Babus can come to office a little late but can't go early (See 'DDT')

100-Day Agenda: Petro Ministry to introduce new scheme for rural LPG distributor;

CBDT refunds about Rs 25000 Cr in five months this fiscal;

Liability of interest where CENVAT credit was wrongly taken but reversed by assessee before utilization;

Emission of Greenhouse Gases: Montek finds India's per capita emission to remain lower than global average till 2031;

Ahmedabad Chief Commissioner Vijai Laxmi Sharma is new DG of Directorate of Revenue Intelligence; FM clears file;

AP Chief Minister YSR is no more; Five killed in Chopper crash;

CJI office is covered under RTI Act and assets details of SC Judges can be disclosed: Delhi HC;

TIOL COMMENTARY

ddt 3 Sept.pdf

Delayed Appeals in High Courts – Amendment to Section 35G – Board Instructions;

cobweb.pdf

New contours of modern Indian economy: Has Revenue Secretary's post indeed become redundant?

CASE LAW+ ANALYSIS

2009-TIOL-459-HC-MAD-FEMA.pdf + swamy story.pdf

Swamy Premananda Vs Enforcement Officer, Chennai (Dated: July 21, 2009)

Seizure of foreign Currency from the Ashram when its head was in jail – Burden of proof still lies with him: if there are certain facts within the exclusive knowledge of the accused and once the burden as per Section 71 of the FERA Act is on him to explain, certainly, he must explain himself. As such, it is not a simple case of theft or other traditional crime, wherein barely a statement of co-accused alone is relied on for conviction; here the totality of the circumstances along with the statement of A2 if viewed, it is clear that unerringly it points towards the guilt of A1 , who happens to be the head of the Ashram and the evidence also reveal the same.:MADRAS HIGH COURT;

FDI.pdf

Eight FDI Proposals Approved;

MIXED BUZZ

mbuzz0814.pdf

CBDT refunds about Rs 25000 Cr in five months this fiscal ;

mbuzz0813.pdf

100-Day Agenda: Petro Ministry to introduce new scheme for rural LPG distributor;

mbuzz0812.pdf

Emission of Greenhouse Gases: Montek finds India's per capita emission to remain lower than global average till 2031

mbuzz0811.pdf

Rescue operations further scaled up but no trace of YSR so far

2009-TIOL-458-HC-MUM-IT.pdf

Topstar Mercantile Pvt Ltd Vs ACIT (Dated: August 26, 2009)

Income tax - Sec 14A - Assessee earns dividend income which is tax exempt - AO raises query relating to disallowance of expenditure attributable to exempted income - Assessee replies and AO accepts the same - CIT(A) confirms the AO's order - Tribunal remands the issue to the AO and directs him to examine the disallowance on the touchstone of Sec 14A in view of the Tribunal's decision in Daga Capital Management case - held, in view of the fact that the AO has made no disallowance, the Tribunal had no jurisdiction to touch the issue of Sec 14A and direct the AO to examine it agaisnt the ratio decided in the Daga Capital Management case - Assessee's appeal partly allowed :BOMBAY HIGH COURT;

2009-TIOL-457-HC-DEL-IT.pdf

CIT Vs Rainee Singh (Dated: August 20, 2009)

Income tax - Sec 147 - Assessee is an employee of Sahara Group - employer transfers certain funds to the assessee's account for purchase of land plots - assessee makes payment to sellers of plot and also to facilitators of the deals for their services rendered - AO initiates Sec 147 proceedings by alleging that the payment to the facilitator was bogus and the same was collected by the assessee in cash from the loss-making facilitating company - CIT(A) finds that the facilitating company is not loss-making and has also paid tax on the sum received from the assessee - Tribunal goes with the CIT(A) - held, once it is established that the tax has been paid on the sum received from the assessee by the facilitating company, the same cannot be tax again and there is no valid ground for reopening assessment - Revenue's appeal dismissed:DELHI HIGH COURT;

2009-TIOL-456-HC-DEL-IT.pdf

Northern Strips Limited Vs ITO, New Delhi (Dated: August 24, 2009)

Income tax - Sec 147 and Sec 80IA - Assessee is in the busines of manufacturing of cutting and slitting of polyster films - claims Sec 80IA benefits - AO raises queries and detailed replies filed - Assessment order passed - initiation of Sec 147 proceedings - held, reassessment proceedings after a lapse of four years cannot be initiated merely on the change of opinion - when the assessee had replied in details on the question of process of manufacture during assessment, re-assessment cannot be resorted to on the same question now - Assessee's appeal allowed:DELHI HIGH COURT;

2009-TIOL-549-ITAT-MAD.pdf + mushtaq story.pdf

Shri Mustaq Ahmed Vs ADIT, Chennai (Dated: May 22, 2009)

