Yet another EDI-based drawback fraud detected; CBEC suspends 31 officers but none from Group 'A' so far! (See 'TIOL EXCLUSIVE')

Proposal to modify the present abatement rates for products assessed under Section 4A (RSP based assessment) - Board invites comments (See 'DDT')

Changing socio-economic contours in OECD countries: French sleep more and eat more than others

Mobile booths for voters spread over large tract of desert in Rajasthan;

Patna DRI seizes FICN worth Rs five lakh at Raxaul; One person arrested;

H1N1 Virus: No risk through food, says UN;

TIOL COMMENTARY

ddt 4 May.pdf

What is GAR 7 ? What is purpose of GAR 1 to GAR 47?

tiol top.pdf

Yet another EDI-based drawback fraud detected; CBEC suspends 31 officers but none from Group 'A' so far!

guest column.pdf

Is harsh language mandatory for Revenue Department?

FEMA CASE LAWS

2009-TIOL-219-HC-MUM-FEMA.pdf

DR Salman Poothaala Vs UoI (Dated: April 23, 2009)

FERA - Refusal by the Tribunal to dispense with the condition of pre-deposit - It is difficult to find any fault with the dismissal of the appeal by the appellate Tribunal on the ground that the appellant had failed to fulfill the condition of pre-deposit prescribed under Section 52(2) of FERA - no question of law involved.:BOMBAY HIGH COURT;

MIXED BUZZ

mbuzz0445.pdf

Changing socio-economic contours in OECD countries: French sleep more and eat more than others

mbuzz0444.pdf

Mobile booths for voters spread over large tract of desert in Rajasthan;

mbuzz0443.pdf

H1N1 Virus: No risk through food, says UN;

2009-TIOL-220-HC-MAD-IT.pdf

M/s Indbank Merchant Banking Services Ltd Vs ACIT, Chennai (Dated: April 16, 2009)

Income tax - Sec 35D - Assessee is into banking business - claims deduction for preliminary expenses of the business - held, Sec 35D is not applicable for the increase in the share capital as it is incurred subsequent to the establishment of the business and there is neither a new industrial unit nor an expansion of the existing industrial undertaking - Assessee's appeal dismissed:MADRAS HIGH COURT;

2009-TIOL-268-ITAT-DEL.pdf + uk story.pdf

M/s SIEL Ltd Vs DCIT,New Delhi (Dated: March 06, 2009)

Dividend received by a company resident in India, from a company in United Kingdom, tax withheld cannot be treated as a TDS which can be refunded: Subject to the provisions of the law of India regarding the allowance as a credit against Indian tax of tax paid in a territory outside India (which shall not affect the general principle hereof), the amount of the United Kingdom tax paid, under the laws of the United Kingdom and in accordance with the provisions of this Convention, whether directly or by deduction, by a resident of India, in respect of income from sources within the United Kingdom which has been subjected to tax both in India and United Kingdom shall be allowed as a credit against the Indian tax payable in respect of such income but in an amount not exceeding that portion of Indian tax which such income bears to the entire income chargeable to Indian tax.

Res judicata: The refund of the same amount cannot be re-agitated or taken up again for fresh decision in other proceedings for that very assessment year: this issue has already been adjudicated upon by the CIT( A) in his earlier order dated 27-2-2003 in appeal against order under section 154 read with section 143 (1)(a) of the Income Tax Act 1961. The refund of the same amount cannot be re-agitated or taken up again for fresh decision in other proceedings for that very assessment year. This would be against the principles of res judicata .:DELHI ITAT;

2009-TIOL-267-ITAT-MUM.pdf

ITO, Mumbai Vs M/s TIS Thermo Instruments Pvt Ltd (Dated: January 27, 2009)

Income tax - Sec 43B - deduction for sales tax paid - AO disallows on the ground that the assessee's records of earlier AYs do not show any treatment to unpaid sales tax as income - CIT(A) takes the view that the deduction is to be allowed for tax paid in the year in which it is paid, and the AO may reopen assessments for earlier years - held, sales tax paid is to be allowed in the year of payment - Revenue's appeal dismissed:MUMBAI ITAT;

2009-TIOL-266-ITAT-MUM.pdf

ACIT,Mumbai Vs Shri Shekhar Suman (Dated: February 4, 2009)

Income tax - Assessee is a film actor and a model - claims deduction for business promotion expenses - AO disallows 25% of the expenses for lack of vouchers and books - CIT(A) reduces it to 10% - held, since the assessee fails to provide vouchers, some disallowance on estimate basis is to be made and since 20% disallowance made in the block assessment was accepted by the assessee, there is no reason why such a pattern cannot be adopted even for regular assessment - Revenue's appeal partly allowed:MUMBAI ITAT;

2009-TIOL-265-ITAT-MUM.pdf

M/s Sateo Securities & Financial Vs ITO, Mumbai (Dated: January 29, 2009)

Income Tax - Section 36(1)(vii) - AO disallows the claim of the assessee on the ground that the assessee had not discharged the onus to establish that the debt had become irrecoverable - CIT(A) agrees with the finding of the AO – Held , issue covered by the  the decision of Bombay High Court in case of Star Chemicals Ltd where it has been held that in view of the amended Section 36(1) (vii) with effect from 1.4.89 it is not necessary for the assessee to establish the debt had become bad. There is no dispute regarding the fulfilling of other conditions for allowance of bad debt.

