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Govt says RBI has coinised denominations like Re 1, Rs 2 & Rs 5 and stopped printing new notes; Serial bomb blasts reported in UP towns of Lucknow, Varanasi & Faizaba; DRI seizes 8.4 kg heroin in Ludhiana sector; Three carriers arrested; FM says USD 475 bn investments lined up for infrastructure sector during 11 th Plan; USD 125 bn FDI needs to be attracted to bridge fund gap; LS okays Bill to fix retirement age of AIIMS Director at 65; FICCI wish list: Reduce excise duty to 12%; Rising crude prices and oil price hike issue: Montek says status quo may kill oil PSUs; |
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| Dear Member, Also sending you the following files: |
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Income Tax - AY 1980-81 - Exemption u/s 11(2) - Assessee got itself registered as trust in 1978 - Even before registration it had kept certain sum in FD - goes for more FDs in 1979 and writes to the ITO for exercising its option of accumulation of income for the purposes of the Trust - Also shows in its return a loan of certain sum to another registered trust - AO disallowed the loan by dubbing it as not proper application of money but allowed the accumulation only to the extent which was invested during the year - Tribunal allows all the benefits - So far as loan to another Trust is concerned, this does fall in the wider meaning of application of money as envisaged by the relevant section but the FDs made in the past years cannot be allowed to be a part of the accumulation of the relevant year taken into account for assessment as the express wording of the provision indicates that in order to satisfy the requirement of Section 11(2) (b), the investment must necessarily come out of the current year's income - Revenue's appeal partly allowed: DELHI HIGH COURT; 2007-TIOL-397-ITAT-MUM.doc + Cable Corporation Story.doc Computation of short term capital loss: The short term capital loss of Rs.5 crore has been disallowed by the Assessing Authority only on the basis of the presumption of the Assessing Authority that the assessee was playing the game of tax planning. The concern of the Assessing Authority is of course understandable. But such concerns alone are not sufficient to close one's eyes to the materials available on record. Such concerns should always motivate an authority to make further investigation, but they are not sufficient enough to come to conclusions. Deduction under Section 80HHC - excise duty and sales tax not includible: The ground of the assessee is that the CIT ( A) has erred in confirming that sales tax should be included in total turnover while computing the deduction u/s. 80HHC . The Supreme Court in the case of CIT Vs . Lakshmi Machine Works, has held that the excise duty and sales tax need to be excluded from the computation of total turnover for the purpose of See. 80HHC . In view of the above judgement, ITAT directed the Assessing Authority to re-compute the deduction available to the assessee u/s. 80HHC after excluding the sales-tax element from the total turnover: MUMBAI ITAT; When it is found that investment in shares was made out of borrowed capital, then, it could not be understood as to why interest paid on such borrowings should not be regarded as expenditure in relation to earning of the dividend income Such interest will have to be deducted from the dividend income before computing the amount which is not to be included in the total income u/s 10(33). if monies were borrowed for investment in the shares, which were held to be investment by the Tribunal, then, there is no reason as to why interest on borrowed monies should not be deducted in computing the income from dividend income for the purpose of exclusion from the total income: DELHI ITAT; Income Tax - Assessee, a non-resident company, gets contract from ONGC for repairs and supply of spares - AO fixes 10% rate for taxing deemed profits on supplies of spares whereas Assessee insists for 1% and contends charging of interest u/s 234B - CIT(A) agrees with the AO - Since the provisions of DTAA with Singapore were never invoked before the lower authorities by the assessee at all. issue remanded for fresh consideration: DELHI ITAT; |
