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HRD Minister says efforts on to convince SC about merits of OBC reservation; BHEL to set up 1600 MW power plant in TN; FM tells Norwegian industries - 'IT Outsourcing' does not lead to joblessness; SEBI firm on not welcoming unregulated funds; P-Notes norms to continue; |
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| Dear Member, Also sending you the following files: |
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2007-TIOL-362-ITAT-DEL.doc + DEPB story.doc Income Tax - Assessee claims deduction u/s 80IB on profit from DEPB Scheme - AO disallows it - By adding the words "any business" in section 80IB, no material difference in interpretation follows, and profit from DEPB scheme has no direct nexus with the activities of the undertaking - Deduction cannot be allowed - Assessee's appeal dismissed While the assessee is entitled to deduction u/s 80-HHC on the incentives by way of Duty Drawback, it is not entitled to deduction u/s. 80-IB on the Duty Drawback: DELHI ITAT; Income Tax - Assessee fails to furnish returns within the prescribed due date - A.O. makes a direction for charging of interest u/s 234A in the assessment order but fails to add it in ITNS 150 while computing the sum payable by assesee but includes the same in rectification proceedings u/s 154 - Assessee objects on the ground that interest cannot be included in rectification proceedings as charging of interest on assessee was a debateable issue - Rectification u/s 154 can be made only for mistakes apparent from record i.e. obvious and patent mistakes and not in cases where more than two views are possible - In the instant case assessee filed its returns late and the levy of interest u/s 234A was mandatory, thus issue not debateable which could be rectified u/s 154 and moreover a direction for charging interest was made in the assessment order but omitted in ITNS 150 inadvertently thus it was a apparent mistake - Assessee's appeal dismissed: DELHI ITAT; Income Tax - Search u/s 132 - Revenue finds dollar saving account and asks assessee to explain the source - Sum claimed as gift - AO and CIT(A) term it bogus - Tribunal allows it - Since the money has come through banking channel and the donor is real brother-in-law who is abroad for 20 years and has regularly been sending gifts and the same were accepted by the Revenue in the past, following the principle of consistency the Tribunal has rightly allows it in favour of the assessee - No question of law involved: P&H HIGH COURT; Income Tax - Self-assessment - AO alleges full payment of tax not made and holds assessee a defaulter - Notice u/s 221 - Penalty - CIT(A) deletes penalty as AO failed to raise demand - Tribunal sustains penalty - Tribunal's order that the assessee did not raise the demand issue, is not sustainable - Tribunal asked to dispose of the matter on merits: BOMBAY HIGH COURT; Income Tax - Search u/s 132 - Returns filed after the due date and treated as invalid - AO treats the income disclosed in invalid return as undisclosed income - Tribunal deletes it - Unless Revenue has got documentary evidence during the search, by merely treating the disclosed income in invalid return as undisclosed u/s 158B(b) it cannot make addition - Revenue's appeal disallowed: MADRAS HIGH COURT; |
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2007-TIOL-1650-CESTAT-BANG.doc + st agent story.doc Central Excise – Valuation – Goods cleared from consignment agent – factory sale price not applicable – The amendment in 2003 only amplified the provision - just because Commissioner (A) passed two contradictory orders on the same day, tribunal need not uphold the wrong order: BANGALORE CESTAT; 2007-TIOL-1649-CESTAT-MUM.doc + deposit story.doc Utilization of amount deposited during pendency of the investigation of a case is no way illegal: MUMBAI CESTAT; Valuation - Sugar confectionary packed in multi-piece packages prima facie assessable in terms of section 4 of the CEA'44 & not section 4A - Tribunal decision in Swan Sweets Pvt. Ltd. 2006-TIOL-229-CESTAT-MUM relied upon - Pre-deposit of amounts waived & stay granted: MUMBAI CESTAT; Capital goods on which modvat was taken in 1996-97 removed in November 2003 to January 2004 since used and damaged - assessee contending that in terms of Tribunal decision in Madura Coats 2005-TIOL-591-CESTAT-BANG , no reversal is required as CCR do not provide for the same, however they are not averse to reversal of credit taken but submit that the proper quantification not done - matter remanded.: MUMBAI CESTAT;
SERVICE TAX SECTION Misguidance by the Consultant on the provisions of the law may be the cause of non-payment of the tax liability, which can be condoned under section 80 of the Finance Act, 1994. Service Tax - Appellant taking registration in April 2003 as a Security Agency - No service tax paid for the earlier period from April 2002 to March 2003 - Revenue officers have also not taken any action against the appellants having granted him the Service tax registration in April 2003, in any way, as to asking him the details of transactions made by them prior to April 2003 - upon being pointed out appellant paying service tax along with interest - strong case for invoking the provisions of Section 80 - penalty u/s 78 set aside but penalties under sections 76, 77 upheld along with Tax liability: MUMBAI CESTAT; 2007-TIOL-1644-CESTAT-BANG.doc ST- Share transfer agent, not Business Auxiliary Services Prior to 1.5.2006:BANGALORE CESTAT;
CUSTOMS SECTION NOTIFICATION DGFT notifies guidelines for conversion of DDTA unit into EoU; CASE LAWS Excess drawback claimed by over-invoicing of goods & describing as ladies trousers but were actually worn out garments - allegation that appellants aided & abetted exporter in claiming higher inadmissible drawback - procedural deviation, by itself may invite some actions against the said persons under other laws, but does not reflect upon the knowledge and consent of the said persons so as to invite penal action under Section 114 of the Customs Act - Benefit of doubt extended - Penalties set aside & appeals allowed: MUMBAI CESTAT; |
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Ban on export of rice – worried traders and partial relief from DGFT; Dhoni keeps CM waiting – for Income Tax Commissioner; El Baradei: The Devil's Advocate; 2007-TIOL-613-HC-MUM-FEMA.doc + fera story.doc FERA - Confessional statement corroborated by the seized documents, admissible even if retracted: FEMA HIGH COURT; TCS all set to expand operations in South Africa; Jet Airways builds cosy lounge at Brussels Airport; |
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