Income Tax Commissioner Ajay Mankotia joins NDTV (See 'DDT')

Crude prices falling; Pressure on Govt to cut petro prices; Deora rules out immediate reduction;

SEBI notifies amendments to equity listing agreement;

Contract hatching of eggs would not fall in any of the taxable service – Board clarifies (See 'DDT')

India, Colombia ink MoU in hydrocarbon sector;

Politicians need to fathom importance of education, says Prime Minister;

ddt 5 Sept.pdf + cbec clarification.pdf

Contract hatching of eggs would not fall in any of the taxable service – Board clarifies;

planning commission.pdf

Planning Commission looking for Advisers.;

rbi08cir014.pdf

RBI further liberalises overseas investment; submission of share certificate to RBI done away with;

SEBI Amendmentslisting.pdf

SEBI notifies amendments to equity listing agreement;

mbuzz942.pdf

India, Colombia ink MoU in hydrocarbon sector;

mbuzz941.pdf

CERC issues SCN to Rajasthan State Load Despatch Centre for denying facility to GFL;

mbuzz940.pdf

Meet to discuss key health issues of South Asian Region on Monday;

mbuzz939.pdf

Over 650 tax officials from 103 countries to celebrate 50th anniversary of OECD's Model Tax Convention;

2008-TIOL-164-SC-IT.pdf

CIT, Chennai Vs M/s Modern Engineers Construction Cooperative Society Ltd (Dated: September 4, 2008)

Income Tax - Deduction u/s 80P(2)(a)(i) - AO disallows on the ground that the income cannot be attributed to actual labour of the members nor to their collective labour - CIT(A), Tribunal and HC set aside the order - Held, since HC mixed up the factual premises as if the issue related to interest received from Members, matter remanded for fresh consideration:SUPREME COURT;

2008-TIOL-403-ITAT-MUM.pdf + ship story.pdf

DDIT, Mumbai Vs M/s Balaji Shipping (UK) Ltd ( Dated : August 13, 2008 )

Income Tax - Indo-U.K. Treaty - freight income earned on transportation of cargo in the international traffic by ships operated by other enterprises under slot chartering arrangement would be taxable only in the state of residence and not under the Indian Income-tax Law. Accordingly it is held that the freight income earned by the assessee on account of transportation of cargo in the international traffic by ships operated by other enterprises under slot chartering arrangement would be taxable only in the state of residence and consequently, such income would be exempt from taxation under the Indian Income-tax Law.

Interpretation of tax treaties: rule of interpretation for interpreting a statute are not applicable for interpreting the covenants of tax treaties between the contracting states; the words or expression used in the treaties, if not defined in the treaties itself, should be understood in the sense in which the contracting states understood at the time the treaty was executed i.e. contemporeous thinking; and contemporeous thinking can be gathered from the provisions of domestic laws of the contracting states and in the absence thereof from the various commentaries available at the time of such contract.: MUMBAI ITAT;

2008-TIOL-402-ITAT-MUM.pdf

M/s Kopran Ltd Vs ACIT, Mumbai ( Dated : July 11, 2008 )

Income Tax - Assessee transfers shares among Group Concerns as per SEBI guidelines - records duly maintained by the assessee as well as the buyers - long term capital loss - assessee claims set off of loss against long-term capital gains made out of sale of brand - AO disallows capital loss and imposes penalty u/s 271(1)(c) - Meanwhile, search is conducted and AO makes additions on protective basis - Held, it is wrong to conclude that the whole object and purpose of share transfer was only to generate losses, so that it could offset against the capital gains which it derived on the sale of the brand. No agreement on the point that these are not genuine transactions having regard to the attendant circumstances and paper book.Tthe disallowance of loss and also the penalty levied in respect of the disputed additions deleted. Assessee Appeal allowed. : MUMBAI ITAT;

2008-TIOL-401-ITAT-DEL.pdf

G4S Security Services (India) Pvt Ltd Vs DCIT, New Delhi ( Dated : March 31, 2008 )

Construction of a building in leased premises – deduction entitled as Revenue Expenditure: - it thus becomes clear that expenditure on construction of building, whose ownership did not vest in the assessee, but in the lessor and which has been constructed not for the purpose of acquisition of a capital asset but with the purpose of running a business more profitably and is in substitution of a revenue expenditure, is to be allowed as a deduction under section 37(1) of the Act while computing the total income of the assessee. It is a trite law that the entries in the account books are not determinative of the taxability of an amount. What is of relevance to determine the taxability is the applicable legal position and not the entries in the account books. : DELHI ITAT;

2008-TIOL-400-ITAT-DEL.pdf

M/s BHEL-GE Gas Turbine Services Pvt Ltd Vs JCIT, New Delhi ( Dated : March 09, 2008 )

