FM gives away Presidential Awards to CBEC officials; asks Department to get ready for smooth transition to GST;

Rail Budget: Mamta proposes Janambhumi, Matribhumi and Karmabhumi Express trains + 10 more Duronto Express trains;

No hike in pax fare + e-tickets to become cheaper;

No hike in train freight tariff rates;

Mamta claims saving of Rs 2000 Crore from austerity drive in 2009;

Mamta proposes setting up National High-Speed Rail Authority:

Service charges for sleeper and AC classes reduced;

101 new sub-urban trains promised for Mumbai;

Mamta promises employment to one person from families whose land is acquired for rail development;

Private operators to be allowed to run special freight trains;

Railways to set up cold storage at major stations;

Railways to set up five new wagon factories;

Mamta promises insurance scheme for porters;

Railway Research Centre to be opened at Kharakpur;

Mamta proposes hostels for wards of Railway employees + 50 creches for women employees;

Mamta proposes house for all railways personnel;

Railways to set up Rabindra Museum at Hawra + Gitanjali museum at Bolpur;

Railways to construct five sports academy + to offer more jobs to sportspersons;

No examination fee for women in Railway exams;

Railways to post Chowkidar at all Rail crossings in five years;

New technology to be adopted to prevent accidents;

Mamta promises ticket centres at Panchayat-level + DM's office in districts;

Mamta promises cheaper water in trains; to set up six bottling plants ;

Govt gearing up for conducting Census 2011;

Communications prices falling worldwide: UN;

RAILWAY BUDGET -2010-11

RAILWAY BUDGET 2010-11 SPEECH.pdf + Highlights of Railway Budget – 2010-2011.pdf

TIOL COMMENTARY

ddt 24 feb.pdf

CBDT's Tryst with TDS Continues - While Confused Assessee's Fate Hangs in Balance;

edit.pdf

New fertilisers reforms herald uncertainty;

budget story.pdf

FM needs to sweat out more for indirect tax reforms;

MIXED BUZZ

mbuzz1334.pdf

FM gives away Presidential Awards to CBEC officials; asks Department to get ready for smooth transition to GST;

mbuzz1333.pdf

Govt gearing up for conducting Census 2011;

mbuzz1332.pdf

Communications prices falling worldwide: UN;

2010-TIOL-140-HC-DEL-IT.pdf + sahara story.pdf

DIT Vs Sahara India Financial Corporation Ltd (Dated : February 19, 2010)

Income tax - Indo-Canada DTAA - Article 13 - Assessee enters into a contract with a Canadian entity for Title Sponsorship Rights of a cricket tournament between India and Pakistan - whether payments made for acquiring sponsorshnip benefits amount to royalty as per Article 13(3)(c) of the tax treaty: DELHI HIGH COURT;

2010-TIOL-141-HC-MUM-IT.pdf

CIT Vs M/s Information Architects (Dated : February 9, 2010)

Income tax - Sec 80HHE, 40(a)(iii) - Assessee enters into an agreement with a non-resident company for rendering software development services - sends its technically-trained manpower for on-site design and development of software to the non-resident's place of work - charges non-resident company on manhour basis - also pays certain amount to its emplyees as overseas maintenance allowance - claims deduction u/s 80HHE and also deduction for the sum paid to its employees - AO disallows but CIT(A) and Tribunal allow the assessee's appeal - held, since the assessee was engaged in design and development of software for the non-resident company, and also sent its trained manpower for onsite maintenance and development to the premises of the non-resident, and the employees filed their returns in India as the assessee's employees, it is nothing but export of computer software and the assessee is eligible for Sec 80HHE benefits

Sec 40(a)(iii): The sum paid to the employee as overseas maintenence allowance constitutes only reimbursement incurred by the employees per day and the same would not form part of the salary in the hands of the recipients - no application of Sec 40(a)(iii): BOMBAY HIGH COURT;

2010-TIOL-142-HC-P&H-IT.pdf

CIT, Panchkula Vs M/s Haryana Tourism Corporation Ltd (Dated : February 4, 2010)

Income tax - Sec 24 - Assessee is a public sector undertaking - runs tourist complexes, hotels and motels - declares rental income and claims deduction u/s 24 - had claimed similar deductions in the past and was allowed the same - AO disallows by treating the same as business income - Based on its earlier years' decision that such income is rental income from house property Tribunal rules in favour of the assessee - held, no infirmity in Tribunal's order allowing deduction u/s 24 as it has merely followed the rule of consistency - Revenue's appeal dismissed:PUNJAB AND HARYANA HIGH COURT;

2010-TIOL-143-HC-P&H-IT.pdf

CIT, Ludhiana Vs M/s Eastman Industries (Dated : February 8, 2010)

Income tax - Sec 80HHC, 56, 10(33), 14A - Assessee deals in sale and purchase of mutual funds and money lending business - files NIL return after adjusting business losses - also shows net loss from mutual fund business - also earns dividend income - claims deduction for bad debts - AO disallows bad debts written off and makes addition - CIT(A) deletes the addition made for bad debts but holds FDR interests fall under the head 'income from other sources' and the interest income from money lending is business income - Tribunal agrees with the CIT(A) in the absence of any rebutal from Revenue - held, it is a finding of facts and no substantial question of law arises - Revenue's appeal dismissed: PUNJAB AND HARYANA HIGH COURT;

2010-TIOL-144-HC-P&H-IT.pdf

CIT, Karnal Vs M/s Accent For Living (Dated : February 11, 2010)

Income tax - Sec 80IA, 80IB - Assessee claims deductions for drawback amount and profit on sale of licences - AO disallows but Tribunal allows the assessee's appeal - held, issue is no longer disputed as the Apex Court has settled it in the case of M/s Liberty India by holding that such receipts are not profits derived from the business activities of industrial undertakings - no eligible for Sec 80IA benefits - Revenue's appeal allowed: PUNJAB AND HARYANA HIGH COURT;

SERVICE TAX SECTION

2010-TIOL-312-CESTAT-BANG.pdf

M/s Yeses Infrastructure Pvt Ltd Vs CCE, Visakhapatnam (Dated: September 11, 2009)

Service Tax – Erection, commissioning and installation of plant, machinery and equipment under composite contracts – A P Sales tax authorities assessed them as works contracts and collected sales tax thereon – Activities like erection, commissioning and installation services and turnkey contracts specifically included under the category of ‘Works Contract' and liable to be taxed from only 1.6.2007– Prima facie case for full waiver of pre-deposit and stay granted:BANGALORE CESTAT;

2010-TIOL-311-CESTAT-BANG.pdf

M/s Valsala Travels Pvt Ltd Vs CST, Bangalore (Dated: October 06, 2009)

Service Tax – Tour Operator Service – Appellants claim that sub-contractor not leviable to tax when principal tour operator paid service tax – No evidence brought forth to support the claim – Pre-deposit of Rs. 85 lakhs ordered:BANGALORE CESTAT;