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Kolkata DRI seizes 4023 kg Cannabis concealed in 5005 kg ginger + Nagpur Commissionerate seizes 10 kg ketamine from courier company; India, Denmark sign Social Security Agreement; Transfer Pricing workshop: FM hopes CBDT will meet emerging challenges; Memorandum of Procedure for channeling transactions through Asian Clearing Union (ACU); SC rules Apex Court + HCs can order CBI probe without State Govts' consent; 100 Nations sign UN Treaty to protect shark species; |
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| Dear Member, Sending the following files: |
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TIOL COMMENTARY Plight of a Biri Manufacturing Woman - Will CBEC and FM listen? Place of supply under GST regime; Budget 2010: FM needs to take hard look at Cenvat Credit provisions in Service Tax; CASE LAWS + ANALYSIS 2010-TIOL-132-HC-MAD-CT.pdf + sales story.pdf M/s Madras Refineries Ltd Vs ACIT, Chennai (Dated : January 22, 2010) Sales Tax – loan transaction of imported crude among PSU oil Companies - simple barter or loan; not sale: In case the oil refinery situated in the State of Tamil Nadu delivered crude oil by repayment of loan to another oil Company situated in another State by shipment, even then it was not a sale and by no stretch of imagination, it could be treated as a sale in the State of Tamil Nadu. When the oil refinery at Chennai receives crude oil after this particular discharge at ports in other States, still there would be no purchase by the refinery situated in Tamil Nadu under the Tamil Nadu General Sales Tax Act, 1959:MADRAS HIGH COURT; RBI CIRCULAR Memorandum of Procedure for channeling transactions through Asian Clearing Union (ACU);
MIXED BUZZ India, Denmark sign Social Security Agreement; Transfer Pricing workshop: FM hopes CBDT will meet emerging challenges; 100 Nations sign UN Treaty to protect shark species; |
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2010-TIOL-12-SC-IT .pdf + sc it story.pdf M/s Dynamic Orthopedics Pvt Ltd Vs CIT, Cochin (Dated: February 16, 2010) Income Tax - The whole purpose of Section 115J was to take care of the phenomenon of prosperous `zero tax' Companies not paying taxes though they continued to earn profits and declare dividends. It does not make any distinction between public and private limited companies – Supreme Court decision in Malayala Manorama – 2008-TIOL-77-SC-IT - referred to larger Bench: The whole purpose of Section 115J of the Act, therefore, was to take care of the phenomenon of prosperous `zero tax' Companies not paying taxes though they continued to earn profits and declare dividends. Therefore, a Minimum Alternate Tax was sought to be imposed on `zero tax' Companies. Section 115J of the Act imposes tax on a deemed income. Section 115J of the Act is a special provision relating only to certain Companies. The said section does not make any distinction between public and private limited companies. Section 115J of the Act legislatively only incorporates provisions of Parts II and III of Schedule VI to 1956 Act. Such incorporation is by a deeming fiction. If, with respect, the judgement of this Court in Malayala Manorama Company Limited is to be accepted, then the very purpose of enacting Section 115J of the Act would stand defeated, particularly when the said section does not make any distinction between public and private limited companies. It needs to be reiterated that, once a Company falls within the ambit of it being a MAT Company, Section 115J of the Act applies and, under that section, such an assessee-Company was required to prepare its profit and loss account only in terms of Parts II and III of Schedule VI to 1956 Act.:SUPREME COURT; 2010-TIOL-131-HC-KAR-IT.pdf + ub story.pdf CIT, Bangalore Vs M/s United Breweries Ltd (Dated : January 11, 2010) An expenditure incurred for securing shares per se is a 'capital expenditure' and never Revenue expenditure'; Even on the accepted legal principles, a 'debt' is an expression well known in legal parlance and is an amount which is a legal obligation which if not discharged will give rise to a claim in favour of the creditor. An expenditure in the nature of 'capital expenditure' straight away goes out of the purview of section 37 of the Act unless the amount fully qualifies in terms of the other statutory provisions and in the instant case, in terms of section 36[1][vii] of the Act, there is no question of 'written off irrecoverable debts' which claim inevitably fails and the matter does not warrant interference even for a remand:KARNATAKA HIGH COURT; M/s Tata Securities Ltd Vs DCIT, Mumbai (Dated: January 28, 2010) Income tax - Sec 147 - Assessee deals in stock broking and share trading - files return and assessment order passed - revises return and claims depreciation on BSE Membership Card - notice u/s 148 - AO disallows depreciation and software expenses - Held, since the Revenue has gone to the High Court on the depreciation issue relating to BSE Card, the reason to file an appeal can be a reason for reopening assessment with four year time-frame - as regards software the assessee had given some advance but the software developed could not be integrated