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PNGRB Chairman says bids to be invited for gas distribution projects in 200 cities by Jan, 2008; Infrastructure status to Steel Sector: Govt says no ground for granting any tax holiday; Centre to sensitise States to reduce stamp duty on real estate transfer to 4% BoA on SEZ to meet on December 12; National Institute of Smart Govt sumbits report; Govt to launch 'passport seva project'; Chennai Airport Customs seizes expensive watches worth Rs 36 lakh and 909 live star tortoises; |
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| Dear Member, Also sending you the following files: |
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2007-TIOL-211-SC-IT.doc + sc rectify story.doc Income Tax - Rectification of mistake apparent u/s 254(2) - Assessee takes forex loans for import of machinery - liability to repay loans in terms of rupee goes up due to fluctuation of exchange rates - Sec 43A - Assessee enhances written down value of the block assets and claims depreciation accordingly - AO disallows but CIT(A) finds it admissible - Tribunal disallows but overlooks by mistake a decision of a coordinate bench on the same issue - Application for rectification filed - Decision goes in favour of the assessee - But HC dubs it as review of decision which is not permitted as per the provisions of Sec 254(2) - The fundamental principle of rectifying mistakes apparent has nothing to do with the inherent powers of the Tribunal to review decision, and the rationale behind this Section is to ensure that no party appearing before the Tribunal, be it an assessee or the Department, should suffer on account of any mistake committed by the Tribunal. The "Rule of precedent" is an important aspect of legal certainty in rule of law. That principle is not obliterated by section 254(2). When prejudice results from an order attributable to the Tribunal's mistake, error or omission, then it is the duty of the Tribunal to set it right. Atonement to the wronged party by the court or Tribunal for the wrong committed by it has nothing to do with the concept of inherent power to review.:SUPREME COURT; 2007-TIOL-706-HC-MAD-IT.doc + capital gains story.doc Business loss on the exhibition of the films: There is no question of law as it was a pure question of fact and appreciation of evidence and there being no material produced to point out any error in the findings of the Tribunal, the appeal was rejected. 2. Unexplained cash credit: the primary onus as to the receipt of the said amount is on the appellant-assessee to show the identity of the exhibitors and the mediators and the genuineness of the transaction. Only where the assessee discharges the burden prima facie, that the burden shifts on to the revenue. The mere production of the confirmatory letters would not, by itself, prove the claim of the appellant as regards the exhibition of the films. Read in the context of the inability expressed by the assessee to bring the exhibitors before the assessing authority and considering the fact that the addressees were not there in the said address or the particulars were not correct, the view of the assessing authority could not be faulted with. It is no doubt true that law does not contemplate or require compliance of an impossible act. Yet, when the details regarding the particular receipt is exclusive to the knowledge of the assessee who has the necessary information relating to the same, the initial burden is certainly on the tax payer to discharge the same so that further enquiry thereon is taken to the logical end by the revenue. 3. Disallowance of loss arising from " Kasturi Vijayam ": Rule 9-B(4) provides that in the event of the assessee not exhibiting the film on commercial basis or sell his rights of exhibition, thereby resulting in no deduction in respect of the cost of acquisition, the assessee is granted carry forward of the loss.:MADRAS HIGH COURT; 2007-TIOL-705-HC-KERALA-IT.doc Income Tax - Re-assessment u/s 148 after receiving benami account details from Central Excise authorities - Substantive assessment done in the case of company and protective assessment in the case of the assessee-proprietor - The company challenges the reassessment and High Court quashes the order and remits the same to the AO for fresh assessment - Meanwhile, the assessee moves the first appellate authority and gets favourable order - Revenue goes to the Tribunal which on the basis of the HC order in the case of the company remits the matter to the AO - Although the tribunal should have decided the matter on merits rather than sending it back to the AO, the best course of action now is to wait till the AO decides the substantive assessment or to decide the Revenue's appeal on merits:KERALA HIGH COURT; Income Tax - Assessee claims deduction u/s 54F for expenses incurred on repair and improvement of the house purchased previous AY - AO disallows but CIT(A) and Tribunal allow the same - Going by the facts examined by the Tribunal and the acceptance of the AO in his letter to the CIT(A) that such a deduction is available u/s 54F(1) and also as per the settled law, deduction is allowable - Revenue's appeal disallowed: MADRAS HIGH COURT; |
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2007-TIOL-703-HC-P-H-CX.doc
Central Excise - Refund - Assessee denied deduction for freight and insurance - Duty deposited under protest - Tribunal finally rules in favour of the assessee - Refund claim filed - Revenue rejects the same on limitation and unjust enrichment - Commissioner (A) disallows unjust enrichment ground but allows the same on limitation ground - Tribunal holds limitation not to apply to such refund under Sec 11B - No law point as it is settled law that once duty is deposited under protest, it is to be governed by the secon proviso to Sec 11B - Revenue's appeal rejected:P&H HIGH COURT; Value of the basic software that is part of EPROM (Erasable Programmable Read Only Memory) is includible in demanding duty on the equipment: AHMEDABAD CESTAT; Benefit of compounded levy scheme in terms of Notification No.32/2001-CE dt. 28/6/2001 - Appellant was granted central excise registration on 12/4/2001 when their factory was still under construction- Commercial production did not start till 23/8/2001 - Held merely applying for central excise registration appellant cannot held to be an existing and processing factory, so as to be hit by para-7(2) of the Notification, which only relates to units which were in existence and had some previous year's production: AHMEDABAD CESTAT; Stock taking establishes shortage of raw material - credit reversed - demand alleges clandestine removal of raw material - Held - Clandestine removal is a serious allegation and requires being corroborated by some evidence and merely presumed based on shortage- neither any admission nor any other corroborative evidence to establish clandestine - Demand upheld but penalty not justified: AHMEDABAD CESTAT;
2007-TIOL-1835-CESTAT-DEL.doc + st story.doc Pay out amount received from bank for services rendered chargeable to Service Tax under the head "Business Auxiliary Services" - Matter remanded to Commissioner(A) for deciding matter on merits: DELHI CESTAT; Tax was not paid in time on account of the fact of pendency of WP before the Madras High Court and no malafide can be attributed to the appellant - said fact constituted a reasonable cause for the appellant to believe that the service tax is not payable, thus attracting the provisions of Section 80 - Tribunal decision in M/s. Chitrita Virnave ( 2002-TIOL-229-CESTAT-KOL ) followed - Revision order of Commissioner enhancing penalty set aside & O-in-O restored: MUMBAI CESTAT;
CUSTOMS SECTION NOTIFICATION DGFT amends DEPB rates of tea, coffee & brass cages; DGFT exempts export of non-basmati rice to Mauritius from curbs; CASE LAWS Customs - Imports - No interest is payable on the differential duty for the period between confiscation of the goods and their redemption - When the payment of duty/interest is challenged immediately, the payment is treated as payment under protest.: CHENNAI CESTAT; |
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ddt 29 nov.doc + cbdtconsultation.doc Consultation only thru proper channel - LAWMIN; Law Ministry asks all Govt Depts to go for consultation only thru proper channel; To counterfeit is death! The 'cruel' Rupee: FM announces mini relief package for exporters; Three new services to be exempted for exports; Import tariff on PSF, PFY, DMT and PTA to be reduced; Airtel, Western Union to pilot mobile money transfer service in India; SAIL installing additional melting facilities for 1.8 lakh tonnes at Salem; World trade in textile goes up to USD 530 bn in 2006; India's share is 3.68%;
CPO issued 44.4 lakh passports last year: Minister; |
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