On the issue of disallowance of expenses relating to acquisition of computer software - Held, matter remanded back to AO to decide the issue in light of the decision of Special Bench of Tribunal in case of Amway India Enterprises.

On the issue of treatment of rental income as house property income by the AO - Held, the table space had been provided in connection with smooth carrying on business and on commercial expediency. The rental income received will therefore be of the nature of business income.

On the issue of disallowance of interest u/s 40A(2)(b) - Held, the authorities below have not placed any material on record to show that borrowings on lesser rate of interest was available to the assessee but it had borrowed on higher rate from the Director. Not proper to make  disallowance u/s 40A(2)(b) - Assessee's ground allowed. Assessee Appeal partly allowed.: MUMBAI ITAT;

SERVICE TAX SECTION

2009-TIOL-217-HC-P&H-ST.pdf

Service Tax - penalty - setting aside penalty enhanced by the Commissioner by exercising powers under Section 84 of the Finance Act, 1994 - no question of law much less any substantial question of law would arise for determination - appeal dismissed.:PUNJAB AND HARYANA HIGH COURT;

2009-TIOL-703-CESTAT-AHM.pdf

M/s Shree Rang Enterprise Vs CCE, Rajkot (Dated: March 26, 2009)

ST - penalty - Commissioner(A) reduces penalty u/s 76 imposed for delay in depositing tax - Assessee opts for Dispute Resolution Scheme, 2008 - Revenue for enhancement of penalty - held, since the assessee opts for settlement of dispute and an order in this respect is already passed under Sec 96, the Revenue's appeal for enhancement of penalty cannot be sustained under Sec 97 - Assessee's appeal allowed : AHMEDABAD CESTAT;

2009-TIOL-702-CESTAT-AHM.pdf

M/s Guardian Plasticote Ltd Vs CCE & CC, Vapi (Dated: March 5, 2009)

ST - Cenvat credit - Assessee avail credit on outward transporation - Since the issue is referred to the Larger Bench and in view of the HC decision based on the Board' letter on the issue, the matter is remanded: AHMEDABAD CESTAT;

CENTRAL EXCISE SECTION

2009-TIOL-706-CESTAT-MUM.pdf + pepsi story.pdf

Pepsico India Holdings Pvt Ltd Vs CCE, Mumbai-II (Dated: March 13, 2009)

Lower authorities ought to have made a sincere and an independent attempt to get at the real nature of case rather than follow the dictates of the range officer – Tribunal orders remand.:MUMBAI CESTAT;

2009-TIOL-705-CESTAT-MUM.pdf

Standard Alkali Vs CCE, Belapur (Dated: January 27, 2009)

Section 4 of CEA, 1944 – Inclusion in Assessable Value - Appellants showing transportation charges separately in their invoices and in some cases charging higher amounts towards transportation than that was charged by transporters – balance of convenience in favour of appellant in view of SC decision in Baroda Electric Meters Ltd. [2002-TIOL-96-SC-CX ]:MUMBAI CESTAT;

2009-TIOL-704-CESTAT-MUM.pdf

M/s Windoors (India) Vs CCE, Mumbai-II (Dated: February 4, 2009)

Main noticee having settled their case before the Settlement Commission and being granted immunity from fine, penalty and prosecution, co-noticees cannot be vested with any higher penal consequences – Tribunal decision in S.K.Colombowala [2007-TIOL-1130-CESTAT-Mum] relied upon.:MUMBAI CESTAT;

CUSTOMS SECTION

2009-TIOL-218-HC-MAD-EXIM.pdf + exim policy story.pdf

M/s Trimex Minerals Private Ltd Vs UoI (Dated: March 11, 2009)

EXIM POLICY – penalty under Foreign Trade (Development & Regulation) Act, 1992 – since the Exim scrip was issued after the new Act had come into force, penalty cannot be imposed under the old Act: even assuming without admitting that the petitioner has committed offences punishable under the Foreign Trade Act in so far as the actions have been initiated only under the new enactment, the penalty also has to be in terms of the new enactment. Since no statutory proceedings were initiated before new Act and what is saved was only the penalty, confiscation, punishment in respect of any contravention under the old Act. It is not the case of the respondents that there were any proceedings pending before the new Act came into force. :MADRAS HIGH COURT;

2009-TIOL-701-CESTAT-MAD.pdf

M/s Razack Trading Company Vs CC, Chennai (Dated: January 12, 2009)

Customs – Import – Transaction Value – Mis-declaration – DGFT Circular – Prospective in nature - DGFT Circular No. 32(RE-99)/99-2000 dated 17.09.99, on dried garlic did not have application prior to 17.09.1999. As import of fresh garlic was made prior to 17.09.99, confiscation not warranted. The assessable value of the consignments of garlic was enhanced without furnishing to the appellant particulars of contemporaneous imports of identical goods at the higher price. Hence, the matter is remanded to the original authority to decide the valuation dispute and charge of misdeclaration of value by following the principles of natural justice (Para 5) :DELHI CESTAT;