|
 |
 |
 |
 |
 |
PM allocates certain work to Minister of State (Revenue) (See 'DDT') Montek says economy will require stimulus package next fiscal also; 7% growth to be good achievement; Illogical Fixing of Tariff Value for Brass Scrap - Jamnagar Chamber Of Commerce protests (See 'DDT') Antulay sends resignation papers to PM; Govt grants Secretary status to Amitabha Bhattacharya (IAS of 1975 batch) in Planning Commission; ISRO now plans two sea satellites; GM food crops: No country has banned import of rice or groundnut from India, says Minister ; |
 |
|
 |
 |
 |
|
| Dear Member, Sending the following files: |
||
|
 |
 |
|
|
Import of Toys – Tough Measures if Conditions are not Fulfilled; Maharashtra VAT - submission of Audit Report in Form-704 – Last Date Will NOT be Extended; Empanelment of IRS officers under Central Staffing Scheme; DoP&T seeks applications; Overcharging for drugs: Govt raises demand for Rs 1815 Cr; recovers 132 Cr; Medical emergency: Trains can make unscheduled halts, says Minister; Comfortable foodgrains stock: Govt to allow export of 20 mn tonnes of wheat from Central Pool; ISRO now plans two sea satellites; GM food crops: No country has banned import of rice or groundnut from India, says Minister ; |
|
|
|
|
|
|
| |
 |
 |
|
| |
2008-TIOL-633-ITAT-BANG.pdf + subex story.pdf M/s Subex Limited Vs ITO, Bangalore (Dated: October 23, 2008 ) Accounting entry in the books of account cannot be conclusive for deciding an issue under the Income Tax Act. It is the law which has to prevail and not the treatment given by the assessee to a transaction in its books of account. If the part of the cost has been written off by share premium account, then it cannot be said that cost to that extent has been met directly or indirectly by any other person or authority. In case the assessee has not filed the return or has not computed the income, then depreciation is to be treated as allowed as per Explanation 6 to section 43(6). As per Explanation 5 to Section 32, depreciation is to be allowed irrespective of the fact as to whether depreciation has been claimed or not. Hence, telecommunication expenses relatable to the delivery of computer software were to be reduced from the export turnover. It has been held by the Tribunal in a number of cases that if any part of expenses is to be excluded from export turnover, then the same should be excluded from the total turnover. Following the decisions, it is held that whatever is excluded from the export turnover is to be excluded from the total turnover. The Chennai Bench has also held that the loss, which is directly relatable to the loss of the undertaking, which is subject to provisions of section 10B can be adjusted. Therefore, it is held that the loss from the non- STP unit should not be set off against the income of the STP unit for giving effect to the computation of deduction u/s 10A . Similar will be the finding in respect of carry forward loss. In case, the carry forward loss is of non- STP unit, then it cannot be adjusted against the profit for the purpose of computing deduction. Income from leasing out machinery purchased for the purpose of manufacturing but never so used for said purpose at any time is assessable as income from other sources. In the instant case, the building has never been used for the purpose of business and is not a trading asset of the assessee, therefore, rental income arising cannot be assessed as business income. Tribunal upheld the action of the CIT(A) to the fact that rental income from the sub-letting of the premises in Canada is taxable under the head 'income from other sources' while the rent paid for such building is an allowable expenditure u/s 37 of the IT Act. Keeping in view the decision of the jurisdictional High Court, it is held that the CIT( A) was justified in allowing the provision of warranty.: BANGALORE ITAT ; ITO , Bangalore Vs M/s Sonata Information Technology Ltd (Dated: November 07, 2008 ) Income tax - import of shrink softwrae products from USA - AO argues that the software was licensed for limited use and the payment made for the same to be treated as royalty payment taxable u/s 9 (1)(vi) - CIT(A) deletes the same in view of the Tribunal's decision in the Samsung Electronics Co Ltd case - Held, as earlier decided in the case of assessee itself, the payment was made for the article which partook the character of sale of goods, no tax was required to be deducted u/s 195 - Revenue's appeal dismissed : BANGALORE ITAT ; ITO,New Delhi Vs M/s Toscana Lasts Ltd (Dated: October 17, 2008 ) Income tax - assessee takes unsecured loan from a company - lender charges no interest as ultimate objective is to convert the same into share capital - assessee company financially not doing well as such a decision is deferred - the unsecured loan finally written off - AO treats it as trading receipts - held, since it is not negated that the unsecured loan was on capital account and no interest accrued in the books of the assessee, so merely because the loan had become time barred, it cannot be held as revenue income of the assessee. :DELHI ITAT ; M/s Pride Foramer Sas Vs CIT, Dehradun (Dated: October 31, 2008 ) Income tax - DTAA with France - assessee is a non-resident company - enters into contract with ONGC for charter hire of drilling unit and rig - mobilisation charges - AO for adding the same to total receipts to be taxed u/s 44BB - CIT(A) directs AO to tax only proportional charges in relation to territorial waters of India - Assessee furnishes additional evidence to rebut the Revenue's viewpoint - Matter restored to AO to examine the same Assessee gets interest on tax refunds - AO for taxing the same at normal rate of 42% - Assessee for concessional rate of 10% under Article 12(2) of DTAA - Held, in view of the Advance Ruling in the context of DTAA with UK and the fact that the DTAA with France is in pari materia, the interest is chargeable to tax only at 10% rate :DELHI ITAT ; Indo-German Chamber Of Commerce Vs ACIT, Mumbai (Dated: July 11, 2008 ) Income tax - Assessee is a non-profit company for promotion of trade and commerce between India and Germany, duly registered u/s 25 of Companies Act and 12Aa of IT Act – Assessing officer holds that the assessee's Trade fair related activities attracts provisions of sec 11 (4A) and 2(13)of IT Act - Held, income derived from such activities were for the advancement of the dominant object and purpose of the federation - Accordingly appeal of the assessee allowed :MUMBAI ITAT ; |