Income Tax - Deduction for royalty payment - AO disallows on the ground that the claim was only a provision and no details regarding deduction of tax were available - Assessee submits papers before CIT(A) that TDS was deducted and it satisfies one of the conditions of Sec 40(a)(i) - CIT(A) does not accpet that the claim had to be allowed because the tax was deducted during the previous year. In his opinion, the provisions of section 40(a)(i) should be read with Rule 30 and as the payment had not been made by 31.5.1998, as required by Rule 30, the claim could not be allowed and confirms the order of AO - Held, the assessee case is squarely covered by the decisions of the tribunal in case of Minda (HUF) Ltd. and Modi Olivetti Ltd. and the claim is also allowable as the assessee deducted TDS but deposited the same in the succeeding year- Claim is also allowable under Article 26(3) of Double Taxation Avoidance Agreement between India and USA. The order of CIT(A) therefore, cannot be sustained and the same is set aside and the claim of the assessee  allowed. Appeal of the assessee allowed.: DELHI ITAT;

CENTRAL EXCISE SECTION

2008-TIOL-165-SC-CX.pdf + camlin story.pdf

Camlin Ltd Vs CCE, Mumbai (Dated: September 3, 2008)

Central Excise – Classification: Marker ink is also writing ink: the marker inks would fall under CSH 3215.10 as the same are used in marker pens which are exempt from the payment of excise duty.

Reliance on HSN : it is settled law that when the entries in the HSN and the said Tariff are not aligned, reliance cannot be placed upon HSN for the purpose of classification of goods under the said Tariff. :SUPREME COURT;

2008-TIOL-1447-CESTAT-MAD.pdf

M/s Mahaveer Surfactants (P) Ltd Vs CCE, Pondicherry (Dated: July 8, 2008)

Central Excise – CENVAT Credit – Credit is allowed on the duty leviable and “paid” on the inputs – credit cannot be restricted on the ground that there is subsequent reduction in the assessable value of the inputs supplied. :CHENNAI CESTAT;

2008-TIOL-1446-CESTAT-MAD.pdf

M/s Arjay Apparel Industries Ltd Vs CCE, Coimbatore (Dated: July 4, 2008)

Central Excise – default in payment of duty under Rule 8(3) of the Central Excise duty – as there is no prohibition in the assessee paying the short paid/unpaid/defaulted amount using the CENVAT credit, payment of interest is also not required. :CHENNAI CESTAT;

2008-TIOL-1445-CESTAT-BANG.pdf

M/s Trishul Arecanut Granules Pvt Ltd Vs CCE, Bangalore (Dated: May 21, 2008)

Central Excise - Clandestine manufacture and removal of Gutkha – Evidence on record for unaccounted purchase of raw materials and diesel used for power generation – Admission of guilt by MD – Prima facie case in favour of Revenue – Pre-deposit of Rs/Crore ordered and stay granted subject to compliance of pre-deposit : BANGALORE CESTAT;

SERVICE TAX SECTION

2008-TIOL-1451-CESTAT-AHM.pdf + del credre story.pdf

M/s Ganpati Petrochemicals Vs CCE, Vapi (Dated: June 25, 2008)

Service tax - Del-credre agency service is not taxable as Clearing and Forwarding Agent Service - the judgments cited by them to be relevant and applicable to facts of this case.: AHMEDABAD CESTAT;

2008-TIOL-1450-CESTAT-DEL.pdf

M/s Jindal Steel & Power Ltd Vs CCE, Raipur (Dated: April 22, 2008)

Service tax – Taxable services received from outside India – Service tax paid by the recipient available as credit even before rendering taxable output service and can be utilized for payment of service tax on output services – No time limit prescribed for availing CENVAT credit :DELHI CESTAT;

2008-TIOL-1449-CESTAT-BANG.pdf

M/s Bharat Sanchar Nigam Ltd Vs CCE, Thiruvananthapuram (Dated: May 30, 2008)

Service tax - Interconnection usage service is provided by one telegraph authority to another – Service is not provided to any subscriber – Law Ministry/AG opined that it is not a taxable service – Board's clarification dated March 12, 2007 relied : BANGALORE CESTAT;

CUSTOMS SECTION

NOTIFICATION

ctariff08_102.pdf

Anti-dumping duty on hydrogen peroxide imposed on import from China, EU, Korea and Indonesia;

dgft08cir030.pdf

Issue of IEC to proprietorship firms: DGFT clarifies jurisdiction of RA;

CASE LAWS

2008-TIOL-1448-CESTAT-MAD.pdf

M/s Apcom Computers Ltd Vs CC, Chennai (Dated: April 25, 2008)

Customs – claim of refund on the ground of short shipment of goods – claim after clearing the imported consignment under ‘out-of-customs charge' order of the proper officer under Section 47 of the Customs Act on payment of duty on the declared quantity and value cannot be sustained without valid challenge to the assessment.

Recovery of erroneous refund - The original authority sanctioned the refund and the appellate authority found it to be an erroneous refund. But the money remains with the Revenue. Hence there is no question of recovery proceedings under Section 28. : CHENNAI CESTAT;