Former RBI Governor Y V Reddy appointed as Member of UN Panel on financial crisis; FM asks USA and Europe to set houses in order;

K Ramalingam appointed as JS of FT & TR II in CBDT;

ADB to aid MP in setting up fund for financing energy efficiency projects;

Duty-free shops: CBEC clarifies FIPB nod is not blanket approval; other conditions must also be fulfilled;

ICAI President Ved Jain appointed as Member on Board of IFAC;

depb story.pdf

Govt restores DEPB benefits for cement and steel sectors; also gives Focus Market Scheme benefits;

rbi on projects.pdf

Asset Classification Norms for Infrastructure Projects under Implementation;

orderno_356.pdf

K Ramalingam appointed as JS in CBDT;

mbuzz1166.pdf

Duty-free shops: CBEC clarifies FIPB nod is not blanket approval; other conditions must also be fulfilled;

mbuzz1165.pdf

ADB to aid MP in setting up fund for financing energy efficiency projects;

mbuzz1164.pdf

ICAI President Ved Jain appointed as Member on Board of IFAC ;

2008-TIOL-553-ITAT-MUM.pdf

ACIT, Mumbai Vs M/s Kamdar & Co ( Dated : March 13, 2008 )

Income Tax - Search action against M/s Bharati Shipyard P. Ltd. and as consequence of that search, survey action taken against the assessee. In the block assessment proceedings in the case of Bharati Shipyard P. Ltd., the said firm stated that it had shown bogus purchases from the assessee. The said bogus purchases were also surrendered as un-disclosed income in it's block return. The A.O. made an addition u/s 68 . CIT(A) on the basis of remand report and other facts deleted the addition - Held, the assessee has accounted for the purchases/ sales in it's books of account in the normal course. All the transactions have taken place through banking channels. The sales shown by the assessee have already been taxed in the hands of Bharati Shipyard P. Ltd., hence, provisions of Section 68/69A cannot be applied in such circumstances. CIT(A) order is correct in law. Revenue Appeal dismissed: MUMBAI ITAT;

2008-TIOL-552-ITAT-DEL.pdf

M/s Indian Railway Finance Corporation Ltd Vs JCIT, New Delhi ( Dated : August 8, 2008 )

Income Tax Act – Method of Accounting – Finance Lease – Guidance Note on Accounting for Leases issued by ICAI – Held, following the guidance note that since after the deduction of finance income full value of the cost of assets is being recovered by the assessee over the duration of lease period hence, it is a case of Finance Lease – Assessee claimed a reduction from lease incomes on account of Lease Equalization Charges - Held, that Lease Equalization as per the Guidance Note is not a charge on income, but it is debited in P&L A/c in some years and credited in P&L A/c in other years to ensure that correct finance income is reflected in each year throughout the lease period. Also held, that capital recovery is actually reduced from the lease rental to ensure that net finance income is reflected in P&L a/c. Debit or credit balance in lease equalization account depends on the amount of depreciation claimed as deduction and amount of capital recovery and hence, lease equalization account is to be allowed as deduction when it is negative – Further held, that the apprehension of revenue that assessee will get a double deduction or an extra deduction is unfounded

Income Tax Act – MAT – Section 115JA - provision made by the assessee on account of provision for doubtful debts and on account of provision for diminution in the value of investment is not to be added while computing the “book profits”: DELHI ITAT;

CENTRAL EXCISE SECTION

2008-TIOL-1865-CESTAT-DEL-LB.pdf + LB story.pdf

CCE , Bombay Vs M/s Unicon Connectors Pvt Ltd (Dated: October 22, 2008)

Central Excise – Classification: Connectors fitted with wire still remain as connectors and it cannot be equated with wire with connectors. the assessee were engaged in the manufacture of connector with or without wire and not wire, cable and other Insulated Conductor. So, the classification of "Connector with Wire" under heading No.85.44 as proposed by the Revenue has no merit. : DELHI CESTAT (Larger Bench );

2008-TIOL-1864-CESTAT-BANG.pdf

M/s Videocon Industries Ltd Vs CC & CCE, (Appeals-II), Hyderabad (Dated: July 25, 2008)

Central Excise – Value of CENVAT availed inputs cleared to sister concerns cannot be re-assessed in terms of Rule 8 and 9 of Valuation Rules – Reversal of CENVAT Credit availed on such inputs suffices – No merit in the impugned order liable to be set aside : BANGALORE CESTAT;

SERVICE TAX SECTION

2008-TIOL-1863-CESTAT-DEL.pdf

M/s Jitendra Nath & Sons Vs CCE, Kanpur (Dated: October 10, 2008)

ST - C&F Service - Assessee claims it is merely a selling agent for the principal - Revenue alleges that as per the agreements the assessee is procuring orders and arranging payments which are covdred under C&F Service - Matter remanded for fresh examination of the agreement in the light of the Larger Bench decision in the case of L & T (2006-TIOL-814-CESTAT-DEL-LB): DELHI CESTAT;

2008-TIOL-1862-CESTAT-BANG.pdf

M/s Vee Aar Secure Vs CST, Bangalore (Dated: July 25, 2008)

Service Tax – When Original authority exercises powers under S. 80 after recording proper reasons it cannot be revised by Commissioner – Order in Revision has no merit and liable to be set aside : BANGALORE CESTAT;

CUSTOMS SECTION

NOTIFICATION

cuscir08_19.pdf

Clarification on setting up Duty Free Shops approved by FIPB;

dgft08not058.pdf

Focus Market Scheme benefits restored for cement and steels;

dgft08not057.pdf

Import of marble - concessions for marble mined and processed in Nepal;

dgft08pn108.pdf

DEPB benefits restored for Cement and Steel;

CASE LAWS

2008-TIOL-1861-CESTAT-BANG.pdf

Mr M G Khan Vs CC & CCE, Hyderabad-II (Dated: July 29, 2008)

Customs – Valuation – When SWMA is not applicable to electronic goods MRP cannot be basis for levy of countervailing duty – SC judgment in Whirlpool of India Ltd case distinguished : BANGALORE CESTAT;