Dr Raghuram G Rajan, Prof of Finance, Univ of Chicago, appointed as Honorary Economic Adviser to PM in rank of Secy to Govt of India;

RBI introduces Special Refinance Facility for all scheduled banks;

Nath to pursue early closure of trade and investment pact with Belgium;

Exports grows by 31% in September but imports jump by 43%;

RTI a major aid to citizen-friendly governance: PM;

PM meets czars of Indian industry and urges them to convert present global crisis into an opportunity for India;

Govt all set to appoint full-time head and members of Competition Commission;

ddt nov 03.pdf

Guru Sai Dutt – another Gopichand in the making!

tiol special guest.pdf

Ratan Melting - A landmark decision to the extent it goes!

guest column.pdf

A few timely fiscal measures can halt downturn of Indian economy!

editorial.pdf

Crisis in Indian economy: Where did we go wrong?

RBI Notifi For CRR.pdf

Section 42(1) of Reserve Bank of India Act, 1934-Maintenance of CRR;

mbuzz1125.pdf

Nath to pursue early closure of trade and investment pact with Belgium;

mbuzz1124.pdf

RTI a major aid to citizen-friendly governance: PM;

mbuzz1123.pdf

Exports grows by 31% in September but imports jump by 43%;

mbuzz1122.pdf

PM meets captains of industry and urges them to convert present global crisis into an opportunity for India ;

2008-TIOL-531-HC-MUM-IT.pdf

M/s Hindustan Unilever Limited Vs D.A. Sheldekar, Transfer Pricing Officer-I ( Dated: October 22, 2008 )

Income tax - Transfer Pricing - AO invokes Sec 92-CA(3) and refers the case to TPO who recommends huge additions - Assessee pleads not enough time given to file reply to show cause notice issued by the Revenue - Plea to file additional reply - Revenue rejects the application on the fear that the assessee may change its stand - Held, if the law permits a change in the stand, neither the Revenue nor the court would be justified to deny such an opportunity - Revenue directed to grant personal hearing - Assessee's appeal allowed : BOMBAY HIGH COURT;

2008-TIOL-530-HC-MUM-IT.pdf

CIT-5 Vs M/s Essar Oil Ltd ( Dated: October 16, 2008 )

Income tax - assessee is into oil exploration business - claims deduction for preliminary expenses incurred prior to the commencement of business - Revenue disallows but Tribunal allows - Held, since the nature of the assessee's business is such that it entails submission of bidding and tenders which are highly technical exercise and even if the assessee is unsuccessful in certain bids, the expenditure is to be allowed as revenue expenditure - It is a finding of fact and does not call for interference - Revenue's appeal dismissed : BOMBAY HIGH COURT;

2008-TIOL-529-HC-MAD-IT.pdf

Pay And Accounts Officer (East) Chepauk Vs ITO, Chennai ( Dated : July 8, 2008 )

Income Tax - condonation of delay - Tribunal rejects application - Held, the law of limitation has been enacted only to give a finality to a proceedings and not to destroy the statutory appellate remedy. It is also equally well settled that when technicalities and substantial justice are pitted against each other, the Court will always lean in favour of substantial justice. The delay can be condoned as the appellant has already remitted the entire demand. In the light of various judgments, the impugned  order made by the ITAT, is set aside and the matter is remitted back to the ITAT for fresh consideration on merits. Appeal allowed : MADRAS HIGH COURT;

2008-TIOL-526-ITAT-MUM.pdf + atm story.pdf

Venture Infotek Global Pvt Ltd Vs DCIT, Mumbai ( Dated : July 31, 2008 )

Travel Expenditure – eligible for deduction: the assessee was bearing expenses for making travel and lodging in addition to specified fee. The travelling expenditure by the assessee was for the purpose of business therefore same are allowable expenditure. The revenue has failed to establish that the expenditure incurred by the assessee is for the purpose of assets, therefore, the Assessing Officer's view is not acceptable.

