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CBDT all set to appeal against Tribunal decision in gift case but Mayawati continues to pay handsome advance tax in crores; FM videoconferences with CCITs and thanks Income Tax Department for 43% growth in revenue but calls for better taxpayers' services; TRAI says Govt not presenting correct picture in court on spectrum allocation; Civil Aviation seeks rationalisation of taxes on ATF; Dr Shubhashis Gangopadhyay, an economist, is new Adviser to FM; Govt confirms arrival of bird flu in West Bengal; |
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| Dear Member, Also sending you the following files: |
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2008-TIOL-36-HC-MUM-WT.doc + rent story.doc Wealth tax – rent received by intermediary: whether the rent and deposits received by the intermediary tenant from the ultimate user of the premises or the rent and deposit received by the assessee from the intermediary tenant, who never occupied the premises is to be taken for the computation of the net wealth of the assessee for valuation under Rule 3 of part B of Schedule III of the Wealth Tax Act, 1957. Rent received by the assessee is only relevant. Court not precluded from looking at the correct issue merely because the draftsman for some reason has not applied his mind. Procedure is not meant to trip justice but to aid the cause of justice. Wrong drafting by the draftsman cannot result in the Court being prevented from looking at the correct issue and having the issue answered. Law would be much poorer if the Court precluded itself from doing so, merely because the draftsman for some reason has not applied his mind in framing the correct question or grounds. The order of the Commissioner (appeals) does not disclose any reason as to why the appeal was allowed on the issue of proportionate debts. If the appellate authority seeks to reverse the finding of the authority below, it was bound to give reasons to its conclusion. We find the order does not disclose any reason for coming to the conclusion arrived at: BOMBAY HIGH COURT; Income Tax - Assessee is into construction and sale of multi-storeyed office-cum-shopping complex - also provides air-conditioning and car park facilities - treats the receipts towards these two items as interest-free refundable deposits - Also claims deduction on advertisement and sales promotion expenses and legal charges - AO disallows - CIT(A) agrees with the AO but partly allows deduction for advertisement and legal charges - Tribunal allows the appeal of the assessee - Going by the contracts and agreements for various amenities provided to the shop purchasers the assessee split the sale agreement for car park and air conditioning only to spread over the receipts and the payments received for them are very much trading receipts - However, deduction for the advertising and legal charges are allowable in the same year and the Tribunal rightly remitted the sale promotion expenses to the AO for fresh computation - Revenue's appeal partly allowed: MADRAS HIGH COURT; Income Tax - Assessee manufactures and sells mineral water - AO notices cash loans in return and treats it as violation of Sec 269SS - Penalty u/s 271D - CIT(A) disagrees and Tribunal upholds the CIT(A) order - Given the tribunal's finding that the cash shown in the return was trade receipt from the assessee's distributors and no evidence found to shown it as loan and advances, no substantial question of law involved - Revenue's appeal dismissed: MADRAS HIGH COURT; Income Tax - Assessee files return - AO verifies credit standing against two business entities - Assessee asks for report of AO who verified the declarations made in the return - Revenue does not furnish it - CIT (A) and Tribunal dismiss assessee's appeal - Since the assessee itself changed its stand when confronted by the verifying ITO's report, and it also failed to produce the truckers named as parties owing the outstandings, Tribunal was right in dismissing its appeal - No substantial question of law involved: P & H HIGH COURT; |
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NOTIFICATION CBDT notifies Chief Commissioners' Committee for review cases in Bangalore + Chennai; CASE LAWS 2008-TIOL-03-SC-CX.doc + mathani story.doc Central Excise – exemption - manufacture without the aid of power - If pumping of brine into salt pans and lifting of coke and lime stone to the platform with the aid of power can be treated as part of the continuous process of manufacture, there is no reason to hold otherwise when power is used for lifting water and pouring the same in the kier and bleaching vessel. It is not the case of the assessee that water is not an essential ingredient for the process of kiering and bleaching. The pouring of water into kier and bleaching vessel are steps integrally connected with the whole process. The appellant is not entitled to claim the benefit of Notification: SUPREME COURT; Rule 4(2) (b) of Cenvat Credit Rules 2002 does not have the condition that the capital goods should be put to use and the only requirement was that the capital goods should be in the possession of the assessee – Credit rightly allowed. Clearance of small quantities of samples under challans to customers for approval – duty paid along with interest on being pointed out – samples do not have any commercial value – no penalty imposable in view of Bombay HC decision in case of Gaurav Mercantiles( 2005-TIOL-231-HC-MUM-CX ) – Revenue appeal rejected.: MUMBAI CESTAT; Supplementary invoices – Respondent having paid differential duty immediately upon revision in price no question of payment of interest u/s 11AB of the CEA'44 – no case of duty having been short paid/not paid: MUMBAI CESTAT; Issue of payment of interest on supplementary invoices has been settled by the Hon'ble High Court in Appeal No. 42/2007 – ROM allowed as mistake apparent on record – earlier order of the Tribunal allowing Revenue appeal recalled: MUMBAI CESTAT;
SERVICE TAX SECTION 2008-TIOL-04-SC-VAT.doc + sc st story.doc Service Tax Vs VAT - In an indivisible contract no VAT to be levied if Service Tax is paid: SUPREME COURT; ST credit on TR-6 challan in respect of GTA – issue squarely covered in favour by Tribunal decision in M/s. Essel Pro-Pack Ltd. [ 2007-TIOL-1643-CESTAT-MUM ] – Appeal allowed with consequential relief.: MUMBAI CESTAT;
CUSTOMS SECTION NOTIFICATION CBEC notifies Chief Commissioners' Review Committee for Mumbai Customs cases; Amends tariff value of only brass scraps; Redi port in Maharashtra notified for exports of many minerals; CASE LAWS Adjudication for contraventions of the provisions of Customs Act/Central Excise Act on the part of units in SEEPZ is to be done by the Assistant Commissioner, SEEPZ/Jt. or Addl. Commissioner of Customs, Airport / Commissioner of Customs, Airport depending upon the value of offending goods – impugned order passed by Commissioner of Customs (Preventive) is without jurisdiction – Appeals allowed by way of remand: MUMBAI CESTAT; |
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ddt 16 jan.doc + 2007-HRIOL-16-CIC.doc Government of India declares a holiday next Sunday; The height and chest expansion of an Inspector of Central Excise – not a CIC matter? Chak De strategies: Improving governance; CAT looking for three JMs: RBI Notification for Mort Guarantee.doc Housing finance: RBI notifies Mortgage Companies as NBFCs; Data quality in Electronic Accounting System in Central Excise & Service Tax (EASIEST); JS-level officers promoted; New Adviser to FM; Govt plans Bus Rapid Transit System for 8 cities: Mahindra Holidays & Resorts India opts for 1% pvt placement deal with Jacob Ballas for USD 10 mn; Trade facilitation: Govt makes single bank account mandatory for e-payment from April 1, 2008; Do Not Call Registry: TRAI proposes steps to make it effective; |
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