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CIRCULAR Exports against free shipping bills: CBEC asks for self sealing in place of stuffing and sealing in presence of excise officers; Cigarette Manual, tobacco manual where are they CBEC? CASE LAWS Central Excise - Penalty - Assessee brings back finished goods by filing D-3 declaration and returns the same after reconditioning without payment of duty as per provisions of Rule 173H - Tribunal rules since there was no intention of evading duty, penalty under Rule 173Q(1)(a) cannot be imposed unless a specific violation is alleged in the Show Cause Notice - Unless specific violation of any provision is established, no penalty can be levied - Revenue's appeal dismissed: P&H HIGH COURT; 2007-TIOL-1806-CESTAT-MUM.doc + GTC Industries Story.doc Commissioner(Appeals) remanding the matter back on a finding which was not even alleged against the appellant Holding that the order is devoid of any reasoning, Tribunal sets aside the same and remands the matter:MUMBAI CESTAT; Central Excise revenue appeal against the Commissioner(Appeals) order allowing adjustment of interest and penalty from the duty paid for the period beyond five years is rejected:MUMBAI CESTAT; Central Excise clearance of goods to EOU without payment of duty under CT3 certificates rewarehousing certificate not received liability to pay duty is on the consignor manufacturer - certain additional responsibilities fastened on the receiving unit to avail the benefit of the notification does not wipe out the responsibility of the supplying unit to produce the re-warehousing certificate appeal dismissed: AHMEDABAD CESTAT;
SERVICE TAX SECTION ST - Cenvat Credit - Assessee avails credit on the basis of photocopy of receipts issued by Indian Airlines - Revenue disallows credit as the receipts did not mention address of persons receiving the same, description of service, value of taxable service, registration number etc - Demand raised - Since no proof of financial hardship furnished, waiver of pre-deposit denied and Commissioner(A) order granting partial waiver of pre-deposit upheld: P&H HIGH COURT; ST - Event Management Service & BAS - AC confirms the tax but levies no penalty - Reviewing authority imposes penalty under various Sections - Since there was confusion about the value of services and the assessee deposited tax with interest and the reviewing authority has not given any findings about deliberate act of evasion of tax, the case does not call for imposition of penalty - AC's order invoking Sec 80 upheld:DELHI CESTAT;
CUSTOMS SECTION 2007-TIOL-692-HC-DEL-CUS.doc + prosecution story.doc Customs- prosecution quashing of prosecution proceedings as the adjudication order was set aside by the CESTAT Since the order was set aside for lack of evidence, at the criminal trial the prosecution would be entitled to prove by leading evidence petition to quash the prosecution dismissed; DELHI HIGH COURT; Customs valuation goods imported were held to be Brass Scrap Honey based on the test report by the technical laboratory - when technicalities remained uncontroverted , the parties to the issues should submit to accept that report when any perversity on record was not there there is no legal infirmity or incongruity in the process of testing and reporting the tested samples:KOLKATA CESTAT; |
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Cigarette Manual, tobacco manual - where are they CBEC? Accounting Standards 22 upheld by Supreme Court - TIOL will bring the marathon judgement on Monday; Tax and provision of service - how logical is the nexus? 2007-TIOL-206-SC-CT.doc + sc story.doc UP Sales Tax - exemption for new & expanded units - turnover in excess of base production to be exempted: Purpose of granting exemption under the Notification dated 27.7.1999 was to promote the development of certain industries in the State. The extent of entitlement to exemption will depend on the sale of goods in the assessment year minus the base production determined under the Act. Simply because dealer has to file returns from month to month and deposit the admitted tax at the time of filing of the return does not mean that question of exemption on the turnover of the production in excess of the base production can be considered only after the base production is achieved. Returns filed every month and the tax paid would be subject to adjustment at the time of the finalization of the assessment. Intention of the legislature is clear and unambiguous. Exemption is to be given on the turnover of sale of goods in an assessment year in excess of the base production. We do not find any substance in the submission advanced on behalf of the appellants. SUPREME COURT; FM gives nod to 22 FDI proposals worth Rs 511 Cr; Rs 156 Cr PTC India Financial Services Ltd + Rs 152 Cr Angel Infin Pvt Lt proposals approved; India, Iceland sign DTAA; FM hopes for better economic cooperation; Insurance pie - Pvt sector corners 35% of non-life and 18% of life till last fiscal; India to spend Rs 8000 Cr on AIDS control in next five years; ONGC to spend Rs 5713 Cr on re-development of Mumbai High South; Govt examining Draft Optical Disc Law to curb piracy; I&B Secy says Ministry also trying for import duty cut on digital equipment; |
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