Serious bias against salaried in New Direct Taxes Code; HRA, LTC, medical reimbursement - Everything going to be taxable! (See 'TIOL Response')

CMs' conference on internal security: Situation of vacant posts in Police alarming, says Home Minister;

DGFT comes out with another guidelines for import of marble blocks;

926 branches of banks to receive advance tax in Mumbai;

I-T - When expenditure of interest is incurred in relation to income which does not form part of total income, it has to suffer disallowance irrespective of fact whether any income is earned by assessee or not: ITAT Special Bench

Custodial Death in Malda Customs - NATIONAL HUMAN RIGHTS COMMISSION awards interim relief of Rs One Lakh based on TIOL Report (See 'DDT')

When economy is becoming complex, one cannot expect tax law to be simpler: CBDT Member (See 'Guest Column');

Justice Prafulla Kumar Misra, Madras High Court judge, is appointed as Chief Justice of Patna High Court;

Haryana CM demands separate High Court for Haryana; appeals to PM & Law Minister;

Jaswant Singh's autobiography: Jinnah not responsible for partition of India;

TIOL COMMENTARY

DDT 17Aug09.pdf + nationalhumanrights.pdf

Custodial Death in Malda Customs – NATIONAL HUMAN RIGHTS COMMISSION awards interim relief of One Lakh Rupees based on TIOL Report;

guest column.pdf

When economy is becoming complex, one cannot expect tax law to be simpler: CBDT Member;

tiol top.pdf

Serious bias against salaried in New Direct Taxes Code; HRA , LTC , medical reimbursement - Everything going to be taxable!;

Filling_post_cbi.pdf

Filling up of the post of Superintendent of Police in CBI on deputation basis - reg.;

MIXED BUZZ

mbuzz0763.pdf

926 branches of banks to receive advance tax in Mumbai;

mbuzz0762.pdf

India Posts subscribes to Global Monitoring System;

mbuzz0761.pdf

CMs' conference on internal security: Situation of vacant posts in Police alarming, says Home Minister;

2009-TIOL-411-HC-MUM-IT.pdf

CIT Panaji Vs Goa Urban Co-Operative Bank Ltd (Dated: July 15, 2009)

Income tax - Sec 80P(2)(a)(i) - Assessee claims exemption of income derived from investments made in government securities in excess of SLR - AO disallows but Tribunal allows - held, the investments have been made by the Bank in government securities, fixed deposits, etc. and the income is utilized for business and the law is very clear in granting exemption to such income - Revenue's appeal dismissed.: BOMBAY HIGH COURT;

2009-TIOL-410-HC-DEL-IT.pdf

Saga Departmental Stores Ltd Vs CIT (Dated: August 10, 2009)

Income tax - Assessee runs departmental stores - sells various handicraft items and carpets - pays commission to tax drivers and guides who bring touritsts for shopping - claims deduction of huge expenditure of commission paid in sums below Rs 2500 - AO finds as against the gross profit of 54%, the assessee has declared a net profit of 1.93% by claiming deduction of about 10-20% commission paid - AO allows only part of deduction - CIT (A) examines the case in great details and finds that the commission was paid to large number of persons in one single sale and no person was repeated in a month which goes against the principle of probability - allows 14% of turnover as deduction - Tribunal hikes it to 16% on the basis of various facts and evidences gathered by the AO - held, no substantail question of law involved - Assessee's appeal disallowed.: DELHI HIGH COURT;

2009-TIOL-409-HC-MUM-IT.pdf

Suleman Usman Chamadia Vs Appropriate Authority (Dated: August 3, 2009)

Income tax - Sec 269UD(1) - Assessee transfers development right of property for a sum calculated at Rs 1500/­ per sq.ft. - Revenue passes an order for purchase of the property under section 269UD(1) - Appropriate Authority then holds that the fair market rate should be Rs.2000/­ per sq. ft. and the rate of Rs.1500/­ per sq. ft. of salable area was less than the market rate - Respondent raises multiple objections - held, since Revenue fails to address the points of objection raised by the respondents, the issue is remanded for fresh examination.: BOMBAY HIGH COURT;

2009-TIOL-515-ITAT-DEL-SB.pdf + spl bench story.pdf

M/s Cheminvest Ltd Vs ITO, New Delhi (Dated: August 5, 2009)

Income tax - Sec 14A - Assessee invests in purchase of shares - long-term capital gains - Assessee also pays interest on borrowed funds, partly utilised for investments - AO disallows deduction - held, when the expenditure of interest is incurred in relation to income which does not form part of total income, it has to suffer the disallowance irrespective of the fact whether any income is earned by the assessee or not-case held against the assessee in 2008-TIOL-509-ITAT-MUM-SB.: DELHI ITAT;

