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Chemicals & Petrochemicals Secretary Arun Ramanathan is new Secretary, Dept of Financial Services in MoF; Pre-Budget meet: India Inc urges FM to cut corporate tax and personal income tax; Software exports - Deduction u/s 10A - uplinking charges to be reduced from export turnover before incentive allowed; Transfer pricing - deduction allowable for enhanced income returned: ITAT (Look for detailed coverage tomorrow); SC dismisses Revenue's appeal in Infosys Technologies case related to tax deduction on ESOPs (Look for detailed coverage tomorrow); Govt to set up PM's Global Advisory Council of People of Indian Origin; inaugurates sixth Pravasi Bhartiya Divas today; Fertiliser subsidy: FM worried over lack of political consensus; fails to implement Budget promise of direct subsidy to farmers; |
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| Dear Member, Also sending you the following files: |
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2008-TIOL-16-ITAT-MUM.doc + glenmark story.doc Income Tax - Sec 80HHC benefits - Assessee, a pharma company, is into trading exports - claims exports benefits on value of DEPB licence - AO disallows - CIT(A) rejects appeal - There is no dispute that the value of licence falls within sec 28(iv) and only the profit on transfer of licence falls within 28(iiid), and the issue of of apportionment of indirect cost is also settled as it was held that t 10% of indirect cost is to be attributable to the trading export and the same was validated by the Apex Court's recent decision in the case of Hero Exports ( 2007-TIOL-208-SC-IT ) where it was held that under section 80HHC (3)(b) one has to balance the 'principle of attribution' with the concept of 'allocation' and the concept of allocation is meant to reduce the incentive but when 'allocation' has to be balanced with the 'principle 'of attribution', the object is to reduce the incentive and not to eliminate it - Part of the direct cost is very much attributable to the value of DEPB licence - Matter restored to the AO's file to find out the direct cost relatable to trading export and it was also clarified that any difference in realization of DEPB licence will be treated u/s 28(iiid) of the Act - Assessee's appeal allowed: MUMBAI ITAT; Income Tax - Assessee incurs huge business loss - also makes capital gains - AO initiates Sec 154 proceedings for adjusting business loss against capital gains - Assessee objects by saying that Sec 71(2) gives the option to either set off or not to set off the capital gains against the current year business loss - assessee also argued that the word used in Sec 71(2) is 'may' and not 'shall' - CIT(A) holds provisions of Sec 71(2) and 72(1) to be read in harmony with each other and rejects the appeal - Provisions of Section 72(1) and 71(2) have to read together and not independent of each other and the word 'may' used in Sec 71(2) is only to give flexibility to the assessee which may choose to adjust the losses against other incomes, including capital gains - Assessee's appeal dismissed: CHENNAI ITAT; Income Tax - Assessee is a Joint Venture Company - pays a lumpsum amount to a management training institute towards tuition fee and other training-related expenses for its Executive Director - AO is of the view that professional service was provided to the assessee and it should have deducted TDS - CIT(A) disagrees - Sec 194J applies only where a person pays to another person as fees for professional services - A management institute only imparts knowledge to a participant and the participant cannot be said to be a recipient of a professional service - Revenue's appeal dismissed Assessee gives contract to one of the partners in the JV - Deducts 1% TDS on payments made - AO is for treating the same as professional and technical service - Charges assessee for short deduction and levies penalty - CIT (A) refers the contract documents and disagrees with the AO - CIT(A) order is just and proper as the recipient has declared the entire payments received and also paid tax and no tax can be demanded from the person responsible for deducting tax for the same income - Revenue's appeal dismissed: DELHI ITAT; Income Tax - TDS provisions - Assessee purchases an immovable property and pays consideration to non-resident seller - fails to deduct tax at source and pleads she was not