Income tax - Penalty - vires of retrospective insertion of sub-section (1B) in Sec 271 vide Finance Act, 2008 upheld; It is not violative of Article 14 of Constitution: High Court (Look for detailed analysis tomorrow)

New Members' panels for CBDT & CBEC get ACC approval; Orders for three existing vacancies likely to be issued ;

Accused of involvement in sex scam, J&K CM Omar Abdullah resigns;

Maharashtra tops list of fake educational institutions: Govt;

Babus LTC also only by Air India;

Service tax on 'electricity'! (See 'ST se GST tak' Column);

Prevention of sexual harassment of working women in the workplace - Government Instructions;

TIOL COMMENTARY

ddt 28 july.pdf

Smooth Road Ahead – No Service Tax on Road Repair;

officememorandum.pdf

Regulation of Journey by air while availing Leave Travel Concession - clarification regarding;

stgst.pdf

Service Tax on 'electricity'!;

2009-TIOL-370-HC-DEL-SERVICE.pdf + it story.pdf

UoI , New Delhi Vs Mr S C Jain (Dated: July 23, 2009)

Income Tax Officer accused of accepting a bribe of Rs. One Lakh – Entire Pension withheld - degree of proof required in departmental enquiries is that of a preponderance of probabilities and not proof beyond a reasonable doubt – penalty upheld: That the degree of proof required in departmental enquiries is that of a preponderance of probabilities and not proof beyond a reasonable doubt is by now well settled through a series of decisions. Where two views on the evidence are possible, the Tribunal or the Court should not substitute its view for that of the enquiry officer is well accepted by the Supreme Court in a large number of cases. : DELHI HIGH COURT;

MIXED BUZZ

mbuzz0697.pdf

Maharashtra tops list of fake educational institutions: Govt;

mbuzz0696.pdf

CBN successfully organises month-long anti-drug events;

mbuzz0695.pdf

CJI inaugurates Cyber Regulation Appellate Tribunal;

mbuzz0694.pdf

More judges for SC: Strength sanctioned but other glitches delay elevation;

mbuzz0693.pdf

Size of Retail business to be close to USD 590 bn by 2011-12;

CBDT NOTIFICATION

notificationno_3.pdf

12 ACITs become DCITs;

CASE LAWS

2009-TIOL-369-HC-P-H-IT.pdf

CIT, Patiala Vs M/s Fair Deal Traders (Dated: July 17, 2009)

Income tax - Assessee is engaged in sale and purchase of land - enters into a deal for sale of a piece of land - receives advance - AO for treating the advance as receipt as the possession was given to the purchaser - CIT(A) agrees but Tribunal allows assessee's appeal on the ground that the sale deed was not registered - held, it is settled law that what is taxed by Revenue is the income receipt and since the assessee has received substantial advance, it is taxable in the hand of the assessee - Revenue's appeal allowed : PUNJAB & HARYANA HIGH COURT;

2009-TIOL-368-HC-P-H-IT.pdf

CIT, Jalandhar Vs M/s ATAM Valves (P) Ltd (Dated: July 22, 2009)

Income tax - Sec 69 - Survey - loose slips found relating to wages paid - assessee says they are the wages paid in the past - AO makes addition - CIT(A) and Tribunal partly delete it - held, no doubt, the assessee may have given false explanation and some amount of guess work is allowed to arrive at fair estimation but it depends on facts of each case - in the instant case the CIT(A) and Tribunal have made fair estimation - no substantial question of law involved - Revenue's appeal dismissed : PUNJAB & HARYANA HIGH COURT;

2009-TIOL-483-ITAT-DEL.pdf

M/s Chinatrust Commercial Bank Vs ADIT, Delhi (Dated: May 15, 2009)

Income Tax—Assessee, engaged in the business of international banking services, filed IT return asking for refund—AO allowed refund but no interest u/s 244A was given—CIT(A) upheld AO's order—Held, though it was contended by revenue that the refund was delayed due to assessee's default in filing a power of attorney but if without the power of attorney, the return could be processed and the assessment could be made, the refund could also be prepared and made to the assessee—Held, Sec 244A (2) provides for the non-granting of interest for the period of delay attributable to the assessee—Assessee's appeal allowed for statistical purposes. : DELHI ITAT;

2009-TIOL-482-ITAT-DEL.pdf

ACIT, New Delhi Vs M/s C J International Hotels Ltd (Dated: May 19, 2009)

Income tax - Sec 147 - Assessee is into hotel business - lets out space to various parties - Nil return filed - Reassessment initiated for a property sub-leased by the assessee but no income offered for assessment - treats this property u/s 22 as 'income from house property' - also disallows depreciation availed - held, since sub-leased owners further let out the property and income offered for taxation, the same property cannot be taxed in the hand of the assessee - there cannot be two owners of the same property - sub-licensees, real owners, are to be treated as deemed owner in view of the definition of ownership and transfer as given in see. 27(iii) read with section 269UA(f)(ii). Besides, the proviso to section 147 also comes into play and the assessment cannot be reopened in absence of any failure on the part of the assessee in disclosing the relevant particulars. : DELHI ITAT;

