Kamal Nath warns hoarders/profiteers of series action;

TIOL's post budget workshop takes off in Hyderabad with inaugural speech by Member, CBEC, Mr V Sridhar and DG, DRI, Mr S Dutt Majumder;

Govt convinces major steel producers to roll back prices;

China announces Tibet to be reopened for foreign tourists from May 1;

2008-TIOL-195-HC-RAJ-IT.pdf

CIT, Udaipur Vs Ms Kothari Impex, Udaipur (Dated: February 15, 2008 )

Income Tax - Assessee claims deduction u/s 80HHC - A.O. disallows on the ground of failure to furnish requisite audit report and accordingly makes additition by making adjustments u/s 143(1)(a) - Assessee files a rectification application and attaches audit report alongwith it after completion of assessment but the same is rejected on the ground that rectification u/s 154 is limited in scope to errors apparent from record which is not the case in hand - CIT(A) allows deduction and deletes addition on the ground that requirement of filing of audit report alongwith the return is merely directory in nature thus no adjustments could be made on this count and moreover assessee filed a revised return alongwith the report which was accepted and its claim allowed which is upheld by Tribunal - The requirement of filng of audit report alongwith the return is not directory in nature for claiming deduction u/s 80HHC which requires obtaining and furnishing of such report by specified date for claiming deduction and allowing of claim of assessee in the processing of revised return u/s 143(1B) will not absolve assessee of additional tax liability imposed u/s143(1)(a) intimation of which is given to the assessee as in the instant case as per proviso to Sec.143(1B) thus it cannot be said that the adjustment made by A.O. was outside the purview of Sec.143(1)(a) that could be rectified - Revenue's appeal allowed.: RAJASTHAN HIGH COURT;

2008-TIOL-194-HC-MUM-IT.pdf + income hc story.pdf

CIT, Mumbai Vs M/s Aatur Holding Pvt Ltd (Dated: March 12, 2008 )

Income Tax - Dividend not received by the assessee – no tax; If income does not result at all, there cannot be a tax, even though in book-keeping, an entry is made about a hypothetical income, which does not materialise: BOMBAY HIGH COURT;

2008-TIOL-141-ITAT-DEL.pdf

M/s VLS Finance Ltd Vs DCIT (Dated: February 15, 2008 )

Income Tax - Rectification  of mistakes - Assessee pleads non-consideration of Apex Court decision - Revenue contends the scope of Tribunal's powers to rectify its order u/s 254(2) is very limited and the review of its own order is not permissible u/s 254(2) - It is  well settled that the non-consideration of the judgment of the Supreme Court relevant to the point in issue gives rise to a mistake apparent from record which can be rectified - Assessee's miscellaneous applications allowed.: DELHI ITAT;

2008-TIOL-140-ITAT-DEL.pdf

Trilochan Singh Vs ITO, Kotdwar (Dated: February 15, 2008 )

A man may not have bank account yet have reasonable earning and savings to advance petty amount of Rs. 19,000. Such credit can also be an accommodation entry. Whether it is genuine or not would depend upon the facts and circumstances of the case. Minimum limit of taxable income has also been raised to Rs. 50,000 and more. Therefore it is not possible to accept that those not filing income tax return cannot give even small loan to their friends or relations. In the present case, the Assessing Officer has not shown as to on what basis and on what answers of creditors, the conclusion was being drawn that creditor did not have capacity to advance loan.: DELHI ITAT;

CENTRAL EXCISE SECTION

CIRCULAR

excircular867.pdf

Operationalization of Large Taxpayer at Mumbai.;

CASE LAWS

2008-TIOL-519-CESTAT-MUM.pdf +irrigation story.pdf

CCE, Nasik Vs M/s Jain Irrigation Systems Ltd (Dated: Februaruy 22, 2008)

Even if the fact remains that the goods have been removed clandestinely, the question of confirmation of demand will not arise as the goods are entitled for full exemption.

We are not for a moment suggesting that the applicant could have taken the credit inspite of final goods being exempted.  All that we have said is that on payment of duty on the final product which was not otherwise payable, the assessee shall be deemed to have reversed the credit taken by them, which in another word would amount to not taking the credit at all – SC decision in Amrit Papers [ 2006-TIOL-85-SC-CX ] is not relevant to the impugned case.

