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National Mineral Inventory tailored by IBM reveals total gold reserves in India is about 19.3 mn tonnes - Karnataka alone has 17.6 mn tonnes; How much is India's external debt as of June 2007 - USD 165 bn; ASEAN adopts historic Charter to make it economically more meaningful bloc; President's Rule comes back to Karnataka; Assembly put in suspended animation; Home Ministry issues advisory for proper depiction of State Emblem on official stationery, documents & seals; Upahar fire case : Court convicts Ansal brothers besides 10 others; Direct Tax mop-up continues to gallop at 43% growth rate; crosses Rs 1,40,373 Crore upto Nov 15; Gujarat & Kerala Govts seek extension centres of IITs; Centre has no objection except for full-time graduate courses; GDP in OECD countries rises by 0.9% in third quarter of 2007; Maoists go berserk in Eastern States; blow up railway tracks in West Bengal; Death toll in cyclone-devastated B'desh goes up to 2300; Indian PM offers help; India's USD 300 mn Clinical trials sector growing at 15%, says ICRI; |
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| Dear Member, Also sending you the following files: |
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CBDT issues local tranfer order of six CITs; CASE LAWS Income Tax - Sec 80HHC (3) - Interpretation of the word 'profits' - two views prevalent at the relevant time - AO takes one of the views that results in loss of Revenue - CIT invokes powers u/s 263 - Despite the fact that Sec 80HHC has been amended 11 times, including the one in 2005 with retrospective effect when the word 'loss' was inserted, what is pertinent here is the date of the CIT order and legal position u/s 263 on that date when two views on the issue were possible and the one taken by the AO cannot be faulted with merely because it resulted in loss of revenue - Revenue's appeal dismissed: SUPREME COURT; Income Tax - revenue vs capital receipt - Assessee transfers five models of boilders and fuel firing equipment developed by it alongwith the technological knowhow for a lumpsum consideration - Also agrees to move out of business as part of the agreement - AO treats it as revenue receipt - CIT(A) disagrees with the AO - Tribunal goes with the AO as it finds that there is nothing in the agreement to prevent the assessee firm from getting into the same business - Since the assessee has parted with the capital goods along with the technical knowhow and has not retained the right over the transferred goods it is clearly a capital receipt - Assessee's appeal allowed: MUMBAI HIGH COURT; 2007-TIOL-670-HC-KERALA-IT .doc Income Tax - Assessee is a hotelier and owns two hotels - claims deduction u/s 80HHD separately for the two units of the business - AO allows the same - CIT invokes powers u/s 263 and raises objection on the ground that the relevant section refers to profits of the entire business and benefits cannot be computed and allowed separately - Tribunal allows it - Even though both the hotel units were granted approval by the Department of Tourism in different years, section 80HHD does not provide for computation of relief separately for each hotel unit rather it specifically provides for computation of benefits with reference to "profits and gains of the business" which only means that the assessee's business income as a whole should be reckoned - Assessee's appeal dismissed: KERALA HIGH COURT; 2007-TIOL-394-ITAT-DEL.doc + amtek story.doc Fee paid to the Registrar of the Companies for expansion of the capital base of a company is directly related to the capital expenditure incurred by the company and although incidentally that would certainly help in the business of the company and may also help in profit making, it still retains the character of capital expenditure since the expenditure is directly related to the expansion of the capital base of the company. Foreign travel expenses - in spite of giving opportunity at the assessment stage, and also at the appellate stage, the assessee has not been able to give corroborative evidence ESI contribution - delayed? since the payment have been made towards ESI before the due date for filing the return under section 139(1) of the Act, the same is allowable deduction. if two reasonable constructions of a taxing provisions are possible, that construction which favours the assessee must be adopted. No interest u/s 234B and 234C is chargeable while computing the income of the assessee in terms of Section 115J of the Act.: DELHI ITAT; Income Tax - Assessee claims gift and expenditure on account of mint brokerage business - Revenue conducts survey at the business premises of firms in which assessee is a partner and finds certain discrepancies in consequence of which reassessment proceedings are initiated - In the course of