FM's Speech At Meeting Of Empowered Committee Of State Finance Ministers On GST;

Asim Dasgupta releases Discussion Paper on GST;

FM says Govt committed to continue with stimulus for domestic demand;

CBEC finally issues posting order of 101 ACs at All India level ;

GST roll-out: North Block top officials give late evening briefing to FM on points of divergent views with States;

NHAI to issue maintenance manual for highways;

Advertising of emergency contraceptive pills: Govt to come out with guidelines soon;

UN urges use of anti-graft treaty to restore integrity to financial system;

TIOL COMMENTARY

ddt 10 nov.pdf

RS inaugurates e-Pay and Accounts Office;

guest column.pdf

Can 'Green Taxes' Reverse Deadly Climate Change?

First Discussion Paper On Goods and Services Tax In India.pdf

FM Speech.pdf

FM's Speech At Meeting Of Empowered Committee Of State Finance Ministers On GST;

MIXED BUZZ

mbuzz1014.pdf

NHAI to issue maintenance manual for highways;

mbuzz1013.pdf

Advertising of emergency contraceptive pills: Govt to come out with guidelines soon;

mbuzz1012.pdf

UN urges use of anti-graft treaty to restore integrity to financial system;

2009-TIOL-698-ITAT-MUM-SB.pdf + spl bench story.pdf

DCIT, Mumbai Vs Manjula J Shah (Dated: October 16, 2009)

Income tax - 45, 47, Explanation (iii) to section 48 & 2(42A) - Assessee receives a flat from his daughter under gift deed - after few years assessee sells off the flat - computation of long-term capital gains - assessee works out cost of acquisition of flat by applying cost inflation index in relation to the year in which the preivious owner had first held the asset - AO disagrees and works out the cost of acquisition by applying the cost inflation index from the year in which the gift deed was registered - CIT(A) allows the appeal - conflicting decisions by Tribunal - issue referred to the Special Bench - held,

++ there is no capital gain chargeable to tax as a result of transfer of a capital asset under gift since the transaction involving a gift of capital asset is not regarded as transfer for the purpose of Section 45.

++ However, if such capital asset becoming the property of the assessee under gift is subsequently transferred as per Section 45, the capital gain arising from such transfer is made chargeable to tax and the date and cost of acquisition of the previous owner are adopted as a cost and date of acquisition of the assessee for the purpose of computation of income from such capital gains.

++ The entire capital gain including the capital gain which would have been chargeable as a result of transfer of a capital asset by the previous owner to the assessee as a result of gift but for the provisions of section 47 thus is made chargeable to tax at the second stage when the capital asset becoming the property of the assessee under gift is transferred by him. This is the scheme of the Act as laid out in the relevant provisions which treat the cost and date of acquisition of the previous owner as the cost and date of acquisition of the assessee.

++ The importance is assigned to the period of holding of the capital asset in as much as Explanation (iii) to section 48 refers to the first year in which the asset was held by the assessee whereas Explanation 1(b) to section 2(42A) provides for inclusion of the period for which the asset was held by the previous owner in determining the period for which any capital asset is held by the assessee.

++ The legislative intention behind enacting these provisions is very clear to treat the date as well as cost of acquisition of capital asset of the previous owner to be the date and cost of acquisition of the assessee for the purpose of computing capital gain in terms of Section 48. This is the scheme of the Act as laid out in the relevant provisions and this is the context in which the same has to be understood and appreciated.:MUMBAI ITAT SPECIAL BENCH;

2009-TIOL-697-ITAT-MUM.pdf

Excellent Exports Pvt Ltd Vs ITO, Mumbai (Dated: April 28, 2009)

Income Tax - Section 36(1)(iii) - Assessee engaged in the business of trading in steel and financing - AO makes  disallowance of the sum paid as interest on borrowed loans on the ground that as the interest had not been charged by the assessee in respect of the advances given to the  firm in which the Directors are  interested, the assessee has utilised the funds for non-business purpose - Held, presuming that the assessee has diverted the funds but assessee's own funds in the forms of own share capital and reserves i.e. share premium is much more than the funds diverted for the non-business purpose. There is no justification to make the disallowance. Addition deleted - Assessee's ground  allowed.:MUMBAI ITAT;

2009-TIOL-696-ITAT-DEL.pdf

B G International Ltd Vs DCIT, Dehradun (Dated: October 12, 2009)

Income tax - Sec 10(10CC) - Employer pays tax on behalf of employees - employee-assessees claim exemption u/s 10(10CC) by treating the same as non-monetary perquisite - AO for including the same in taxable income - held, income-tax paid by the assessee on perquisites of employees would constitute non monetary benefit u/s 10(10CC). Agent-employer's appeal allowed on the basis of Special Bench decision in the case of RBF Rig Corpn decided in favour of assessees:DELHI ITAT;

2009-TIOL-607-HC-MAD-IT.pdf

Tamil Nadu State Transport Vs CCIT, Tiruchirapalli (Dated: September 8, 2009)

