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Army Chief calls for de-classification of 1962 and 1971 war records; Govt denies any move to curtail autonomy of IIMs; Govt appoints Mr Asok Potsansgbam and Mr Pranoy Kr Musahary as Addl Judget of Guwahati HC; FM says FDI in retail sector to be allowed once hyped fear among retailers to ease out; CIC says Court proceedings are not covered under RTI Act; Pro-democracy stir in Myanmar turns violent; US imposes sanctions; |
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| Dear Member, Also sending you the following files: |
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2007-TIOL-315-ITAT-MUM.doc + export story.doc Income Tax - Assessee is a merchant exporter - procures exports orders and places the same on EoUs for third party exports upto the port - Claims deduction u/s 80HHC - Revenue denies the same on the ground that EoUs as manufacturers of the goods also took benefits u/s 10B, and double benefits cannot be allowed on the same export goods - CIT(A) allows the benefits - Benefits u/s 10B and u/s 80HHC can be allowed on the same goods as manufacturers are entitled to benefits on their income whereas the third party exporter is entitled to Sec 80HHC benefits on the act of exports of goods and bringing proceeds in the convertible foreign exchange - Revenue's appeal disallowed Sec 80HHC benefits - Exporter procures order, buys goods from a third country and directly export the same to the buyer country without physically bringing the goods to India - Revenue disallows on the ground that it should be exports out of India for availing such benefits - The term export means sending goods to another country and not out of one's country to another - it does not matter how and from where goods are exported as long as the exporter is a resident of India and the export proceeds in foreign exchange are brought into the country - Sec 80HHC benefits cannot be denied - Assessee's appeal allowed : ITAT; 2007-TIOL-314-ITAT-MUM.doc + vinvish story.doc The requirement of a notice under sub-section (2) of section 143 cannot be dispensed with in a case where the Assessing Officer proceeds to make an inquiry for the purpose of assessment, and determination of taxes payable after issuing notice under section 143(1) as well : ITAT; Income Tax - Interest payment on compensation paid for compulsory acquisition of land by the State Govt - Revenue for taxing it in the year of compensation - Issue is no longer res integra as per Apex Court ruling in Rama Bai - Such interest payment is to be taxed on year to year basis and not in the year of court ruling - Revenue's appeal dismissed : High Court; Income Tax - Penalty imposed u/s 272A(2)(g) for failure to issue TDS Certificate - Assessee explains it could not do it as there was unrest in the factory and most employees had left the organisation - Tribunal sets aside penalty, finding the reasons bona fide - The Tribunal's order does not give rise to any substantial question of law- Revenue's appeal rejected : High Court; Income Tax - A sum is found credited in the books of accounts of assessee for which no explanation given - A.O. makes addition and penalty proceedings initiated - Tribunal deletes on the ground that no satisfaction is recorded by A.O. - Revenue contends that recording of satisfaction does not have to be express, and it is enough if it's discernible from the order and since this question of satisfaction is pending before the larger bench this court should await its decision - Even if it is accepted that satisfation of the officer initiating penalty proceedings u/s 271 doesn't have to be in specific terms and it is enough if it's discernible from the order, there is nothing in the assessment order to show that A.O. was satisfied that penalty proceedings should be initiated against the assessee - Revenue's appeal dismissed : High Court; |
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2007-TIOL-1460-CESTAT-MUM .doc + edu cess story.doc Supplies by an EOU - Taking credit of Education Cess by DTA is not hit by rule 3(7)(a) of Cenvat Credit Rules, 2004 - Prima facie case made out for waiver of duty demand :Cestat; Tribunal upholding demand - Duty paid by appellant within three months of Tribunal's order dated 26.12.1997 - no interest payable under Section 11AA of CEA'44 - Tribunal decision in Mukand Ltd. followed :Cestat; No mala fide on the part of the appellant - Entire duty deposited even before the issuance of the show cause notice - Imposition of penalty and confirmation of interest against the appellant is not warranted :Cestat; Interest not payable under section 11AB when duty became payable or duty ought to have been paid before 11.05.2001 - wordings of sub-section(2) of section 11AB are clear on this issue. Appellant incorrectly availing credit of 100% on capital goods in the first year - on being pointed out reversing the excess credit in March 2001 - later SCN issued in year 2006 seeking recovery of interest under section 11AB - when the fact remains that this excess credit is payable before 11.05.2001, no interest is recoverable under section 11AB in view of sub-section (2) of the same - Issue squarely covered by Tribunal decision in Union Air Products (P) Ltd. :Cestat; Clandestine removal - In the face of non-availability of sales invoices / bills of the applicant for sale and realization by way of actual sale price, it is not possible to know the final value/price realized on such goods, to consider them as cum-duty-price - benefit of cum duty not available - SC decision in Maruti not applicable- decision in Gajanand Coaters followed CAse settled - penalty waived & immunity from prosecution granted - interest payable @10% since financial accomodation derived. :Settlement Commission;
SERVICE TAX SECTION 2007-TIOL-533-HC-P&H-ST.doc + lal st story.doc Service Tax - Collection of blood samples on behalf of principal lab, not Business Auxiliary Service - it is technical testing and analysis and is excluded from Service Tax by definition which excludes testing or analysis in relation to human beings or animals : High Court; ST - Penalty for not filing returns - Tax with penalty deposited - Commissioner enhances the penalty of equal amount of tax - Revisonary order not sustainable :Cestat;
CUSTOMS SECTION Anti-dumping duty on import of pre-sensitised positive offset aluminium plates imposed; DGFT deletes SION entry for filtered honey; CASE LAWS 2007-TIOL-1456-CESTAT-DEL-LB.doc Customs - Anti-dumping duty - Authorities to clarify the words ""synthetic monofilament" - Whether the same refers to those with more than 67 decitex only - Appeal withdrawn with liberty to revive the same in case of any difficulty :Cestat; Customs - Smuggling - Chinese silk consignment seized for lack of documents - Importer furnishes bill of entry but Revenue finds the descriptions not matching the goods - Commissioner (A) also allowed the Revenue order - In the event of seizure of non-notified goods, burden of proof is on the Revenue to prove that there was illegal import and inability of the litigant to produce documents showing legal importation does not ifsofacto prove the goods were smuggled - Importer's appeal allowed :Cestat; |
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Doing Business 2008 - India a good destination; India ranks 72 in Corruption Index; T20 'tablet' halts nosediving popularity graph of Cricket; Hockey improves but apathy may kill it! rbi07cir012.doc + SEBI Circular No 7.pdf Overseas investment by MFs liberalised; Overseas direct investment liberalised; ECB repayment hiked from USD 400 mn to USD 500 mn; Remittance limit hiked for resident individuals; Sun Pharma's subsidiary gets final FDA nod for methimazole tablets; Subhash Projects bags orders worth Rs 353 Cr; Satyam's new service outfit at Brisbane; US complains against China on IPR; DSB sets up panel; |
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