Income Tax - Sec 80IA benefits - Supreme Court in Oracle India case decided today holds duplication of software from master copy amounts to 'manufacture';

RTI Act - SC loses in Delhi HC - Can Apex Court appeal to itself? (See 'DDT' Column)

Govt extends some more benefits to exports made after 1.1.2010 under New Market Linked Focus Products and VKGUY products;

Income tax - Sec 14A, Rule 8 - Bombay HC admits petition challenging vires of Rule 8; hearing on Daga Capital decision scheduled for Feb 15, 2010;

Pre-Budget exercise: FM meets State FMs for inputs;

Anti-dumping duty on import of PTFE from Russia - Period extended upto Nov, 2010;

Setting up of small scale units in Central Government SEZ – reg;

New Market Linked Focus Products benefits extended to more items;

Benefits extended to more VKGUY products;

House Panel invites suggestions on Foreign Trade Amendment Bill;

Incredible India Road Show held in Johannesburg;

Export of agri products grows by 40% in last 3 years;

Govt makes National Mineral Policy attractive for FDI;

Mr Jogendra Singh, former Chairman, Settlement Commission (Customs & Excise) joins tax advisory team of J Sagar Assoicates headed by Ashok Dhingra;

TIOL COMMENTARY

ddt 13 jan.pdf

Sunlight is best disinfectant – Chief Justice of India is a public authority under RTI Act – Historic Judgement from Delhi HC;

spl down.pdf

Service Tax Planning - Limits Of Management Consultancy Services;

CASE LAW

2010-TIOL-38-HC-DEL-RTI.pdf

Secretary General, Supreme Court Of India Vs Subhash Chandra Agarwal (Dated: January 12, 2010)

RTI Act - Sunlight is the best disinfectant – Chief Justice of India is a public authority under the Right to Information Act: All persons possessing a portion of power ought to be strongly and awfully impressed with an idea that they act in trust and that they are to account for their conduct in that trust.” Accountability of the Judiciary cannot be seen in isolation. It must be viewed in the context of a general trend to render governors answerable to the people in ways that are transparent, accessible and effective. Behind this notion is a concept that the wielders of power – legislative, executive and judicial – are entrusted to perform their functions on condition that they account for their stewardship to the people who authorize them to exercise such power. Well defined and publicly known standards and procedures complement, rather than diminish, the notion of judicial independence. Democracy expects openness and openness is concomitant of free society. Sunlight is the best disinfectant.:DELHI HIGH COURT;

RBI CIRCULAR

rbi09cir025.pdf

Purchase of Immovable Property in India by Persons of Indian Origin (PIOs) – Amendment of the definition;

RBI NOTIFICATION

Money laundering.pdf

Prevention of Money-laundering (Maintenance of Records of the Nature and Value of Transactions, the Procedure and Manner of Maintaining and Time for Furnishing Information and Verification and Maintenance of Records of the Identity of the Clients of the Banking Companies, Financial Institutions and Intermediaries) Amendment Rules, 2009 - Obligation of banks/Financial institutions;

MIXED BUZZ

mbuzz1214.pdf

Pre-Budget exercise: FM meets State FMs for inputs;

mbuzz1213.pdf

House Panel invites suggestions on Foreign Trade Amendment Bill;

mbuzz1212.pdf

Incredible India Road Show held in Johannesburg;

mbuzz1211.pdf

Export of agri products grows by 40% in last 3 years;

mbuzz1210.pdf

Govt makes National Mineral Policy attractive for FDI;

mbuzz1209.pdf

CBI arrests three Central Excise Suptds in bribery case;

NOTIFICATION

it10not003.pdf

CBDT extends Sec 80G benefits to more sports bodies;

it10not002.pdf

CBDT issues corrigendum to perquisite notification;

CASE LAWS

2010-TIOL-22-ITAT-DEL.pdf + maruti story.pdf

Maruti Udyog Ltd Vs ADIT, New Delhi (Dated: August 31, 2009)

Income tax - Sec 9(1)(vii), 195(2) - India-France DTAA - Article 13(4) - Assessee is a leading automobile manufacturer - ties up with French company for Impact Testing of its vehicles as per statutory requirements of the French Govt - pays testing charges - whether TDS is deductible on such payments - whether the services provided by the French company are technical in nature and the payments made for the same qualify as 'fees for technicla services' as per Article 13(4) of the DTAA:DELHI ITAT;

