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Do Central Excise Valuation Rules apply to amortisation under Sales Tax? (Look for SC's schorlarly decision in 'Breaking News' tomorrow) DRI Zonal Unit seizes 232 kg ephedrine and arrests two NRIs in Punjab + DRI (HQ) seizes 14 kg heroin and arrests one Head Constable of Punjab Police escorting consignment to Delhi; CBDT new Member Ajai Singh gets zonal charge of East; Microsoft puts
pressure on US law-makers to relax H1B Visa cap; |
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| Dear Member, The files mentioned below in the mail can be opened by clicking the links to view them on the web as they are published. To download all the files at one go as a consolidated zip file click the DOWNLOAD LINK below. You don't have to go to the website but click the link below which takes you automatically to the 'mail download login page' on Taxindiaonline.com. Thanking you for your support and cooperation. |
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2008-TIOL-121-ITAT-MUM.pdf + penalty story.pdf Income Tax - Assessee is a distributor of cigarettes - claims deductions for commissions paid to certain parties for sales promotion - AO disallows on basis of commission-recipients denying providing any service to the assessee - CIT(A) directs AO to re-examine the facts - AO allows cross-examination of witnesses by the assessee and records statements u/s 131 whereby they reiterated that they provided no service but did receive cheque payments only to pay the assessee back in cash after deducting their nominal commissions - Penalty u/s 271(1)(c) initiated - Since the AO has managed to establish that all the payments made by the assessee were only adjustment entries and bogus in nature, penalty u/s 271 and u/s 273 are sustainable - Assessee's appeal disallowed: MUMBAI ITAT; Income Tax - Assessee, engaged in the business of manufacturing of electricals and electronic meters, claims deduction u/s 80(1A) - A.O. allows - CIT initiates revisional proceedings on the ground that deduction is wrongly allowed as assessee failed to furnish audit report alongwith the return and moreover assessee's industry is not one of the industries specified in the said section for the purpose of deduction - Assessee objects on the ground that furnishing of audit report during the course of assessment proceedings is a sufficient compliance of the provision and as regards the issue of specification of industry it is not mentioned in show cause notice and thus cannot be used for rejection of claim - Though as per statutory requirements the audit report is to be filed alongwith the return, but even where it is furnished in course of assessment proceedings it is a sufficient compliance of the provision and secondly an issue not raised in show cause notice and specially one with which assessee is not confronted cannot be used against him as it will be against the principles of natural justice - Assessee's appeal allowed : DELHI ITAT; Income Tax - Assessee Co., engaged in the business of exporting cycle parts and light engineering goods, claims deduction u/s 80HHC - A.O. allows but subsequently initiates reassessment proceedings u/s 148 on the ground that assessee's export turnover being over Rs.10 Cr for the year, profits from transfer of DEPB cannot be taken into account for claiming deduction u/s 80HHC and accordingly recomputes deduction claimed by excluding 90% from the amount of sale of DEPB while working out 'profits of the business' as per explaination (baa) to Sec.80HHC - Assessee objects on the ground that what is actually deductible in computation of profits of the busness for the purpose of deduction u/s 80HHC is 'profit from sale of DEPB' and not the entire amount realized from such sale and the amount of import duty paid on inputs used for export is the expenditure for getting the benefit of DEPB scheme and the same should be reduced to arrive at the profit from the sale of DEPB which alone should be reduced to the extent of 90% for computation of profits of business for computing deduction u/s 80HHC - Assessee himself has included the entire amount realised/realisable from transfer of DEPB as its income in P&L a/c thus the same amount has to be considered for deduction of 90% in computing profits of business for the purpose of deduction u/s 80HHC as per explaination (baa) and though the words used is 'profits on transfer of DEPB', it only means that any expenditure in sale of DPB is to be reduced which however does not constitute import duty on inputs as contended by assesseee as that is an expenditure for the purpose of its export business and not to get the benefit of DEPB scheme - Assessee's appeal dismissd on this count: DELHI ITAT; Income Tax - Assessee, engaged in the development of computer software, claims deduction of loss incurred by its trading office in Japan - A.O. disallows relying on Indo-Japan DTAA holding that as per the agreement, income of PE of assessee is chargeable to tax in source country only thus any loss arising is to be set off from subsequent year's profit of trading concern and not from the income of the assessee taxable in India - Though, as per DTAAs entered into by India with other countries an income which is