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Which State tops tally of State Universities? AP with 20, followed by TN, UP & Maharashtra with 19 each; India to host sixth India-USA Global Issues Forum on Thursday in Delhi; CBI raids Lecturer of National Defence Academy in many cities and detects assets worth Rs 75 lakh; Govt generates Rs 6500 Crore revenue from spectrum allocation; External Affairs Minister wins income tax case (look for detailed coverage tomorrow); |
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| Dear Member, Sending the following files: |
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PROMOTION CBDT NOTFICATION No. 011_2008.pdf 191 ACITs promoted as DCITs; CBDT NOTFICATION No. 010_2008.pdf 55 ACITs confirmed in pay scale of Rs 8000-275-13500; CASE LAWS 2008-TIOL-233-HC-UTTARANCHAL-IT.pdf + dtaa story.pdf CIT, Dehradun Vs Arthusa Offshore Company (Dated : March 31, 2008) Income Tax - Indo-USA Tax Treaty - AY 1994-95 - Assessee offers income to tax at the rate of 60% - AO insists on inclusion of surcharge - Assessee argues the word ''tax'' in Clause (2) of Article 14 in the DTAA does not include 'surcharge' - CIT(A) and Tribunal disagree with the AO - Clause 1 (b) of Article 2 of DTAA clearly provides for surcharge payable by the foreign companies and the Clause 2 of Article 2 further provides that the Agreement would be applicable to substantially similar taxes in place of the ''existing taxes'' and the expression "existing taxes" undoubtedly refers to the rate of tax applicable in the AY 1990-91, when the Agreement was executed between the two countries - Revenue's appeal allowed : UTTARAKHAND HIGH COURT ; CIT, Ludhiana Vs Shri Gurnam Singh (Dated : April 1, 2008) Income Tax - Assessee is an agriculturist - Revenue conducts a search agaisnt a property dealer and seizes an agreement to sale lands - Seized documents reveal an advance payment made to the assessee - Proceeding u/s 158BD initiated for non-payment of capital gains tax assessee claims deduction u/s 54B in respect of agricultural land purchased by him along with his son - AO disallows on the ground that the purchase should be in the name of assessee and not in the name of any other person CIT(A) sets aside AO order - Tribunal dismisses Revenue's appeal on the ground that the earlier land sold, also belonged to the assessee and the sale proceeds were also used for purchasing agricultural land and also found that capital gains/sale proceeds were not misused for any other purposes contrary to the provisions of law - It is not the case of the revenue that the said land is being used exclusively by his son - a pure finding of fact - Revenue's appeal dismissed. : P & H HIGH COURT ; Society for Promotion of Education Adventure Sports & Conservation of Environment Vs CIT (Dated : April 3, 2008) Income Tax - Assessee is a society and runs a school - Since it was exempted u/s 10(22) upto the AY 1998-99 it sought no separate registration u/s 12A in order to avail exemption u/s 11 - Sec 10(22) omitted by Finance Act, 1998 - Application for condonation of delay and grant of exemption with retrospective effect - Revenue takes no decision for five years - non-consideration of the application for registration within the time fixed by section 12AA(2) would amount to deemed grant of registration - Assessee's appeal allowed : ALLAHABAD HIGH COURT ; The New Friends Cooperative House Building Society Ltd Vs CIT, Faridabad (Dated : April 10, 2008) Income Tax - Assessee is a cooperative society - its land is compulsorily acquired by the State - Assessee receives enhanced compensation plus interest - AO for taxing entire sum in the AY 2001-02 - CIT(A) allows assessee's appeal - Tribunal holds the enhanced compensation is taxable in the year of receipt but interest on accrual basis from year to year and only after it is finally determined as per the Special Bench order ( 2006-TIOL-223-ITAT-DEL-SB ) - No infirmity in the Tribunal's order - Assessee's appeal allowed : P & H HIGH COURT ; |
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M/s Kalpesh Founders & Engineers Vs CCE, Ahmedabad (Dated : February 28, 2008) Goods manufactured by appellant cleared without payment of duty under the sale bills of another unit - Such other unit having no facility to manufacture the declared goods - Also statement admitting this fact not retracted - The other unit admittedly not functioning for the last two years - Sale bills of such other unit recovered from the premises of the appellant - Leads to inevitable conclusion that the goods in question were being manufactured by the appellant and were being cleared under the sale bills of the other unit : MUMBAI CESTAT; CCE, Mysore Vs M/s Habib Refined Oils Pvt Ltd (Dated : December 12, 2008) Central Excise cenvat credit payment of 10% amount under rule 6(3)(b) of the Cenvat Credit rules appellant reversed the entire credit taken on the input used demand of 10% is not sustainable - no infirmity in the order of the Commissioner (Appeals). Hexane was used as the solvent for extracting vegetable oil in pure form from crude oil in the Solvent Extraction Plant. One cannot say as to how much quantity of Hexane was used for manufacturing refined vegetable oil and how much quantity used for manufacturing the by-product. In other words, maintenance of separate accounts with reference to dutiable and exempted products becomes impossible. Rule 6(3) would come into play only where a manufacturer of dutiable and exempted final products is capable of maintaining separate accounts in respect of common inputs used in the manufacture of such products but has not maintained such accounts. Here is a case where the manufacturer (respondents) was not capable of maintaining separate accounts in respect of Hexane. Hence Rule 6(3) does not get attracted as held by the lower appellate authority. : MUMBAI CESTAT; CCE, Pune I Vs M/s SKF India Ltd (Dated : January 3, 2008) Central Excise interest no interest is payable on the differential duty paid on supplementary invoices. : MUMBAI CESTAT;
