Power of a "semi-colon" & an "or" in Section 73 of the Finance Act, 1994 (See 'DDT')

Cabinet approves detailed contours of farm loan waiver scheme for immediate implementation ( See' Common Basket')

FM to address annual jamborees of Chief Commissioners; CBDT to host it on June 9-10 + CBEC to do it on coming Thursday & Friday;

Scheme to defray internal transport and freight charges for exports of sugar: Govt denies news related to withdrawal;

ITAT Member bribery case: CBI takes 15 days remand;

Chennai Airport Customs seizes 2 kg heroin from pax heading for Malaysia;

Black money database: FM says India has accepted German offer;

Kamal Nath objects to new WTO texts;

cbdt_release.pdf

PAN-caused decline in FIIs' investments: CBDT rebuts charges;

CASE LAWS

2008-TIOL-118-SC-IT.pdf

CIT Vs M/s Divine Leasing & Finance Ltd (Dated: January 21, 2008 )

Income Tax - Assessee receives share application money - AO treats it as undisclosed income u/s 68, suspecting credentials of share applicants - If the Revenue believes that the shareholders are bogus, the list of names has been sumbitted by the assessee and the AO is free to re-open their individual assessment as per law - Revenue's appeal dismissed : SUPREME COURT ;

2008-TIOL-281-HC-P-H-IT.pdf

CIT (TDS), Chandigarh Vs M/s United Rice Land Limited ( Dated: May 12, 2008 )

Income Tax-Assessee is into export of rice - engages transporters / truckers for transporting goods to port of export-no contract with any transporter and never hires the same trucker twice- payment made to them does not exceed Rs 20,000-AO holds the assessee in default for short deduction of TDS -Since it has been recorded by the CIT(A) and the Tribunal that the assessee did not have either oral or written contract with any transporter and never paid more than Rs 20,000 to any trucker,it was not liable to deduct tax at source - Revenue's appeal dismissed:P & H HIGH COURT ;

2008-TIOL-195-ITAT-MUM.pdf + star story.pdf

M/s Star India Pvt Ltd Vs ACIT (Dated: April 16, 2008 )

Deduction u/s. 80HHF : the profits derived from the business as referred to in sub-section (1) would be such profits as are computed in accordance with the provisions of sub-section (3) read with Explanation (f) thereof. For this purpose, the profits of the entire business would be taken into consideration. C onsequently, it is held that the Assessing Officer was not justified in denying the claim on the ground that there was loss in the business of export television's software on the basis of segmented Profit & Loss A/c.

whether 90% receipts relating to subscription received from cable operators as well as commission could be excluded from the profits of the business as computed under the head 'Profits and Gains from Business or Profession' by virtue of Explanation (baa). “It is pertinent to note that legislature referred to element of turnover and not export turnover. Therefore, considering the above circular which is binding on the tax authorities, any income arising from an activity involving turnover cannot be excluded from the profits of business in terms of Explanation (baa) to section 80HH C /Explanation (f) to section 80HHF .”

Whether consideration received by the assessee by way of cable subscriptions amounts to turnover. “Therefore, what the assessee receives in our humble opinion, is the consideration on account of transfer of right to exhibition of programmes contained in such software and therefore, the same would amount to turnover.”

whether the expenditure incurred by the assessee in respect of premises taken on leave and licence basis can be allowed as deduction either u/s. 30 or u/s. 37 of the Act as contended by the assessee or should be capitalised and only depreciation should be allowed in view of section 32 r/w Explanation 1 of the Act as contended by Revenue . If the expenditure incurred by an assessee who is not the owner of the building but such building is used for the purpose of its business then the assessee would only be entitled to capitalise such expenditure and consequently entitled to depreciation as per rules disallowance of Rs.2 ,99,64,439 /- in respect of bad debts written off which has been deleted by the CIT (A).

Deduction on account of bad debts in respect of amount due from Siti C able to the tune of Rs.2,99,64,439 /-. The issue whether assessee is required to prove that the debt has become bad or not is now covered by the decision of Special Bench in the case of Oman International Bank (supra) wherein it has been held that provisions of section 36(1) (vii) would stand complied with if the amount receivable from the debtor is written off as irrecoverable in the books of accounts of the assessee. Respectfully following the same, it is held that lower authorities were not justified in disallowing the claim on the ground that assessee failed to prove that the debt had become bad. : MUMBAI ITAT;

2008-TIOL-194-ITAT-MUM.pdf

Bikrampur Investment And Trading Private Limited Vs ITO, Mumbai (Dated: March 27, 2008 )

Income Tax - Assessee earns income from rent, dividend, interest and other sources - Re-assessment u/s 147 - AO keen to treat rental income as 'Income from house property' rather than business income as claimed by the assessee - In view of settled laws, the assesee's contention rejected, and as regards the interest under sections 234B and 234D of the Act, in a case of identifical facts, the Tribunal had held that interest cannot be charged for the first time in the proceedings under section 147. : MUMBAI ITAT;

CENTRAL EXCISE SECTION

NOTIFICATION

exnt08_24.pdf + ER-2.pdf

CBEC prescribes new Form ER-2;

exnt08_23.pdf

CBEC amends Rule 17 related to payment of duty;

CASE LAWS

2008-TIOL-282-HC-AHM-CX.pdf + predeposit story.pdf

Regent Overseas Pvt Ltd Vs CCE & C, Surat-I (Dated: March 12, 2008)

Central Excise - Pre-deposit u/s 35F - Furnishing Bank Guarantee towards payment of amount under the order of pre-deposit is not to be treated as a rule : GUJARAT HIGH COURT ;

2008-TIOL-800-CESTAT-MAD.pdf

Shri E Rathinaraj Vs CCE, Thirunelveli (Dated: February 1, 2008)