2010-TIOL-23-ITAT-MUM.pdf

M/s Carol Info Services Ltd Vs ACIT, Mumbai (Dated: December 10, 2009)

Income tax - Sec 194C, 133A - Assessee manufactures bio agro products and nutrition products - Revenue conducts a Survey u/s 133A - finds purchases of finished products and packing materials made as per specifications given in a contract - Revenue treats it as a manufacturing contract and insists on TDS u/s 194C - Assessee pleads it is a principal to principal transaction as the assessee has its own infrastructual facilities, licence and directly pays excise duty and sales tax - further argues such transactions cannot be treated as works contract - CIT(A) goes with the AO - held, given the fact that the assessee has its own plant and machinery, purchases raw matrials through competitive bidding, own labour force and marketing setup it cannot be treated as works contract liable to TDS - it is a contract for sale - assessee's appeal allowed:MUMBAI ITAT;

2010-TIOL-01-SC-IT.pdf

M/s Southern Technologies Ld Vs JCIT, Coimbatore ( Dated : January 11, 2010 )

Income tax - Sec 36(1)(vii), 37, 2(24) - Assessee is an NBFC - makes provision for non-performing assets as per RBI Directions 1998 - claims deduction - AO treats the same as income - Tribunal allows the deduction but HC reverses the decision - held,

++ provision made for NPA as per RBI guideliens is not eligible expenditure u/s 36(1)(vii) - such a provision is only for presentation

++ under the Explanation to Sec 36(1)(vii) a provision for doubtful debt is not allowable - deduction cannot be claimed u/s 37 (1).

++ Rational & intelligible differentia: NBFC's argument that eligibility to Sec 36 benefits to banks and no benefits to NBFCs is discriminatory and violates Articles 14 and 19 of the Constitution holds no water as such a guideline is in harmony with the test of 'rational and intelligible differential'.: SUPREME COURT;

2010-TIOL-36-HC-MAD-IT.pdf

CIT, Chennai Vs M/s Shriram Engineering Construction Company Limited (Dated: December 21, 2009)

Order under section 263- Limitation period- whether from the date of original order of assessment or from date of rectification thereof under section 154- doctrine of merger when applicable

For the assessment year 2000-01, the assessee filed a return of admitting NIL income.The assessment was subsequently completed under Section 143(3) on 31.3.2003 at Rs.1,21,82,188/-, disallowing deduction claimed u/s 80IA relating to Water Treatment Projects. However, a sum of Rs.3,14,46,497/- being the profit on Water Supply Project was allowed as deduction u/s 80IA but was subsequently modified vide order under Section 154 dated 19.06.2003 and the deduction was restricted to Rs.2,89,93,730/-.: MADRAS HIGH COURT;

2010-TIOL-35-HC-MAD-IT.pdf

CIT, Madurai Vs M/s Ramco Industries Ltd (Dated: December 7, 2009)

Income Tax - Sec 10B, 80IB and 234D - Assessee is in the business of manufacturing and sale of fibre cement sheet, accessories, fibre cement pipes and cotton yarn - reassessment - AO withdraws a sum which he considers as excess depreciation granted on the export oriented unit, and also restricts deduction u/s 80IB - CIT(A) deletes disallowance of depreciation on the ground that the method followed by the assessee is correct and the audit party committed a mistake - Tribunal goes with CIT(A) - Held, Revenue is not able to establish that the view taken by the CIT(A) and confirmed by the Tribunal is not in accordance with law - no substantial question of law involved - Revenue's appeal dismissed

Section 234-D - On the issue of Tribunal holding that the interest u/s 234-D cannot be levied - Held, from the reading of section, it makes it clear that section 234D would apply only in respect of refund made u/s 143(1) - No illegality or irregularity in the order passed by the CIT (A) - Revenue's appeal dismissed.: MADRAS HIGH COURT;

2010-TIOL-34-HC-DEL-IT.pdf

Jagjit Pal Singh Anand Vs CIT, Delhi (Dated: November 30, 2009)

Income Tax - Sec 147 - Assessee is an individual - files return - re-assessment - reason given for re-assessment is the information contained in the adjudication order passed by the Collector of Customs - additions made - CIT(A) sustains the additions - Tribunal dismisses the appeal - held, no infirmity in the Tribunal's order based on settled law