reassessment, expenditure on account of mint brokerage business and gift is disallowed - Assessee objects to reopening and additions on the ground that A.O. had no reasons to believe and information gathered later on cannot be relied on for reassessment - The scope of Sec.147 is enlarged subsequent to its amendment w.e.f. 1.4.89 under which assessment can be reopened if A.O. has reasons to believe that income chargeable to tax has escaped assessment and does not depend on non disclosure of material facts by assessee truly nor this belief has to be conclusive at the time of issue of notice and it's enough if there is a prima facie belief of escapement - In the instant case A.O. had sufficient reason to believe that income had escaped assessment on the basis of information gathered from the survey conducted at the business premises and additions were rightly made as assessee failed to substantiate his claim of carrying of mint business or genuineness of gift transaction - Reveneue's appeal allowed: DELHI ITAT; |
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RLT Case Laws Headnotes; 2007-TIOL-1782-CESTAT-MUM.doc + remission story.doc Remission of duty - Amount of insurance claim received by any stretch of imagination cannot be called as transaction value under section 4 of Central Excise Act, 1944, for demand of duty - Revenue appeal rejected:MUMBAI CESTAT; ROM application - Non hearing of departmental appeal with party's appeal - it is for the department to bring to the notice of the Tribunal its appeal for a simultaneous - not having done this cannot be called an error apparent on the face of record - such appeal will be decided as and when it is listed for hearing:MUMBAI CESTAT; Central Excise - valuation - the appellants cannot be held to be guilty to any suppression with intent to evade payment of duty so as to apply extended period of limitation against them - demand barred by limitation:MUMBAI CESTAT;
SERVICE TAX SECTION ST - BAS - Assessee is into arranging finance / loans for customers - Revenue points out their activities are covered under Business Auxiliary Service - Assessee promptly deposits tax with interest - AC confirms the duty and interest but does not impose penalty u/s 80 - Commissioner reviews the order and levies penalty under various relevant sections - Since there was considerable confusion when the tax was notified on this service and there was no mala fide on the part of the assessee as he deposited the tax with interest promptly on being pointed out, this is a fit case to attract Sec 80 - Penalty set aside: DELHI CESTAT; ST - Assessee was an SSI and not liable to tax - also did not pass the incidence of tax on consumer - Adjudicating authority accepts the contention but revisionary authority disregards the evidence - Since the Commissioner has revised the order u/s 84 of the Finance Act, 1994, without any tangible reason given in the order and also no piece of evidence collected as to unjust enrichment, such an order cannot be sustained : KOLKATA CESTAT;
CUSTOMS SECTION NOTIFICATION DGFT fixes Rs 1160 per MT All Industry Drawback rate for HSD and Furnance Oil; Anti-dumping duty on acrylic fibre extended upto Oct, 2008; CASE LAWS Customs - ROM barred by limitation - CESTAT has no power to condone the delay in filing application for rectification of mistake:MUMBAI CESTAT; |
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Permanent IEC Numbers for certain importers and exporters; Please give your complete email address in your e mail for reply of emails; Tirupathi ladoo is not excisable; Cenvat Credit - A tricky & sticky wicket for new service providers! Glittering Silver Jubilee of CESTAT at Bangalore - Tribunal Members deserve to be elevated to High Courts and even Supreme Court - Chief Justice Cyriac Joseph; Telecom shake-out would benefit consumers; SEBI amends MFs Regulations to reduce expenses charged by Index Fund Scheme; 2007-TIOL-671-HC-DEL-FEMA.doc + fera story.doc FEMA - While the evidentiary value of a retracted statement under Section 40, FERA , may prima facie appear to be weak, there is no thumb rule which prevents a Court from relying upon it as a material during the charge framing stage: DELHI HIGH COURT; Applications invited for posts of Members in Setllement Commission; Govt mopped up Rs 9027 Cr Education Cess last fiscal; L & T, Raytheon sign MoU to develop combat aircraft programme; CVC praises GAIL's initiatives towards greater transparency; Govt plans to add 78577 MW power during XI Plan; Govt sets up National Commission for Protection of Child Rights with powers of Civil Court; L&T led JV bags Rs 275 Cr tunneling order for airport line of DMRC; DLF dilutes equity in many township projects to pvt equity players; Plethico Pharmaceuticals to acquire Natrol Inc of USA; |
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