Pakistan declines to hand over Dawood to India: Foreign Minister Krishna;

Budget 2009 is passed but FM's budget managers fail to carry out million dollar amendment in Income Tax Act!;

Bad news for tax evaders; PM says Govt has begun work to unearth black money in 100 days;

Visit India 2009: Incentives for international tourists;

India receives USD 4.4 billion FDI inflows in two months;

India has signed no FTA in last 2 years;

Incentives to revive industrial downturns;

CBI recovers Rs 2.13 Cr in cash from premises of Chennai-based Protector of Emigrants and agents;

CBI raid on AICTE topbrass; Govt wakes up!, puts Chairman R A Yadav under suspension;

TIOL COMMENTARY

ddt 30july09.pdf

Chartered Accountants brought into Central Excise but Cost Accountants not taken into Income Tax;

cobweb.pdf

Budget 2009 is passed but FM's budget managers fail to carry out million dollar amendment in Income Tax Act!;

RBI Notifi For NEFT.pdf

National Electronic Funds Transfer (NEFT) System – Business Continuity Plan;

MIXED BUZZ

mbuzz0706.pdf

Visit India 2009: Incentives for international tourists;

mbuzz0705.pdf

CBI recovers Rs 2.13 Cr in cash from premises of Chennai-based Protector of Emigrants and agents;

mbuzz0704.pdf

India receives USD 4.4 billion FDI inflows in two months;

mbuzz0703.pdf

India has signed no FTA in last 2 years;

mbuzz0702.pdf

Incentives to revive industrial downturns;

INSTRUCTION

instruct0905.pdf

Withdrawal of Instruction no.1829 dated 21/9/1989;

CASE LAWS

2009-TIOL-380-HC-P-H-IT.pdf + punjab story.pdf

CIT, Patiala Vs M/s Punjab State Electricity Board (Dated: July 9, 2009)

Income tax - Sec 32 - Assessee is an electricity board - sells energy-saving devices on which 100% depreciation is allowed u/s 32 - the devices were taken on lease - Revenue disallows deduction on the ground that the lease agreement was sham and the assessee resorted to colourable devices to avoid payment of tax - Tribunal disagrees with the Revenue as no evidence furnished towards use of colourable devices - held, tax planning within the parameters of the law is legitimate and no substantial questin of law arises in this case - Revenue's appeal dismissed : PUNJAB & HARYANA HIGH COURT;

2009-TIOL-379-HC-P-H-IT.pdf

Smt Ram Piari Vs CIT, Patiala (Dated: July 9, 2009)

Income tax - Penalty u/s 271(1)(c) - assessee derives income from property - makes application for clearance certificate in Form 34A for sale of property - matter referred to the AO - Notice u/s 148 - no revised return filed - reassment order passed making addition for capital gains - penalty proceedings initiated for concealment of income - CIT(A) and Tribunal uphold the same - held, since lower authorities have found concealment and also furnishing of inaccurate particulars of income and the fact that the assessee has been convicted and imprisonment ordered u/s 276 and also u/s 277, there is enough material to sustain penalty u/s 271(1)(c) which is a remedy for loss of revenue and for imposing the same, the element of 'wilful' concealment is not essential - Assessee's appeal dismissed : PUNJAB & HARYANA HIGH COURT;

2009-TIOL-378-HC-MAD-IT.pdf

CIT Vs P & C Constructions (P) Ltd (Dated: July 14, 2009)

Income tax - Assessee is a contractor - pays retention money and additional security deposit to contractee - AO brings the retention money and additional security deposit to tax as the contractual project was completed - CIT(A) and Tribunal disagree with the AO - held, although the contract was over but since the retention money and the additional security deposit was not received by the assessee during the current year, the same cannot be taxed - Revenue's appeal dismissed : MADRAS HIGH COURT;

2009-TIOL-377-HC-MAD-IT.pdf

M/s Operating Lease & Hire Purchase Co. Ltd Vs ACIT, Chennai (Dated: July 14, 2009)

Income tax - Assessee is into hire purchase business - enters into agreements with two parties - shows income from finance charges in return - in the next Financial year, the agreements are cancelled by the hirers - claims deduction for the income returned in the previous FY - AO disallows - CIT(A) and Tribunal also agree with the AO as the assessee fails to furnish the cancellation documents and other related papers - held, it is a pure question of facts and no interference is called for - Assessee's appeal dismissed: MADRAS HIGH COURT;

SERVICE TAX SECTION

2009-TIOL-1156-CESTAT-BANG.pdf + nagarjuna story.pdf

M/s Nagarjuna Constructions Vs CCE, Hyderabad (Dated: March 25, 2009)