to be taxed in one contracting country, is not to be taxed in the other contracting country, but it is to be borne in mind that Sec.90 under which such agreements are made only grants relief and does not impose liability and Sec.90(2) unambiguously states that wherever such agreements have been entered into, then in relation to assessees to whom this agreement applies, the provisions of IT Act will apply to the extent they are beneficial to the assessee which in the instant case will be taxability of assessee under IT Act on the basis of scheme of worldwide income allowing it deduction of loss incurred by its PE in Japan - Also even if assessee does not avail of DTAA in one year, he cannot be prevented from availing the benefit under it in subsequent year as under the IT Act every year is an independent unit and it is upto assessee to decide that in a given year provisions of IT Act are beneficial to it or that of DTAA - Revenue's appeal dismissed: PUNE ITAT; 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2008-TIOL-380-CESTAT-MUM.pdf + discount story.pdf Since special discount was not available to other buyers of the same class, the same cannot be considered as permissible deduction: MUMBAI CESTAT; Commissioner(A) dismissing Revenue appeal involving interest amount of Rs.19,106/- which is below the threshold limit under section 35B of CEA'44 – No reason for interfering with the order – Revenue appeal dismissed.: MUMBAI CESTAT; There is no time limit prescribed for claiming relief arising as a consequence of favourable orders of appellate authorities - if an assessee is unable to use credit on account of closure of his factory, refund becomes admissible in cash – Tribunal decision in Gauri Plasticulture (P) Ltd 2006-TIOL-677-CESTAT-MUM relied upon .: MUMBAI CESTAT; Goods exported, re-imported upon rejection by buyer & CVD paid – Credit availed thereon – since there is no complaint that the goods were not received in the factory, pre-deposit of duty demanded waived: MUMBAI CESTAT;
SERVICE TAX SECTION CIRCULAR Guidelines in respect of publication of names under section 73D; CASE LAWS All times even at present. When software engineering itself is not liable to tax, software testing, which is an integral part for such development, cannot be brought under tax net in the guise of Technical Inspection & Certification service: BANGALORE CESTAT; Service Tax – Advertising – Leasing out hoarding to Advertising Agency – no tax payable if Advertising Agency pays Service Tax .: CHENNAI CESTAT;
CUSTOMS SECTION NOTIFICATION Govt levies anti-dumping duty on import of acetone; CASE LAWS 2008-TIOL-43-SC-CUS.pdf + sc cus story.pdf Customs – Limitation: Penalty under section 114A is imposable only when the demand is confirmed under the proviso to section 28(1) of the Act. In view of the clear findings of the Commissioner that the respondent-assessees are not guilty of suppression of facts or are guilty of collusion or misstatement and, therefore, duty cannot be imposed by invoking the extended period of limitation. When the duty itself cannot be imposed, no order of imposing the penalty under section 114A of the Customs Act can be sustained. In view of the clear legal position crystallized by a series of judgments that in case where the assessees are not guilty of suppression of facts, collusion or wilful misstatement of facts, therefore, the extended period of limitation cannot be invoked under proviso to section 28(1) of the Customs Act, 1962 in the instant appeal and the other connected appeals. Consequently, this appeal and other connected appeals filed by the appellant have to be dismissed being time barred.: SUPREME COURT ; Section 27 deals with the refund of duty and the interest paid on such duty -Refund of interest paid u/s 61 on warehousing charges is not covered by section 27 of the Customs Act, which deals with refund of duty & the interest paid on such duty - provisions of unjust enrichment will also not apply – Circular No. 475/30/90-Cus.VII dated 8.8.1990 refers .:MUMBAI CESTAT; |
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ddt 13 mar.pdf + fraud.pdf + criteria.pdf + budget _2008.ppt Joint Commissioner = Additional Commissioner: Central Excise adjudication; Quasi Judicial orders – accountability – disciplinary proceedings; Reporting of fraud cases to police/State CIDs/Economic Offences Wing of State police by public sector banks – CVC instructions; India's naukarshahi: UPA Govt succeeds only in putting band-aid on a corpse! 2008-TIOL-42-SC-CT.pdf + sc ct story.pdf Punjab GST - "subjected to tax" cannot be equated to the words "having suffered tax". Assessee is entitled to deduction, from gross turnover, the purchase value of the raw- material bought from exempted units: SUPREME COURT; CBEC Members' likely charges in early April! India generates 1.46 lakh ton e-waste annually; Bangalore Airport to be opened after May 10; DoP computerises 8200 post offices; Remaining 17600 to be done in 11th Plan ; Nath okays six projects under Industrial Infrastructure Upgradation Scheme; TRAI directs Vodafone to refund charges levied for value added service without consent of consumers; Govt allows CPSEs to invest in mutual funds ; |
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