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India successfully commissions tsunami early warning system at Hyderabad; India Telecom 2007 to be held from Dec 12 to Dec 15 in New Delhi; Jet flight carrying Indian and Aussies cricket teams makes emergency landing after a bird-hit; Mumbai HC asks Ambanis to renegotiate gas pact; |
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| Dear Member, Also sending you the following files: |
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2007-TIOL-580-HC-MUM-IT.doc + hc story.doc Income Tax - AO disallows deduction for late payment towards PF - CIT(A) allows - Tribunal holds employer's contribution allowable if paid upto the date of return-filing u/s 43B and employees' contribution to be allowed if paid within the relevant date - Revenue in appeal before HC and argues the deletion of the second proviso to Section 43B by the Finance Act 2003 would only mean that Section 43B as it stands in so far as employer's contribution is concerned will be governed by the 1st proviso from 1st April, 2004 - Assessee's counsel argues the amendment is curative and the amendment is resorted to for removing the hardship occasioned by virtue of the proviso - Going by the history, Finance Minister's speech, memorandum explaining the provision and the Notes on Clauses, the omission of the second proviso was not curative and consequently it cannot be said that the amendment is retrospective - Revenue's appeal allowed : MUMBAI HIGH COURT; Income Tax - Deduction for employer's contribution to PF and ESI denied as it was made beyond the due date - Tribunal allows them - Going by the omission of certain clauses of Sec 43B and the explanation clause (va) of Section 36 it is very clear that the amount actually paid by the assessee on or before the due date applicable in this case at the time of submitting returns of income u/s 139 of the Act to the Revenue in respect of the previous year can be claimed by the assessees for deduction out of their gross income - Reference answered against the Revenue Keeping in mind the Apex Court decision in the case of Allied Motors it is clear that the amendment to Sec 43B vide Finance Act, 2003 is very much retrospective - Revenue's appeal dismissed : KARNATAKA HIGH COURT; Income Tax - Assessee revises his return and surrenders an additional amount under Amnesty scheme after being caught in a survey for understating the expenses incurred on marriage of his daughter - A.O. disallows and makes addition of income from undisclosed sources on account of difference of expenditure incurred and imposes interest u/s 139(8) r/w Sec. 215 - Applicability of Amnesty scheme depends on the fact whether revenue detected concealment or it was only a prima facie belief that assessee did not fully disclose the expenditure - Detection requires giving assessee an opportunity to rebut the evidence which was not done in the instant case and moreover as per CBDT Circular No.451 ITOs are required to take a liberal view with regard to interest in such cases under Amnesty scheme - Revenue's appeal dismissed : PUNJAB AND HARYANA HIGH COURT; Income Tax - Assessee makes a false claim of depreciation, investment allowance etc. on a machinery which is not even installed in the relevant accounting year - A.O. imposes a penalty u/s 271(1)(c) for concealment of income and furnishing inaccurate particulars of income - Tribunal cancels the penalty on the ground that claim is made on the basis of a certificate of factory manager thus assessee cannot be attributed with the mistake and consequent liability - Tax exemptions, deductions etc. are for bonafide reasons and not for making false declarations thus provisions of Sec.271(1)(c) have to be strictly applied to ensure tax discipline - In the instant case claim was made on the basis of a bogus document and there cannot be a defence that it was at the instance of assessee's representative as assessee is bound by the actions of his representative /servants - Revenue's appeal allowed. : KARNATAKA HIGH COURT; Income Tax - Assessee deals in sales and purchase of shares - suffers reverses in business and treats it as capital loss - Invocation of powers u/s 263 - Commissioner asks AO to treat it as business loss - Tribunal finding that right from the inception the assessee never showed the value of the shares as stock-in-trade' or 'current assets' in its balance sheet and treated it only as 'investment' - Since the Revenue fails to product any material before the court to controvert the finding of the Tribunal, the order upheld in favour of the assessee : MADRAS HIGH COURT; |
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2007-TIOL-1573-CESTAT-DEL.doc + vicks story.doc Central Excise – valuation – job work – Vicks Cough Drops manufactured on job work basis - it is apparent on the face of the agreement that the appellant is an independent job worker – revenue's contention to assess the goods on the sale price at the depots of the principle manufacturer, M/s Procter and Gamble India Ltd is rejected : DELHI CESTAT; No provision to demand duty on removal of used Cenvated capital goods : MUMBAI CESTAT; Refund - Provisional Assessment - bar of unjust enrichment not applicable : MADRAS CESTAT;
SERVICE TAX SECTION ST - Outward transportation - Goods taken from factory premises to the place of port for exports - It is settled that the place of removal for exports is when the papers are presented to the Customs officers - In the isntance case the assessee availed credit on freight upto the place of port - Predeposit waiver granted: DELHI CESTAT; Assesses who had not daimed the benefit of exemption initially is not barred, prohibited or estopped from claiming such a benefit at a later stage : MUMBAI CESTAT;
CUSTOMS SECTION 2007-TIOL-581-HC-DEL-CUS.doc + fabric story.doc Import of PU coated fabric - Dispute on thickness of the fabric - Department seizes the goods but does not get them tested even after five months - goods and seized Indian currency ordered to be released : DELHI HIGH COURT; A laboratory cannot be expected to enclose its work sheets along with every report - Therefore, a report cannot be rejected for the reason that its work sheets did not accompany the report - No violation of Section 111(d), (m) or (o) of the Customs Act, in regard to the imported goods - Accordingly, confiscation of the imported goods is not sustainable - When confiscation is not sustainable, penalties also become not sustainable : DELHI CESTAT; |
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Income Tax - harvesting and transportation expenses in the cases of Co-operative sugar mills; Call Book - Board wants to recall; Looking back; Some reminiscences; Works Contract Service : Rule 6(5) calls for amendment to save the purpose of law! NTPC signs MoU with Bihar Govt; Assam Co discovers two new oil reservoirs KLG Systel bags orders worth Rs 75 Cr 3i Infotech to acquire J&B Software of USA; Karuturi Networks raises USD 50 mn by issuing FCC bonds; |
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