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Give up the 'total income concept' - Justice Rangarajan (See 'DDT') Budget wish-list: A new wine from an old cask? (See 'Budget Run-Up') Govt to introduce 'Maharatna' category for CPSEs; More powers to be delegated; Monsoon advances further; reaches parts of Maharashtra, AP and Karnataka; CBEC issues transfer order of 21 Addl/JCs; DRI seizes 118 litres of ascedic anhydride (raw material for hroin-manufacturing) in Amritsar sector, heading for Afghanistan; Swine Flu: WHO confirms 44000 cases and 180 deaths so far; 56 infected persons in India; Independent probe into Bhutto killing to begin work from July 1: UN; Kuwait decides to deport more than one lakh expats; |
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Dear Member, Sending the following files: |
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TIOL COMMENTARY Annual Confidential Reports – Can't the Reviewing officer change the grading? Budget wish-list: A new wine from an old cask? Conclusion of Adjudication proceedings in Central Excise, Customs and Service Tax cases; RBI NOTIFICATION Valuation of properties - Empanelment of Valuers; MIXED BUZZ Govt to introduce 'Maharatna' category for CPSEs; More powers to be delegated; Ministry of Shipping seeks comments on draft MPRA Act, 2009 ; Independent probe into Bhutto killing to begin work from July 1: UN; Sibal launches nationwide anti-ragging helpline; |
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NOTIFICATION India-Myanmar DTAA notified; CASE LAWS 2009-TIOL-389-ITAT-DEL.pdf + reserve story.pdf M/s Goetze (India) Ltd Vs CIT, New Delhi (Dated: May 20, 2009) Creation of reserve had no implication and even it did not alter in any manner the computation of the total income: in so far as computation of adjusted book profit is concerned, the creation of reserve had no implication and even it did not alter in any manner the computation of the total income. This provision remained on the statute book for assessment years 1997-98 to 2000-01. Since the reserve was not created in these years, there was no question of any adjustment in the book profit in these years at the time of its creation. Accordingly, there could have been no implication of withdrawing certain amount from this reserve and crediting it to the profit and loss account. Therefore, the case of the CIT is based on erroneous interpretation of law that the reduction could not be made in respect of amount withdrawn from this reserve as it had been credited to profit and loss account. The decision of the AO was one possible view in the matter. CIT' review not correct: the order cannot be said to be erroneous and prejudicial to the interest of revenue. In view of the fact that the decision of the AO was one possible view in the matter, the other cases relied upon by the ld. DR regarding lack of enquiry etc. cease to have any implication. :DELHI ITAT; DCIT, New Delhi Vs M/s FAB India Overseas Pvt Ltd (Dated: January 14, 2009) Income Tax - Assessee engaged in the business of purchase and sale of garments, including export of garments, incures expenses on renovation of the showroom and claim revenue expenditure – AO considers it as Capital Expenditure and allows Depreciation @ 10% - CIT(A) considers it as revenue expenditure on the ground that none of the disallowed expenditure has led to an enduring benefit to the appellant but it is an expenditure which has been incurred by a businessman in the normal course of trade - Held, for lack of clear details, issue cannot be determined. CIT(A) order set aside and learned CIT (A) is directed to re-examine the details of expenditure incurred and give clear basis for working them out into revenue and capital expenditure. Revenue appeal allowed for statistical purposes.:DELHI ITAT; BJ Services Co Middle East Ltd Vs ACIT, Dehradun (Dated: March 27, 2009) Income tax - India-UK DTAA - interest on income tax refund u/s 244A - Revenue for 40% tax against 15% claimed by the assessee in representative capacity of its employees - excess paymetn of tax was made by expat employees of the assessee - interest income on refund in dispute - CIT(A) holds since such a receipt is not related to the receipt u/s 44BB, and the income has been earned by the non-resident employees through a PE, such income to be treated as business income under Article 12 of the tax treaty - held, since the issue was earlier decided in favour of the Revenue, the assessee's appeal dismissed :DELHI ITAT; ACIT, Coimbatore Vs M/s Elgitread (India) Ltd (Dated: February 20, 2009) Income Tax - Sec 80HHC – Applicability of Cl. (baa) to Expl. - Assessee engaged in the business of manufacturing reclaimed rubber – Also undertook to manufacture reclaimed rubber from raw materials supplied by third parties on job-work basis – All receipts which have no nexus with exports come within the ambit of cl. (baa) of the Expl. – Decision of Apex Court in CIT Vs K. Ravindranathan Nair ( 2007-TIOL-202-SC-IT ) followed – When a point of law is settled by a decision of the Supreme Court, no Court in India can seek to avoid that decision by discovering supposed conflicts and illogicalities. :CHENNAI ITAT; 2009-TIOL-385-ITAT-MUM.pdf + debt story.pdf M/s GSL India Ltd Vs ACIT, Mumbai (Dated: April 17, 2009) Income Tax - assessee is no more required to prove that debt had become bad before claiming allowance for bad debt: there is no onus cast on an assessee to prove that a debt had indeed become bad, and what is required is that assessee should have made a write off bad debts in its books. Modvat Credit and Closing Stock : adjustments for excise duty and modvat credit while giving effect to Section 145A , has to be done on every component mentioned