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Govt de-reserves 79 more items from SSI list (Longish Notification to be sent tomorrow); ICANN to hold first public meeting in India on coming Monday (See 'Common Basket') A P V N Sarma, IAS of 1974 batch, is appointed as new Shipping Secretary; FM says Govt to ensure 4% agri growth rate; Precedence of Crown dues' falls flat once again – Central Excise has no priority over banks which are secured creditors: Bombay High Court (Look for judgement and analysis on Monday) |
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| Dear Member, Sending you following files. |
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NOTIFICATION CBDT amends Sec 142 to prescribe guidelines for determining audit expenses; CASE LAWS 2008-TIOL-70-ITAT-DEL.pdf + steam story.pdf Income Tax Deduction section 80IA - Steam is a form of energy and is thus power and, therefore, the assessee was eligible for the deduction under Section 80IA . The assessee may choose to claim or not to claim depreciation and if it had chosen not to claim depreciation, the Assessing Officer cannot force it on the assessee so as to reduce the amount of deduction under section 80IA . The assessee is eligible for the deduction under section 80IA in respect of the sale proceeds of the steam irrespective of the amount realized by the assessee.: DELHI ITAT; Income Tax - Assessee claims expenditure on account of foreign travel of employees and repairs and maintainance of assets - A.O. disallows a part of expenses on foreign travel on the ground of lack of documentary evidence about the nature and expenses on repairs are disallowed u/s 40A(5) - The onus on proving expenses for business purposes is on the assessee but when examining such evidence the A.O. has to keep in mind the business realities and put himself in the shoes of the businessman and disallowance u/s 40A(5) can be made only on expenses incurred on repair of assets provided to the Directors at their residence - In the instant case assessee has given prima facie material to prove that expenditure on travel is for purposes of business and disallowance u/s 40A(5) is to be restricted to expenditure on maintainance of assets of directors at their residence as shown by the assessee - Assessee's appeal partly allowed: DELHI ITAT; Income Tax - A search is conducted on assessees in consequence of which a declaration is made by them u/s 132(4) of assets acquired using undisclosed income which is surrendered and tax paid on it - A.O. imposes penalty u/s 271(1)(c) - Assessees object on the ground that since undisclosed income in the nature of assets is surrendered and tax paid on it, no penalty is leviable in terms of Explaination 5 of Sec.271(1)(c) - Explaination 5 of Sec.271(1)(c) is an immunity given from penalty u/s 271(1)(c) where an assessee declares assets acquired through undisclosed income in a statement u/s 132(4) and surrenders the same for taxation which has been done in the instant case - However surrender of commission paid in arranging for bogus gifts is liable to penalty since it has not resulted in asset formation in terms of explaination 5 of Sec.271(1)(c) - Revenue's appeal partly allowed: BANGALORE ITAT; Income Tax - Assessee is assessed u/s 143(3) and subsequently reassessment proceedings initiated after 4 years from relevant A.Y. on the ground of non-disclosure of material facts truly and fully - Assessee objects on the ground that all primary facts were disclosed at the time of original assessment thus essential requirements of reopening of assessment are not satisfied - Proviso to Sec. 147 lays down that reassesment proceedings after expiry of 4 years from the relevant A.Y. can be made only in case of non-filing of return or non-disclosure of facts truly and fully but where once primary facts have been fully disclosed by the assessee onus on him is discharged and thereafter its the responsibility of A.O. to make such legal and factual inferences by application of mind on the facts disclosed and in case of failure to do so, recourse to reassessment proceedings cannot be taken - In the instant case assessee had disclosed fully the relevant primary facts thus recourse to reassessment proceedings were invalidly taken - Assessee's appeal allowed : DELHI ITAT; |
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RLT Case Laws Headnotes;
