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Heavy FDI inflows may jeopardise growth: North Block mid-term review report tabled in Parliament; FM says fiscal discipline is desirable but not at cost of social sector projects; Govt to set up Durgaduani Tidal Power project in WB; Shome says Govt may ask for regular reporting of more high-value transactions in Budget; UP Govt decides to implement VAT from Jan 1, 2008; SC says no to stay on levy of entry tax by MP Govt on imported goods; CCEA gives nod to Rs 16680 Cr budget for constructing ring roads, bypasses and flyovers under National Highways Development Project PH III; Govt allows RCom to commence GSM services in 14 cities; |
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| Dear Member, Also sending you the following files: |
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2007-TIOL-420-ITAT-DEL.doc + ongc story.doc Depreciation on rigs alleged to be not owned: The onus to prove the apparent (by apparent, we mean the legal ownership of the assessee to the rigs which stand prima facie proved) as not real is on the person who so alleges. In the circumstances the burden that lay on the Revenue to prove the apparent as not real has not been satisfied. The CIT ( A) concluded that the assessee and AVL were not related persons but the Directors in both the companies had ' Daga ' as their surname and therefore there is a possibility of some close connection. This conclusion in our view is too farfetched and without any basis. The evidence regarding the payment of the price of the rigs has also been found to be correct by the AO. In the circumstances the ownership of the rigs as that of the assessee is established. Regarding the use of the rigs for the purpose of the assessee's business, the AO himself has not doubted the same. The income received by the assessee on letting out the rigs has been offered to tax and has been duly taxed by the AO. The assessee had established the fact that it paid the entire consideration for purchase of the rigs. Therefore the actual cost would be the price the assessee paid for purchase of the rigs.:DELHI ITAT; Income Tax - Assessee files nil return - AO disallows certain expenses but even then the total income remains negative - Penalty u/s 271(1)(c) - CIT(A) sets aside penalty - Going by the settled laws, the primary requirement for initiating penalty proceedings is to record satisfaction in the assessment order, and since it has not been done in this case, the AO's order is quashed - Revenue's appel dismissed:DELHI ITAT; From the facts and circumstances involved in this case and after perusing the relevant terms and conditions between the assessee and the developer and the assessee and the purchasers of 4th to 7th floor, it is clear that the assessee has rightly computed the capital gain by apportioning the sale proceeds between the land and building as per valuation report submitted by the Government Approved Valuer and the above computation of capital gain by the assessee is supported by various decisions of Hon'ble High Courts including the decision of Hon'ble jurisdictional High Court in the case of Omprakash Jhunjhunwala and the decision of Third Member of this Tribunal in the case of ITC Ltd.: KOLKATA ITAT; Since the securities are held by the bank as trade securities, the income therefrom has to be treated as business income and in that case, the assessee will be entitled to the declaration of broken period interest. The facts of the case for the assessment year under consideration being similar to the facts for the A.Y. 1995-96, the decision of the Tribunal for the A.Y. 1995-96 would be squarely applicable to the present assessment year:DELHI ITAT; |
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CIRCULAR Chennai LTU: CBEC asks LTUs to file Nov returns of excise and Service Tax with erstwhile jurisdictional officers; CASE LAWS 2007-TIOL-219-SC-CX.doc + sc story.doc Valuation is not an exact science. Some amount of guess work exists in valuation. The Department may apply different methods of valuation, but it has to ultimately ascertain by applying rule of convergence the estimated ad valorem value which would constitute the basis of assessable value.: SUPREME COURT; 2007-TIOL-1877-CESTAT-BANG.doc Central Excise - refund - rejected on the ground of unjust enrichment - the assessee claims the assessements were provisional - The fact pertaining to the duty having been paid under protest or that the assessments were provisional has not been brought out in the Commissioner(Appeal)'s order and this aspect requires to be examined - when the assessments were provisional, the presumption that duty has not been passed on to the customer in terms of the judgment cited should be considered by the authorities -the impugned orders were set aside and the matter remanded to the original authority: BANGALORE CESTAT; 2007-TIOL-1876-CESTAT-BANG.doc Central Excise - duty on Plantomycin repacked and sold in unit packs - discounts given by credit notes allowed as deduction - demand of interest and penalty - since the notice was issued after 14.5.2001, the provisions of interest under Section 11AB are not applicable - Since the assessee paid entire duty before adjudication, the interest under Section 11AA is also not applicable - demand of interest set aside - penalty also set aside as there in no evidence of intention to evade payment of duty: BANGALORE CESTAT; 2007-TIOL-1875-CESTAT-BANG.doc Central Excise - valuation - petroleum products sold to company owned company operated outlets (COCOs) - when there is transfer of part of production to another plant of same assessee and balance production sold to independent buyers, during such circumstances Rule 8 of Central Excise (Valuation) Rules, 2000 are not applicable and the value arrived by the assessee should be accepted: BANGALORE CESTAT;
2007-TIOL-1874-CESTAT-BANG.doc Service Tax - photography services - Elements of inputs used and shown in the invoice, not includable for levy of service tax. Appeal allowed: BANGALORE CESTAT; 2007-TIOL-1873-CESTAT-BANG.doc Service tax - General Insurance Business - despite granting 18 adjournments to the appellants, they have on one pretext or the other, not been pursuing the matter - They have not produced any specific Circular or Notification issued by the Central Govt. granting them exemption from the service tax and the reference made by the appellants for exemption under Section 36 of the General Insurance Business (Nationalization) Act is not applicable for levy of service tax under the Finance Act, 1994 - appeal rejected: BANGALORE CESTAT;
CUSTOMS SECTION CIRCULAR Supplies from DTA to SEZ: Who can sanction drawback? - CBEC clarifies; NOTIFICATION Drawback rates for lamps made of brass, copper, iron & aluminium; Zinc Oxide (100% purity) allocated sub-heading in customs tariff; CASE LAWS 2007-TIOL-218-SC-NDPS.doc + dri story.doc The NDPS Act is a penal statute. It invades the rights of an accused to a large extent. if an arrest or search contemplated under these provisions of NDPS Act has to be carried out, the same can be done only by competent and empowered Magistrates or Officers mentioned thereunder . Draconian provision which may lead to a harsh sentence having regard to the doctrine of 'due process' as adumbrated under Article 21 of the Constitution of India require striking of balance between the need of law and enforcement thereof, on the one hand, and protection of citizen from oppression and injustice on the other. A distinction therefor must be borne in mind that a search conducted on the basis of a prior information and a case where the authority comes across a case of commission of an offence under the Act accidentally or per chance: SUPREME COURT; 2007-TIOL-1878-CESTAT-BANG.doc + gmr story.doc Customs - valuation - valuation of parts imported under Rotable exchange programme- the appellant should return the used parts to the overseas supplier by declaring the value as one third of the value of the parts imported - no export sale proceeds were received by the appellant for the returned parts - value of the used parts returned has to be added to the price of the parts imported - demand upheld: BANGALORE CESTAT; |
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FM's Progress report; Babus' day out - Foreign jaunt by civil servants - Govt relaxes; Service Tax Law: Site of providing service; Vizag Steel Plant expansion to cost Rs 8690 Cr; Govt eyeing addition of 1700 mw biomass Co-generation power By 2012; WB grants USD 253 mn support package to Nepal; |
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