SERVICE TAX SECTION

NOTIFICATION

stnot09_024.pdf

Repair & maintenance of road exempted from service tax but no exemption for past demand so far;

CASE LAWS

2009-TIOL-1137-CESTAT-MUM.pdf

CCE, Pune II Vs M/s Gadre Marine Exports (Dated: June 16, 2009)

Cenvat Credit of service tax paid on GTA service used for outward transportation of excisable goods from factory is available to an assessee in view of LB decision in ABB Ltd. vs. CCE [ 2009-TIOL-830-CESTAT-BANG-LB ] – Revenue appeal dismissed. : MUMBAI CESTAT;

2009-TIOL-1136-CESTAT-MAD.pdf

M/s Thriveni Earthmovers Pvt Ltd Vs CCE, Salem (Dated: April 2, 2009)

Service Tax – Cargo Handling service vis-à-vis mining services - movement of limestone and rejects in the mining area undertaken by the appellants are covered by the entry ‘mining of mineral, oil, gas' and the said activity cannot be taxed under cargo handling service' for the period prior to introduction of the levy under the category ‘mining of mineral, oil, gas' on 1 st June 2007. : CHENNAI CESTAT;

2009-TIOL-1135-CESTAT-BANG.pdf

M/s West Coast Paper Mills, Dandeli Vs CCE, Mangalore (Dated: January 16, 2009)

Service Tax – Nominal amounts collected from employees for providing cable service as welfare measure and service tax discharged thereon – Gross amount collected by service provider is the basis for levy of tax – Revenue plea to recover tax on amounts charged by cable operator not justified – Full waiver of pre-deposit and stay granted : BANGALORE CESTAT;

2009-TIOL-1134-CESTAT-BANG.pdf

M/s Lanco Industries Limited Vs CCE, Tirupathi (Dated: February 18, 2009)

Service Tax – Input credit – Business Auxiliary Service – Stay /dispensation of pre-deposit - Sales promotion has specifically been included in the definition of ‘input service'. Prima facie case has been made out that credit of the Service Tax paid on the “Business Auxiliary Services” is available as input credit. Stay granted even beyond the period of 180 days. (Para 6) : BANGALORE CESTAT;

CENTRAL EXCISE SECTION

2009-TIOL-1140-CESTAT-MUM.pdf + plywood story.pdf

M/s Ballarsha Plywood Vs CCE & CC, Nagpur (Dated: March 5, 2009)

Rule 6 of the CCR, 2004 – when sawing is not a process employed in the manufacture of particle board, dust which arises cannot be called ‘saw dust' so as to bracket it as exempted excisable goods – CESTAT waives pre-deposit and orders stay. : MUMBAI CESTAT;

2009-TIOL-1139-CESTAT-BANG.pdf

M/s B P Mobiles Vs CCE, Mysore (Dated: April 8, 2009)

Central Excise – Assessee's payment of excess amount over and above the actual demand in SCN factually correct and Tribunal's order for adjustment of this amount for outstanding dues in order – No merits in Revenues ROM : BANGALORE CESTAT;

2009-TIOL-1138-CESTAT-BANG.pdf

M/s Appollo Tyres Ltd Vs CCE, Calicut (Dated: April 15, 2009)

Central Excise – Tubes and flaps along with tyres assembled and strapped together and cleared to OEMs cannot be regarded as clearance ‘as such' – Not covered under Rule 3(5) of CENVAT Credit Rules, 2004 – Full waiver of pre-deposit and stay granted : BANGALORE CESTAT;

CUSTOMS SECTION

2009-TIOL-367-HC-DEL-CUS.pdf + bail story.pdf

DRI Vs MD Jamil @ Wasim @ Bhura (Dated: July 15, 2009)

Customs – Bail - Merely because there is a serious offence against the respondent, it cannot be a ground for cancellation of bail – DRI petition dismissed: circumstances when bail can be recalled:

(1) Where the accused has misused the liberty granted to him.

(2) Where accused has attempted to tamper with the evidence.

(3) Where he has attempted to influence the witnesses.

(4) Where there is a possibility of the accused to abscond and, therefore, there is a possibility that the accused may not be available for trial. : DELHI HIGH COURT;

2009-TIOL-1141-CESTAT-MUM.pdf

M/s LG Electronics India Pvt Ltd Vs CC, Nhava Sheva (Dated: June 16, 2009)

EPCG Scheme did not differentiate between new capital goods and old ones inasmuch as either of these could be imported – in this scenario appellant's omission to add words like ‘old' and ‘used' in B/E is inconsequential – no mis-declaration can be attributed – Appeal disposed of.: MUMBAI CESTAT;