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Mush steps down as Army Chief; Baton goes to his trusted deputy Kiyani; Spectrum issue: MoF asks DoT to justify fee calculated in 2001 being charged now; UP decides to postpone VAT implementation from Dec 1; Pension Regulator and NSDL sign pact to set up Central Record-Keeping Agency for new pension system; Cash for query scam: Delhi HC directs police to probe against 11 MPs; FM says no to reducing Govt stake in PSU banks; |
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| Dear Member, Also sending you the following files: |
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2007-TIOL-210-SC-IT-LB.doc + sc tom story.doc Income Tax - Assessee is a firm of Chartered Accountants - makes residential houses for employees and claims deduction u/s 32 (1)(iv) - AO disallows but CIT(A) agrees with the assessee - Tribunal reverses CIT(A) order and HC upholds the same - Assessee's counsel argues Section 32 relates both to "business" as also "profession" - There is nothing in Section 32(1)(iv) which envisages the scope of word "business" to include in it "profession" as well and if the expression "business" is interpreted to include within its scope "profession" as well, it would be doing violence to the provisions of the Act - Assessee's appeal dismissed: SUPREME COURT LARGER BENCH; Income Tax - Review petition dismissed for inordinate delay as well as on merits: SUPREME COURT; 2007-TIOL-404-ITAT-DEL.doc + salary story.doc Income Tax - Assessee pays tax on behalf of expatriate employees - AO clubs the same with salary for computing the value of perquisites relating to rent-free accommodation - CIT(A) agrees with the AO - Going by the specific inclusion of clause (d) in "salary" after 1.4.2001 which materially alters the definition not only by excluding perquisites u/s 17(2), but also certain other perquisites mentioned in section 17(2)(iii) and proviso to section 17(2), such a payment is only 'pay' which is defined as 'salary' under Rule 3 - Assessee's appeal partly allowed: DELHI ITAT; Income Tax - Assessee surrenders stock exchange membership card and gets huge sums in AY 1995-96 - starts dealing in trading of shares and loans & advances for earning interest - After five years assessee writes off debt given to 'X' & 'Y' and claims deduction - AO disallows on the ground that the assessee had no money-lending licence and also fails to substantiate that the loans were not recoverable as the claim was pending with the High Court in one of the two cases - CIT(A) agrees with the AO - Allowance to be allowed despite the case pending with the high court as licence is not relevant for the Income Tax purpose as the assessee has been in the same business for five years and many facts of the same business have been considered for the tax purposes but the debt in respect to 'Y" not allowable as the assessee fails to establish the authenticity of the loans - Assessee's appeal partly allowed: MUMBAI ITAT; |
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2007-TIOL-1827-CESTAT-BANG.doc + sugar cess story.doc Central Excise - CENVAT - Credit of CVD equivalent to Cess - Appellant is entitled to Cenvat Credit of the CVD paid on the imported sugar equivalent to Cess levied and paid under the Sugar Cess Act, 1982. - Sugar cess being a duty of excise and in terms of Section 3(4) of the Sugar Cess Act, the provision being made for applicability of provisions of Central Excise, we are of the considered opinion that Cenvat Credit Rules is also applicable to sugar cess. Therefore, if Cenvat credit is taken on the sugar cess paid as countervailing duty, there is no irregularity in it. (Para 4.3): BANGALORE CESTAT; Demand based on negative PIs generated by computer system of the Company during their own stock taking - Department not conducted independent investigation to show that there were shortages - Computer was generating positive PIs also but the same not taken into account by the demand notice - Held - All losses fully explained - There is no cause for demand of duty:MUMBAI CESTAT; While construing a statute, the context plays an important role - Section 2A of CEA, 1944 provides that the expressions "duty", "duties", "duty of excise" and "duties of excise" shall be construed to include a reference to CENVAT - Amount under Rule 6(3)(b) of CCR, 2002 rightly paid in the manner as envisaged under Rule 8(1) of the Central Excise Rules - No cause for payment of interest u/r 12:DELHI CESTAT;
2007-TIOL-1829-CESTAT-MUM.doc + st story.doc Service Tax paid on outward transportation - Liquid Oxygen, Nitrogen, Argon gas and Medicinal gas delivered to customers in transport vehicles maintained at sub-zero temperatures - Cenvat Credit prima facie doubtful - Tribunal orders pre-deposit: MUMBAI CESTAT; ST - GTA Service - Assessee pays tax on GTA Services which is an inaput for their final products - pays service tax by utilising Cenvat Credit on GTA Services - Revenue disallows and asks for cash deposits - Tax deposited but Revenue levies interest for delayed payments - Since the issue is no longer re integra, assessee's appeal allowed: KOLKATA CESTAT;
CUSTOMS SECTION NOTIFICATION Customs Exchange rate for imports goods & export goods for December; DGFT amends Handbook to accommodate certain categories of importers / exporters; Gem & Jewellery products - Value Addition on annual basis instead of each consignment; CASE LAWS Customs - illegal diversion of duty free material imported against advance licence - no case for imposing penalty under Section 112(b) of the Customs Act on the partnership firm through which the goods were sold based on the statement of the partner - appeal allowed: CHENNAI CESTAT; |
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Service Tax- Works Contract - composition - ongoing project - not eligible? Delay in finalisation of demands - PAC recommendations - CBEC guidelines; spl down.doc + clarification.doc Composition Scheme can't be denied to ongoing projects; UGC identifies 22 fake universities operating in India; DLF all set to acquire Aman Resorts for USD 400 mn; WIPO hosts Roundtable on economics of IP; |
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