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Cabinet approves amendment in National Jute Board Bill, 2006 + amendment in the Acts of certain Central Univs; Committee of Secretaries recommends name of Mr R Prasad for the post of CBDT Chairman; Sri Lanka cries for rice; India eases curbs on exports; Formation of Karnatka Govt: clouds of uncertainty continues to hover; Three World Bank agreements signed for US$ 944 million support; |
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| Dear Member, Also sending you the following files: |
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2007-TIOL-368-ITAT-DEL.doc + debt story.doc Income Tax - Irrecoverable amounts can be written off, even if dispute is pending in civil court - Interest accrued on loan written off, not to be added to income - Expenditure for court case for recovery of amounts written off, not business expenditure: DELHI ITAT; Income Tax - Assessee buys mutual funds units and sells them within three days and incurs huge loss - Deduction claimed but AO termed it as dividend stripping and disallowed the deduction - Assessee claims the issue is already settled by various judicial pronoucements in its favour - Since there are conflicting decisions but as per the settled law, the decision in favour of the assessee is to be accepted - Benefit goes to the Assessee: MUMBAI ITAT; Income Tax - Assessee files returns under the status 'Local Authority' - A.O. seeks to reopen the case on the ground that assessee is not a local authority - Issue is no more res integra and petitioner Board is Local Authority within the meaning of Sec.10(20) for the period prior to amendment to the section by Finance Act, 2002 w.e.f. 1.4.2003 - Petition allowed: P&H HIGH COURT; Income Tax - Assessee, engaged in the manufacture and sale of sugar, claims depreciation on plant, machinery and building which is allowed by the A.O. - Commissioner sets aside the order u/s 263 on the ground that assessee is not eligible for depreciation as it had not started commercial production in the relevant year and it was just a trial run - Tribunal sets aside the order of CIT on the ground that order of A.O. is neither erroneous nor prejudicial to the interests of revenue - As per Sec.32 depreciation on plant, machinery etc. is to be allowed if they are used for purposes of business and profession - In the instant case the assessee had started production and it cannot be said that plant and machinery was not used for business purposes as assessee had consumed raw material and shown manufacturing expenses, thus depreciation is allowable - Revenue's appeal dismissed: P&H HIGH COURT; Income Tax - Assessee takes on lease two cinema halls - Extension of Lease denied by the landlord - A mutually agreed sum to compensate for business loss was paid in the year of cancellation of lease besides a compensation of five equal instalments of a sum - AO treats them as revenue receipt - CIT(A) is for capital receipt - Tribunal describes them as revenue receipt - Since the initial payment of a sum and five equal instalments of a sum were towards the future loss of profit and the assessee's business had not suffered utter cessation because of the cancellation of the lease, it was a case of revenue receipt - Revenue's appeal upheld: DELHI HIGH COURT; |
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Finally SHE Cess accounting codes are here! 2% cess is named as Primary Education Cess; NOTIFICATION Govt exempts from excise duty supply of fuels to Indian Navy or Coast Guard by IOCL but prescribes strict record-keeping norm; CASE LAWS 2007-TIOL-190-SC-CX.doc + sc story.doc Difference between "consumables" and "raw materials'' - tribunal had not considered dominant ingredient test in regard to cost variation - matter remanded: SUPREME COURT; Non-inclusion of length of galleries, while determining the annual capacity of production - non-filing of appeal against order of Commissioner determining ACP but appellant raising objection to the correctness thereof in response to demand notice - matter remanded in view of SC decision in SPBL Ltd: MUMBAI CESTAT; Central Excise - refund - bar of unjust enrichment can not be overcome by way of issue of credit notes in view of the Larger Bench ruling in case of M/s Grasim Industries: MADRAS CESTAT; Pre-deposit - no waiver of interest: MUMBAI CESTAT;
SERVICE TAX SECTION ST - GTA Service - Cenvat Credit - Tax paid on transporation and the Credit used for payment of service tax on subsequent transport services - Revenue argues since the assessee is a manufacturer of excisable goods it cannot be treated as provider of output service - Issue already decided in favour of the assessee in Nahar Industrial Enterprises case ( 2007-TIOL-555-CESTAT-DEL ) - Commissioner's order set aside: DELHI CESTAT; ST - GTA Service - Service Tax credit on inward transportation of inputs or capital goods and outward transportation upto the place of removal - Explanation to the definition of output service under rule 2(p) of CCR, 2004 as it existed prior to 1.4.2006 - The deeming fiction suggests it will apply only in cases where a person liable for paying service tax does not provide a taxable service or does not manufcture final products - Waiver from pre-deposit denied: DELHI CESTAT;
CUSTOMS SECTION 2007-TIOL-1690-CESTAT-MAD.doc + depb story.doc Customs- interest on warehoused goods cleared under DEBP - no interest is payable even if Cenvat Credit is allowed on the duty debited in DEPB - revenue appeal dismissed: MADRAS CESTAT; Customs - classification of Maduramycin Ammonium - in view of the fact that the Certificate of analysis was not available to the lower authorities - matter remanded: MADRAS CESTAT; |
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Finally SHE Cess accounting codes are here!; Bangalore follows Hyderabad - Declared as A1-class city; Ban on export of Rice – one day relaxation by DGFT – But, why only one day; Jurisdiction of Service Tax & exclusion of Jammu & Kashmir; CESTAT Silver jubilee in Chennai - Best is next; Yet another gutka stalwart arrested; DGCEI claims detecting duty evasion of Rs 150 Cr in just 11 months! Minister says 22 NTC mills being modernised at cost of Rs 540 Cr; L&T inks pipeline JV with US Company; M&M and Navistar International sign JV for commercial trucks & buses; World Bank Chief promises continued support to Mumbai to become world class city; |
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| Regards Taxindiaonline.com Pvt. Ltd. |
