DRI (Hqs) seizes FICN worth Rs 23 lakh and arrests key Indian agent of Pak syndicates after a chase in Amritsar; Delhi local unit of DRI seizes 5 kg heroin in Delhi & arrests two persons

Rule 6 goes for first amendment after budget - L,M,N replaced with M,N,P (See 'DDT');

WHO cautions India on water-borne diseases;

WIPO Award for best invention by a woman goes to Iran & best one from DCs goes to Malaysia;

National Road Safety & Management Board about to be set up: Baalu (See 'Common Basket');

2008-TIOL-197-HC-MAD-IT.pdf

M/s SCM Creations Vs ACIT, Tirupur (Dated: March 6, 2008)

Income Tax - Should Sec 80IA benefits be deducted from profits & gains before computing relief u/s 80HHC - Relief u/s 80IA not to be deducted before allowing Sec 80HHC benefits - Special Bench decision in ACIT Vs Rogini Garments (2007-TIOL-150-ITAT-MAD-SB) reversed - Assessee's appeal allowed: MADRAS HIGH COURT;

2008-TIOL-196-HC-DEL-IT .pdf

M/s Indus Valley Promoters Ltd Vs CIT, Delhi (Dated: April 1, 2008)

Income Tax - a sum of money received towards share application but  no allotment of shares - AO treats it as unsecured amount & proceeds u/s 68 - Additions made - CIT(A) and Tribunal dismiss assessee's appeal - High Court finds transactions done in cash even though the creditors had bank account and they had also received back some payment through cheques - Held - Creditworthiness of depositors must be established to the satisfaction of the Assessing Officer. Where there is an unexplained cash credit, it is open to the Assessing Officer to hold that it is income of the Assessee and no further burden lies on the AO to show that income in question comes from any particular source - appeal of the Assessee dismissed. : DELHI HIGH COURT ;

2008-TIOL-145-ITAT-DEL.pdf + salary story.pdf

DCIT, Delhi Vs Mr Eric Moroux C/O Air France (Dated: February 15, 2008)

Work abroad, no tax in India: the assessees were required to work in France and South Asia for a particular period of time. The contract of employment itself recognizes the division of work to be performed in India and that to be performed in France and South Asia . In the circumstances-there is no justification for the AO to have insisted on evidence regarding the nature of services rendered in France and South Asia . There can be no inference that the employees while they were in France and South Asia rendered services in respect of their operations in India . Therefore it cannot be said that their period of employment in France and South Asia should also be considered as services rendered in India . The decision in the case of ex parte employees of Air France clearly supports the stand of the assessee. With regard to the Explanation to S.9 ( 1)(ii) of the Act, the Amendment w.e.f . 1.4.2000 only brings to tax the salary for the rest period or leave period, which is preceded and succeeded by services rendered in India . In the facts of the present case we find that the issue is not with regard to rest period or leave period and, therefore, the amended provisions will not have any impact whatsoever. In view of the above, grounds of the Revenue are dismissed.

Compulsory Contributions to Social Security Schemes – not taxable: The nature of payments as discussed in the Order of CIT ( A) is that there was no discretion left with the assessee but to allow the employer to mandatorily deduct these sums. The Mumbai Bench of the Tribunal in the case of Galnotti Raoul has analysed the legal position in the context of French Nationals employed in India and has held that such contribution was a diversion of income by overriding title at the stage of earning income and could not, therefore be brought to tax as income. Respectfully following the decision of the ITAT, the Tribunal upheld the order of the AO and dismissed grounds of the Revenue.

