New Direct Tax Code to be put in public domain tomorrow: FM

CBDT new Member Narender Singh gets A & J charge + L&C goes to C S Kahlon

I-T - Gift - additions made - CIT(A) & Tribunal disallow appeal on ground that donor denies giving gifts - held, even if assessee is allowed to cross-examine donor, since assessee and donor are not related and there is no natural love and affection, it cannot be treated as genuine gift

US Exim Bank lends USD 2.5 bn for India's core sector projects

Swine Flu kills four more; Death toll reaches two digit (10); Union Health Minister asks CMs to take adequate steps

Income Tax - Settlement Commission - abating of cases filed before June 2007 for no fault of applicant - not legal - Government to consider appointment of more benches if is desirous of clearing pending cases: Bombay HC

IRS Officer trying for a transfer through MOS(R) - Charge-sheet without approval of Disciplinary Authority not valid - HC

Post Budget letter by JS (TRU) cannot add more words to Notification and make it applicable retrospectively - Such communication issued is not tenable in law: Gujarat HC

GST Regime: Another KVSS may be required to liquidate arrears

Cenvat Credit of service tax - Even if appellate authority while waiving penalty cited section 80 of Finance Act, 1994 which does not apply to facts of case, in absence of mens rea, penalty cannot be imposed under Sec 11AC: CESTAT

NACEN launches Website

TIOL COMMENTARY

ddt 11Aug09.pdf

Custom House Agents – Board issues Draft Circular – KYC for CHA;

stgst.pdf

GST Regime: Another KVSS may be required to liquidate arrears;

MIXED BUZZ

mbuzz0744.pdf

New Direct Tax Code to be put in public domain tomorrow: FM;

mbuzz0743.pdf

Govt reviews Swine Flu crisis; takes many critical decisions;

mbuzz0742.pdf

Govt to issue Cash Management Bills to meet cash requirements;

MISC CASE LAW

2009-TIOL-403-HC-DEL-SERVICE.pdf

UoI Vs B V Gopinath (Dated: July 28, 2009)

Services – Charge sheet issued to IRS officer without approval of Disciplinary Authority not valid: DELHI HIGH COURT;

cbdtorder116_2009.pdf

CBDT issues local transfer order of 7 CITs;

2009-TIOL-402-HC-MUM-IT.pdf

Shri Surendra M Khandhar Vs ACIT, Bombay (Dated: January 27, 2009)

Income tax - Sec 69 - Revenue conducts search and seizure - finds a document relating to loan agreement for Rs 20 lakh from the assessee's premises - AO makes additions - Assessee does not deny the authenticity of the loan agreement but claims the same was not implemented - Tribunal agrees with the AO and upholds the addition - held, it is a fact that there was a loan agreement and all the parties to the agreement have been verified. Since the document was found at the assessee's premises, the presumption u/s 292C and also u/s 132(4) was to be rebutted by the assessee but he fails to do so - no violation of natural justice - no flaw in Tribunal's order - Assessee's appeal dismissed.: BOMBAY HIGH COURT;

2009-TIOL-401-HC-MAD-IT.pdf

CIT, Chennai Vs Shri Krishna Saraf (Dated: July 7, 2009)

Income tax - Sec 132B(4)(a) - Assessee's premises searched u/s 132 - Reveue makes seizure of a diary, cash, jewellery and other instruments of investments - Notice u/s 143(2) - return filed and assessment order passed - appeal filed - giving effect to the appellate authority order AO determines the sum refundable to the assessee but fails to grant interest as per Sec 132B(4)(a) - ROM filed u/s 154 - CIT(A) holds that the omission of grant of interest is a mistake apparent on record - Tribunal agrees with the CIT(A) - held, going by the fact that the seizure was made at the premises of the assessee, the interest u/s 132B(4)(a) cannot be denied and the findings of CIT(A) and Tribunal do not call for interference