Depreciation – ATMs – Computers :- computer is an electronic data processing device which composed of various electrical and electronic parts which wired together into a network called computing system. The basic output of a computer is data processing. The POS terminals and ATMs are neither a data processing device nor a composite system of which output is data processing. Automated Teller Machine “ATM” is a machine used by bankers and others for cash payments.

Any instrument based on Computer is not a Computer: No substance in the submission of the assessee that any instrument or plant and machinery of which function is based on computer technology can be said to be ‘computer'. If this submission of the assessee is accepted then in cases of all units where their large manufacturing process is controlled by computer such units are also to be called as ‘computer'. No such intention of the Legislature was there when higher rate of depreciation was not provided for computers nor it comes under the simple meaning of the word ‘computer'. :MUMBAI ITAT;

2008-TIOL-525-ITAT-DEL.pdf

DCIT, New Delhi Vs M/s EDS Electronic Data Systems (I) Pvt Ltd ( Dated : October 10, 2008 )

Income Tax Act – Section 37(1) read with section 30(a)(i) – Expenditure incurred on leasehold improvements – Assessee incurred expenditure towards leasehold improvements which was claimed by it as revenue in nature – AO disallowed the same invoking Expl 1 to section 32 – Held, judgment of Apex Court in case of Sarvana Spinning Mills (P) Ltd. 293 ITR 201(SC) not applicable as in that case Apex Court refused to express any opinion on applicability of section 37(1) – However held, that the case of Madras High Court in case of Ayeesha Hospitals P Ltd 292 ITR 468 (Mad) squarely covers the case of assessee except in respect to brick work which may or may not get covered by the judgment of Delhi High Court in the case of Hotel Diplomat 125 ITR 781(Del), apart from that the expenditures would be covered by section 30(a)(ii) in terms of decision in case of Ayeesha Hospitals P Ltd and since it is covered u/s 30(a)(ii) there is no question of invoking the provisions contained in Explanation 1 to section 32.

Income Tax Act – Section 37(1) – Expenditure on computer software – Special Bench in case of Amway India Enterprise 114 TTJ 476(Del)(SB) followed.

Income Tax Act – Section 115JB – Book Profits – Provision for Bad & Doubtful debts held not to be added while computing by book profits.

Income Tax Act – Deduction u/s 10A – Assessee setting up a unit which was new unit and was separate from existing unit which was also carrying on similar business for which separate books of account were maintained and necessary audit certificate was filled – Assessee was not claiming deduction u/s 80HHE in respect of profits of new unit and therefore provisions contained in sub-section (5) of section 80HHC were held not applicable – Held, therefore new unit of assessee eligible to benefit u/s 10A.

Income Tax Act – Section 234D – Interest –Held, applicable only from AY 04-05

Income Tax Act – Section 36(1)(vii) – Bad Debts – In immediately preceding previous year provision for bad and doubtful debts was made and the same was added back to computation of income of that year – During current AY assessee made a claim for deduction u/s 36(1)(vii) – Held, that it is not the case of AO that writing off of the amount in preceding AY was not bona fide , therefore reasoning of CIT(A) upheld and claim of assessee allowed.

Income Tax Act – Section 115JB – Held, quantum of deduction u/s 80HHE is to be allowed as per book profits, special bench in case of Syncome Formulations 106 ITD 193(Mum)(SB) followed :DELHI ITAT;

CENTRAL EXCISE SECTION

2008-TIOL-532-HC-MUM-CX.pdf + condone story.pdf

CCE, Pune-1 Vs Shri Arun Haridas Ashar ( Dated : August 29, 2008 )

Central Excise and Customs - High Court cannot condone delay in filing appeal: BOMBAY HIGH COURT;

2008-TIOL-1791-CESTAT-MUM.pdf + refund story.pdf

M/s Nestle India Ltd Vs CCE, Goa (Dated: September 12, 2008)

Recovery of Erroneously granted refund – there are no optional routes available for Revenue – Mere succeeding in appeal before Commissioner(A) cannot get back erroneously granted refund – Demand a must – Tribunal.

