|
 |
 |
 |
 |
 |
Auto parts industry ups productivity, quality through UNIDO partnership : PwC Study; Promotion to JCIT : CBDT asks CCITs to furnish pending ACRs of 40 DCITs; France is latest from Europe to invite investment from India; open to acquisitions by Indian MNCs; India elected as Member of International Organisation for Standardisation Council for next year; ISRO planning a Mission to Moon in 2008; Porno content : House Panel suggests service provider to be held liable under IT Act; OVL signs contract with Myanmar for three deepwater blocks; Sahar Airport Customs seizes 3.78 kg morphine; Nigerian pax arrested; |
 |
|
 |
 |
 |
|
| Dear Member, Also sending you the following files: |
||
| |
 |
 |
|
|
|
CBDT warns action to be taken if TDS returns for salaries with less than 90% of PAN data and returns for payments other than salaries with less than 70% of PAN data furnished for quarter ending Sept 30, 2007; CASE LAWS 2007-TIOL-310-ITAT-DEL.doc + lavalin story.doc Income Tax - Assessee is a non-resident joint venture company - Enters into an agreement with Indian company to execute a hydro project in India - Return filed - Seeks revision of return by sending a letter for attribution of profits between the Head Office and the PE in India - AO disallows on the ground that the income accured in India and the situs of income was also in India and a return cannot be revised by sending a letter - CIT (A) agrees with the AO - Since the Indo-Canadian DTAA is based on the UN Model Convention and not OECD Model, not only the profits as is attributable to the PE is taxable but even the profit attributable to sales in other contracting State of same or similar kind as sold through that PE are also taxable - In view of clause (b) of Sub Article (1) of Article 7 of DTAA, no part of the profit from the execution of the Project can be excluded while computing the profit - Revenue's appeal allowed Assessee chooses not to be governed by the provisions of DTAA - Since assessee can choose favourable option as per Sec 90(2), its income arising out of the project is fee of technical services as defined in Explanation 2 to Sec 9(1)(vii) and as per Section 44D, no deduction for any expenditure is to be allowed :ITAT; Income Tax - TDS u/s 194C - Assessee outsources manufacturing to various parties - Revenue insists for deduction of tax at source as the goods were manufactured under strict control and technical specifications of the assessee - Assessee says it is principal to principal deal for sale of goods and not works contract - When a manufacturer purchases raw material on his own and produces the goods as per the specifications of the buyer, it is a case of sale of goods and not job work - The dominant object underlying the arrangement is manufacture and sale by the OEM - TDS provisions not applicable - Assessee's appeal allowed :ITAT; Income Tax - Return filed, assessment completed u/s 143(3) and intimation dispatched to the assessee - Notice u/s 148 - Reassessment initiated - Since reassessment was initiated on mere change of opinion and without obtaining new materials indicating escapement of income, such an order is not sustainable - Assessee's appeal allowed AY 2001-02 - Assessee derives income from furnished residential flat in an apartment - Claims it as business income - AO disallows - Just because the flat has been furnished, it does not change the character of the house property and such income to be treated only as income from house property - only when a building becomes inseparable from machinery and equipment, an income may be treated from other sources - Assessee's appeal disallowed :ITAT; Income Tax - Assessee receives subsidy from State Govt and treats the same as capital receipt - AO disallows - It is not the source but the purpose for which subsidy is given to determine the character of the receipt - If it is for investment or setting up a unit it is to be treated as capital in nature - In the instant case, it is for promotion of business, thereby to be treated as trading receipt - Assessee's appeal disallowed : High Court; Income Tax - Assessee offers addition of income and pays tax in response to notice u/s 148 - A.O. imposes penalty u/s 271(c) for concealment of income on the ground that assessee has himself disclosed additional amounts - Merely because assessee surrenders income cannot be a ground for penalty u/s 271(c) and A.O. has to prove with a definite finding that there was concealment of income and, moreover, appellate Tribunal is the highest authority to determine question of fact which ordinarily should not be disturbed by a High Court - In the instant case A.O. brought no material to prove concealment of income and Tribunal has given a clear finding that there is no concealment of income - Revenue's appeal dismissed : High Court; |
