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CBDT extends due date for corporate return-filing for Bihar to Dec 31, 2007; Copter escorting Parvez crashes; four killed; FM asks CESTAT Members to start deliberating on resolution of GST disputes! Congree seeks President's Rule in Karnataka; Exodus from CBDT continues; Four more CITs put in papers;: MoF considering publishing names of mega tax defaulters in newspapers and websites; Left accuses Congress of forcing polls on nation; CBDT says fire broke out on 7 th Floor of Mayur Bhawan; Building to remain closed on Monday + Tuesday; |
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| Dear Member, Also sending you the following files: |
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Date of return-filing due on Oct 31 extended to Dec 31, 2007 for Bihar; CASE LAWS 2007-TIOL-329-ITAT-BANG.doc + serve story.doc Income Tax - The word 'served' as appearing in sec. 153(2) of the Income-tax Act cannot be equated with the word 'issue'. 'Intimation' and 'assessment' are different. Failure to take steps u/s 143(3) will not render the AO powerless to initiate re-assessment proceedings : BANGALORE ITAT; Income Tax - Assessee, engaged in the business of development and export of computer software, claims exemption u/s 10A - A.O. disallows on the ground that since assessee has claimed deduction u/s 80HHE in an earlier AY, deduction u/s 10A cannot be granted in subsequent year in terms of sub section (5) of Sec.80HHE - Sub section (5) of Sec.80HHE merely seeks to check double deduction on same profits by laying down that once deduction is obtained in respect of profits u/s 80HHE then deduction under any other provision cannot be obtained on such profits on which deduction has already been obtained, and it nowhere lays that once deduction is obtained under the said section, then subsequently no deduction at any time on any profits of business is available - Revenue's appeal dismissed : DELHI ITAT; Income Tax - Assessee takes premises on rent and in turn lets out to a few law firms - collects lump sum payments from law firms using the premises and claims deduction for rent and other facilities - Since the payments were not bifurcated, the AO disallowed 50% expenditure - Since the services were provided to other clients as well, the CIT(A) deletes the disallowance - Since the expenditure was wholly for the purpose of business and the premises were also used by multiple parties, AO has no valid ground to disallow 50% expenses - Revenue's appeal disallowed : DELHI ITAT; Income Tax - Assessee claims business loss, a part of which is disallowed and penalty proceedings initiated u/s 271(1)(c) - Assessee objects on the ground that A.O. failed to record his satisfaction and thus valid jurisdiction has not been assumed in initiating penalty proceedings - A condition precedent to initiate penalty proceedings u/s 271(1)(c) is recording of satisfaction by A.O. that there was concealment or furnishing of inaccurate particulars of income, and just because the proceedings are initiated, it cannot be assumed that satisfaction was reached - Revenue's appeal rejected : DELHI ITAT; 2007-TIOL-325-ITAT-BANG.doc + itat story.doc Income Tax - Four persons came together, purchased a plot and constructed a commercial complex - rental income, chargeable under the head 'income from house property' is to be taxed in the individual hands, not AOP - Income from sale of some parts of the complex - capital gains to be taxed in the hands of AOP - Merely because a wrong person is taxed with respect to a particular income, the Assessing Officer is not precluded from taxing the right person with respect to that income - Revenue's appeal allowed : BANGALORE ITAT; Income Tax - Assessee sets up a new unit - capitalises part of expenditure incurred for installing capital goods and part is treated as revenue expenditure - CIT(A) and Tribunal both uphold the AO's order - If it is the same management and also extension of the same business, it is to be treated as revenue expenditure - Deduction allowed - Assessee's appeal allowed : DELHI HIGH COURT; |
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Central Excise - It is settled law that if any exemption granted to the assessee, it is for the assessee to either avail the exemption or pay the duty. This law has been upheld by the Supreme Court - the period of dispute is before the amendment of Section 5A to make the exemption mandatory - revenue appeal is rejected : MUMBAI CESTAT; Central Excise - EOUs - duty free procurement of raw materials under Notn 1/95CE and 53/97Cus - non-excisable remnants arise in the course of usage of such duty free material in the process - embargo of payment of duty under para 7 of Notn 53/97 Cus is applicable only if the finished goods are non excisable - demand of duty foregone is not sustainable : MUMBAI CESTAT; Notification 208/88- CE - Ship breaking scrap whether duty paid - burden is upon the Revenue to prove that the inputs used by the respondents are clearly recognized has not duty paid - SC decision in Mohan Steel Ltd. 2006-TIOL-149-SC-CX squarely applicable - Revenue appeal rejected :MUMBAI CESTAT; Central Excise - classification - disputed products Vicco Vajradanti and Vicco Turmeric Cream are ayurvedic medicaments under Chapter Heading 30.03 of the schedule to the CETA, 1985, attracting nil rate of duty - revenue's classification under Chapter 33 as cosmetics rejected : MUMBAI CESTAT; 2007-TIOL-1514-CESTAT-BANG.doc Duty on Captively consumed goods - No price change in final products - Duty not passed on - No unjust enrichment : BANGALORE CESTAT; Central Excise - Stay - exemption to pipes used for delivery of water from source to the treatment plant and to storage facility - applicants transferred water from first storage to the other storage facility - prima facie case for waiver of pre-deposit : MUMBAI CESTAT;
SERVICE TAX SECTION 2007-TIOL-1520-CESTAT-DEL.doc + tehri story.doc Service Tax - Appellants appointed as commission agents for the purpose of procuring orders - they are not warehousing the goods or taking any steps for clearance of the goods from the manufacturer's place - not a C & F agent - Tribunal by majority : DELHI CESTAT; Service Tax - stage carriages are not tourist vehicles - not covered under "tour operator" : MUMBAI CESTAT;
CUSTOMS SECTION 2007-TIOL-559-HC-DEL-SAFEMA.doc + safema story.doc Detained in 1976 under COFEPOSA - property forfeited in 1978 - Both the owners of the property are dead - 30 years have passed - The facts of this case show how drastic laws like SAFEMA can be used to badger individuals, often weak in comparison with the might of the State : DELHI HIGH COURT; Customs - attempt to export foreign currency illegally - penalty imposed by the Commissioner (Customs) - appeal by Shiri Runu Roy partly allowed and the remaining two appeals dismissed for non-compliance with the stay order earlier : KOLKATA CESTAT; |
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Input services for export of goods - refund exemption - Board corrects errors and adds a couple of services; Tribunalisation of justice - CESTAT - Kal Aaaj Aur Kal! Bhosale a free man - SC declares alleged Customs offence as 'apparently' bailable! Is the Apex Court right? Govt offers many sops to mitigate impact of rising rupee; Plea for service tax refund on foreign commission turned down; Bharti Airtel to execute eGram project for Gujarat; Subex Azure bags LSE award from UK Govt; Moser Baer acquires Hindi and Gujarati titles from Ultra Video; |
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