in Section 145A i.e. value of purchases, sale of goods and inventory. It was held by their Lordship that if there was a change in valuation of closing stock, there needed to be a corresponding adjustment in the opening stock also. Section 145A uses the term 'inventory' and there is no reason why the application of the said section should be limited to closing inventory and not opening inventory. Deemed accrual of interest on loan/advance- Recovery of the principal amount itself being doubtful there cannot be any accrual of interest. That there was accrual of interest on loan, can only be considered as a presumption unless and until it is shown that there was an agreement which made the debtor liable to pay such interest. When the financial condition of a debtor is bad, prudence would not allow a business-man to claim interest on the principal. This is because the recovery of the principal amount itself being doubtful there cannot be any accrual of interest. Recognition of the revenue can be done only when there is reasonable certainty of recovery of such income. When, assessee itself is not sure of its recoveries it cannot be fastened with an income which was not real simply for the reason that it was following mercantile system of accounting. :MUMBAI ITAT; |
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CBEC issues transfer order of 21 Addl/JCs; Maintenance and preparation of Annual Performance Appraisal Reports-communication of all entries for fairness and transparency in public administration;
SERVICE TAX SECTION CCE, Raipur Vs M/s BSBK Pvt Limited (Dated: March 20, 2009) ST - Cenvat credit - assessee is into industrial installation - avails credit for service tax paid on mobile phone bills - Revenue denies the same on the ground that since the bills were raised in the name of employees of the company, the assessee company cannot avail credit for the same - held, the Revenue is right that mere payments of bills by the assessee does not mean that the assessee also utilised the services. However, since the mobile phones were used by the whole time Directors of the company for business purposes and the same is not refuted by the Revenue, credit cannot be denied - Revenue's appeal dismissed :DELHI CESTAT; British Airways Vs CST, New Delhi (Dated: May 4, 2009) ST - pre-deposit - since assessee itself has deposited 80% of Rs 133.23 Crore demand, status quo ante to be maintained and early hearing granted for possible recurring effect of the case :MUMBAI CESTAT; Cosmo Films Ltd Vs CCE & C & ST, Aurangabad (Dated: April 15, 2009) Cenvat Credit whether available on Garden Maintenance services, Authorized Service Station, Security services and Insurance Services – Commissioner(A) has not considered the submissions and the case laws cited by the assessee but passed a cryptic order denying the benefit – Matter remanded to original adjudicating authority to pass orders within six months.:MUMBAI CESTAT;
CENTRAL EXCISE SECTION 2009-TIOL-952-CESTAT-MUM.pdf + cod story.pdf CCE, Mumbai-III Vs TAS Enginering Co Pvt Ltd (Dated: May 5, 2009) Section 35C(2) of the CEA, 1944 - ROM application filed after 471 days along with COD – CESTAT has no power to condone delay and admit applications filed beyond six months period. :MUMBAI CESTAT; 2009-TIOL-951-CESTAT-MUM.pdf + Indoworth story.pdf Indoworth India Ltd Vs CCE, Nagpur (Dated: May 6, 2009) Development Commissioner cancelling the provisional permission given earlier on the ground that for determining the DTA sale entitlement only physical exports were to be taken into consideration and not deemed exports – Revenue has a strong prima facie case – CESTAT orders pre-deposit of Rs. Four Crores. :MUMBAI CESTAT; M/s Interscape Vs CCE, Bangalore (Dated: February 17, 2009) Central Excise – Taxability of furniture being covered by various judgments of Supreme Court, prima facie case made out for waiver of pre-deposit – Matter remanded to Commissioner (Appeals) to decide the case on merits without insisting any pre-deposit :BANGALORE CESTAT; 2009-TIOL-946-CESTAT-MUM.pdf + rule6 story.pdf Elder Pharmaceuticals Ltd Vs CCE, Belapur (Dated: May 19, 2009) Common inputs and services used in or in relation to manufacture of dutiable and exempted final products - Assessee unable to maintain separate accounts of common input services and chooses to reverse the Cenvat credit on pro rata basis – Department raises and confirms a demand of 10% of Rs.3,96,852/- in terms of Rule 6(3) of the CCR, 2004 and imposes equivalent penalty for the period April 2006 to March 2007. :MUMBAI CESTAT; Pinkesh Jain Vs CCE, Thane II (Dated: April 23, 2009) Non submission of re-warehousing certificates in respect of grey fabrics supplied duty free to 100% EOU – Duty liability lies with consignor - consignee confirming that they have not received the goods – Sh. Pinkesh Jain admitting that goods were diverted to DTA unit without payment of duty – suppression stands established – intention to evade payment of duty by adopting fraudulent means is evident – demand not barred by limitation – Pre-deposit ordered. :MUMBAI CESTAT;
CUSTOMS SECTION CC, Cochin Vs M/s Rajeswari Graphics, Maharashtra (Dated: February 4, 2009) Customs – Import of second hand photocopiers in violation of import policy – Reduction of redemption fine to 10% and penalty to 5% of the value of goods respectively by lower authority justified – No merit in Revenue appeals :BANGALORE CESTAT; Shri S Chandrasekharan Vs CCE & C, Hyderabad II (Dated: February 6, 2009) Customs – If goods are not held liable for confiscation under s. 113 of Customs Act, 1962, penalty not leviable under s. 114(i) – Impugned order set aside :BANGALORE CESTAT; |
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