India-Singapore DTAA - Sec 80HHC benefits - Assessee is a non-resident - carries on exports of gold from its PE - claims deduction u/s 80HHC - AO allows it - CIT invokes powers u/s 263 and directs AO to deny the benefits as the same cannot be granted to non-resident as claimed by the assessee during the relevant period - Assessee invokes Clause (4)(a) of the non-discrimination clause of Article 26 of the DTAA - held, Section 80HHC clearly mandates that deduction under this section cannot be granted to non-residents. Clause (4)(a) of the non-discrimination clause of Article 26 of the DTAA clearly provides that the said Article cannot oblige India to grant such deduction to the assessee, being resident of Singapore - Assessee's appeal dismissed:CHENNAI ITAT ;

2009-TIOL-548-ITAT-MUM.pdf

Rev Father Trust Oscar Colasco Memorial Medical Association Vs CIT, Thane (Dated: March 18, 2009)

Income Tax - Assessee organization applies for registration u/s 12AA vide Form 10A filed before CIT - CIT refuses registration stating that application filed after expiry of one year of formation of the trust and very nominal income was expended to further the objects of the trust - Held, CIT has failed to initiate the enquiry in-time to complete the process of grant of registration within the stipulated period of six months and as the order has not been passed within the time limit prescribed, the application is deemed to have been granted - Assessee's appeal allowed.:DELHI ITAT ;

SERVICE TAX SECTION

2009-TIOL-1388-CESTAT-BANG.pdf

M/s Raja Ratnaiah & Co Vs CST, Mysore (Dated: May 27, 2009)

Service Tax – Activity of meter reading, billing and ledger keeping whether taxable as professional services of CAs or BAS - Full waiver of pre-deposit in view of financial hardship:BANGLORE CESTAT;

Ghanshyam Lodhwal Vs CCE, Jaipur-I (Dated: June 17, 2009)

ST - Penalty - Assessee rents out vehicle and the vehicle stays with the hirer - demand raised - held, given that smallness of the demand and the fact that the assessee cooperated with the adjudicating authority, penalty is not called for but this case is not to be cited as precedent :DELHI CESTAT;

2009-TIOL-1386-CESTAT-MUM.pdf

Cummins Generator Technologies India Ltd Vs CCE & CC, Aurangabad (Dated: June 23, 2009)

Credit of service tax paid on outdoor catering service - issue is covered by the Larger Bench decision in GTC Industries Ltd. 2008-TIOL-1634-CESTAT-MUM-LB – Cenvat admissible - Appeal allowed.:MUMBAI CESTAT;

CENTRAL EXCISE SECTION

CIRCULAR

excircular897.pdf

Liability of interest where CENVAT credit was wrongly taken but reversed by assessee before utilization;

CASE LAWS

2009-TIOL-1392-CESTAT-MUM.pdf + nagpur story.pdf

M/s Nagpur Transwell Power Pvt Ltd Vs CC & CCE, Nagpur (Dated: July 10, 2009)

Law does not provide for an appeal against self assessment – if this be so, refund claim sanctioned is proper – Stay of recovery ordered by CESTAT.:MUMBAI CESTAT;

2009-TIOL-1391-CESTAT-AHM.pdf

CCE, Vapi Vs M/s T & D Galiakot Pvt Ltd (Dated: March 3, 2009)

Central Excise – Refund of excess interest paid erroneously allowed as such amount not recovered from customers – Concept of unjust enrichment for interest introduced only by way of amendment to Section 11B through Finance Act, 2008 and effective prospectively – Impugned order upheld:AHMEDABAD CESTAT;

2009-TIOL-1390-CESTAT-BANG.pdf

CCE & CC, Guntur Vs M/s PMG Structurals Pvt Ltd (Dated: December 19, 2008)

Central Excise – Pre-engineered building structures cleared in unassembled condition from factory classifiable under Chapter 9406 – Impugned order of lower authorities upheld – No merit in Revenue appeals:BANGLORE CESTAT;

CUSTOMS SECTION

2009-TIOL-1385-CESTAT-BANG.pdf

M/s NCS Sugars Limited Vs CC & CCE, Visakhapatnam (Dated: May 15, 2009)

Customs – Export of sugar by third party in accordance with export release order by Directorate of Sugar and EXIM policy provisions – Documents evidencing realization of export proceeds in r/o advance licenses – Prima facie case in favour of appellants – Full waiver of pre-deposit and stay granted:BANGLORE CESTAT;

2009-TIOL-1384-CESTAT-MAD.pdf

Sanmar Speciality Chemicals Ltd Vs CC, Chennai (Dated: April 8, 2009)

Customs – warehoused goods - rate of duty applicable on expiry of warehousing period - in the case of goods removed from a warehouse under Section 68 after the expiry of the warehousing period, the rate of duty applicable would be the rate in force on the date of actual removal of the goods from the warehouse.:CHENNAI CESTAT;