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Govt sanctions special grant to workers of closed tea gardens in Bengal; Nath meets WTO Chief Pascal Lamy and hopes USA and EU may break impassee over talks; IMF says it does not see overheating of Indian Economy as long as present 'impressive' monetary policy remains in place; FM says Govt is firm on implementing Sethu project; MoC is serious about making SEZ a single window clearance scheme; Bombay HC adjourns Vodafone income tax case to Oct 29; |
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| Dear Member, Also sending you the following files: |
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2007-TIOL-342-ITAT-MUM.doc + lafarge story.doc Interest earned on surplus funds deposited in banks cannot be business income; against an income of Rs. 2.28 Lakhs, the assessee claims expenditure of Rs. 2.7 Crores - Business expenditure allowable: MUMBAI ITAT; 2007-TIOL-341-ITAT-DEL.doc + search story.doc The warrant of authorization issued by the Addl. Director of Income Tax (Investigation) without proper authority and the entire search as well as the assessment proceedings consequent to such invalid search, bad in law and annulled: DELHI ITAT; Income Tax - Sec 80IB benefits - Assessee earns interest income on margin money deposited with bank for opening LC and obtaining BG - Such income debited to P & L Account - AO disallows such income for allowing Sec 80IB benefits and treats it as ''income from other sources'' - CIT(A) allows the assessee's appeal as he finds making such a deposit was compulsory for carrying on the business - Going by the wording of the Section, such an income cannot be said to be 'derived from' industrial undertaking and, therefore, cannot be allowed but AO is directed to follow the netting of interest income by allowing expenditure incurred on earning the interest income - Revenue's appeal allowed in part: DELHI ITAT; Income Tax - Assessee claims deduction for huge expensiture on software purchase - AO treats it as capital expenditure - Assessee changes its stand and states that the software purchased can be used only for two years, therefore it should be allowed 50% of total expenditure in the AY - Counsel of the assessee wants to treat it as stock-in-trade but AO declines as it was not shown in the closing stock and allows only 25% depreciation - CIT(A) agrees with it - Tribunal declines to interfere with the CIT(A) order as it is a well-reasoned order Assessee challenges jurisdiction of the AO as its head office was shifted from Chennai to Hyderabad - CIT(A) finds it an afterthought as it was never questioned earlier and the assessee also complied with all the notices but never informed the AO about the change in address - Tribunal upholds CIT(A) order as jurisdiction does not automatically change with the change in head office address unless a procedure is followed - Assessee's appeal dismissed: MADRAS ITAT; Income Tax - Assessment u/s 158BC(c) completed - AO makes addition by disallowing certain expenses - Assessee does not go for appeal and deposits the tax as per the estimated addition - AO levies penalty - CIT(A) upholds it - Simply because the assessee did not prefer an appeal it should not be viewed against the assessee and the penalty under section 158 BFA(2) of the Act is optional and not mandatory - Assessee's appeal allowed: MUMBAI ITAT; |
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2007-TIOL-173-SC-CX.doc + sc story.doc ULTRA CLEAN-AUDIO TAPE HEAD CLEANER is a new product dutiable - assessee printed "thinner" on the label instead of "solvent" and wrote to the client about this ingenuity - larger period invokable: SUPREME COURT; 2007-TIOL-1580-CESTAT-MAD.doc + film story.doc Re-packing of film rolls -Duty demanded is less than Cenvat Credit that would have been available - Demand set aside. What about manufacture?: MADRAS CESTAT; Central Excise - Cenvat Credit - quantum of Cenvat Credit on goods received from a 100% EOU - Since the issue is covered in earlier CESTAT order against the common order of the Commissioner (Appeals) and the issue remains covered in favour of the assessee, the revenue appeal is dismissed: DELHI CESTAT; Conveyor belt system installed by the appellant from the factory of M/s Ispat Metallics Ltd to transport slag purchased - transportation being the appellants' responsibility - Cenvat Credit available as the same is Capital goods - SC decision in Birla Corporation 2005-TIOL-99-SC-CX & HC decision in Raj Cement followed: MUMBAI CESTAT;
SERVICE TAX SECTION 2007-TIOL-1575-CESTAT-BANG.doc 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: BANAGALORE CESTAT; 2007-TIOL-1574-CESTAT-BANG.doc No refund if assessment is not challenged: BANAGALORE CESTAT;
CUSTOMS SECTION NOTIFICATION Brass scrap value revised; no change in tariff value of edible oil; DGFT lays down guidelines for authorising agencies to issue certificate of origin; Export of rice prohibited; Onion export made almost impossible; CASE LAWS 2007-TIOL-1577-CESTAT-BANG.doc :Chartered Accountant's Certificate can be accepted to rule out unjust enrichment: BANAGALORE CESTAT; Customs - import of poppy seeds from Pakistan - The importer was in possession of specific licence to import poppy seeds from GCA countries which included Pakistan - the country of origin and the licit nature of the poppy seeds were certified by the (i) Ministry of Agriculture; (ii) Export Promotion Bureau of Government of Pakistan and (iii) Chamber of Commerce and Industry, Peshawar - the Commissioner had rightly held that the import was in accordance with Import Policy - revenue appeal is devoid of merit: MADRAS CESTAT; |
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Onion export made almost impossible; Service Tax on 'rent' to survive judicial scrutiny; Govt amends SEZ Rules: Allows transfer of used plants and machinery into SEZs + Multi-product SEZ areas restricted to Min contiguous area of 1000 ha and 200 ha in hilly states + 50% area to be earmarked as processing zone; Reliance Petro to wrap up Jamnagar refinery project before Dec this year; Gartner Inc accords prime slot to Infosys Tech in report; Shilpa Medicare signs MoU to acquire Austria's LOBA Finchemie; Bharati Shipyard & Apeejay Shipping Sign JV to build shipyard along east coast; |
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