|
|
| |
|
|
|
| |
 |
 |
|
|
|
2007-TIOL-164-SC-CX.doc + excise sc story.doc Parts cleared separately and stand alone compressor cleared separately - parts cannot be classified as compressor - but for valuation, the cost of parts may be includible - matter remanded: SC; Central Excise - Revenue appeals on the question of availability of power with Commissioner (Appeals) to remand cases back to the adjudicating authority after the amendment by Finance Act 2001 w.e.f. 11.5.2001 - Issue no more res integra - The power to remand cases with Commissioner (Appeals) is taken away with amendment by Finance Act 2001 w.e.f 11.5.2001 - Matter sent back to Comm.(A) to decide in accordance with law - Revenue's appeal allowed.: High Court; 2007-TIOL-1445-CESTAT-BANG.doc Intimation given to the Department in 2001 - Show cause Notice issued in 2004 - Time barred :Cestat; 2007-TIOL-1444-CESTAT-BANG.doc Shrimps damaged, not fit for human consumption - No duty :Cestat; Admitted diversion of duty free material by 100% EOU received from other 100% EOUs - 100% EOU is very much in India and duty payable by them on goods manufactured by them is only excise duty - In cases like this, the excise duty is sought to be demanded under proviso to Section 3 with reference to the Customs Tariff which is only for the purpose of measure of the tax- The duty so demanded with reference to Customs Tariff is also demand of excise duty under Section 11A- Penalty in this case is really warranted :Cestat; 2007-TIOL-1442-CESTAT-BANG.doc Central Excise - gases vented into the air - no duty :Cestat;
SERVICE TAX SECTION ST - Air Travel Agent - Cancellation of tickets - Assessee makes adjustment of tax paid - Adjustments disallowed and demand raised - Since air travel agents file fortnightly return to airlines which pays them commission on the basic fare after taking into account cancelled tickets, and service tax is paid on such adjusted commission, the Revenue's order is not sustainable :Cestat; 2007-TIOL-1439-CESTAT-BANG.doc Service Tax - Maintenance and repair Services - In the absence of contract no service tax is payable on maintenance and repair services prior to 16.6.2005 :Cestat;
CUSTOMS SECTION NOTIFICATION Amends 39/2005 for reviewing a few orders; Avian Influenza spin-offs : DGFT bans import of certain livestock products; CASE LAWS 2007-TIOL-165-SC-CUS.doc + sc cus story.doc Rebook Shoes - import of parts of shoes by two importers to finally manufacture shoes - two imports was only a fictitious arrangement to deceive the government - not eligible for exemption to parts - matter remanded for re-quantification : SC; Exports - DEPB benefits - Exports of fabrics - Misdeclaration of quantity and value - Customs calculates exports benefits based on average value of goods - Since there is no clear-cut evidence to prove any misdeclaration and the exporter got the entire proceeds for the consignment, average price cannot be thrust upon exporter - Revenue's order set aside :Cestat; |
|
|
| |
|
|
|
| |
 |
 |
|
|
|
Departmental Promotion Committee proceedings - not exempted from RTI Act. Income Tax Deputy Commissioner wins in CIC; Adhocism delays economic security; 2007-TIOL-525-HC-MAD-CT.doc + sony story.doc Higher Sales Tax for imported goods - Valid in Law- Legislature has power to classify - Mere Payment of customs duty will not make imported goods on par with indigenous goods - GATT is no bar to state to levy Sales tax : High Court; Zydus Cadila gets USFDA nod for Hydroxychloroquine Sulfate Tablets; Hexaware Technologies positioned in ERP niche; Mahindra gets Bombay Chamber award; Panacea Biotec inaugurates Vaccine Plant (VFP) at Baddi; Gremach acquires 75% controlling stake in 11 Coal mines in Mozambique; |
|
|
| |
|
|
|
| Regards Taxindiaonline.com Pvt. Ltd. |
