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FM expresses concern over rapidly appreciating rupee; El Salvador, Costa Rica and Nicaragua intend to set up embassies in New Delhi next year : Pranab Mukherjee; Chennai DRI seizes Sanders Logs worth Rs 1.5 Cr; CBI finally arrests UP former Chief Secretary Akhand Pratap Singh; FM is front-runner to occupy chair of International Monetary & Financial Committee of IMF; India re-elected to International Civil Aviation Organisation Council at Montreal; |
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| Dear Member, Also sending you the following files: |
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2007-TIOL-313-ITAT-AHM-TM.doc + adani TM story.doc Income Tax - TDS on 'usance interest' - Delay in payment - Interest u/s 201(1A) - Effective date from the date of payment or Gujarat HC decision in the case of Vijay Ship Breaking Corpn - A court does not make law; it merely declares it and the liability has to be right from inception as per the statute - Liability to interest is not a penal one but only compensatory as the assessee used for its own purpose what was due to the Govt: ITAT Third Member; Income Tax - Assessee, a manufacturer of pneumatic compressors, sells goods through appointed agents, stockists and third party commission agents - AO disallows deduction for commission paid to two stockists on the ground of lack of genuineness of transactions - Appeal - CIT(A) restores the matter to the AO and asks for examination of evidence and facts - Given that such a practice is an old business norm, allowed in the past and the stockists are genuine, and Revenue has no solid evidence to prove the transactions otherswise, deduction cannot be disallowed - Assessee's appeal allowed :ITAT; Income Tax - Assessee, an NBFC co., makes provision for lease equalisation charges and claims deduction of the same in computation of book profits - A.O. disallows and makes addition on the ground that lease equalisation charge is in the nature of 'reserve' thus to be added as per clause (b) of explaination to Sec.115JA(2) - Reserve is an amount set aside from the profits of the co. and debited to the P&L appropriation a/c to be used in future and not for meeting any particular liabilities, contingencies etc. whereas rationale behind lease equalisation charge is matching costs with revenue so that periodic net income from financial lease is true and fair and its nature is recovering fair market value of leased asset over the term of lease - moreover assessee did not debit the same to its profit & loss appropriation account nor set it aside to meet its future difficulties - Assessee's appeal allowed to this extent :ITAT; Income Tax - Assessee collects payments from customers towards disputed sales tax liability and treats it as contingency deposit - AO says it is a trading receipt and the same forms part of the income - CIT(A) and Tribunal disagree with the AO - The fact that the amount towards sales tax liability was collected from customers but the same was never paid to the State Govt, albeit the assessee could have claimed refund in case of resolution of the issue in its favour, deduction for such a deposit is not admissible - It is a trading receipt and the Revenue's order is sustainable : High Court; Income Tax - Assessee exports music software in the nature of master copies of film songs and music alongwith a right to make and sell copies outside India and claims deduction of profits from such exports u/s 80HHC - A.O. disallows on the ground that deduction u/s 80HHC can be claimed only for goods and merchandise which assessee's export does not qualify to be - Any materials, articles etc., whether tangible or intangible, capable of abstraction, used and consumed and which can be transferred, delivered, possessed etc. constitutes goods - Transaction of the assessee in the instant case comprising of music software satisfies all attributes listed above to bring it within the meaning of goods for the purpose of deduction u/s 80HHC - Revenue's appeal dismissed : High Court; |
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2007-TIOL-1449-CESTAT-BANG.doc + biscuit story.doc Biscuit packets of more than one kg - Assessment under Sec 4A - MRP-based levy correct :Cestat; Clandestine removal - Imposition of personal penalty - Chairman residing at Calcutta & not involved in day-to-day affairs of the company - Knowledge cannot be simply attributed to a person holding a particular post - Penalty not imposable. Signature appearing on loose sheets not of Chairman as confirmed by handwriting experts - Adjudicating authority's inference that it may have been done at the behest of the Chairman as illicit removals cannot be without his permission is in the realm of surmises and conjectures and cannot be equated with any legal evidence on record :Cestat; Appellants were looking after day to day activities of the company and had signed the fake and fictitious Central excise invoices under the cover of which goods were clandestinely cleared without payment of duty - Further the said appellants admitted their role in their statements - No case for waiver of penalty :Cestat; Components, parts, accessories falling under Chapter 72, are also used in the power plant, which is set up within the factory of the appellant - Credit allowed :Cestat;
SERVICE TAX SECTION 2007-TIOL-1452-CESTAT-AHM.doc + CHA st story.doc Custom House agent cannot be classified under port services - Every licenced person cannot be brought under the net of port services :Cestat; ST - GTA service - Period November 1997 to June 1998 - Can tax be recovered by issuing show cause notice in 2004? - Can retrospective amendment revive time-barred cases - Conflicting decisions - Matter referred to Larger Bench :Cestat;
CUSTOMS SECTION NOTIFICATIONS Customs Exchange rate for export goods for October; CBEC notifies exchange rates for imports for October; Anti-dumping notification 66/2007 rescinded; Definitive anti-dumping duty levied on import of potassium carbonate from M/s Taiwan Pulp and Paper Corpn; IOPEA, Mumbai added in the list of EPC; Multi-product exporters from N-E : RCMC to be obtained from FIEO; Appendix 6 amended to put Bureau veritas Certification, Mumbai; CASE LAWS 2007-TIOL-1450-CESTAT-MUM.doc + refund story.doc Claim for refund cannot be treated as demand of duty, interest or penalty by the department and in absence of any specific provisions, fee in respect of refund claims, need not be paid :Cestat; NDPS - Appellant is convicted u/s 21(C) and sentenced to 11 yrs. RI and a fine of Rs.1 lac and a further 1 yr. in case of default of fine - Appellant having already undergone 10 yrs. of RI prays for reduction of sentence and waiving off of fine - There is no provision under NDPS Act for waiver or reduction of fine thus sentence modified to 10 yrs. of RI and a fine of Rs. 1 lac and further RI of 1 yr. in case of default in payment of fine: High Court; |
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Inform your PAN to the deductor or face consequences - CBDT; Taxability of employment income to expatriates; Nomination for World Customs Organisation post by CBEC : Un'O'ly haste at its best! RBI relaxes overseas investment and loan repayment norms; ABB India wins Rs 93 Cr order for cement plant in Jordan; DLF going for IT Park in Kolkata; World Bank okays loans for HP and Karnataka tank projects; Glenmark gets nod from UK authorities for Baddi Plant; Core Projects going for multiple acquisitions in UK and USA; |
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