|
|
| |
|
|
|
| |
 |
 |
|
|
CBEC issues transfer order of 16 Addl/JCs ;
M/s Venus Cotton Mills (P) Ltd Vs CCE, Salem (Dated: July 29, 2008) Remand of cases by Tribunal for denovo adjudication – Tribunal directs the Commissioner to pass a speaking order after (a) carefully examining the evidence on record (b) considering the submissions of parties and (c) stating cogent reasons for the decision by due application of mind – Allowed the appeals by way of remand once again :CHENNAI CESTAT; M/s Apex Laboratories Vs CCE, Chennai (Dated: September 24, 2008) Central Excise – refund consequent to finalization of provisional assessments – bar of unjust enrichment is applicable to the refunds arising out of finalization of provisional assessments after 01.08.1998 – matter remanded as the appellant was not given an opportunity of adduce the evidence against the bar of unjust enrichment. :CHENNAI CESTAT; M/s Advance Detergents Ltd Vs CCE, Pondicherry (Dated: June 3, 2008) Central Excise - Cenvat Credit - not to be reduced, just because price is reduced :CHENNAI CESTAT;
SERVICE TAX SECTION 2008-TIOL-637-HC-MAD-ST.pdf + hc st story.pdf M/s Devi Constructions, Erode Vs CCE (Appeals), Salem (Dated: October 15, 2008) Service Tax- Appeal stay – pre-deposit - Commissioner (Appeals) before passing any interim order, shall consider whether the direction for deposit as pre-deposit condition would cause undue hardship: for the purpose of arriving at a finding as to undue hardship, certainly the case as a whole should have been considered by the appellate authority; Section 35F , Proviso-1 makes it very clear that the Commissioner (Appeals) or the Appellate Tribunal before passing any interim order, shall consider whether the direction for deposit as pre-deposit condition would cause undue hardship to the person against whom such direction is issued. Such a finding is not available in the impugned order of the respondent, nor did the respondent decide the prima facie issue.: MADRAS HIGH COURT; M/s Gajanand Agarwal Vs CCE & CC, BBSR (Dated: June 26, 2008) ST - Cargo Handling Service - assessees enter into contract with coalfield authority - hires pay loaders for loading of coal on railway wagons - Revenue demands tax - assessees claim that they were only supplying hired pay loaders to the coalfield authorities - Since the actual essence of the contract was not to hire pay loaders but to get the coal transported and loaded on railway wagons, all such activities even incidental to freight of goods are covered under the Cargo handling service : KOLKATA CESTAT; M/s Koch Glitsch India Ltd Vs CCE & CC, Vadodara-I (Dated: November 5, 2008) ST - Cenvat credit - assessee is a prime contractor for a project - it takes credit for tax paid by sub-contractors on installation and commissioning services - Revenue says what was paid by sub-contractors was only deposit and the prime contractor cannot take credit of the same - held, since the service tax liability was on the prime contractor and the same was discharged and it cannot be said that the sub-contractors did not provide any service to the prime contractor, credit cannot be denied : AHMEDABAD CESTAT; M/s Wardha Coal Transports Pvt Ltd Vs CCE, Nagpur (Dated:October 8, 2008) ST - Cargo Handling Service - assessee enters into contract with coalfield authority for handling, loading and unloading of coal and trasporation of the same from mining area to the tippers - Revenue raises demand and imposes penalty - In view of Board' Circular that loading and unloading within the mining area is to be treated as cargo handling service and since the assessee is raising separte bills despite having a composite contract, it is not a fit case for total waiver of pre-deposit - Rs 30 lakh pre-deposit ordered : MUMBAI CESTAT;
CUSTOMS SECTION NOTIFICATION cnt08_139.pdf + cnt08_138.pdf + cnt08_137.pdf + cnt08_136.pdf + cnt08_135.pdf + cnt08_134.pdf + cnt08_133.pdf + cnt08_132.pdf Adjudicating authorities for various cases appointed; Import of toys – Compliance with labeling requirements under Standards of Weights and Measures (Packaged Commodities) Rules, 1977 – Instructions ; CASE LAWS 2008-TIOL-2081-CESTAT-MUM.pdf + Trade Wings Story.pdf Trade Wings Ltd Vs CC, Mumbai (Dated: October 22, 2008) Lack of care and diligence is not sufficient to pin appellants with charge of abetment to illegally export foreign exchange There is no evidence to show that the appellants were aware that the foreign exchange released by them would form part of an attempt of unauthorized export – Tribunal sets aside penalty and allows appeal. : MUMBAI CESTAT; M/s Essar Oil Ltd Vs CC, Jamnagar (Dated: November 26, 2008) Customs - Conversion of free shipping bills into drawback shipping bills - Revenue and Commissioner disallow - Issue is no longer res integra as such conversion is allowable - Merit of drawback claim to be decided by the Revenue but the assessee allowed to file the conversion application : AHMEDABAD CESTAT; |
|
||
| |
|
|
|
| Regards www.taxindiaonline.com Pvt. Ltd. |
