Money Laundering – RBI's Indicative List of Suspicious Activities (See 'DDT')

ACC gives addl charge of Secretary (I&B) to Secretary (Civil Aviation) + approves repatriation of Secy, National Commission for SCs to parent cadre (See 'Common Basket')

Hyderabad DGCEI detects massive cenvat credit fraud by copper units (See 'Common Basket')

Laloo is latest to support nuclear deal;

No hope for any transfer order of IRS officers this week;

FM says India's engagement with ADB has grown from USD 400 mn to USD 1620 mn;

ddt 19 june.pdf

Officers of DG, Audit to be Central Excise officers – Why?

How are they authorised to visit HOs of assessees?

cobweb.pdf

Seoul Declaration - Roadmap for Future of Internet Economy; India needs to do copious catching-up!

ACC Appointments.pdf

ACC gives addl charge of Secretary (I&B) to Secretary (Civil Aviation) + approves repatriation of Secy, National Commission for SCs to parent cadre;

RBI Notification For Money Laundering Act.pdf

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

task force story.pdf

Justice Rao Committee on Judicial Impact Assessment asks Union Govt to set up more courts;

mbuzz725.pdf

Hyderabad DGCEI detects massive cenvat credit fraud by copper units ;

mbuzz724.pdf

Dilip Kumar, Lata Mangeshkar, and Saroja Devi to be conferred life time achievement awards ;

mbuzz723.pdf

Incredible India Website Wins PC World Awards ;

mbuzz722.pdf

National Integrated Directory Enquiry Service: TRAI proposes Rs 1 Cr entry fee;

mbuzz721.pdf

China puts new IP policy in place;

ORDER

cbdtorder080_2008.pdf

CBDT issues minor transfer order of 28 ACIT/DCITs;

CASE LAWS

2008-TIOL-259-ITAT-KOL.pdf + zammer story.pdf

ACIT, Kolkata Vs Zimmer AG( Dated : December 19, 2007 )

Income Tax - DTAA with Germany - Assessee is a non-resident company - enters into contract with Indian company for supply of equipment, designs & drawings and technical assistance for setting up petrochemical plant - AO treats the payment made for supply of technical knowhow as royalty - CIT(A) disagrees with the AO - Since the payments were made for outright purchase of technical knowhow tailored to suit the specific plant of the assessee and the same were made outside India and the drawings & designs formally imported through the Customs, it is to be treated as 'intangible asset' eligible for depreciation u/s 32 and such payment cannot qualify as royalty either u/s 9(1)(vi) or under Article 12 of DTAA - Revenue's appeal dismissed :KOLKATA ITAT;

2008-TIOL-258-ITAT-DEL.pdf

Dalmia (Bros) Pvt Ltd Vs ACIT, New Delhi ( Dated : April 30, 2008 )

Interest on Borrowed Capital - AO made disallowance for the reasons that the funds received from the professional receipts had been invested by the assessee company in the form of current assets, loans and advances and sundry debtors therefore if the assessee had made concrete efforts to recover these outstandings it could have utilized those funds to meet out its working expenses and in such an event the assessee need not borrow monies and pay interest thereon. – Held, The assessee has given the detail of utilization of loan for the purposes of business and that the revenue was obliged to establish a nexus that borrowings were utilized for non-business purposes which it failed to do, disallowance held unsustainable.

Bad Debts - Assessee sold shares for a total sum of Rs.45,27,250 income from sale was shown under the head 'business' in the A.Y. 1995-96. Out of the sale consideration Rs. 35 lacs were recovered in the period relevant to A.Y. 1996-97 the balance amount could not be recovered and was written off as bad debt. AO disallowed the claim observing that only profit on sale of these investments was shown and it was not assessee's business to carry sale and purchase of shares – Held, the income was shown under the head 'business' and from evidences filed it is clear that shares were not held as investment, conditions of section 36(1)(vii) were also satisfied. Claim for bad debts held allowable.

