DRI arrests one Nigerian with heroin worth Rs 76 lakhs in international market;

President appoints two Addl Judges for Karnataka HC;

Ashok Kumar, IAS of 1974 batch, appointed as Vice Chairman of DDA;

Cabinet decides to hike petrol price by Rs 2 litre and diesel by Re 1 per litre;

Delhi Service Tax issues SCN for Rs 2.92 Cr against Delhi Gymkhana Club; Part payment of Rs 1.9 Cr deposited;

Ten Special Economic Offences Courts for Delhi: Delhi CM;

Core sector growth slides to 4% in Dec, 2007 as compared to 9% in 2006;

2008-TIOL-21-SC-IT.pdf + thursday it story.pdf

Income Tax - Assessee borrows funds for business - same was refinced later and commitment charges paid in addition to interest - Revenue disallows as the borrowed funds were used for setting up an extension of the existing manufacturing facility but the production had not taken off during the relevant FY - Tribunal allows not only u/s 36(1)(iii) but also Sec 37 - Once interest was paid on funds borrowed for business purposes, it is allowable u/s 36(1)(iii)

Assessee acquires foreign currency loan for setting up an extension of its existing business - Fund raised was refinanced - finance charges paid - AO disallows - Once finance charges are equated to interest, it is allowable u/s 3691)(iii) - Revenue's appeal dismissed: SUPREME COURT;

2008-TIOL-78-ITAT-DEL.pdf

Income Tax - A.O. reopens assessment for the relevant period relying on CIT(A)'s order for the subsequent year - Assessee, engaged in the business of modernization, renovation etc. of power plants, alleges non-application of mind by A.O. - Reassessment u/s 147 can be made relying on appellate authority's order but the A.O. should have reasons to believe that income chargeable to tax has escaped assessment and such belief should be reached independently by application of mind to the facts of the case - In the instant case A.O. merely understood the order of CIT as a direction to reopen assessment without independently applying its mind to allowability or otherwise to claim of assessee - reassessment is invalid - Assessee's appeal allowed - (Para 7,8) .: DELHI ITAT;

2008-TIOL-77-ITAT-DEL.pdf

Income Tax - Assessee's return is accepted and an intimation issued u/s 143(1) on the basis of return accepting its claim - Assessee makes an aplication u/s 154 for revising its claim u/s 80 HHC - A.O. disallows on the ground that any amendment to earlier return can only be made by filing a revised return u/s 139(5) and not u/s 154 as per which only mistakes apparent from record in the order of A.O. can be rectified - As per Sec.139(5) any omission in a return can be rectified by filing a revised return whereas recourse to Sec.154 can only be made to rectify mistakes apparent from record - In the instant case there is no mistake apparent from record in the intimation sent u/s 143(1) thus recourse to Sec.154 cannot be taken and the assessee should have filed a revised return within the time limit which it failed - Assessee's appeal dismissed - (Para 7,8,9,10).: DELHI ITAT;

2008-TIOL-76-ITAT-DEL.pdf

Income Tax - AO disallows 2/3rd of expenses on estimated basid - CIT(A) reduces disallowance to 10% of expenses - Penalty u/s 271(1)(c) imposed - Given that the AO failed to record satisfaction before initiating penalty proceedings, penalty is not valid, and besides it is settled law that where additions are made on estimated basis, and there is no evidence to prove that the income of the assessee was more than the one returned, penalty cannot be levied - Assessee's appeal allowed: DELHI ITAT;

cbecorder033_2008.pdf

CBEC transfers two AC/DC;

CENTRAL EXCISE SECTION

concessions.pdf

Amendment to procedure for availing Customs duty concessions;

CASE LAWS

2008-TIOL-240-CESTAT-MUM.pdf + classification story.pdf

Classification sought by the appellant in original proceedings cannot be rejected and alternative classification imposed which is not proposed in SCN – Tribunal grants Stay from recovery of duty of Rs.3.32 crores.: MUMBAI CESTAT;

2008-TIOL-239-CESTAT-BANG.pdf

CE- supply of free replacements, to the job worker against the original invoice, without payment of duty-- Non-payment of duty on the goods cleared by the job worker-- liable to penalties, under Section 11AC of the Central Excise Act. Interest under Section 11AB-Demand upheld: BANGALORE CESTAT;

2008-TIOL-238-CESTAT-KOL.pdf

Clandestine removal – seizure of notebook containing names of recipients - Authorities failed to summon those persons to examine the veracity nor carried out investigation to ascertain truth of contents - Burden of proof not discharged – Demand set aside.: KOLKATA CESTAT;

SERVICE TAX SECTION

2008-TIOL-236-CESTAT-DEL.pdf

ST - Sec 66A read with rule 2(1)(d) - Tax on recipient of the service - Do provisions of Clause (iv) of Rule 2(1)(d) create a liability for every service recipient of a taxable service? - Waiver from pre-deposit granted: DELHI CESTAT;

2008-TIOL-235-CESTAT-DEL.pdf

ST - Business Auxiliary Service - Assessee is a contract selling agent for a bank - argues since lending is not covered under banking and financial services, they are not liable - Since BAS covers promotion of any service, and the fact that it is not necessary that promotion should be of taxable service, pre-deposit of 50% demand ordered: DELHI CESTAT;

CUSTOMS SECTION

NOTIFICATION

dgft07pn106.pdf

DGFT inserts new subpara in Para 3.2.5 III;

CASE LAWS

2008-TIOL-237-CESTAT-MAD.pdf

Customs – import – valuation - technical know-how fee or royalty paid by any of the appellants to foreign collaborator was not liable to be included, under Rule 9(1)(c), in the assessable value of the imported components/raw materials - in any of the relevant appeals, there is nothing in the agreement between the assessee and their foreign collaborator, which suggest that they have paid royalty as a condition of purchase of the imported goods - the royalty paid by any of the appellants to their foreign collaborator does not satisfy the twin conditions of Rule 9(1)(c), to be included in the assessable value of the imported goods – impugned orders set aside.:CHENNAI CESTAT;

ddt 14 feb.pdf

Works contract service – ongoing projects – Delhi High Court issues notice;

Customs duty concession for manufacture of excisable goods – reduce the hassles;

brunup.pdf

To condone is divine !

cob(web).pdf

Dear PC, Discretionary Tax Deposit Scheme can be your answer to fund-crunch for infrastructure !

2008-TIOL-20-SC-CT.pdf + kerala story2.pdf

Sales Tax - It is not open to revenue officers to say that the Board circular is not binding on them. This would lead to chaos and indiscipline in the administration of tax laws: SUPREME COURT;

2008-TIOL-19-SC-CT.pdf + kerala story 1.pdf

Kerala Sales Tax – AO bound by Departmental circular, but assessee is not: SUPREME COURT;

fdi25approved.pdf

FM okays 25 FDI proposals worth Rs 5585 Crore; Approved ones also include Bycell Telecom (Rs 1950 Cr) + J M Financial Trustee (Rs 1460 Cr) + AAPC Hotels Management Pte Ltd (Rs 526 Cr);

mbuzz339.pdf

DRI seizes 27 kg Ketamine being smuggled as 'True Sampoorna Maida' at Chennai Airport!

mbuzz340.pdf

WIPO receives 15 candidatures for DG-Post;

mbuzz341.pdf

'Art Fund' not registering with SEBI; Civil and criminal action threatened ;

mbuzz342.pdf

Blue Star wraps up acquisition of Naseer Electricals for Rs 42 Cr;

mbuzz343.pdf

Gail signs MoU with ITERA Oil & Gas Company of Russia;