Service Tax – Laying of pipelines for drinking water supply projects, prima facie not leviable to tax under Commercial or Industrial Construction Service – Full waiver of pre-deposit and stay granted . :BANGALORE CESTAT;

2009-TIOL-1155-CESTAT-AHM.pdf

M/s Time Packaging Ltd Vs CCE, Vapi (Dated: June 24, 2009)

Service Tax – Availability of credit of service tax on transportation charges/insurance charges – Matter remanded in view of LB decision in ABB Ltd & Ors 2009-TIOL-830-CESTAT-BANG-LB : AHMEDABAD CESTAT;

2009-TIOL-1153-CESTAT-MAD.pdf

M/s Intertouch Metal Buildings Pvt Ltd Vs CST, Chennai (Dated: June 4, 2009)

Service Tax – Commercial or Industrial construction service – Denial of exemption under notification No.15/04 ST dt 10.9.04 on finishing services – Alternate plea for exemption under 12/03 ST dt.20.6.03 – matter remanded for fresh decision after examining the documentary evidence. : CHENNAI CESTAT;

2009-TIOL-1152-CESTAT-BANG.pdf

M/s Elegant Packaging Industries Vs CCE, Hyderabad-II (Dated: February 5, 2009)

Service Tax – Delay of 49 days in filing appeal before Commissioner (Appeals) condonable in view of the circumstances of the case - Matter remitted to Appellate Commissioner for decision on merits : BANGALORE CESTAT;

CENTRAL EXCISE SECTION

2009-TIOL-1159-CESTAT-MUM.pdf + jyoti story.pdf

CCE, CC& ST, Nashik Vs M/s Jyoti Structures Ltd (Dated: June 16, 2009)

Wrongly availed exemption notification, no mens rea proved by Revenue - no cause for imposition of penalty under section 11AC of the CEA,1944 - CESTAT dismisses Revenue appeal.

Apex Court decision in Union of India Vs. M/s. Rajasthan Spinning & Weaving Mills ( 2009-TIOL-63-SC-CX ) and Commissioner of Customs and Central Excise Vs. M/s. Lanco Industries Ltd ( 2009-TIOL-63-SC-CX ) relied upon. : MUMBAI CESTAT;

2009-TIOL-1158-CESTAT-BANG.pdf

M/s Bharat Petroleum Corpn Ltd Vs CCE, Kochi (Dated: January 13, 2009)

Central Excise – Clearance of Naphtha to NTPC Power plant at Kayamkulam without payment of duty under Notification 6/2002-CE objected by Revenue as capacity mentioned in certificate slightly differs with that of Notification – Revenues objection repugnant to common sense as there is no other power plant at Kayamkulam – Impugned orders set aside .:BANGALORE CESTAT;

2009-TIOL-1157-CESTAT-BANG.pdf

M/s Andhra Pradesh Paper Mills Ltd Vs CCE & CC, Visakhapatnam (Dated: January 23, 2009)

Central Excise – CENVAT Credit not deniable on supporting structures of plant and machinery – Impugned order set aside .: BANGALORE CESTAT;

2009-TIOL-1154-CESTAT-MAD.pdf

CCE, Madurai Vs TVS Srichakra Ltd (Dated: May 26, 2009)

Central Excise – rubberized tyre cord warp sheet falls under Chapter Heading 59.06 and eligible for exemption under Notification 67/95 CE when used captively in the manufacture of tyres. .: CHENNAI CESTAT;

CUSTOMS SECTION

NOTIFICATION

cnt09_102.pdf

Exchange rate for July notified;

CASE LAWS

2009-TIOL-1151-CESTAT-MAD.pdf

Nova Office Ssytems Vs CC, Tuticorin (Dated: March 31, 2009)

Customs – secondhand photo copiers – import of secondhand photocopiers allowed without licence prior to 19.10.2005.

Valuation - rejection of evidence in the form of supplier's Chartered Engineer's certificate in support of the transaction value on the basis of subsequent opinion of another expert is not justifiable and that the opinion of one expert cannot be rejected on the basis of opinion of another expert unless there is sufficient independent reason for such rejection - appellants have not contravened either provisions under Section 111 (d) or (m) of the Customs Act.: CHENNAI CESTAT;

2009-TIOL-1150-CESTAT-MAD.pdf

M/s DPB Antibiotics Vs CC, Chennai (Dated: May 5, 2009)

Customs – import of goods falling under CSH 2905.59 is restricted under Exim Policy and a specific licence is required for their import – Confiscation u/s 111(d) upheld - the request of the appellants to redeem the goods on payment of fine and penalty and applicable duty as ordered by the original authority is allowed.: CHENNAI CESTAT;