Entry by endorsing on the reverse side of BoE 'no high seas sale in Air Cargo' - No valid reason attributed for the same by the Revenue - Order set aside : HC; |
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North East exemption - no rebate; TIOL said it two years back; Delayed payment of excise duty/Service Tax - higher rate of interest likely - Board wants to study trend; Combatting parallel import! Applications invited for Dir (Finance) in Konkan Railway; Jubilant signs mega long-term contract with Syngenta; OECD says expanding higher education may enhance job chances for early school-leavers too; BoA grants formal nod to 10, in-principle nod to two SEZs; Trent forms partnership with Benetton for SISLEY brand expansion in India; |
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