Jamnagar chamber of Commerce and Industries seeks extension of last date for filing IT Returns (See 'DDT')

India, EU sign agreement on civil aviation;

CBDT extends last date of return-filing and obtaining tax audit report u/s 44AB to October 31, 2008 for Orissa only; No chance of extension for other places at all ;

Extension of income tax return-filing due date: Orissa likely to be beneficiary because of floods;

17 crude bombs found in Ahmedabad; Police investigating;

CBEC to hold DPC for 20 vacancies of Chief Commissioners on October 8;

Chennai Income Tax seeks applications for empanelment of advocates for ITAT, HC and other courts;

ddt 29 Sept.pdf

Customs Tariff Amendment – by Notification!

spl guest.pdf

The Sixth Pay Commission: Are people going to get value for their money?

guest column.pdf

Disallowance of expenses related to exempt income under Sec 14: Is new Rule D a blessing in disguise for taxpayers?

CBDT Press Release.pdf + order_orrisa.pdf

CBDT extends last date of return-filing and obtaining tax audit report u/s 44AB to October 31, 2008 for Orissa only; No chance of extension for other places at all ;

requirementadvocates.pdf

Requirement of Advocates for empanelment as Senior/Junior standing counsels to represent the Department before Central Administrative Tribunal/Subordinate Courts/ High Court of Madras;

rbi08cir019.pdf

Exim Bank's Line of Credit of USD 20 million to Government of the Republic of Mozambique;

rbi08cir018.pdf

Deferred Payment Protocols dated April 30, 1981 and December 23, 1985 between Government of India and erstwhile USSR ;

mbuzz1012.pdf

SJVN: First hydro electric company to get world bank funding with CDM benefits ;

mbuzz1011.pdf

India Post to disburse micro-credit in 8 states and North-East ;

2008-TIOL-467-HC-UTTRANCHAL-IT.pdf

CIT, Nainital Vs M/s Jyoti Prabha Society ( Dated: August 29, 2008 )

Income Tax - Exemption u/s 11 - Assessee is a registered charitable society u/s 12A - AO disallows income earned from letting out buildings to other educational charitable societies - Merely because the assessee has rented out some of its properties to other charitable bodies it does not lose its exempted status, and since the rental money has been used for the charitable purpose, it is entitled to exemption - Revenue's appeal dismissed : UTTARAKHAND HIGH COURT;

2008-TIOL-466-HC-DEL-IT.pdf

AFT Trust Sub Vs Chairman, Central Board Of Direct Taxes ( Dated: September 5, 2008 )

Income Tax - Indian company takes two aircrafts on lease rent from Austrian company - TDS deducted u/s 195 on payments made to the non-resident despite exemption claimed under DTAA - Change in the ownership of the aircraft - Fresh lease agreement signed between the new owner and the Indian company - Non-resident company seeks exemption u/s 10(15A) - CBDT rejects it on the ground that there is no change in the text of the new agreement as compared to the old one except for a change in the name of the ownership and it was designed only to take advantage of the tax benefits - Held, Revenue order not sustainable in the light of the fact that the new agreement was necessitated only because of the change in the ownership of the aircraft and when it happened, the exemption was available as per the law - CBDT directed to process fresh application of the assessee expeditiously":DELHI HIGH COURT;

2008-TIOL-454-ITAT-AMRITSAR-SB.pdf + SB story.pdf

ACIT, Ferozepur Vs Shri Sonu Verma ( Dated : August 25, 2008 )

Income Tax: Jurisdiction to complete block assessment under section 158BC is conferred on the A.O. only on the physical handing over of all the books of account/documents/assets requisitioned under section 132A : without delivery of the requisitioned material, the statutory mandatory requirement of section 132A of the Act is not met with. As specifically held in " Chandra Prakash Agrawal ", the provisions of Chapter XIV-B of the Act, i.e., assessment of search cases, would come into play only when the requisitioned material is actually received by the A.O. pursuant to the requisition made under section 132A . Jurisdiction to complete block assessment under section 158BC is conferred on the A.O. only on the physical handing over of all the books of account/documents/assets requisitioned under section 132A , to the income tax authorities concerned.

High Court Decision binding: it is trite law that the decision of a jurisdictional High Court is binding on the lower authorities/courts. " Amandeep Singh ” is of the jurisdictional High Court and there is no question about its not being of a binding nature. " Chandra Prakash Agrawal " is of the Allahabad High Court. However, its persuasive value cannot be detracted from. Moreover, no other High Court decision to the contrary has been pressed into service by the department. Further still, in " Amandeep Singh ", the High Court has, while delivering the judgment, followed the decision of the Andhra Pradesh High court in the case of " Commissioner of Police Vs . Sadruddin H. Javeri ". :AMRITSAR ITAT (SPECIAL BENCH);

2008-TIOL-453-ITAT-HYD.pdf

DCIT, Hyderabad Vs M/s Avanthi Leathers Ltd ( Dated : May 9, 2008 )

For computation of business profit 90% of job charges to be excluded from the business income – ITAT

Disallowance of deduction of commission paid to foreign agent - Assessing Officer has to come to a definite finding whether commission paid to foreign agent was in fact chargeable to tax in India or not – Determination of total income to be based on this finding - Board's Circular No.786 as well as the decision of the Tribunal in the case of Dr. Reddy's Laboratories apply – Disallowance deleted – Assessee's appeal upheld:HYDERABAD ITAT;

