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China, EU agree to do away with textile quota system; Deora okays move to remove LDO from solvent control order; Taj Corridor case - Temporary relief for Mayawati as SC declines to give direction to Governor for prosecution sanction; ICD Tughlakabad Customs seizes 940 ozone depleting gas cylindars of 13.6 kg each; Consignment misdeclared as airconditioners; Sony Station Players also found CCEA gives nod to relief package for sugar industry + upgradation of iron ore handling facilities at Vizag Port + MSP for rabi crops for 2007-08 CBEC collects Rs 16800 Cr service tax upto August this year Sahar Airport Customs seizes 25 kg of Ketamine from Kuala Lumpur bound pax; |
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| Dear Member, Also sending you the following files: |
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2007-TIOL-335-ITAT-DEL.doc + singapore story.doc Income Tax - Assessee is incorporated company in Singapore - files return in the capacity of a non-resident company - AO finds that one of the shareholders, a resident Indian, holds 99% stake in the company and examines the situs of the company and concludes that since the company has no employee and any expenditure in Singapore and all the investments are in the local Group companies it is a resident company - CIT(A) upholds the order - Since all the meetings of the Board of Directors were held in Singapore and the 'control and management' of the company are situated in Singapore, and in addition, the residency certificate of the Singapore Govt is furnished, the assessee is not a resident in India - Assessee's appeal allowed: DELHI ITAT; Income Tax - Assessee files a miscellaneous aplication seeking recall of Tribunal order for rectification and disposal in accordance with correct legal position in light of an amendment - It is settled law that subsequenty amendments can also render Tribunal's decision erroneous which can be rectified u/s 254(2) in case two views are not possible of such legal errors - In the instant case amendment that led to long term capital loss to be deducted against long term capital gain only is applicable from 2003-04 onwards and not retrospectively - Assessee's application allowed.: MUMBAI ITAT; Income Tax - Deduction for reimbursement of medical expenses of Directors claimed - AO disallows and CIT(A) agrees - Medical reimbursement does not form part of salary and cannot be disallowed u/s 40A(5) - Assessee's appeal allowed Assessee treats entire building housing its central kitchen as plant and machinery and claims depreciation u/s 32 - AO disallows - It is settled decision that entire structure of bulk kitchen cannot be treated as a plant and only cold rooms to be treated as plant - Assessee's plea rejected: DELHI ITAT; Income Tax - Unexplained cash credit - AO makes additions u/s 68- CIT(A) remits back the case - AO once again makes addition by rejecting explanations given by the assessee - CIT(A) deletes the addition - Going by the facts that the assessee produced the finance broker who had arranged the loans from the individual lenders and the AO had recorded his statement but insisted on producing all 31 parties before him and also did not apply his mind to verify facts from the lenders' returns, the assessee's explanation cannot be regarded as unreasonable - No substantial question of law involved - Revenue's appeal dismissed: MADRAS HIGH COURT; Income Tax - Penalty u/s 271(1)(c) - Tribunal sets aside the order for lack of recording of satisfaction - Given that the AO has, towards the end of the assessment order, talked about inaccurate filing of particulars of income and recommended initiation of penalty, it does satify the condition envisaged in the law - Case remanded to the Tribunal: DELHI HIGH COURT; |
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NOTIFICATION Micronutrient exempted from excise duty; CASE LAWS 2007-TIOL-1531-CESTAT-MUM.doc + ignore story.doc Commissioner allegedly ignored provisions of Section 11A(2B) of the CEA'44 while imposing penalty and interest - Tribunal sets aside erroneous order & allows appeals.: MUMBAI CESTAT; Reversal of inadmissible credit before SCN - No interest and penalty: MADRAS CESTAT; Dutiable and exempted goods - manufacturer has the option, not to maintain separate records and pay 10%: MADRAS CESTAT; Duty paid by EOU for DTA clearances is excise duty - 100% credit allowed: MADRAS CESTAT;
SERVICE TAX SECTION 2007-TIOL-1535-CESTAT-MAD.doc + mighty story.doc Service Tax - Consulting Engineer - the appellant was retained by the company against a 'retainer fee' for the purpose of supervising the electrical works in the Electrical Department of the company - the transaction between a 'service provider' and a 'service recipient' must be on principal-to-principal basis - This basic requirement does not appear to have been satisfied in this case - demand of service tax is vacated: MADRAS CESTAT; 2007-TIOL-1534-CESTAT-BANG.doc Service Tax - Order beyond the scope of SCN not sustainable: BANGALORE CESTAT;
CUSTOMS SECTION NOTIFICATION Imports made against DEPB licences issued with endorsement of Notifn. No.34/97-Cus dated 7.4.1997 – exemption from special additional duty – Clarification; Customs valuation (Determination of Value of Export Goods) Rules, 2007- Instructions; ustoms Valuation (Determination of Value of Imported Goods) Rules, 2007 – Instructions; Drawback Schedule, 2007-08 - increase in drawback rates with retrospective effect from 1.4.2007 - exemption from filing supplementary claims; Anti-dumping duty on NBR extended for one more year; EO conditions under EPCG Scheme amended; DEPB rates of many steel, aluminium and other items amended; SION rates for engineering products amended; CASE LAWS 2007-TIOL-1533-CESTAT-MUM.doc + cha story.doc Commissioner has the discretion to renew CHA licence and should use such discretion: MUMBAI CESTAT; 2007-TIOL-1532-CESTAT-BANG.doc Customs - Imports - Networking and tele conferencing equipment imported to be considered as capital goods used in the Service industry - The procedure adopted by the adjudicating authority by issuing corrigendum is highly irregular.: BANGALORE CESTAT; |
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Customs valuation Rules - CBEC issues instructions; Tobacco addiction jumps from 48% to 57% among males; New pictorials for statutory warning may wipe off many tobacco brands; Central Excise & Customs to get powers under Tobacco Act; Chennai DRI seizes audio equipment worth Rs 12 Cr; L&T bags USD 60 million order in Saudi Arabia; Gail India to fuel Bawana Power Plant; Ramco & Corbus join hands; |
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