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Parliament winter session to begin from tomorrow; Opposition gears up to make it stormy; Tata develops fourth fastest supercomputer in the world; Deora says 60 blocks to be offered under NELP VII; Deora rules out immediate petro price hike; agrees to rationalise ATF prices; |
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| Dear Member, Also sending you the following files: |
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2007-TIOL-659-HC-DEL-IT.doc + dewatering story.doc Income Tax - Assessee is not entitled to investment allowance on the dewatering equipment used in the construction work - "Business of construction, manufacture or production of any article or thing" not to include removing water from land - Revenue's appeal allowed: DELHI HIGH COURT; Income Tax - Delayed filing of return - AO levies interest under SS 139(8) and 217 - dismisses applications for waiver of interest under Rule 40(A) - CIT(A) dismisses petitions - Single Judge allows the petition of the assessee - Writ before the Division Bench - Going by the facts that the assessee had failed to pay advance tax within time, and there is nothing on record to show that any application was filed u/s 220(2A) for reduction or waiver of interest, the Single Judge had no valid ground to direct the Revenue to grant waiver of interest - Revenue's appeal allowed: MADRAS HIGH COURT; Income Tax - Assessee files loss return - AO raises query as to why should he not club the amount provisioned for deferred tax for determining the book profit u/s 115JB - Assessee says it is as per the accounting standard 22 and is also not covered by any of the clauses (a) to (f) explained in the Explanation to Sec 115JB - Reply accepted and the assessment order passed - After some time the Ao issues notice to reopen the assessment on the same ground - AO cannot reopen the assessment on the same ground unless some new materials indicating escapement of income or excess relief are in his custody - Since it is a case of mere change of opinion, the Revenue's action is not justified - Assessee's appeal allowed: BOMBAY HIGH COURT; Income Tax - Search u/s 132 - Block assessment - Addition made u/s 68 for sum claimed to have been contributed by seven parties as share application money - Tribunal deletes the addition but observes that if it is to be legally permitted, such a sum can only be assessed as a regular assessment and not block assessment as contemplated under Sec 150 and that too in the hands of the two companies which contributed the money and in which the assessee is one of the Directors - Notice - Assessee pleads limitation beyond six years - Going by the Tribunal's observation there is no direction to the effect that the sum of share application is liable to be taxed in regular assessment and then the reopening of the assessment by invoking the Sec 150 beyond six years is not sustainable in this case - Assessee's appeal allowed: BOMBAY HIGH COURT; Income Tax - AO adds back share application money to the income of the company as unexplained credit u/s 68 - CIT(A) agrees with the AO - Tribunal deletes it - Meanwhile, penalty proceedings u/s 271 are separately initiated for furnishing incorrect information - As decided by the Apex Court in CIT Vs P Mohanakala case ( 2007-TIOL-88-SC-IT ), the AO should have made inquiry into the reasonable explanation furnished by the assessee about the applicants and some of them should have been issued notice but the AO failed to do so, and against these facts, the share application money cannot be treated as unexplained credit - Penalty also set aside - Revenue's appeal disallowed: MADRAS HIGH COURT; |
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NOTIFICATION CBEC amends Cenvat Credit Rules and prescribes method for reversal of credit availed on capital goods and the same being removed after use by manufacturer or Outpur Service Provider; CIRCULAR excircular859.doc + annexure_859a.pdf New CT-3 form - old wine in old bottle, but why? CASE LAWS 2007-TIOL-198-SC-CX.doc + sc story.doc Central Excise - valuation - Clearance to own unit - assessable value on costing or comparable price? Tribunal rejects the assessable value fixed by Commissioner - By merely rejecting the value without finding the ascertainable value, the problem does not get solved - matter remanded to CESTAT: SUPREME COURT; 2007-TIOL-1754-CESTAT-MAD.doc + jobworker story.doc Central Excise - Supplier of raw materials getting his goods manufactured through several job workers, not a manufacturer - job workers are manufacturers:CHENNAI CESTAT; Central Excise - 100% EoU clears goods to another 100% EoU against CT-3 Certificate - Revenue asks for re-warehousing certificate - Assessee fails to produce the same - Duty deposited before issue of SCN - Penalty imposed - Since there is no evidence to indicate diversion of goods to open market and also in view of P& H High Court decision in Sigma Steel case (2007-TIOL-456-HC-P-H-CX), no penalty is called for: DELHI CESTAT; 2007-TIOL-1752-CESTAT-BANG.doc Central Excise - When duty has been paid on the short received quantities also, credit cannot be demanded: BANGALORE CESTAT;
SERVICE TAX SECTION ST - C&F agent - reimbursement of freight, labour, electricity etc, not to be included in value:CHENNAI CESTAT; ST - Outdoor Catering Service w.e.f 10.09.04 - Summons issued in August 2005 - Assessee immediately takes registration and pays duty with interest and also penalty u/s 77 - Revenue imposes penalty u/s 78 also - Since it was a new Service and the assessee was not aware of it and when he was made aware he immediately complied with the provisions, and in this background, penalty imposed u/s 78 is not sustainable: DELHI CESTAT;
CUSTOMS SECTION NOTIFICATION SION rates for leather products: DGFT adds footnote to restrict certain items; Export - personal baggage - Now Government servants can carry their pickle or namkeen, but don't share it; Export of pulses - bar not to apply to Nepal; CASE LAWS Customs - Refund - Importer errorneously pays more duty than the sum assessed - files for refund without challenging the assessment - Issue is no longer res integra as Apex Court in the case of Flock (India) (2002-TIOL-208-SC-CX) and Priya Blue Inds (2004-TIOL-78-SC-CUS) has settled the issue in favour of the Revenue - Assessee's appeal rejected: DELHI HIGH COURT; Customs - demand of Anti-dumping duty on raw silk imported from China based on the test report by the Central Silk Board - the importer wanted a retest which was granted by the Tribunal and the matter was remanded - no retest could be conducted as no sample was available with the department - appellants can not be penalized for department's failure - demand set aside:CHENNAI CESTAT; |
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New CT-3 form - old wine in old bottle, but why? Sevotam in Income Tax Department; Remedy through Revision Application to Govt of India; 2007-TIOL-660-HC-MUM-FEMA.doc + fema story.doc FEMA violations - delay in investigation - passports to be released; Gutka drive all set to 'earn' three-month extension to CBEC Chairman; Healthcare offers opportunities for public-private partnership: Nath; Panel submits report on improvement of container traffic at Kolkata and Haldia; ICRA, UCO Bank join hands for loan rating as per RBI norms; Govt eases rules for recognition of travel agents & tour operators; |
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