Section 69 - On the issue of additions made for unexplained investment and the same being upheld by the Tribunal - Held, the finding recorded by the Commissioner of Customs and upheld by the CEGAT amply depicts that it was the Assessee who had imported the aforesaid material and undervalued the same Therefore, addition u/s 69 could validly be made. Assessee's appeal dismissed :DELHI HIGH COURT;

SEZ - INSTRUCTION

sez09ins046.pdf

Setting up of small scale units in Central Government SEZ – reg

SERVICE TAX SECTION

2010-TIOL-75-CESTAT-AHM.pdf

M/s Geotechnical Engg Research Laboratory Vs CCE, Ahmedabad (Dated : December 22, 2009)

Service Tax - penalty - the appellants on their own obtained registration and paid the service tax for the earlier period also along with interest, without claiming any limitation - no case for imposing penalty as the proceedings should have been treated as concluded after confirmation of service tax and interest by the appellant voluntarily or alternatively, benefit of Section 80 should have been extended.:AHMEDABAD CESTAT;

2010-TIOL-74-CESTAT-MAD.pdf

M/s Ravi Paints & Chemicals Vs CST, Chennai (Dated : October 7, 2009)

Service Tax – Consulting Engineer Service - Any testing service like noticing of defects and requirement of pointing out that the defect has to be set right cannot be held by any stretch of imagination to be advice or consultancy and would not come under the purview of consulting engineer service.:CHENNAI CESTAT;

M/s ABT Ltd Vs CST, Chennai (Dated : October 7, 2009)

Service Tax – Clearing and Forwarding Agent service – the appellant is not clearing the goods from the premises of the manufacturer – demand of service tax under C&F Agent Service is not sustainable as held by the P&H High Court in Kulcip Medicines (P) Ltd case.:CHENNAI CESTAT;

CENTRAL EXCISE SECTION

2010-TIOL-79-CESTAT-MUM.pdf + skoda story.pdf

M/s Skoda Auto India Pvt Ltd Vs CCE & CC, Aurangabad (Dated : November 24, 2009)

Notification 6/2006-CE - Registration of Motor Vehicle as Taxi – Refund of duty - Benefit of notification not to be denied if the assessee has fulfilled the substantive conditions and failed to follow the procedural conditions - Beneficiary provision should be interpreted liberally – CESTAT : MUMBAI CESTAT;

2010-TIOL-78-CESTAT-BANG.pdf

CCE, Mysore Vs M/s Reid & Taylor (Dated : April 1, 2009)

Central Excise – Valuation – Inclusion of advertising expenses incurred by dealers on a cost sharing basis in assessable value – Revenue unable to prove that cost incurred by dealer is on behalf of assessee, such expenses not includible in AV – No merit in Revenue appeal : BANGALORE CESTAT;

2010-TIOL-77-CESTAT-BANG.pdf

Jindal Praxair Oxygen Company Pvt Ltd Vs CCE, Belgaum (Dated : September 10, 2009)

Central Excise – Valuation – Supply of gases through pipelines to steel plant under pipeline supply agreement and collection of MTOP (minimum take or pay) charges – MTOP Charges not includible in assessable value – Impugned order set aside: BANGALORE CESTAT;

2010-TIOL-76-CESTAT-MAD

CCE, Chennai Vs M/s Ashok Leyland Ltd (Dated : September 24, 2009)

Central Excise – CENVAT Credit – Computers used for production, planning etc – Credit is admissible as the goods are used in connection with production of finished goods.:CHENNAI CESTAT;

CUSTOMS SECTION

NOTIFICATION

ctariff10_002.pdf

Anti-dumping duty on import of PTFE from Russia - Period extended upto Nov, 2010;

PUBLIC NOTICE

dgft09pn033.pdf

Linked market focus product benefit extended to cotton woven fabrics;

dgft09pn031.pdf

New Market Linked Focus Products benefits extended to more items;

dgft09pn030.pdf

Benefits extended to more VKGUY products;

CIRCULAR

dgft09cir021.pdf

Eligibility of cotton bathmats/rugs for grant of duty credit scrip under VKGUY/FPS of FTP

CASE LAWS

2010-TIOL-37-HC-MAD-CUS.pdf + cus story.pdf

CC, Chennai Vs M/s Ishwar Impex (Dated: November 11, 2009)

Customs - Original Importer does not clear the goods – Another importer stakes claim – tribunal ought not have passed the order without impleading the original importer – matter remanded : MADRAS HIGH COURT;