Sec 154 - held, in view of the fact that the interest u/s 132B(4)(a) was admissible to the assessee but the same was omitted in the AO's order, it was a mistake apparent on record, and the same can be rectified by the AO himself or on rectification application filed by the assessee - Sec 154 is invokable in the instant case - Revenue's appeal dismissed.: MADRAS HIGH COURT;

2009-TIOL-400-HC-P-H-IT.pdf

Smt Kusum Lata Thakral Vs CIT, Karnal (Dated: July 24, 2009)

Income tax - Gift - assessee receives gift - AO makes addition by treating the same as undisclosed income - Assessee pleads they have fulfilled three ingredients of establishing the identity, creditworthiness and authenticity of transaction - CIT(A) and Tribunal disallow the appeal on the ground that the donor denies giving any gifts - held, the onus to establish the creditworthiness of the donor and genuineness of transaction are on the assessee. Even if the assessee is allowed to cross-examine the donor, since the assessee and the donor are not related and there is no natural love and affection, it cannot be treated as genuine gift - Assessee's appeal dismissed.: PUNJAB & HIGH COURT;

2009-TIOL-399-HC-P-H-IT.pdf

CIT, Chandigarh-II Vs M/s Punjab Energy Development Agency (Dated: July 31, 2009)

Income tax - Section 11(1)(a) - Assessee is a public sector undertaking - receives grants from Central and State Govts for various projects - earns interest on the grants received - claims deduction under Section 11(1)(a) - AO disallows - CIT(A) allows the appeal - Tribunal remands the issue to examine whethere there is co-relation between schemes and the amounts spent - held, qualification for attracting Section 11(1)(a) is that income should be derived from property held in Trust for charitable purpose. The scheme of Section 11 is not to include income derived from the property of the Trust in total income. Thus interest income from property of the Trust clearly falls under Section 11 of the Act. Even income from sale of solar cooker and other equipments developed by the assessee qualifies for the benefits - Revenue's appeal dismissed.: PUNJAB & HIGH COURT;

2009-TIOL-398-HC-MUM-IT.pdf + star story.pdf

Star Television News Ltd Vs UoI (Dated: August 7, 2009)

Income Tax – settlement Commission – abating of cases filed before June 2007 for no fault of applicant – not legal – The choice of 31st March 2008 as the cut-off date is not supported by any rationale reasons. From the statistics of the Income-tax Department itself it is indisputable that the cut-off date of 31st March 2008 for disposal of all applications filed prior to 1st June 2007 were known to be illusory, whimsical, capricious and so wide off the reasonable mark as to make it palpably arbitrary. The arbitrariness of the choice of 31st March 2008 as the cut-off date is even more apparent when it is noticed that the Settlement Commission is not being wound up, but on the contrary even after the amendments made by the 2007 Act came into effect on 1st June 2007, the Act permits the filing of fresh applications before the Settlement Commission

Government to consider appointment of more benches if is desirous of clearing pending cases: Union of India if desirous of early disposal of the pending applications, to consider the appointment of more Benches of the Settlement Commission, more so at the Benches where there is heavy pendency like Delhi and Mumbai.: BOMBAY HIGH COURT;

SERVICE TAX SECTION

2009-TIOL-1239-CESTAT-MUM.pdf + credit story.pdf

Commissioner of Central Excise & Customs Vs M/s Ballarpur Industries Ltd. (Dated: July 9, 2009)

Cenvat Credit of service tax - Even if the appellate authority while waiving penalty cited section 80 of the Finance Act, 1994 which does not apply to the facts of the case, in the absence of mens rea , penalty cannot be imposed u/s 11AC of the CEA, 1944 - CESTAT.: MUMBAI CESTAT;

2009-TIOL-1238-CESTAT-DEL.pdf

M/s Delta Consultants Vs CST, Delhi (Dated: June 16, 2009)

ST - 'Finishing' service - Assessee is into commerical and industrial construction service - demand raised - demand requantified in view of law being amended and finishing service being made liable to service tax w.e.f. 16/06/05 - held, in view of the amendment in law and the finishing service being brought under the tax net and valuation also being an issue of dispute, a pre-deposit of Rs 15 ordered.: DELHI CESTAT;