2008-TIOL-16-SC-CX.pdf + sc CX story.pdf Processed cashew nuts, peanuts, almonds fall under Chapter 20 and not chapter 8 of the Central Excise tariff HSN contains a list of all traded goods: The Central Excise Tariff Act is broadly based on the system of classification from the International Convention called the Brussels ' Convention on the Harmonised Commodity Description and Coding System (Harmonised System of Nomenclature) with necessary modifications. HSN contains a list of all the possible goods that are traded (including animals, human hair etc.) and as such the mention of an item has got nothing to do whether it is manufactured and taxable or not. HSN is a safe guide for classification: In a number of cases, this court has clearly enunciated that the HSN is a safe guide for the purpose of deciding issues of classification. In the present case, the HSN explanatory notes to Chapter 20 categorically state that the products in question are so included in Chapter 20. The HSN explanatory notes to Chapter 20 also categorically state that its products are excluded from Chapter 8 as they fall in Chapter 20. In this view of the matter, the classification of the products in question has to be made under Chapter 20. Deemed manufacture: The legal position has been clearly crystallized in judgments of this court that certain processes which may not otherwise amount to manufacture have been deemed to be manufacture by the Parliament under section 2(f)(ii). In deciding the cases of this nature, the courts have to make serious endeavour to ascertain spirits and intention of the Parliament in enacting these provisions and once the legislative intention is properly gathered, then the bounden duty and obligation of the courts is to decide the cases in consonance with the legislative intention of the Parliament.: SUPREME COURT; 2008-TIOL-210-CESTAT-AHM.pdf + Gujarat Goldcoin Story.pdf Section 4A of Central Excise SWAM rules do not envisage declaring the particular region where the MRP is to be made applicable - If there is a maximum price fixed for institutional/project buyers, the same would also qualify for being considered as "retail sale price": AHMEDABAD CESTAT; Process undertaken by the assessee for producing asafoetida out of imported raw asafoetida does not amount to manufacture & therefore there is no need to go into the valuation of the goods Order of Commr(A) upheld Revenue appeal rejected. : MUMBAI CESTAT; Base trans-receiver station/cell site/BSC site are not excisable Issue squarely settled by Tribunal decision in BPL Mobile Communication 2005-TIOL-923-CESTAT-MUM & C.Ex Appeal no. 87 of 2007 filed before Bombay High Court was decided on 9.8.2007 holding that no question of law arises & order of Tribunal upheld Demand & penalties set aside & appeals allowed.: MUMBAI CESTAT;
SERVICE TAX SECTION ST - Consulting Engineer - Assessee is an automobile Co - sells technical knowhow in the form of designs, drawings, software - Revenue demands tax by treating it as a taxable service - Assessee argues it merely sells it which becomes chattel for the buyer - Prima facie, the case is tilted in favour of the assessee - Stay granted: DELHI CESTAT; ST - GTA Service - Assessee takes registration and pays tax with interest immediately on receiving letter from Superintendent of Central Excise for the period between April 1, 2005 to Dec 31, 2005 - No tax was paid for the period between Jan 1, 2005 to March 31, 2005 as figures were not readily avaiable with the assessee - Penalty imposed - No evidence on record to prove suppression of facts but penalty u/s 78 justifiable for delayed payment of tax - Penalty u/s 76 reduced : DELHI CESTAT;
CUSTOMS SECTION NOTIFICATION DGFT amends DEPB rates of many engineering products; CASE LAWS 2008-TIOL-78-HC-MUM-EXIM.pdf + yarn story.pdf Exim Policy - Policy Relaxation Committee has no power to amend Exim Policy framed by Government export of substandard yarn policy had not prescribed the standard of yarn: BOMBAY HIGH COURT ; Customs - Customs House Agent - CHALR 2004 - Renewal of licence - Revenue declines for lack of appointment of qualified person - Merely because the appellant has failed to appoint a qualified person it does not automatically lead to cancellation of licence - Customs directed to renew the licence and allow the appellant to carry on their business: BOMBAY HIGH COURT ; |
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DDT is 800 Thank You for the patronage; Cell sites/ RF Antennas atop building terraces – Not excise but Service Tax! A Revenue sleuth's expectations from Budget; Financial Inclusion Mission: Let's first eradicate poverty of 'Mind' before banishing poverty! HNL looking for Dir (Fin); ACC promotes four IAS officers as Addl Secy; K Jose of Kerala cadre gets Revenue Headquarters; L & T wins Rs 1107 Cr order from IISCO Steel Plant at Burnpur; Internet Corporation for Assigned Names to hold first meeting in Delhi on coming Monday; Govt de-reserves 79 more products from SSI list; DRI seizes 27 kg ketamine from Malaysia-heading pax at Coimbatore airport; |
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