2008-TIOL-452-ITAT-DEL.pdf

M/s Ankitech Pvt Ltd Vs JCIT, New Delhi ( Dated : June 6, 2008 )

Income Tax - AO considers  advances  from closely-held company as deemed dividend under section 2 (22) (e) - CIT(A) confirms the assessment - Held, AO is right in law in holding that the provisions of section 2(22)(e) would apply to the loans paid by the closely-held company to the assessee as the promoters were holding 69.65% of shares in the said company and 90.2% of the shares in the assessee company and they had substantial interest in the assessee company - as specified in the provisions of section 2(22)(e) such advances and loans have to be treated as deemed dividend in the hands of the assessee. The provisions of section 2(22)(e) (iii) would not come in the way as the said provision is for the purpose of computing the dividend if the payer company is proposing to pay dividend by paying taxes on its accumulated profit then so much of the deemed dividend as taxed would be reduced. This is because in a closely held company the information of deemed dividend that has suffered tax would be available to the payer company - Assessee's appeal dismissed :DELHI ITAT;

CENTRAL EXCISE SECTION

NOTIFICATION

exnt08_38.pdf + exnt08_39.pdf + exnt08_40.pdf + exnt08_41.pdf + exnt08_42.pdf

CBEC notifies new Rule requiring every assessee to furnish details of annual production capacity installed in factory;

CASE LAWS

2008-TIOL-1588-CESTAT-MUM.pdf + refund story.pdf

M/s BDH Industries Ltd Vs CCE, Mumbai (Dated: July 25, 2008)

Suo motu taking of credit when duty inadvertently paid twice over - Proper course of action is filing a refund claim:MUMBAI CESTAT;

2008-TIOL-1587-CESTAT-BANG.pdf

M/s IBEX Gallagher Pvt Ltd CCE, Bangalore (Dated: June 17, 2008)

Central Excise – Classification - Burden of proof of excisability is on the Revenue – Electric power fence performs the function of deterring intrusion – Solar powered Electric fence system is not an excisable commodity as it is immovable and does not pass the test of movability as per Board's Circular dt. 15.1.02 – Individual components of such a system excisable but not the system as a whole Appeal allowed with consequential relief.: BANGALORE CESTAT;

2008-TIOL-1586-CESTAT-MUM.pdf

CCE, Nagpur Vs M/s Ballarpur Industries Ltd (Dated: July 18, 2008)

Central Excise – When matter is remanded by Commr (A) to lower authority for re-examination recovery of penalty does not arise:MUMBAI CESTAT;

SERVICE TAX SECTION

2008-TIOL-1584-CESTAT-MAD.pdf

M/s Tuticorin Port Trust Vs CCE & ST, Tirunelveli (Dated: July 10, 2008)

Service tax – CENVAT credit of service tax paid on dredging services taken by the port trust – since the appellant had already reversed the credit without utilizing the same for payment of the output service, demand of service tax credit and penalty set aside – department's appeal for enhancing the penalty is dismissed.: CHENNAI CESTAT;

2008-TIOL-1583-CESTAT-MUM.pdf

CCE, Nagpur Vs M/s Ultra Tech Cements Ltd (Dated: July 25, 2008)

CENVAT Credit – Credit availed on security services for residential colony – CESTAT decisions allowing credit on repairs and maintenance of residential colony followed by Commr (A) – Earlier CESTAT decision not stayed by High Court: MUMBAI CESTAT;

2008-TIOL-1582-CESTAT-AHM.pdf

M/s Adani Pharmachem (P) Ltd Vs CCE, Rajkot (Dated: August 14, 2008)

ST - Assessee takes cenvat credit on C&F service provided by CHA - Revenue disallows - In view of the Board's circular clarifying the place of removal and also the tribunal's decision that service tax paid on C & F service is admissible as credit in the case of 100% EoU, assessee's appeal allowed : AHMEDABAD CESTAT;

CUSTOMS SECTION

NOTIFICATION

cnt08_111.pdf

Customs Exchange rate for imports goods & export goods for October ;

CASE LAWS

2008-TIOL-468-HC-DEL-CUS.pdf

CC, (I & G) Vs M/s U T Ltd ( Dated: August 25, 2008 )

Customs - refund - Assessee enters into a contract to install DTS System - imports CCTV and classifies the same under Tariff Heading 8530.80 - Customs differs and uses Tariff Heading 8531.10 in assessment order - Higher duty paid - Importer challenges classification and succeeds in it - Refund claim filed - Refund sanctioned but unjust enrichment alleged - Held, since the contract price with the purchaser was agreed upon before import of CCTV, the increase in cutoms duty was absorbed by the importer itself and a case of unjust enrichment would have made onlhy when the contract price would have gone up by the increase in the customs duty paid - Revenue's appeal dismissed :DELHI HIGH COURT;

2008-TIOL-1585-CESTAT-MUM.pdf + stolen story.pdf

M/s Manish Exports (EOU) Vs CCE, Belapur (Dated: August 1, 2008)

Goods stolen from 100% EOU – Remission of ‘Customs' Duty – since matter referred to Larger Bench in the case of Gupta Metal Sheets (P) Ltd. vs. Commissioner of Central Excise, Gurgaon, 2007-TIOL-2191-CESTAT-DEL , Tribunal grants Stay. :MUMBAI CESTAT;