Once the admissibility of exemption to parts of irrigation system has not been questioned by the Commissioner and once no appeal has been filed by the Revenue against Commissioner's order, the order passed by the Tribunal accepting this position cannot be disputed by applicant and accordingly no error can be said to have occurred in our order on this account also – Revenue ROM application rejected by Tribunal .: MUMBAI CESTAT;

2008-TIOL-518-CESTAT-BANG.pdf

Indo Aqatics Ltd Vs CC & CE , Guntur (Dated: November 12, 2007)

Export obligation could not be fulfilled due to impossibilities created by SC order and attack of virus - no penalty .: BANGALORE CESTAT;

2008-TIOL-517-CESTAT-BANG.pdf

M/s Jindal Praxair Oxygen Company Pvt Ltd Vs CCE, Belgaum (Dated: December 127, 2007)

Central Excise – Cenvat Credit – Credit is entitled on the imported goods under Rule 57AC (2)(c) also - Credit cannot be denied on the imported goods merely for not filing the proper declaration under Rule 57 (T) (1) - CESTAT .: BANGALORE CESTAT;

2008-TIOL-516-CESTAT-BANG.pdf

M/s Kedia Vanaspathi Ltd Vs CCE, Hyderabad (Dated: January 10, 2008)

The correct procedure should have been adopted by revenue by issuing a show cause notice in terms of provisions of Section 11 A of CE Act for recovery of erroneous refund, which was not done. The lapse is very clear on the part of the Commissioner.: BANGALORE CESTAT;

SERVICE TAX SECTION

2008-TIOL-515-CESTAT-DEL.pdf

Jain Colour Lab Vs CCE, Bhopal (Dated: Februaruy 18, 2008)

Service Tax - Photography Service - Assessee pays tax after deducting value of chemicals and papers - Revenue pleads for gross value - Waiver from pre-deposit granted: DELHI CESTAT;

2008-TIOL-514-CESTAT-DEL.pdf

M/s Kanpur Security Services Vs CCE, Kanpur (Dated: Februaruy 4, 2008)

ST - Security Service - No tax is payable on the sum due to the assessee from the service recipient - Penalty set aside: DELHI CESTAT;

CUSTOMS SECTION

NOTIFICATION

dgft07pn138.pdf

DGFT amends Handbook for substituting Appendix 1A by Annexure 1;

dgft07pn137.pdf

DGFT denies DEPB benefits to exports of basmati rice;

CASE LAWS

2008-TIOL-513-CESTAT-AHM.pdf

M/s Prime Forwarders Vs CC, Kandla (Dated: November 05, 2007)

Customs – mis -declaration – import of valuable tin bearing sand by concealing under tin plates - the Adjudicating Authority has rightly held that M/ s.Vaibhav Laxmi Impex Pvt. Ltd. is liable to penalty – however, penalty reduced to Rs 75 lakhs – penalties on the rest of appellants set aside.: AHMEDABAD CESTAT;

ddt april 4.pdf

Our Seminar in Hyderabad;

edit.pdf

Nothing else to write about, let's talk about inflation!

hyderabad seminar story.pdf

Taxindiaonline, Trade and Govt can be a possible trinity, says CBEC Member;

2008-TIOL-193-HC-MUM-VAT.pdf + vat story.pdf

The Sales Tax Practitioners Vs The State Of Maharashtra (Dated: March 28, 2008 )

VAT - Compulsory audit by CAs in preference to lawyers – Not illegal;

cabinet_sec.pdf

Instructions from Cabsec on preparation of notes for cabinet

RBI Notifi For E Payment.pdf

E-Payment: RBI clarifies 8 PM deadline to apply to all govt transactions including EASIEST and OLTAS;

rbi07cir034.pdf

RBI hikes overseas investment limit by MF from USD 5 bn TO USD 7 bn;

sebicir_08.pdf

Govt grants exemption from PAN for Sikkim residents for investments in MFs;

mbuzz494.pdf

FDI inflow crosses USD 20 bn mark in 11 months;

mbuzz493.pdf

L&T applies for more than 100 patents for electrical & electronic products;

mbuzz492.pdf

RBI circulates Concept Paper on financial literacy;

mbuzz491.pdf

Moser Baer joins hands with Chinese company for sales of solar products;