Interpretation of a notification and two High Court orders (See 'DDT')

RBI makes it easy for Nepalese citizens to send home remittance (See 'DDT')

FM okays 18 FDI proposals worth Rs 1820 Cr (Common Basket)

Inflation trend takes another jump to 7.83% - highest in 44 months;

Import duty cut on crude: FM simply rules it out;

2008-TIOL-108-SC-IT.pdf + sc it story.pdf

CIT, Gujarat Vs Gupta Global Exim (P) Ltd (Dated: May 6, 2008)

Income Tax - Depreciation u/s 32 - Assessee imports timber and sells the same in the market - claims 40% depreciation on trailers and loaders - AO disallows on the ground that the assessee was not into the business of giving lorries on hire - CIT(A) goes by the business income declared from the hiring business and allows the assessee's appeal - Tribunal & High Court both allow the CIT(A) order - Normally, concurrent findings of the lower authories need not be disturbed but in this case a vital issue was ignored that what would decide the entitlement to higher depreciation to the assessee is not the income from the lorry-hiring business but the fact that whether giving lorries on hire was a regular business of the assessee or not? - Matter remanded to the CIT(A) for fresh examination - Revenue's appeal allowed : SUPREME COURT;

2008-TIOL-107-SC-IT.pdf + SC hhc story.pdf

B Desraj Vs CIT, Salem (Dated: May 1, 2008)

Income Tax - business profits under Sec 80 HHC(3) would include Cash Compensaatory Duty Drawback: By Finance Act, 1990, the Parliament had clarified that Cash Compensatory Support and Duty Drawback shall be taxable under Section 28 of the Income Tax Act, 1961. By the said Finance Act, 1990, clause ( iiib ) came to be inserted as one of the incomes chargeable to income tax under the head business profits vide Section 28. Clause (iiib) covers cash assistance (by whatever name called) `received or receivable' by any person against exports under any scheme of the Government of India. At the relevant time an issue arose as to whether cash assistance though includible in business profits under Section 28(iiib) would or would not constitute eligible income for the purposes of deduction under Section 80HHC. Since there was some doubt, CBDT had issued a Circular. Bu the said Circular, CBDt clarified that export incentives, namely, cash compensatory support and Duty Drawback have to be included in the profits of the business for computing the deduction u/s 80HHC : SUPREME COURT;

2008-TIOL-187-ITAT-DEL.pdf

JCIT, Delhi Vs M/s Khanna & Anndhanam (Dated: January 18, 2008)

Income Tax - Assessee is a firm of Chartered Accountants - receives substantial sum in its capital account - same declared as capital receipt - AO treats it as revenue receipt - CIT(A) goes with the assessee - Since the amount received has arisen during the course of carrying on profession, it is chargetable to tax as revenue receipt and AO's order restored - Revenue's appeal allowed :DELHI ITAT ;

2008-TIOL-186-ITAT-DEL.pdf

M/s Samtel Color Ltd Vs ACIT, New Delhi (Dated: December 31, 2007)

Income Tax - Provision for warranty - Assessee makes provision for warranty and deducts the actual expenditure incurred during the FY from the provision and claims deducton for the same - AO holds since it is contingent liability it is not allowable - CIT(A) agrees with the AO - Since this issue has been decided in favour of the assessee in many other cases and the jurisdiction HC in the case of M/s Vinitc Corporation has also allowed the deduction on account of provision for warranty, Revenue has no case - Appeal dismissed

Deduction for loss on account of fluctuation in foreign exchange rate - AO considers it notional loss - Since the CIT(A) has found that a loan was taken to be used as working capital for business, it is revenue expenditure - Deduction allowable :DELHI ITAT ;

CENTRAL EXCISE SECTION

CIRCULAR

excircular869.pdf

Procedure relating to sanction and post-audit of refund/rebate claims-reg.;

CASE LAWS

2008-TIOL-272-HC-MUM-CX.pdf

Raymond Ltd Vs Union of India (Dated : May 6, 2008)

Assessee apprehensive of arrest by Central Excise - Armed Guards waiting at his residence to take him into custody - arrest stayed - Rs 16 Crores pre-deposit ordered : BOMBAY HIGH COURT;

2008-TIOL-271-HC-MUM-CX.pdf

Raymond Ltd Vs Union of India (Dated : April 9, 2008)

Assessee states that Armed Guards are waiting at his residence to take him into custody – arrest stayed : BOMBAY HIGH COURT;

