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Slump in crude petroleum production reduces core sector growth to 4.5% in October; 10 more churches torched in Orissa; Indian lawyers in UK urge Govt to allow entry to foreign law firms only on reciprocal arragement basis; CIC holds file notings related to Cabinet decisions can be disclosed after decisions are taken; |
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| Dear Member, Also sending you the following files: |
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ORDER CBDT issues posting order for six CITs back from deputation; CASE LAWS 2007-TIOL-455-ITAT-DEL.doc + mayawati story.doc Donor taking a loan to make a gift is not relevant: The submission of the assessee is that while deciding the genuineness of the transaction of purchases of the property and subsequent gift of the same to the assessee is concerned, the fact of the donor having incurred loan has no relevance. We find much force in this submission. Gift may be made to a stranger: The Assessing Officer has not been able to show that the gifts were not voluntary or that the same were obtained by the donee , by exercising some undue influence, coercion or temptation. The fact that these gifts are made out of natural love and affection by the donors thus remains unquestioned and uncontroverted. The basic elements that the gifts were without any consideration, it were made voluntarily and out of natural love and affection have not been demolished by the Assessing Officer. The aspect of voluntariness depends upon the mental state. The element of love and affection relate to emotions of a man. One may be impelled by his conscience or may be moved by emotions to part away with his wealth or property and to give the same to a particular person for whom he has developed love and affection. Such a desire can be developed at any time and on any ground. The factors which weigh for executing such desire are best known to the donor. It is not easy to make probe into such human psychology or human emotions which one may carry at the time of making such sacrifices. It has been stated by some of the donors that the assessee was engaged in the welfare of downtrodden and dalit in the society. May be the prompting motive were such appreciable deeds of social welfare of the problem of the weaker sections of the society, which made the donors to make gifts to her. Smt Veena Jain has gone on record to say that the assessee was making a Sangrahalya and therefore she gifted the house property to enable her to achieve her mission. The Assessing Officer has only gone by surmises and conjectures and guess work in drawing his inference and in recording his conclusions. In the absence of any cogent material to support his findings, the same being based on conjectures and surmises cannot be upheld. Here it may be pointed out that a gift may be made to a stranger. Section 123 of T.P. Act referenced which has been made above does not require that gift should be made to a relation only. Thus the Ld. A.O. has taken an incorrect view of law.: DELHI ITAT; Income Tax - Assessee is an international airlines - issues concessional fare tickets to travel agents as per IATA resolution - AO treats assessee in defaut u/s 201 by treating the difference between the face value of the ticket and the discounted value as commission liable to TDS u/s 194H - CIT (A) disagrees - Non-transferable and non-encashable tickets issued to travel agents by the airlines were on principal to principal basis and not principal to agent basis and the difference in the price of the tickets cannot partake the character of commission within the meaning of Sec 194H - Revenue's appeal dismissed : DELHI ITAT; Income Tax - Assessee incurs losses in sale of mutual fund units and claims deduction - AO disallows on the ground that it was pre-designed transaciton - CIT(A) calls it dividend-stripping - Issue no longer res integra as it is already settled in favour of the assessee : MUMBAI ITAT; Judicial discipline - Tribunal bound to follow its own orders: Supreme Court observed that a bench of two members of Tribunal should follow the decision of another bench of the same Tribunal on an identical question. The rational of this rule is the need of continuity, certainty and predictability in the administration of justice. Persons effected by the decision of Tribunal have a right to expect that those exercising judicial functions will follow the reasons or grounds of the judicial decision in the earlier cases on identical matters. However, in the instant case the finding of CIT ( A) is with respect of excess stock of gold, diamond and cash found during the course of search, and not with respect to the amount invested in renovation of shop which was also surrendered during course of search. We therefore direct the Assessing Officer for not allowing any benefit of deduction u/s 80HHC with respect to the amount surrendered on account of renovation of shop amounting to Rs.18 lacs . However keeping in view the decision in case of ITA NO. 2386(supra), we modify the order of CIT (A) and direct the Assessing Officer to recompute deduction u/s 80HHC after enhancing the total turnover by the amount of surrendered income in respect of excess stocks and cash. Assessing Officer bound by appellate order: While giving effect to the appellate order, the Assessing Officer is simply supposed to obey the directions given by CIT (Appeals) in his appellate order, he is not authorized to give his own interpretation and find fault therein. If the department is not agreeing with the decision of CIT ( Appeals), it has all the powers to file second appeal before the Tribunal, but the Assessing Officer has no power to change the decision of CIT (Appeals) while giving effect to his order. : DELHI ITAT; |
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2007-TIOL-1981-CESTAT-MAD.doc + capital goods story.doc Central Excise - Cenvat Credit on capital goods - dispute over the classification of the goods received - the Assistant Commissioner having jurisdiction over the assessee who is availing credit is not proper authority to re-classify the goods - only the Assistant Commissioner having jurisdiction over the supplier unit is the proper authority - matter remanded - Appeal allowed by way of remand : CHENNAI CESTAT; Central Excise - manufacture and excisabliity - duty demanded on calcium chloride sludge set aside by the Commissioner (Appeals) and revenue files appeal - Judicial authorities consistently holding that the sludges generated in the course of manufacture of chemical products are not excisable - appeal dismissed - Appeal dismissed : CHENNAI CESTAT; Central Excise - Cenvat Credit on MS Sheets - credit is allowed as the impugned goods were used for fabricating the components of sugar plant- Appeal allowed : CHENNAI CESTAT;
2007-TIOL-1983-CESTAT-DEL.doc + advertising story.doc Service Tax - Even wayside painters would, for an amount, quickly paint out advertisements for anyone who engages them & they would surely not become an 'advertising agency' : DELHI CESTAT; ST - Security Agency Service - Assessee insisits on paying tax only on the commission component of the receipt - Revenue raises demand on gross receipt - Issue is settled in favour of the Revenue but since the assessee pleads financial hardships, pre-deposit of penalty waived off but ordered to deposit the demand confirmed : DELHI CESTAT;
CUSTOMS SECTION NOTIFICATION M/s Puducherry Agro Service and Industries Corporation Ltd allowed cement import without standard mark; CASE LAWS Customs FEMA seizure of Nepalese currency original authority held that there was no evidence to prove the nexus between sale of gold and the seized currency Appellate Authority reversed the order - Appellate Authority brought the appellant to charges on extraneous consideration without cogent evidence to establish that the source of currency in question was out of smuggled activity the question of law can be raised as a plea of defence at any stage of litigation - order set aside. Statement recorded under Section 108 of the Customs Act - There is no doubt that the statement under Section 108 of Customs Act, 1962 is not recorded by a police officer under 164 Criminal Procedure Code but a statement recorded under Customs Law cannot be simply believed without any evidence corroborating the same while the statements shall have certain value in the eyes of law. Corroboration of evidence is an essential consideration in case of confessional statement, the statement relied upon by the ld. First Appellate Authority has defeated sacrosanct object of law. Appeals allowed :KOLKATA CESTAT; |
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ddt 27 dec.doc + cbdt letter.doc Import policy of 1- Bromo -3- Chloro Propane - restricted or free? Delinquent Income Tax officers - Concerned CBDT; Nexus between Climate future & banking 'creatures'! - Kudos to RBI for timely initiative; GAIL, OIL India join hands to jointly bid in NELP-VII; India's steel production to surpass 50 mn tonnes; Time Technoplast acquires Bahrain based battery manufacturing Co; VSNL sells 10% equity in Lankan subsidiary; Spreading banking habits - RBI Working Group for use of fingerprints; |
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