Erroneous refund – Recovery - Provisions of Section 11A specifically cover the situation; clearly mention that a show cause notice has to be issued for recovery of erroneous refunds. Apex Court decision in Re-rolling Mills and T ribunal decision in Morarjee Goculdas Spg. & Wvg squarely cover the issue in favour of the appellant -  Order of the Commissioner(A) held to be incorrect and set aside. : MUMBAI CESTAT;

2008-TIOL-1790-CESTAT-DEL.pdf

M/s Amco India Ltd Vs CCE, Jaipur (Dated: July 4, 2008)

Central Excise - CENVAT Credit availed on damaged inputs and also assessee received insurance on the inputs - entire amount paid within 30 days of the adjudication order - penalty reduced to 25% of the duty. :DELHI CESTAT;

2008-TIOL-1789-CESTAT-DEL.pdf

M/s Philco Exports Vs CCE, New Delhi (Dated: September 16, 2008)

Central Excise - Refund of duty paid on inputs used in export goods - Refund cannot be denied on the ground that inputs received are not used in the same month when there is no dispute with regard to usage of inputs in manufacture - Processing of refund claim and demand of duty on scrap clearances are two different aspects - Duty demand on scrap should be made separately keeping in view the limitation period and allowing concessional rate of duty under Notfn 9/2002 - Assessee can pay such duty on scrap from CENVAT A/c or PLA at his option :DELHI CESTAT;

SERVICE TAX SECTION

2008-TIOL-1786-CESTAT-AHM.pdf

CST, Ahemadabad Vs M/s Godfrey Philips India Ltd (Dated: October 10, 2008)

ST - Cenvat credit - Assessee is a manufacturer and avails credit transferred by the branch office on input services like event management - Commissioner (A) allows it - Revenue seeks stay - Since there is no justification for granting stay, Revenue's application rejected: AHMEDABAD CESTAT;

2008-TIOL-1785-CESTAT-DEL.pdf

M/s Multi Track Cable Network Vs CST, Delhi (Dated: August 6, 2008)

ST - Cable Operator service - Assessee is a small cable operator - out of ignorance, fails to pay service tax - Revenue raises demand and levies penalty - Assessee deposits tax but pleads against penalty - Since the assessee was not aware of the tax but cooperated with the Revenue on case being detected, and the fact that there is no adverse material with the Revenue, the demand is confirmed but the penalty under Sec 78 is set aside and penalty under Sec 76 is reduced : DELHI CESTAT;

2008-TIOL-1784-CESTAT-DEL.pdf

M/s Eicher Motors Ltd Vs CCE, Indore (Dated: September 8, 2008)

Central Excise - Stay/Dispensation of pre-deposit - CENVAT Credit on "Mandap Keeper service" - in view of the scope of input service, pre-deposit of entire amount of duty ordered.: DELHI CESTAT;

CUSTOMS SECTION

2008-TIOL-1788-CESTAT-BANG.pdf

M/s Titan Energy Systems Ltd Vs CCE, Hyderabad (Dated: June 23, 2008)

Customs – Conversion of a part of DTA unit into 100% EOU – Utilization of common facilities by both DTA unit and EOU - O nce the Development Commissioner has given permission for conversion of part of unit into 100% EOU, appellants entitled to utilize partial DTA clearance in terms of Board's Circular No.38/95-Cus dated 17.5.95 – Demand also hit by limitation : BANGALORE CESTAT;

2008-TIOL-1787-CESTAT-KOL.pdf

Biman Bangladesh Airlines Vs CC, (Airport & Admn), Kolkata (Dated: July 18, 2008)

Customs – Confiscation of gold bars and gold jewellery concealed in the Aircraft – penalties imposed on the Crew and confiscation of Aircraft for abetting the offence – the Airline crew were not escorting Customs Officials to keep a constant watch over the suspect passengers who were handed over the gold – confiscation of the Aircraft and penalties on the appellants set aside. : KOLKATA CESTAT;