with the existing system, it was scrapped and such an expenditure is revenue in nature - Assessee's appeal partly allowed :MUMBAI ITAT; M/s Tata Engineering & Locomotive Co Ltd Vs DCIT, Mumbai (Dated: January 23, 2009) Income tax - Sec 195 - India-UK DTAA - Assessee floats Euro Issue - hires specialised services of lead managers - payments made to non-residents without TDS - AO takes the view that the services provided by lead managers who provided management, underwriting and consultancy services, are technical in nature and the payments made to non-resident are fees for technical services, taxable u/s 9(1)(vii) and also as per Article 13.4 of the tax treaty - whether the payments for services received by the assessee are fees for technical services - whether the payments are taxable in India - whether such payments can be taxed in the absence of a PE in India:MUMBAI ITAT; DCIT, Mumbai Vs M/s Leela Scottish Lace Pvt Ltd (Dated: February 4, 2010) Income tax - Penalty u/s 271(1)(c) - Assessee is in the business of manufacture and exports of garments - gives garment stitching job to job workers - AO makes 1% disallowance on ad hoc basis based on earlier years assessments - AO reopens assessment u/s 147 to disallow interest expenditure as it was noticed that the assessee had given interest-free loans to some jobworkers but had claimed deduction for the huge interest outgo - CIT(A) and Tribunal agree with the AO - penalty - held, merely because some additions were confirmed, it is not enough to impose penalty. Since all the payments were made by cheque to small textile units, there is no fact which was concealed by the assessee - Revenue's appeal dismissed:MUMBAI ITAT; ACIT, Bangalore Vs M/s Igate Global Solutions Ltd (Dated: December 18, 2009) Income tax - Sec 10A - Assessee is exporter of computer software - Reduction of expenditure incurred in foreign currency on travel and telecommunication charges from export turnover and total turnover is a settled issue by Special Decision in M/s Sak Soft Ltd - Revenue's appeal dismissed:BANGALORE ITAT; |
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M/s Ripley & Company Ltd Vs CCE & ST, JSR (Dated: October 6, 2009) ST - Site formation service - Assessee enters into contract for hiring of heavy machineries and mining service - claims to be providing composite service - held, the assessee had apparently entered into three contracts and two of them were for mining and other incidental activities and the terms of conditions of contract do not stop the assessee from only hiring of equipment but blasting, loading and stacking of materials - Revenue has a prima facie strong case - Pre-deposit ordered :KOLKATA CESTAT; M/s Idial Security Organisation Vs CST, Ahmedabad (Dated: January 1, 2010) ST - Security Agency Service - Assessee fails to take registration and pay tax - on being pointed out assessee pays tax with interest - contests penalty - held, since the assessee is a small concern and was ignorant about the law but deposited the tax with interest it is a fit case for invocation of Sec 80 to set aside penalty - Assessee's appeal allowed:AHMEDABAD CESTAT;
CENTRAL EXCISE SECTION 2010-TIOL-279-CESTAT-MUM.pdf + balmer story.pdf M/s Balmer Lawrie & Co Ltd Vs CCE, Belapur (Dated: December 22, 2009) Theoretical shortage of inputs – Cenvat credit liable to be reversed – As Penalty u/s 11AC of the CEA, 1944 is upheld submission of limitation considered – No error apparent on record - CESTAT rejects ROM application.:MUMBAI CESTAT; M/s Jayant K Furnishers Vs CCE, Hyderabad (Dated: May 18, 2009) Central Excise – Manufacture – Fabrication of furniture at site in airport lounge through sub-contractors – Only sub-contractors will be liable for excise duty if any and not the main contractors – Impugned order liable to be set aside:BANGALORE CESTAT; Ganges International (P) Ltd Vs CCE, Pondicherry (Dated: September 9, 2009) Central Excise – CENVAT Credit on furnace oil supplied to the job-worker cannot be denied to the principal manufacturer on the ground that the same was not returned as such – Since furnace oil was used as fuel, credit is admissible.:CHENNAI CESTAT; M/s Anutone Accoustics Limited Vs CCE, Bangalore (Dated: June 23, 2009) Central Excise – Application for storage of non duty paid goods outside factory premises – Reasoning given by Commissioner misplaced as shortage of storage space is a fact admitted by Revenue – No assessee would store non duty paid goods outside their factory premises which may be subjected to vagaries of nature like theft, pilferage unless there is compulsion – Commissioner to consider such compelling reasons before coming to a conclusion – Matter remanded:BANGALORE CESTAT;
CUSTOMS SECTION M/s Business Process Technologies (I) Ltd Vs CC, Bangalore (Dated: September 14, 2009) Customs – 100% EOU – At the time of de-bonding, capital goods to be assessed at their depreciated value and rate of duty in force at the time of filing ex-bond Bill of Entry and not on original value and duty in force at the time of procurement – Export obligation has no nexus with duty liability – Matter remanded for re-computation of liability:BANGALORE CESTAT; |
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