Cash deposited in bank account – unexplained? “There is no doubt that the assessee is a highly paid employee having taxable income of approximately 12 lakhs per month. As per the documents filed there was sufficient cash balance available on the day of deposit. This cannot be treated as unexplained cash credit. The addition made on this account is, therefore, deleted." No grounds to interfere with the Order of the CIT ( A). Without rejecting the cash book supported by withdrawal by the assessee from the bank account the AO cannot make the impugned addition. No reasons have been assigned for rejecting the Explanation offered by the assessee.: DELHI ITAT;

2008-TIOL-144-ITAT-DEL .pdf

Shri Vivek Jain Vs DCIT, Delhi (Dated: January 8, 2008)

Income Tax - Penalty - AO imposes penalty after disallowing expenses incurred on an NRI assisting the assessee in procuring exports order - Merely because an expenditure has been disallowed on the basis of a difference of opinion, the penalty cannot be imposed - Assessee's appeal allowed: DELHI ITAT;

CENTRAL EXCISE SECTION

2008-TIOL-529-CESTAT-AHM.pdf + zest powder story.pdf

M/s Coral Laboratories Ltd Vs CCE, Vadodara (Dated: March 10, 2008)

Central Excise - Zest Powder is a food product and not a medicament: AHMEDABAD CESTAT;

2008-TIOL-528-CESTAT-BANG.pdf

CCE, Hyderabad III Vs M/s Sridhar Paints Pvt Co Ltd (Dated: November 15, 2007)

Central Excise - Valuation - Paint sold in loose form - MRP Valuation not applicable: BANGALORE CESTAT;

2008-TIOL-527-CESTAT-MUM.pdf

CCE, Mumbai IV Vs M/s Sanghvi Electronics P Ltd (Dated: November 15, 2007)

Assessees appeal allowed to be withdrawn by Tribunal after they settled their case under KVSS Scheme – Revenue appeal after the date of such order of the Tribunal does not survive.: MUMBAI CESTAT;

2008-TIOL-526-CESTAT-MUM.pdf

M/s Lloyds Metals & Engineering Ltd Vs CCE & C, Mumbai (Dated: January 18, 2008)

Cenvat Credit on Capital goods – 100% credit taken in first year itself – mistake detected by department else the amount would have remained unpaid – applicant is guilty of gross negligence & hence, prima facie some penalty is imposable – Pre-deposit of Rs.1 lakhs ordered.: MUMBAI CESTAT;

SERVICE TAX SECTION

2008-TIOL-531-CESTAT-BANG.pdf

Federal Bank Ltd Vs CCE, Calicut (Dated: January 23, 2008)

Deposit of telephone bill in the bank into BSNL's account – Bank not liable to pay any Service Tax: BANGALORE CESTAT;

2008-TIOL-530-CESTAT-DEL.pdf

M/s Saraswati Shiksha Kendra Vs CCE, Ludhiana (Dated: February 20, 2008)

ST - Commercial coaching service - Assessee is a franchisee and shares revenue on 75: 25 per cent basis - Revenue demands tax on the gross fee collected from students - Assessee contends it is not liable to pay service tax on 25% share of the franchisor - Tax is to be paid on the total amount collected

Assessee claims credit on 25% payment made to the franchisor as it treats it as input service - Pre-deposit ordered: DELHI CESTAT;

CUSTOMS SECTION

NOTIFICATION

ctariff08_043.pdf

Anti-dumping duty on Vitamin E import from China extended by one year;

CASE LAWS

CC (General), Mumbai Vs M/s H S Cox & Co Pvt Ltd (Dated: February 28, 2008)

2008-TIOL-532-CESTAT-MUM.pdf + cha story.pdf

CHALR Rules - If somebody is forging the signature he will do so as and when required & not sign the blank bill of entries & keep in stock – punishment meted out to CHA is sufficient & there is no need for enhancement: MUMBAI CESTAT;

ddt 07 apr.pdf

TIOL's Power Packed Seminar in Hyderabad;

Rule 6 goes for first amendment after budget – L,M,N replaced with M,N,P;

tiol top budget.pdf

PPP - Trade – TIOL – Department – Please make e –filing a success;

guest column.pdf

The CST fiasco!

mbuzz499.pdf

National Road Safety & Management Board about to be set up: Baalu;

mbuzz498.pdf

Districtwise daily climatological data released in CDROM;

mbuzz497.pdf

WIPO Award for best invention by a woman goes to Iran & best one from DCs goes to Malaysia;

mbuzz496.pdf

Ambika Soni inaugurates India Tourism Office in Beijing;