2008-TIOL-759-CESTAT-DEL.pdf + rom story.pdf

M/s Saluja Engg Works Vs CCE, Jamshedpur (Dated : April 3, 2008)

Tribunal's power of rectifying any mistake cannot be used as a tool by a disgruntled unsuccessful party to prolong the proceeding - ROM application rejected by Tribunal :DELHI CESTAT;

2008-TIOL-758-CESTAT-MUM.pdf

Deco Tubes Vs CC & CE, Thane-II (Dated : January 28, 2008)

Till the SC decision in Rukmani Pakkwell, various decisions of Tribunal held that the brand name, if it is similar to the brand name of some other person but used on different products, the eligibility of SSI Notification was never in doubt – appellant under bonafide belief that they are true owners of brand name “Gprecision” & entitled to the SSI exemption – extended period not invokable – Appeal allowed with consequential relief. : MUMBAI CESTAT;

2008-TIOL-756-CESTAT-MUM.pdf

M/s Kaprecon Sleeper Works Pvt Ltd Vs CCE, Nagpur (Dated : March 14, 2008)

As the appellants have paid the duty even before finalization of the provisional assessment, demand of interest is not sustainable in law – Issue no longer res integra in view of Tribunal decision in Hindustan Insecticides Ltd : MUMBAI CESTAT;

SERVICE TAX SECTION

2008-TIOL-754-CESTAT-DEL.pdf

M/s Punjab Venture Capital Ltd Vs CCE, Chandigarh (Dated: February 27, 2008)

ST - Management Consultancy - Assessee is a venture capital company - Revenue alleges the assessee provides inputs to management for proper running of business in systematic manner - Prima facie, the assessee has a strong case - Stay granted : DELHI CESTAT;

2008-TIOL-753-CESTAT-DEL.pdf

M/s Unibild Engineering & Construction Co Pvt Ltd Vs CST, New Delhi (Dated: April 3, 2008)

ST - Commercial & Industrial Construction Service - Assessee gets cement and steel from service recipient and provides the service - Commissioner includes the value of goods provided by the service recipient and then extends benefits of Notification 18/2005 before confirming demand and imposing penalty - Since the tax was deposited before issuance of SCN, it is a fit case for waiver of interest and penalty for finaly disposal of the case : DELHI CESTAT;

CUSTOMS SECTION

NOTIFICATION

cnt08_044.pdf

Tariff Value of Brass scrap increased;

ctariff08_069.pdf

Provisional anti dumping duty imposed on Polyester yarn from Indonesia, Korea, Malaysia and Taipei ;

ctariff08_068.pdf

Anti Dumping duty on Polyester yarn - Notification No. 15/2007 amended;

dgft08not011.pdf + dgft08not010.pdf + dgft08not009.pdf

Export of certain quantity of pulses, edible oil & non-basmati rice to Bhutan exempted from ban

dgft08pn016.pdf

DGFT amends Electronic Fund Transfer fee for DEPB;

dgft08pn015.pdf

M/s. Moody ICL Certifications Ltd., an agency notified at Sl. No.A.17 of Appendix 6, Handbook of Procedures Vol.I, is no longer under suspension;

CASE LAWS

2008-TIOL-757-CESTAT-MUM.pdf

Shri Rajesh Sacheti Vs CC, Mumbai (Dated : March 10, 2008)

Since the diamonds that were confiscated absolutely in the year 1997 were valued approx Rs.55 lakhs but are now valued at approximately Rs.2 crores, out of turn hearing justified. : MUMBAICESTAT;

2008-TIOL-755-CESTAT-BANG.pdf

Shri Abdul Rehman Vs CC, Hyderabad (Dated : January 30, 2008)

Charge of smuggling of gold not proved against the appellants – return of the seized foreign currency and the gold by Trial Court – Waiver of predeposit of penalty and stay of recovery of penalty : BANGALORE CESTAT;

ddt16 may.pdf + nepal.pdf

Trade associations are liable for service tax under Clubs and Association Services ;

icecube16 may.pdf

Pesticides reforms can facilitate quantum jump in farm yields ;

cbi itat story.pdf

CBI gets five-day remand of arrested ITAT Member & CA; recovers 14 computer discs; suspects involvement in many other similar cases;

mbuzz614.pdf

FM gives nod to 18 FDI proposals worth Rs 1820 Cr;

mbuzz613.pdf

WB sanctions USD 600 mn for Sarva Shiksha Abhiyan in India;