2009-TIOL-1237-CESTAT-DEL.pdf

CCE, Chandigarh Vs M/s Hira Automobiles Ltd (Dated: June 4, 2009)

ST - Business Support Service - Assessee provides vehicular loan for customers from banks - fails to pay tax - Revenue raises demand under BAS and imposes penalty - Commissioner(A) sets aisde the penalty on the basis of evidence furnished - held, it has been held by the Tribunal that arranging loan on commission basis is covered under Business Support Service w.e.f 1.5.2006 and not under BAS - since there was doubt about the levy of tax on the said activity, the Commissioner(A) rightly invoked Sec 80 - Revenue's appeal dismissed.: DELHI CESTAT;

CENTRAL EXCISE SECTION

2009-TIOL-397-HC-AHM-CX.pdf + tru story.pdf

Marck Parenterals India Ltd Vs UoI (Dated: June 19, 2009)

Central Excise – Exemption Notification No 3/2001 CE dated 1.3.2001 – restriction of exemption to Intravenous Fluids cannot be applied retrospectively – the post budget instructions of JS(TRU) cannot add more words to the Notification and make it applicable retrospectively. – The impugned Circular is not sustainable in the eyes of law and is therefore quashed.: GUJARAT HIGH COURT;

2009-TIOL-1234-CESTAT-AHM.pdf

M/s Baroda Conductors Pvt Ltd Vs CCE, Daman (Dated: April 1, 2009)

Central Excise – Duty paid raw materials cleared for job work without documentation – When one unit of factory accounted receipt of raw materials and taken credit of duty paid thereon, no justification to conclude onward transfer to another unit for job work as malafide – Case cannot be based on assumption of future evasion – Duty demand set aside – Penalty of Rs. 5000 levied for procedural infraction and balance of penalties set aside.: AHMEDABAD CESTAT;

2009-TIOL-1233-CESTAT-BANG.pdf

Power Grid Corpn Of India Ltd Vs CCE, Bangalore (Dated: January 29, 2009)

Central Excise – Duty paid consequent to delay in sanction of world bank loan to power project available as refund subsequent to loan approval – Impugned order set aside.: BANGALORE CESTAT;

2009-TIOL-1232-CESTAT-BANG.pdf

CCE, Visakhapatnam Vs M/s Rashtriya Ispat Nigam Ltd (Dated: February 18, 2009)

Central Excise – CENVAT credit available on items which are used in repair & maintenance, storage of liquids, accessories of plant & machinery, material handling equipment & parts – No merit in revenue appeals – Impugned order upheld.: BANGALORE CESTAT;

CUSTOMS SECTION

CIRCULAR

dgft08cir099.pdf

Advance Authorization – Export of SCOMET items – clarification regarding;

NOTIFICATION

dgft08pn193.pdf + dgft08pn192.pdf

SION rate for engineering products amended;

CASELAW

2009-TIOL-1236-CESTAT-BANG.pdf

M/s Blasant Agro Exim Pvt Ltd Vs Joint Commissioner Of Customs, Cochin (Dated: March 18, 2009)

Customs – When valuation arrived at based on contemporaneous price by rejecting transaction value, revenue cannot reopen assessments – Prima facie case in favour of assessee – Pre-deposit fully waived and stay granted.: BANGALORE CESTAT;

2009-TIOL-1235-CESTAT-BANG.pdf

M/s Avanti Feeds Ltd Vs CC & CCE, Guntur (Dated: April 21, 2009)

Customs – Evidence on record to suggest that shrimp feed cleared to DTA against foreign exchange on payment of duty with permission of Development Commissioner – Final exit order issued by Development Commissioner – Principles of Natural justice violated in not according opportunity to appellants to contest findings in O-I-O not mentioned in SCN – Full waiver of pre-deposit and stay granted.: BANGALORE CESTAT;