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Govt to set up funds for micro finance; Ministry of Health notifies new pictorials for smoking and non-smoking tobacco products; to come into force from Dec 1, 2007; DRI Delhi Zonal Unit seizes 10 kg heroin in two cases; Two persons arrested in Rajasthan and Delhi; India close to finalise FTA with South Korea; Commerce Secy admits exports target may fall short by USD 20 bn; |
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| Dear Member, Also sending you the following files: |
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2007-TIOL-332-ITAT-DEL-SB.doc + sb story.doc Income Tax - Assessee is an Association of Persons (AOP) constituted by a JV agreement - earns commission income and distributes the same among members as per share ratio - Nil return filed and refund of TDS claimed - Notice u/s 143(2) issued - AO issues SCN to tax income in the status of AOP under the provisions of section 167 B(2) - since there is a deed defining the share of profit of each member of the AOP, the assessee claims section 167 B(2) will not be applicable - AO disallows - Before CIT (A) Board circular comes into picture - Board Circular issued prior to amendment of Income Tax Act and SC ruling not binding: DELHI ITAT SPECIAL BENCH; Income Tax - Deduction u/s 80IA - Assessee loads software on blank disks and markets them as commercially distinctive product - AO disallows - Since it is a settled issue in favour of the assessee itself that the loading of software or duplication of software from the master copy does satisfy the definition of manufacture borrowed from Central Excise Act, benefits cannot be disallowed Assessee also claims deduction for travelling and training abroad u/s 37(1) - AO allows only 50% deduction on the presumption that the assessee's parent company is in the USA and therefore, some of the expenses are camouflaged - Since the expenditure is clearly incurred fully and wholly for the business purpose, deduction cannot be disallowed: DELHI ITAT; Income Tax - CIT(A) invokes the provisions of Sec.263 declaring the order of A.O. erroneous and prejudicial to the interests of revenue for non-application of mind and that assessee failed to produce the requisite information asked for - Sec. 263 is invoked where the order of A.O. is erroneous and prejudicial to the interest of revenue, a finding that is to be arrived at on examination of record, which is assessment order and assessment record, thus what is relevant for CIT to see before declaring an order erroneous is if relevant material was placed before the A.O. and he applied his mind to it and failure to produce the requisite material before CIT is not relevant - In the instant case all necessary material was placed before the A.O. who made assessment after considering the same and applying his mind to it thus it is not an order which is erroneous and prejudicial to the interest of revenue on account of non application of mind - Assessee's appeal allowed: DELHI ITAT; Income Tax - Assessee, a heavy commercial vehicle manufacturer, leases certain vehicles to State Transport Department - AO disallows depreciation and treats them as outright sales - Tribunal rules in favour of the assessee - Issue was decided by the court in favour of the assessee's own earlier case as 90% security deposit does not turn the deal into outright sales and such conditions should not be seen in isolation to other conditions in the agreement - Revenue's appeal disallowed AO disallows claim of the assessee which had excluded excise duty and sales tax from the total turnover for availing Sec 80HHC benefits - Tribunal hold excise duty to form part of turnover - Just as interest and commission do not emanate from the "turnover" so also excise duty and sales tax do not emanate from such turnover and they are to be excluded from turnover: MADRAS HIGH COURT; Income Tax - Assessee is into construction industry - gets into agreement with several landowners and builts multi-storeyed flats - Hue and cry followed alleging violation of development authority's guidelines - Assessee finally constructed less number of flats but could not recover the total investment made and suffers loss - claims deduction for the same - AO disallows but CIT(A) and Tribunal allows - Any loss incurred for the purpose of business is allowable deduction - Revenue's appeal dismissed: MADRAS
HIGH
COURT; |
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Mr R K Gupta is new Chief Commissioner of Central Excise, Jaipur + CBEC issues transfer order of four AC/DC; A Blank entry in the Tariff - CBEC wants to correct; CASE LAWS 2007-TIOL-1527-CESTAT-AHM.doc + arvind mill story.doc Wheeling out a part of electricity generated in the factory of the appellants to their own another factory cannot deprive them of the credit of duty paid on naphtha used as fuel in their factory - Tribunal by Majority AHMEDABAD CESTAT; Central Excise - shortage of raw material - assessee paid the entire duty and also 25% penalty under first proviso to Section 11 AC - revenue appeal seeking penalty equal to duty disallowed.: DELHI CESTAT; Cenvat Credit - used capital goods removed - a machine, which is capital goods, is removed even after use as machine, then it is possible to say that it is removed as such - however, as the Commissioner (Appeals) relied on the Board Circular in allowing the depreciation, revenue's appeal has no merit.: DELHI CESTAT;
SERVICE TAX SECTION Service tax under the category of 'tour operators' to vehicles operated by the appellants, which are not registered as tourist vehicles - issue is no longer res integra as it has been settled in favour of the appellants by Tribunal's order in CCE, Vadodara vs. Gandhi Travels 2007-TIOL-430-CESTAT-AHM: MUMBAI CESTAT; 2007-TIOL-1521-CESTAT-BANG.doc Service Tax - hair raising issue - Repairing of wigs - not beauty treatment: BANGALORE CESTAT;
CUSTOMS SECTION NOTIFICATION Amends policy relate to wheat import; Rice export to Russia allowed; Wheat export prohibited; Multi products exporters asked to obtain RCMC from FIEO office at Shillong; DGFT allows export of white sugar to EU; DGFT allows export of raw sugar to EU; CASE LAWS 2007-TIOL-1526-CESTAT-BANG.doc + wipro story.doc Superintendent's letter cannot be termed as an order of Commissioner: BANGALORE CESTAT; 2007-TIOL-1523-CESTAT-BANG.doc Customs - Seizure of gold and foreign currency - there is no cogent evidence on record to show that the appellant concealed the gold and US $ with an intention to smuggle them as held by the Metropolitan Sessions Judge - A person who wants to smuggle will not be standing in the queue with foreign exchange - No merit in the impugned order: BANGALORE CESTAT; |
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A Blank entry in the Tariff - CBEC wants to correct; Cheap loans alone cannot reverse industrial slow-down; OECD first Economic Survey of India calls for removal of tax exemptions and more reforms for 10% growth; Red tape continues to hold back business; 2007-TIOL-170-SC-CT.doc + sales tax story.doc Sales Tax Officer (vigilance) does not cease to be Sales Tax Officer just because he is in vigilance and works under IG , Police - Assessment made for releasing seized goods is a proper assessment: SUPREME COURT; The Cigarettes And Other Tobacco Products (Prohibition Of Advertisement And Regulation Of Trade And Commerce, Production, Supply And Distribution) Amendment ACT, 2007; Corrigendum dated 31st May, 2007 to be Cigarettes and other Tobacco Products (Packaging and Labelling) Rules, 2006 - to come into effect from Dec 1, 2007; Vacancies in WCO; IVRCL bagged lift irrigation works valued at Rs 760 Cr; CBI files chargesheet against 22 accused in IPO Scam; HDFC hikes stake in HDFC Asset Management Co; L&T bags Rs 693 crores order from IOCL; |
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