Section 41(1) - Section 41(1) held to be applicable only when a trading liability, business loss or business expenses was earlier allowed to the assessee. :DELHI ITAT;

2008-TIOL-257-ITAT-HYD.pdf

DCIT, Tirupati Vs M/s Spartek Ceramics India Ltd ( Dated : March 24, 2008 )

Excise Duty on closing stock: Excise duty does not become cost till the said duty is leviable on such production. Since excise duty is leviable only on removal of goods, mere prospect of liability cannot be converted into an asset in the manner expected by the Assessing Officer. :HYDERABAD ITAT;

2008-TIOL-256-ITAT-HYD.pdf

Planet Online Pvt Ltd, Secunderabad Vs DCIT, Hyderabad ( Dated : March 7, 2008 )

Internet bandwidth was mainly utilized for the purpose of developing software – 5 percent of total expenditure attributable to delivery of the software the Tribunal had given a clear finding that the internet bandwidth was mainly utilized for the purpose of developing the software. So far as the delivery of the software is concerned, the Tribunal accepted the assessee's claim that five percent of the total expenses could be attributable to the delivery of the software. Respectfully following the above order of the Tribunal, it is directed that only 5 percent of the total expenditure incurred by the assessee in respect of internet bandwidth charges may be disallowed. The balance amount is allowed. :HYDERABAD ITAT;

CENTRAL EXCISE SECTION

CIRCULAR

excircular872.pdf

Appointment of officers of Directorate General of Audit as Central Excise Officers;

CASE LAWS

2008-TIOL-958-CESTAT-MUM.pdf + Lime Chemicals CE story.pdf

M/s Lime Chemicals Ltd Vs CCE, Belapur (Dated: December 12, 2007)

Dical-S and Dical-C sold to upcountry buyers @Rs.9500/- P.M.T but to customers in Ulhasnagar sold as Dical-S2 and Dical-C2 @Rs.5000/- PMT – Different prices can be charged to different class of buyers - No case of undervaluation : MUMBAI CESTAT;

2008-TIOL-957-CESTAT-MAD.pdf

M/s Lucas Tvs Ltd Vs CCE, Chennai (Dated : April 4, 2008)

Central Excise – Stay / dispensation of pre-deposit - interest on differential duty paid on supplementary invoices – identical issue stands referred to the Larger Bench – waiver of pre-deposit granted. : CHENNAI CESTAT;

2008-TIOL-956-CESTAT-MAD.pdf

M/s Hindustan Unilever Ltd Vs CCE, Chennai (Dated : March 25, 2008)

Central Excise – classification – Ponds Moisturising Face Wash is correctly classifiable under CSH 3402.90 as claimed by the appellants and not under CHS 3304 as contended by the revenue – order of Commissioner (Appeals) set aside. : CHENNAI CESTAT;

2008-TIOL-955-CESTAT-BANG.pdf

M/s Hindustan Organic Chemicals Ltd Vs CCE, Cochin (Dated : February 28, 2008)

Commissioner (Appeals) order confirming the duty and penalty, has not spelt out the reasons for non-application of Notification No 96/2004-CUS dt 14/9/2004 , to the facts of the case – Stay allowed : BANGALORE CESTAT;

SERVICE TAX SECTION

2008-TIOL-953-CESTAT-AHM.pdf

CCE, Bhavnagar Vs M/s Saurashtra Chemicals Ltd (Dated : May 16, 2008 )

ST - Credit taken on mobile phone - Revenue objects - Merely because the Tribunal's decision in the case of Indian Rayon ( 2006-TIOL-1152-CESTAT-MUM ) has been challenged by the Revenue, credit cannot be denied : AHMEDABAD CESTAT;

2008-TIOL-952-CESTAT-DEL.pdf

M/s Dabur India Ltd Vs CCE, Ghaziabad (Dated : May 16, 2008 )

ST - Scientific and Technical Consulting Service - Assessee argues it is covered under IPR Service - Since the issue has been referred to the Larger Bench, waiver from pre-deposit granted : DELHI CESTAT;

CUSTOMS SECTION

2008-TIOL-319-HC-DEL-COFEPOSA.pdf + cofeposa story.pdf

Narenddra Kumar Vs Union of India (Dated: May 2, 2008)

When detunus fail to extricate themselves from detention orders and possession notices under COFEPOSA and SAFEMA respectively, legal heirs do not stand any chance in retaining properties unless they have legal title to properties by themselves independent of their right by virtue of inheritance : DELHI HIGH COURT ;

2008-TIOL-954-CESTAT-MAD.pdf

Shri P Srinivasan Vs CC & CE, Trichy (Dated : March 12, 2008 )

Customs confiscation of Indian Currency obtained as sale proceeds of contraband gold from the transactions and the statements recorded and the investigations it is seen that the order of confiscation and penalties legal however, penalties reduced. : CHENNAI CESTAT;