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Damaged Sea Cable yet to be fully repaired; internet service disrupted in South Asia and Western Europe; Second stimulus package likely by month-end; MoC for expediting it; K C Verma appointed internal security adviser to Home Minister; Govt allows Coast Guard to take ships on lease; to acquire interceptor boats and other hi-tech equipments; SBI goes for 0.75% cut in prime lending rate; Other PSU banks to follow soon; Mindtree Ltd and Mahindra & Mahindra bag awards for excellence in Corporate Governance - 2008; Interpol Chief meets P Chidambaram and offers all possible help to track down brain behind Mumbai terror attack; Chennai Airport Customs catches pax with gold coins, jewellery worth Rs 13 lakh; GoM to decide relief package for textile sector; Drawback rates likely to be hiked; Govt grants Secretary status to Amitabha Bhattacharya (IAS of 1975 batch) in Planning Commission; |
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| Dear Member, Sending the following files: |
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Holistic healing - mantra of all health problems is AYUSH; Govt launches national campaigns; Combating trafficking of women and children: India joins hands with UN, takes multiple steps; Luxembourg exempts dividend from tax, for investors from treaty countries; RBI releases report on trend and progress of banking in India; Cabinet gives nod to Rs 1800 Cr semi cryogenic engine project; Reporting of transfer of shares or debentures under FDI Scheme: RBI revises procedure; Fast track courts for dishonoured cheques: Govt examining report; |
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2008-TIOL-635-ITAT-DEL.pdf + modi story.pdf M/s Modi Xerox Ltd Vs JCIT, Meerut (Dated: September 19, 2008) Income Tax Act - Section 10B - ITAT had restored the matter to the file of the AO in appeal for AY 1997-98 with a direction to work out the profits on the basis of bifurcated account and thereafter allow the deduction u/s 10B in accordance with law – Held, provisions contained in section 10B(2)(iii) were not considered vis a vis the issue as to whether the machinery or plant previously used was transferred to the undertaking for its formation – case of assessee was that the term "hiring" does not amount to "transferring", as the property in computers does not pass onto the assessee in a hire agreement – Held, this issue does not stand covered by the orders of ITAT for AY 1997-98 – Held therefore, the matter restored to the file of the AO to examine the applicability of the provision contained in section 10B(2)(iii) and allow the claim as per law after arriving at the profit of the unit as per the bifurcated account. Income Tax Act – Section 250 – Powers of CIT(A) co-terminus to that of AO – assessee argued that the case of Supreme Court in the case of Goetze India Ltd. Vs. CIT, 284 ITR 323 did not place any fetters on the CIT(A) in deciding this matter – Held, that there is reason to hold that the powers of the CIT(A) do not go beyond the powers of the AO as these powers are co-terminus. Therefore, CIT(A) had no power to deal with the issue. However, no such fetter is placed on the powers of the Tribunal – Thus, ground admitted by ITAT and matter restored back to AO: DELHI ITAT; ACIT, Chennai Vs M/s Navodaya Mass Entertainment Ltd (Dated: March 14, 2008) Rate of depreciation – lakes are at par with buildings only. Assessee running an amusement park constructed many lakes and water storage systems in the park for visitors. On this assessee claimed depreciation @ 25% treating it as plant since they form an integral part of the amusement park. On appeal, Tribunal held that the boating lake and rain harvesting lake are formed by excavating the earth below the ground level and there is no construction work involved in maintaining these two lakes. Hence they do not come under the purview of plant and machinery and since the excavation cost is already claimed as revenue expenditure, no new asset is created and no depreciation is allowable. As far as the holding lake is concerned, the structural part is entitled to depreciation at par with building. The artificial waterfalls is in the nature of civil work and hence entitled to depreciation @ 10% at par with building. For the pumping system alone depreciation is allowable at the rates applicable for plant and machinery. Appeal by revenue partly allowed: CHENNAI ITAT; ACIT, New Delhi Vs M/s Zigma Telesystems Pvt Ltd (Dated: June 13, 2008) Income Tax - Assessee Company claims interest paid on borrowed funds which was advanced to the three associate companies as business expenditure u/s 36(1)(iii) - AO disallows - CIT(A) allows appeal - Held, investments were made out of borrowed funds for which the company was authorized in its MOU and there is a strong indication that monies were borrowed from the bank for the purpose of assessee's business - Deduction allowed since all three conditions of section 36(1)(iii) have been satisfied, namely, that the assessee should have borrowed monies, that the borrowing should have been for the purpose of its business, and lastly that the assessee should have paid interest on the borrowings - Revenue’s appeal dismissed: DELHI ITAT; |
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2008-TIOL-2088-CESTAT-MUM.pdf + read story.pdf CCE & C, Aurangabad Vs M/s Durga Re-rolling Mills (Dated: October 14, 2008) Tribunal “reads” Commissioner(Appeals)’s order for Revenue and that too in Revenue appeal. Re-rolling mills - it is an admitted fact that the Assistant Commissioner does not have the power to decide the abatement claims, and such power is vested only with the Commissioner and not even with the Commissioner(A).
Revenue appeal disposed of: MUMBAI CESTAT; CCE, Chennai Vs Dollar Company Pvt Ltd (Dated: August 28, 2008) Central Excise – classification - Face to Face cream / lotion is an ayurvedic preparation classifiable under CSH 3003.30 of the Central Excise Tariff and it is not a cosmetic – Revenue appeal is devoid of merit: CHENNAI CESTAT;
SERVICE TAX SECTION M/s Anu Enterprises Vs CCE, Meerut (Dated: December 2, 2008) ST - Repair and Maintenance Service - assessee provides repair service on behalf of Eureka Forbes - Revenue raises demand - Commissioner(A) gives the findings that the assessees do not get any payment from customers for services provided and do it on behalf of the company and were put under business auxiliary service till 2004 and again from 1.4.2006 and the demand is only in relation to the in-between period - Waiver from pre-deposit granted: DELHI CESTAT; CCE, Chandigarh Vs M/s Nahar Exports Ltd (Dated: November 11, 2008) ST - Import of services - Assessee pays commission to overseas agent for procuring orders - In view of Tribunal's decision in Foster Wheeler Energy, the Revenue's appeal is not sustainable: DELHI CESTAT; 2008-TIOL-2082-CESTAT-BANG.pdf M/s Century Club Vs CST, Bangalore (Dated: August 25, 2008) Service Tax – Health & fitness service – Club providing services even to its own members liable to pay service tax under Health & Fitness Service – No justification in refund claims – Impugned orders upheld: BANGALORE CESTAT;
CUSTOMS SECTION NOTIFICATION Export of cement made free; CASE LAWS M/s International Exim Agency Vs CC, Chennai (Dated: September 25, 2008) Customs – mis-declaration - the invoices furnished by the importer contained the complete details of the consignments including the applicable Tariff Heading - classification is a departmental function and that the importer furnishing a wrong Tariff Heading in the bill of entry could not be interpreted to be resorted to mis-declaration – confiscation and penalty on the importer and CHA set aside: CHENNAI CESTAT; Shri Abdul Azeez Vs CC (Air), Chennai (Dated: September 30, 2008) Customs – Absolute confiscation of gold - The importers of gold bars were entitled to get release of the same on payment of appropriate fine, under Section 125 of the Act: CHENNAI CESTAT; |
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