SERVICE TAX SECTION

2009-TIOL-1265-CESTAT-AHM.pdf

M/s Indo-Japan Pen Manufacturing Co Pvt Ltd Vs CCE, Vapi (Dated: July 9, 2009)

ST - assessee pays tax on royalty - claims refund based on a Tribunal's decision - Commissioner(A) remands the issue for examining the unjust enrichment aspect of the case - held, Commissioner(A) order asking for examination of unjust enrichment is valid but there is no merit in observation that the Tribunal's orders are orders in personnem and not orders in rem.: AHMEDABAD CESTAT;

2009-TIOL-1264-CESTAT-AHM.pdf

M/s Kabisco Food Industries Vs CCE, Ahmedabad-II (Dated: June 18, 2009)

Service Tax – Credit on outward transportation available in view of LB decision in ABB Ltd & Ors 2009-TIOL-830-CESTAT-BANG-(LB) – Matter remanded to Commissioner (Appeals) for a fresh decision in light of LB decision.: AHMEDABAD CESTAT;

2009-TIOL-1263-CESTAT-AHM.pdf

CCE, Surat Vs M/s Mahadev Cable Net (Dated: June 4, 2009)

ST - Cable service - Assessee pays tax with interest before issue of SCN - penalty - Commissioner(A) reduces the same - held, as noted by the Commissioner(A) that the assessee had not collected tax from customers but paid the tax with interest and 25% of penalty, it is a fit case for invocation of Sec 80 - Revenue's appeal dismissed.: AHMEDABAD CESTAT;

CENTRAL EXCISE SECTION

2009-TIOL-1269-CESTAT-AHM.pdf + cable story.pdf

M/s Sanghvi Aerospace Pvt Ltd Vs CCE, Ahmedabad (Dated: June 25, 2009)

Member (Technical):

Central Excise – Clearance of wires and cables specially designed for aircrafts, satellite launch vehicles and battle tanks – Eligible for benefit of Notification No. 10/97-CE but not Notification 6/2002-CE and Notification No. 64/95-CE – Since appellant is eligible for one of the exemption notifications, exemption benefit allowed and impugned order set aside

Member (Judicial):

Central Excise – Clearance of wires and cables specially designed for aircrafts, satellite launch vehicles and battle tanks – Eligible for benefit of exemption Notification 10/97-CE – Since Commissioner disallowed benefit of either notifications, appeal allowed in totality in view of eligibility of exemption notification 10/97-CE and extension of the same by Member (Technical) – No comments on Technical Member's disallowance of Notification 6/2002-CE – No difference of opinion.: AHMEDABAD CESTAT;

2009-TIOL-1268-CESTAT-MAD.pdf

CCE, Chennai-II Vs M/s Caterpillar India Pvt Ltd (Dated: April 1, 2009)

Central Excise – CENVAT Credit – inputs removed as such – the respondent was required to pay an amount equal to the credit availed in respect of inputs or capital goods at the time of their removal as such – entitled for refund of excess duty paid – matter remanded to examine from the angle of unjust enrichment.: CHENNAI CESTAT;

2009-TIOL-1267-CESTAT-DEL.pdf

M/s Indo Micronutrients Vs CCE, Indore (Dated: May 6, 2009)

Central Excise – Order for payment of pre-deposit not complied with, appeal liable for dismissal due to non-compliance with provisions of Section 35F.: DELHI CESTAT;

2009-TIOL-1266-CESTAT-MUM.pdf

M/s Semco Electric Pvt Ltd Vs CC & CCE, Pune-I (Dated: June 10, 2009)

Export of goods – Theft of goods from containers – applicant has lodged a complaint and made a claim for insurance - no case for grant of waiver of the duty demanded – financial hardship pleaded - prima-facie case for grant of waiver of amount of interest and penalty.: MUMBAI CESTAT;

CUSTOMS SECTION

2009-TIOL-1271-CESTAT-MAD.pdf + deec story.pdf

M/s Areva T&D India Ltd Vs CC, Mumbai (Dated: April 15, 2009)

Customs - conversion of free shipping bills to DEEC Shipping Bills - the appellants have established that the link between the imported goods and exported products – order of the Commissioner rejecting the conversion is set aside.: CHENNAI CESTAT;

2009-TIOL-1270-CESTAT-MAD.pdf

CC,Tuticorin Vs Dhruv International (Dated: March 30, 2009)

Customs – secondhand photo copiers – import of secondhand photocopiers allowed without licence prior to 19.10.2005 – revenue appeal has no merit.: CHENNAI CESTAT;