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Budget creates Customs tariff heading for electrical energy; prescribes Rs 2000 per 1000 KWh but effective rate to continue to be Nil; FDI in print media: Govt permits 107 technical journals/magazines to receive 100% FDI; India, USA trade flourishing but American investors continue to face challenges in India: USTR; 11th Plan: 7 IIMs, 8 IITs and 30 Central Univs to be set up; |
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| Dear Member, Sending the following files: |
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2008-TIOL-109-ITAT-DEL.pdf + dcm story.pdf Interest on advance - The assessee never acquired any right for developing Madras property as no binding contract was signed between the assessee and the PDL . It transpired that due to heavy debts, the PDL was not in a position to grant development rights to the assessee. Rather, it is a case of intention to acquire the right to develop the property which never fructified. If the intention had fructified, there would have been no occasion to receive interest on the advance. Thus, it became a case of mere advance of money by the assessee to the PDL with stipulation to receive interest and that was the only substantive transaction which took place between the assessee and the PDL . In the instant case, admittedly no business was carried on and the assessee did not acquire any vested right in development of the land. In such circumstances, the income is properly assessable under the residuary head. Expenditure to earn interest deductible: However as interest income has been held to be taxable under the residuary head and consequently it will follow that any expenditure incurred for earning the income will be deductible u/s 57(iii) of the Act for computing the income chargeable to tax under the head "Income from other sources", the Tribunal held, “As a manifest error had been committed in past, justice demands that since the whole of interest income is being taxed in this year, all expenditure incurred in earning the income till this year should be allowed to be deducted in computing the income under the residuary head.Incidentally , the assessee ultimately received the amount which was lesser than the interest calculated on stipulated rate. Thus, nothing remained thereafter for reduction of the cost. So the issue is remanded to recompute the net interest. Taxation of interest on loans to employees: Following the Tribunal's earlier order that staff loans were given not for earning interest income, but to grant a benefit to them and, thus, the advances were made in the course of business of the assessee, the appeal is allowed.: DELHI ITAT; Income Tax - Assessee, a charitable trust, receives income by way of rent from commercial building built to be used for the puroses of trust and claims deduction u/s 11&12 - A.O. denies on the ground that no charitable activity is carried out and also provisions of Sec.13(3) is attracted as property is leased out to assessee's sister concern without adequate rent thus used for the benefit of persons referred to in Sec.13(3) - Assessee contends that income is used to pay back the loan taken for constructing the building whose income is to be used for charitable purposes once the loan is paid back which amounts to application of income for charitable purposes and the rent charged from sister concern is adequate in view of comparative instances of lease of adjoining properties - Investment in construction of building to augment the income of trust to be used for the purposes of trust is to be treated as application of income for charitable purposes as has been done in the instant case thus assessee is entitled to benefit u/s 11&12 and Sec.13 is an exception to Sec.11 wherein only the difference between adequate rent and rent actually charged is to be denied the benefit of Sec.11 and in determining whether the rent charged by the assessee is adequate or not, reliance cannot be placed solely on the opinion of MCD totally disregarding the comparative instances of lease of adjoining properties furnished by the assessee - Matter remanded to the file of A.O. to redecide the issue of applicability of Sec.13 - Assessee's appeal partly allowed: DELHI ITAT; Income Tax - Assessee claims depreciation on non-compete fee - AO allows it - CIT invokes powers u/s 263 - Going by the facts that there is no whisper in the assessment order about the allowability of the claim of depreciation on non-compete fee nor any discussion about the capitalisation of the fee, it is clear that the AO has not examined the issue in details - CIT order upheld and the Assesse's appeal dismissed: CHENNAI ITAT; |
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Click here for order No 45/2008 One Addl Comms transferred to Chennai Click here for order No 43/2008 Four Addl/JCs transferred Click here for order No 42/2008 Two AC/DCs transferred
2008-TIOL-34-SC-CX.pdf + sc cx story.pdf Central Excise – valuation – captive consumption – When independent factory sale price is available, that should be the basis for determining the value of captively consumed goods; The assessable value of the captively consumed grey yarn would be on the basis of the price at which the grey yarn was sold by the assessee to unrelated buyers in wholesale at the factory gate. The assessee had produced a number of invoices showing the sale to such independent buyers. Counsel for the Revenue has not been able to point out any material on the record to come to a conclusion other than the one arrived at by the Tribunal. The finding recorded by the Tribunal is a finding of fact which cannot be interfered with.: SUPREME COURT; CE – unjust enrichment: when assessee's invoice showed a composite price and duty was not indicated separately and the sale price of the goods before as well as after the reclassification, revaluation etc., remained the same, it could be concluded that the incidence of duty had not been passed on to the consumer.: BANGALORE CESTAT; Cenvat Credit – a small shortage in stocks - credit cannot be denied: CHENNAI CESTAT;
SERVICE TAX SECTION Applicability of servce tax on leasing /renting of buildings to Government; CASE LAWS ST - Operating and maintaining power plant - not Engineering Consultancy - no vivisection of a composite service .: BANGALORE CESTAT;
CUSTOMS SECTION Import of Telephones - Value of Software - there was no record to split the value between hardware and Soft ware -Assessee conceded and paid full duty before SCN - No penalty and interest .: BANGALORE CESTAT; |
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Renting to Central Excise – no Service Tax? Rule 6(3) of CCRs: Simple or simply complex? A tale of charge-reshuffle of Members in CBEC and the 'S2 Band'! RBI Notifi For Prudential Norms.pdf Prudential Norms for Issuance of Letters of Comfort by Banks regarding their Subsidiaries; BUDGET ANALYSIS 2008-09 Finance Bill 2008: A comprehensive look at direct tax amendments Our 'Lucky Finance Minister' & courageous Budget; Customs territory - 'customised' regulations on the cards? The expansive tour! Service Tax Return Preparers and best judgement assessment! Mixed Buzz India has only 143 police staffs per one lakh population; L&T secures transmission line orders worth Rs 458 Crore; Less than impressive labour reforms in OECD countries: OECD Report; IGI Airport Customs seizes 7 kg hasish; Pax arrested; |
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