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Delhi Zonal Unit of DRI seizes 5 kg heroin in Firozpur; taking highest ever tally to 75 kg in six months; SC says testimonies of relatives cannot be disbelieved; FM says Govt not in favour of banning PN; only cap being put; Bourses may recover after a dive; Home Minister to discuss setting up a specialised agency to probe terror cases with State CMs; |
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| Dear Member, Also sending you the following files: |
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2007-TIOL-345-ITAT-PUNE-TM.doc + TM story.doc Income Tax - Search u/s 132 - I ncome admitted during search - Depreciation claimed from such income - no particulars of plant and machinery and furniture submitted - Depreciation cannot be allowed - ITAT by majority: PUNE ITAT THIRD MEMBER; Income Tax - Assessee buys capital assets from State Electricity Board and leases it back on rental - AO treats it as financial transaction and denies depreciation on assets - Going by the character of transaction it is a finance lease transaction and the assessee is not eligible for deprecition but matter remanded to AO to bifurcate the principal and interest amount and make addition in the income of only the interest component: MUMBAI ITAT; 2007-TIOL-343-ITAT-DEL.docIncome Tax - Assessee is a trader exporter - Sec 80HHC(3)(b) benefits - Assessee has interest income and also interest expenses and insists for adjustment of only net interest as part of indirect costs - AO disallows - Issue is no longer res integra as it is decided by the Special Bench in Lalsons case ( 2004-TIOL-23-ITAT-DEL-SB ) and Delhi HC in Honda Power Equipment case ( 2007-TIOL-38-HC-DEL-IT ) that netting of interest to be allowed but nexus between the expenses and income to be verified - Revenue's appeal partly allowed: DELHI ITAT; Income Tax - Re-opening of assessment after introduction of Sec 14A to disallow expenditure incurred to earn exempted income - CIT(A) and Tribunal disallow it - Going by the Section 14A and the CBDT Circular it is not the intention of the legislature to allow re-opening of cases prior to the AY 2002-03 as it would lead to avoidable litigation - Revenue's appeal dismissed: MADRAS HIGH COURT; Income Tax - Assessee decides to reduce share capital on the basis of lower intrinsic value of the equity - AO taxes the reduction amount of share capital and initiates penalty u/s 271(1)(c) - Penalty can be resorted to only if there is inaccurate or false information or concealment of income - Since there is no concealment and the assessee has reduced the share capital by taking the approval of the High Court, no penalty is called for - Revenue's appeal disallowed: DELHI HIGH COURT; |
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CBEC issues transfer order of five Addl/JCs; CBEC issues transfer order of five AC/DCs; 2007-TIOL-175-SC-CX.doc + sc cx story.doc Central Excise - appeal to High Court only on a question of law, not fact: SUPREME COURT; Central Excise - Modvat Credit - Credit availed beyond six months form the date of issue of duty paying documents is not allowed: MADRAS CESTAT; Payment of short duty while clearing the same cannot be attributed to any suppression, mis-statement or fraud - it is a case of interpretation of the provisions of law and is not a case of any clandestine activities, so as to deny the modvat credit on the supplementary invoices. Goods cleared to independent buyers on payment of duty returned & modvat credit taken - subsequently goods cleared to holding company, the appellant, at a lower assessable value - department objecting to such lower A.V - differential duty paid and supplementary invoices issued - no cause for denying credit on such supplementary invoices as it is not on account of any suppression, mis-statement or fraud. Records and monthly returns were filed regularly enclosing the said supplementary invoices - Larger period not invocable.: AHMEDABAD CESTAT; 2007-TIOL-1581-CESTAT-BANG.doc Invoice addressed to another unit of the assessee - Credit cannot be denied: BANAGALORE CESTAT;
SERVICE TAX SECTION 2007-TIOL-584-HC-MAD-ST.doc + st story.doc The time limit fixed for filing an appeal is to give finality to the proceedings. If an appeal has not been filed within the time limit, a legal right is accrued to the other side that the issue reached its finality. Such accrued legal right cannot be simply brushed aside by filing an application after one year and to condone the delay on the ground that similar issue is stated to be pending before the Supreme Court: MADRAS HIGH COURT; Service tax - Telephone Service - sale of SIM cards - the appellants claimed to have been paying sales tax on SIM card value - No documentary evidence of sales tax payment is available - The original authority should ascertain the fact and take a final decision - In case, if it is found that the appellants had been paying sales tax on SIM card value during the period of dispute, they shall have no liability to pay service tax - matter remanded: MADRAS CESTAT; "Technical know how fee" paid by appellant to French Company during the year 2002-03 - Services rendered before the tax was imposed on "Scientific or Technical Consultancy" Service - No levy of service tax attracted under this taxable head: DELHI CESTAT;
CUSTOMS SECTION NOTIFICATION Import of palm oil and its fractions: DGFT restricts import through Kochi Port; DEPB rates of many steel, aluminium and other items amended; CASE LAWS Customs - EPCG Scheme - non fulfillment of export obligation - in view of the rehabilitation scheme sanctioned by the BIFR to enable the company to meet its export obligation and subsequent extension of the export obligation period by DGFT, the demand of duty on the machinery imported is not sustainable: MADRAS CESTAT; 2007-TIOL-1584-CESTAT-BANG.doc Customs - Classification - Brown fused Aluminium is artificial Corundum classifiable under chapter 28 of Cus Tariff - Appeal dismissed. Words & phrases - The difference between calcinations & fusion explained: BANAGALORE CESTAT; |
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SEZ amendments: Not so significant ramifications! No interim report by Sixth pay Commission; Services received from foreign service providers: A scrutiny! 2007-TIOL-174-SC-FEMA.doc + ED story.doc Can a Special Director, ED prefer an appeal before the High Court against an order passed by the Foreign Exchange Regulation Appellate Board? No, says Apex Court: FEMA - SUPREME COURT; Transfer of second hand capital goods allowed; Deputation opportunities for all ranks with 13 th Finance Commission; RBI amends anti-money laundering guidelines to make it easy for implementation; Tax burdens in OECD countries back to 2000 historic highs; MRTPC asks DLF Universal to follow BIS standards; Patni goes for USD 200 mn deal with UK-based Co; Jet Airways connects Chandigarh and Bhopal to Mumbai with induction of two Boeings; Chennai Airport Customs makes another seizure of live ornamental fishes coming from Bangkok; |
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