SERVICE TAX SECTION 2007-TIOL-04-ARA-ST.pdf + ara story.pdf M/s Harekrishna Developers (Dated : April 7, 2008) Service Tax- Construction - The questions would be:- 1. Is the applicant liable to pay Service Tax under ( zzzza ) for the residential units to be built by him? - YES 2. If the answer to the first question is yes, can he deduct the value of goods sold, while paying Service Tax @ 2% under the composition scheme? NO 3. Is the applicant liable to pay Service Tax on the contract to build houses which is sub contracted? - YES 4. Is the applicant liable to pay the tax even when the sub contractors would have discharged the tax liability? - YES : ADVANCE RULINGS ; CCE, Chandigarh Vs M/s Auro Spinning Mills (Dated : March 7, 2008) ST - GTA Service - Revenue disallows payment of service tax from cenvat account - Issue is no longer res integra - Revenue's appeal dismissed : DELHI CESTAT; CCE, Ludhiana Vs M/s Bhandari Hosiery Exports Ltd (Dated : February 19, 2008) ST - Service Recipient - Assessee is an exporter and avails services of overseas commission agent - Revenue deamands tax for period 2004 to 2006 - No tax payable as the charging Section 66A was inserted in the Act only from 2006 : DELHI CESTAT;
CUSTOMS SECTION NOTIFICATION Govt extends anti-dumping duty on steel & fibre glass tapes upto October, 2008; CAS LAWS 2008-TIOL-78-SC-CUS.pdf + sc cus story.pdf Aban Loyd Chiles Offshore Ltd Vs UOI (Dated : April 11, 2008) Customs imported stores for rigs in EEZ - Whether oil rigs engaged in operations in the exclusive economic zone/ continental shelf of India, falling outside the territorial waters of India, are foreign going vessels as defined by Section 2(21) of the Customs Act, 1962, and are entitled to consume imported stores thereon without payment of customs duty in terms of Section 87 of the Customs Act, 1962. Applicability of Section 86 read with Section 87 depends upon the answer to the question: Whether the oil rig operating in the designated area is a foreign going vessel? The entire issue centers around the interpretation of Section 2(21) of the Customs Act, which defines the foreign going vessel to mean any vessel engaged in the carriage of goods or passengers between any port in India and any port outside India whether adjoining any intermediate port or airport in India or not and it amongst others also includes vessel engaged in fishing or any other operations outside territorial waters of India, or, any vessel proceeding to a place outside India for any purpose whatsoever. A combined reading of Sections 3, 6 and 7 of the Maritime Zones Act, 1976 shows that territorial waters, the seabed and subsoil underlying therein and the air space over such territorial waters form part of the territory of India . Sovereignty of India extends over the territorial waters but the position is different in the case of continental shelf and exclusive economic zone of India. The continental shelf of India comprises of the seabed beyond the territorial waters to a distance of 200 nautical miles. The exclusive economic zone represents the sea or waters over that continental shelf. Appellants may be carrying on its operation outside the territorial waters, as understood under Section 3 of the Maritime Zones Act, 1976. Nevertheless, for all purposes, it is within the limit where the coastal State has a sovereign right or power to enact or extend any law, and the advantage to a foreign going vessel will not be available under Sections 86 and 87 of the Customs Act to such vessels. : SUPREME COURT ; M/s M D Sadrani Vs CC(General), Mumbai (Dated : February 29, 2008) Malpractices adopted by CHA enabled two exporters to defraud the Government exchequer cumulatively to the tune of Rs 3.84 crores by way of flagrant evasion of Customs duty Article of charges proved - Order of Commissioner revoking Licence & forfeiting of security deposit proper Appeal rejected. : MUMBAI CESTAT; |
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What is intelligence? Ask DGCEI or DRI; Has Foreign Trade Policy lost its glamorous lure? RBI Notification for Maintenance Of CRR.pdf RBI notifies two-stage hike in CRR for commercial banks; JS-level post with IMF; FM approves 13 FDI proposals worth Rs 657 Cr; Key proposals include Zoom Entertainment + Goldman Sachs and Toyoda Gosei projects; GDP growth rate to be about 8.1% in current fiscal : Crisil Pharma Advisory Forum to meet tomorrow in New Delhi Defence procurement : MoF puts framework in place but not even one agent comes up for registration Any guess how many players are there in telephony services? |
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