aware of non-resident status of the seller - Order under Sec 201(1A) passed - Meanwhile, seller files return and pays advance tax - return revised and tax with interest paid under Sec 234B and 234C - Assessee goes in appeal against interest liabilities - CIT(A) sets aside AO's order - Meanwhile the Revenue passes another order u/s 201(1A) and the same was upheld by the CIT(A) - Since the tax was paid by the seller along with interest by filing revised return, no interest was payable after that date once the interest under section 201(1A) charged upto the date when tax is paid either by the deductor or by the deductee - interest under section 201(1A) can be charged only upto the date of payment of tax by payee - Assessee's appeal partly allowed : BANGALORE ITAT; |
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2008-TIOL-43-CESTAT-MUM.doc + Manikgarh story.doc Welding Electrodes used for maintenance are eligible inputs for Cenvat Credit – Tribunal decision in India Sugars & Refineries 2006-TIOL-540-CESTAT-BANG followed.: MUMBAI CESTAT; 2008-TIOL-42-CESTAT-MAD.doc + eveready story.doc Central Excise – Refund consequent to finalization of provisional assessment – since the refund arose consequent to the order of the Commissioner (Appeals), it can not be said to be refund arising consequent to the finalization of the Provisional assessment to negate the bar of unjust enrichment – para 95 of the Supreme Court ruling in Mafatlal case followed. (Para 7) Erroneous refund - review under Section 35E or demand under Section 11 A - the challenge of the respondents to demand under Section 11A of an amount erroneously refunded without reviewing the refund order in terms of Section 35 E of the Act is not sustainable in view of the Apex Court ruling in case of M/s Jain Shudh Vanaspati Ltd. (Para 6): CHENNAI CESTAT; When the appellants have reversed the Cenvat Credit taken on inputs used in the manufacture of exempted products, they are not required to pay the amount of 10% of the price of the exempted final product – Issue no longer res integra SC decision in Chandrapur Magnet Wires ( 2002-TIOL-41-SC-CX ) & Division bench decision in M/s. Rashtriya Ispat Nigam Limited [ 2007-TIOL-1478-CESTAT-BANG ] covers issue in favour of respondent – Order of Commr(A) does not suffer from any infirmity – Revenue appeal rejected.: MUMBAI CESTAT;
ST - Tax demanded on sale of mobile sim cards - Assessee pleads it pays sales tax on the same - Revenue argues since the sim cards are returnable to the service provider on deactivation of service, there is no sale - Following Tribunal's earlier orders and the Rajasthan HC direction in the case of Bharati Hexacom case to hear the case without pre-deposit, the stay allowed without any pre-deposit: DELHI CESTAT; Service Tax credit on Advertising services - Appellant not manufacturing the product for which advertising expenses were incurred by the head office of the appellant - even if the amount of credit is sought to be reversed from them, this credit can be availed in the factory which manufactures product "Maggie Noodles" – Question of revenue neutrality does arise – Un-conditional stay granted in case of Lupin Ltd. on identical issue – Stay granted.:MUMBAI CESTAT;
CUSTOMS SECTION NOTIFICATION Anti-dumping duty on Float Glass extended upto January, 2009; CASE LAWS Customs – import of raw silk and Douppion silk – demand of duty and confiscation of the goods – the appeal was dismissed by the Commissioner (Appeals) for non compliance under Section 129E – matter remanded to the Commissioner (Appeals) subject to payment of 50% of the duty and penalties.: CHENNAI CESTAT; |
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ddt 8 jan.doc + erection.doc + excise.doc CBEC wants to introduce TDS in Central Excise? Service Tax – erection of transmission towers and other equipment – Board clarifies; Service Tax on renting of immovable property: No credit for denying Cenvat Credit; CBN looking for Dy Narcotics Commissioner at Neemuch; A tale of Revenue Boards, growing exodus of officers and a sloppy, not snoopy, 'Vigilance'! Core sector logs 5.3% growth rate in November; M & M defers investment in Chennai plant; Renault & Nissan to go ahead with greenfield plant; TRAI Paper on FM Radio Broadcasting: Smaller towns to be tapped Mahindra acquires Italian design house, GRD Italy; |
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