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Add CIT Anil Kumar of 88 batch going on deputation to Home Ministry as Director; SC directs all States to make law within 3 months for compulsory registration of all marriages; Plan Panel for setting up National Electricity Fund; PMO waives cooling off period rider for former Finance Secretary Ashok Jha to join Hyundai; RBI for more stringent PN regime; SEBI Board to meet today; F M says India is now USD 4 trillion economy; |
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| Dear Member, Also sending you the following files: |
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Promotion to CCIT: CBDT asks deputationists for choice of posting; CASE LAWS 2007-TIOL-360-ITAT-MAD.doc + website story.doc Income Tax - Assessee gets into agreement for getting wind mills installed within a period - This project was to be financed by the assessee's sister concern - Contracting party fails to execute the project and compensated the assessee for the same - Compensation payment consisted of part payment for loss of generation of power and the rest for the delay in commissioning the project - Assessee claims deduction for major portion of compensation paid as service charges to sister concern - AO allows only a nominal percentage as service charge - CIT(A) hikes it to 2% - Assessee argues that since it was a bit technical negotiation, the sister concern was better placed to handle it and that is how it was given a major share, particularly in the light of the fact that there was no clause of compensation in the contract - Going by the facts that the contracting party failed to execute the project within the deadline and quickly agreed to compensate the assessee, there does not seem to be any technicality involved in the negotiation - AO directed to allow 5% service charges - Assessee's appeal allowed in part Assessee makes lumpsum payment to sister concern for maintenance of website - AO disallows as he does not find the payment in proportion to services rendered but allows some percentage- CIT(A) allows half of the expenditure and the other half towards development which is capital in nature - Tribunal declines to go into the question of revenue and capital nature as the AO examined the issue from revenue angle and upheld the CIT(A) order:MADRAS ITAT; Income Tax - Assessee sells furnace and shows capital gains in return - AO finds that the assessee had taken 100% depreciation on the furnace and hence should have declared the entire sale consideration as capital gains and initiates penalty proceedings u/s 271(1)(c) - CIT(A) restricts the penalty amount levided on the entire sale consideration - Since the AO did not record satisfaction before assuming jurisdiction u/s 271, the order was bad in law and is set aside - Assessee's appeal allowed: DELHI ITAT; Income Tax - Assessee, engaged in the business of shares and security broker, pays interest on delayed payment of security deposit for capital market which is debited to P&L a/c - A.O. disallows on the ground that interest is paid on initial security deposit without which the assessee could not commence business, thus its a payment on capital acount - Assessee contends it's a revenue expenditure as is paid after commencement of business - Assessee's payment of interest is with respect to initial security deposit without which it couldn't have commenced business and relates back to the date when security deposit was to be made and just because payment was made after commencement of business, will not make it a revenue expenditure - Assessee's appeal disallowed:MUMBAI ITAT; Income Tax - Assessee manufactures and does trading of pharma products - signs agreement for sale of certain brands against a consideration - declares the part payment received as capital gains - AO treats the entire sum as non-compete fees and terms it as business income - CIT(A) orders for split of the payment between non-compete fee and capital gains - Going by the agreement, the entire payment is to be assessed in the same year of assessment and the entire transaction was designed only for outright purchase of the brands and no specific payment was made as non-compete fees - entire sum is to be treated as capital receipts - Assessee's appeal partly allowed:MADRAS ITAT; Income Tax - Assessee is into manufacturing of jelly filled telecom cable - builds factory and shows cost of construction in its 'Nil' return - AO issues commission to the DVO - Since DVO's report gets delayed assessment is done but the same report is used in the assessment of another AY - CIT(A) asks AO to re-open the assessment u/s 147 and then examine the cost of construction - As per settled law the AO cannot substitute actual books of accounts by DVO' valuation figures without recording the reasons for rejecting the books of accounts submitted by the assessee, and since the AO has not done it, its order making addition on the basis of DVO's report is not sustainable and the CIT(A) order to invoke Sec 147 is also bad in law: DELHI ITAT; |
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2007-TIOL-1639-CESTAT-AHM.doc + anger story.doc Commissioner's findings in denovo adjudication angers Tribunal so much so that it endorses a copy of its order to the Chairman, CBEC for taking appropriate action:AHMEDABAD CESTAT; 2007-TIOL-1638-CESTAT-BANG.doc Central Excise - Provisional assessment - interest only after finalization: BANAGALORE CESTAT; Central Excise - Rule 6(3)(b) of Cenvat credit rules - waste products as an inevitable consequence in the process of manufacture - payment of 8% amount is not applicable in respect of such waste products: MADRAS CESTAT;
SERVICE TAX SECTION 2007-TIOL-1643-CESTAT-MUM.doc + gta story.doc Non-inclusion of TR-6 challan issued by a GTA as a notified document in rule 9 of CCR, 2004 prior to its insertion by notification 28/2005CE(NT) is an inadvertent omission - Credit allowed for past period: MUMBAI CESTAT; ST - No exoneration from penalty just because tax was paid before 30.10.2004: MADRAS CESTAT;
CUSTOMS SECTION NOTIFICATION Rice exports to Maldives and Russia permitted; Onion exports policy amended; Rice exports to Maldives exempted from curbs; Export of onions - Policy amended; Basmati Rice exports to Russia permitted; CASE LAWS 2007-TIOL-1641-CESTAT-MAD.doc + dri story.doc Adjudication without hearing - Neither the SCN issuing Authority, nor the Adjudicating Authority has seen the relied upon documents - classic example of mindless negation of natural justice - another DRI case falls flat: MADRAS CESTAT; Customs - possession of telecom equipment of foreign origin without any documentary evidence of licit import of the equipments - The Managing Director is liable for penalty under Section 112(b) of the Act, and the Commissioner imposed a penalty on him under this provision. However, the findings in the impugned order is that he is liable for penalty under Section 112(a) of the Act - such penalty is obviously beyond the scope of the findings and set aside - penalty on the company reduced: MADRAS CESTAT; |
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Is LPG not a petroleum gas? Is 4% additional duty leviable on LPG? – Board clarifies; Excisability of zinc dross – Board wants to revive the issue; A 'method in madness' to make Indian Customs zero-litigation arm of Revenue! OECD countries take new approach to fostering innovation, says OECD report; Suven collaborates with Minnesota Univ to develop HIV drugs; Glenmark signs marketing pact to expand dermatological products in S Africa; |
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