Income tax - Writ against rejection of stay petition - Assessee is a State Public Sector Undertaking - various divisions of the Transport Corporation amalgamated with the approval of Company Law Board - Multiple assessment orders passed and recovery proceedings initiated - petition for stay rejected without assigning any reason - held, when the petitioner approaches the authority for the grant of stay, it is the duty of the authority to give reason either for granting stay or for refusal to grant the stay. Without assigning any reason, no stay petititon should be rejected. Revenue directed to dispose of assessee's appeal within four weeks - Assessee's appeal allowed:MADRAS HIGH COURT;

2009-TIOL-606-HC-DEL-IT.pdf

CIT, Delhi-XIII Vs M/s Mereena Creations (Dated: October 30, 2009)

Income tax - Sec 80HHC - Assessee is a manufacturer-exporter of readymade garments - earns interest on FDRs in banks - claims exports benefits on such income - AO disallows but Tribunal allows the benefits - held, it is settled law that the expression used in Sec 80HHC is income 'derived from' which has a narrow application as compared to the expression 'attributable to' and the income from FDRs has no immediate nexus with the exports income - Deduction not allowable - Revenue's appeal allowed:DELHI HIGH COURT;

cbecorder234_2009.pdf

CBEC finally issues posting order of 101 ACs at All India level;

SERVICE TAX SECTION

2009-TIOL-1829-CESTAT-BANG.pdf + teaching story.pdf

M/s Fast Arithmetic Vs ACCE, ST & EOU Division, Mangalore (Dated : May 1, 2009)

Service tax – Activity of teaching math through abacus training program a recreational program to increase children's interest in math – Eligible for exemption under Notification No. 9/2003-ST – Impugned order has no merits, liable to be set aside:BANGALORE CESTAT;

2009-TIOL-1828-CESTAT-DEL.pdf

CCE, Jaipur Vs M/s Kumar Engineering & Contractors (Dated : July 14, 2009)

Service Tax - Manpower Recruitment Agency - Cargo Handling Services - Respondent supplies labour for handling of goods within the factory premises. This activity cannot be classified under Cargo Handling Services - Activity taxable under the category of Supply of manpower only with effect from 16.06.2005. (Para 3 & 5):DELHI CESTAT;

2009-TIOL-1827-CESTAT-DEL.pdf

CCE, Ludhiana Vs M/s Frontier Cycle Inds (P) Ltd (Dated : August 11, 2009)

ST - Import of service - Revenue raises demand - held, issue is no longer res integra as no tax is payable on services received from offshore service providers prior to 18.4.06 - Revenue's appeal dismissed:DELHI CESTAT;

CENTRAL EXCISE SECTION

2009-TIOL-1825-CESTAT-AHM.pdf

M/s J M Perfumery Unit II Vs CCE, Vapi (Dated : August 21, 2009)

Central Excise – ROM application – Tribunal's conclusions based on appellant's memorandum of appeal and other relevant records only and not extraneous to these records – Once Tribunal is satisfied that classification can be conclusively determined on the basis of facts and law of the Land, no reason to consider import policies and tariffs of other countries:AHMEDABAD CESTAT;

2009-TIOL-1824-CESTAT-BANG.pdf

Kalaimani Spinning Mills Pvt Ltd Vs CCE, Salem (Dated : May 15, 2009)

Central Excise – Stay/Dispensation of pre-deposit – limitation – whether show cause notice issued after the expiry of six months from the date of visit of the officers is barred by limitation – pre-deposit waived as the matter has been referred to the Larger Bench.:BANGALORE CESTAT;

2009-TIOL-1823-CESTAT-BANG.pdf

M/s Hindustan Zinc Ltd Vs CCE & CC, Visakhapatnam (Dated : May 18, 2009)

Central Excise - Sulphuric acid captively consumed for manufacture of zinc, a dutiable product, eligible for benefit of Notification 67/95-CE - Impugned order set aside:BANGALORE CESTAT;

2009-TIOL-1822-CESTAT-MAD.pdf

CCE, Madurai Vs Fenner India Ltd (Dated : July 30, 2009)

Central Excise – refund – provisional assessments – unjust enrichment – bar of unjust enrichment is not applicable for the period prior to 25/6/99, before amending the legal provisions relating to provisional assessment – for the subsequent period, the respondents are not eligible for refund.:CHENNAI CESTAT;

CUSTOMS SECTION

2009-TIOL-608-HC-DEL-CUS.pdf + cus story.pdf

M/s Atlas Interactive India Pvt Ltd Vs UoI ( October 30, 2009)

Customs - Equipment imported for supply to BSNL – contract with BSNL cancelled – goods detained by DRI – allowed to be re-exported: Further, action in the matter is possible only after the conclusion of the proceedings in the said show-cause. Therefore, at this stage, only relief that can be granted is to allow the petitioner to re-export the goods, subject to furnishing of the Bond (as that condition is not challenged) and leaving the petitioner to seek the appropriate remedy after the orders pursuant to the said show-cause notice are passed by the respondents.:DELHI HIGH COURT;

2009-TIOL-1826-CESTAT-MAD.pdf

M/s HCL Infosystems Ltd Vs CC, Chennai (Dated : August 19, 2009)

Customs – classification – Intel Pentium Celeron Microprocessors are to be classified under heading 8473.30 as parts of Automatic Data Processing Machines – eligible for exemption under Notification No 23/98 Cus dated 2.6.1998.:CHENNAI CESTAT;