Central Excise – stay / dispensation of pre-deposit – clandestine clearance of biris – no prima facie case for waiver of pre-deposit made by the appellant – pre-deposit ordered. : CHENNAI CESTAT;

2008-TIOL-799-CESTAT-BANG.pdf

M/s Gokaldas Images Private Ltd Vs CCE, Bangalore (Dated: February 18, 2008)

Central Excise – CENVAT -Interest - Credit wrongly availed but not utilized. Credit reversed immediately on being pointed out. No need to pay interest. (Para 6) : BANGALORE CESTAT;

2008-TIOL-798-CESTAT-BANG.pdf

M/s United Fabricators Vs CCE, Bangalore (Dated: February 7, 2008)

Central Excise – SSI exemption – Evidence on record – Appeal - Commissioner (Appeals) has not considered the enormous volume of record placed before him to prove that the appellants have not crossed the SSI exemption limit. Matter remanded to consider the evidence placed on record. (Para 3) : BANGALORE CESTAT;

2008-TIOL-797-CESTAT-MAD.pdf

Madura Coats Ltd Vs CCE, Madurai (Dated: February 26, 2008)

Central Excise – classification of Leno Fabrics - Cotton Leno/Filter Fabrics have been classified under Chapter 52 of the Tariff Schedule irrespective of the purpose for which the buyer might use the goods - classification under Heading 59.11 stands ruled out. : CHENNAI CESTAT;

SERVICE TAX SECTION

2008-TIOL-795-CESTAT-DEL.pdf

M/s Macawber Beekay Pvt Ltd Vs CCE, Ludhiana (Dated: April 22, 2008)

ST - Transport of goods by pipeline - Assessee removes flay ash from thermal plant to cement plant by pipeline - Revenue levies tax with penalty - Assessee argues it does not own pipeline nor pays rental - only maintains the plant - prima facie, the service is covered under transport of goods by pipeline and also eligible for cum-tax benefits - Stay granted and pre-deposit waived : DELHI CESTAT;

2008-TIOL-794-CESTAT-BANG.pdf

M/s. Prakash Air Fright (P) Ltd Vs CST, Bangalore (Dated: January 4, 2008 )

Service tax – courier agency - Stay/dispensation of pre-deposit – in identical matter, the issue was decided by the Tribunal in favour of the appellant – stay granted. : BANGALORE CESTAT;

CUSTOMS SECTION

NOTIFICATION

ctariff08_070.pdf

CBEC notifies more ports/airports for exports / import purposes;

dgft08pn018.pdf

DGFT allows 30% of FoB value of exports of tea to DTA sales;

dgft08pn017.pdf

DGFT adds tyres of hand tools to the list of Focus Products;

CASE LAWS

2008-TIOL-283-HC-P-H-CUS.pdf + ban story.pdf

M/s Tara Feed Ltd Vs UoI (Dated: April 9, 2008)

Customs – ban on export of edible oils vide Notification vide Notification No.85(RE-2007)/2004-09 dated 17.3.2008 – the said ban does not amount to infringement of the fundamental right of carrying on free trade and business under Article 19(1)(g) of the Constitution of India.

Customs – exemption to crude oil provided vide Notification No 42/2008- Cus dated 1.4.2008 – the Bill of Entry was filed on 14.3.2008 - no benefit of the said notification which was not in existence on the date the bill of entry was filled by the petitioner can be given to him. :P & H HIGH COURT ;

2008-TIOL-280-HC-P-H-CUS.pdf

CC, Amritsar Vs M/s Raja Impex (P) Ltd ( Dated: April 23, 2008 )

Customs – confiscation and redemption fine – used colour monitors imported in contravention of para 2.33 of the Foreign Trade Policy – the respondents took clearance of imported machinery under Bill of Entry dated 04.12.2004 - The show cause notice was issued subsequently on 31.03.2005 - since the goods had been released unconditionally and were not available, the same could not be confiscated - no error in the impugned orders of the Tribunal - No substantial question of law arises for determination by the High Court. :P & H HIGH COURT ;

2008-TIOL-796-CESTAT-DEL.pdf

M/s ATM International Vs CC, Amritsar (Dated: April 4, 2008)

Penalty - Where forged DEPB licences/scrips are procured from market, the question as to whether there was collusion or fraud on the part of appellants in the issuance of the licences/scrips becomes absolutely immaterial and irrelevant since no credit can be derived from a forged DEPB licence/scrips - Fraud avoids all judicial acts, ecclesiastical or temporal - Once the finding of fraud and forgery have come on record then the order of the Adjudicating Authority cannot be set aside either by the Appellate Authority or the Tribunal on technical grounds that under Section 112 of the Act, penalty could have been imposed only on the importer or any person who abets the importer – Appeal dismissed. : DELHI CESTAT;

ddt 23 may.pdf

FICCI and CII want exemption from Service Tax;

edit.pdf

Transfer season in Revenue Boards – you may end up in Timbuktu, if you don't know the spelling of Czechoslovakia!

farm story.pdf

Cabinet approves detailed contours of farm loan waiver scheme for immediate implementation;

Appointments ACC.pdf

ACC approves minor reshuffle in important appointments;

RBI Notifi For Money Laundering.pdf

Prevention of Money Laundering Act, 2002 – Obligation of banks in terms of Rules notified there under ;

RBI Notification For Non SLR Securities.pdf

Valuation of Non-SLR securities issued by the Government of India ;

mbuzz635.pdf

Sea level rising by 2.5 mm a year along Indian coastline;

mbuzz634.pdf

Govt approves four more Tiger Reserves & one Park;

mbuzz633.pdf

Compliance with norms for prevention of money laundering: RBI takes serious note of careless attitude by banks ;