All izz well with Baby and clinical diapers and sanitary napkins (See 'Budget Analysis')

Cigarettes and Other Tobacco Products - Empowering Customs & Central Excise Officers (See 'DDT' Column)

CBEC issues promotion order of 23 Commissioners + posting-cum-transfer order of 28; Dr Anup K Srivastava gets Central Excise, Delhi-I;

Export of 'Prohibited item' from SEZs: Govt may grant permission provided raw materials are imported for same;

No demand from any PSU steel company for time-bound anti-dumping mechanism: Minister;

World Wide Web Consortium to meet in May in National Capital;

Law Ministry working on comprehensive bill to grant voting rights to NRIs;

DGFT clarifies on Indo-China Border trade;

DGFT makes amendment in Annexure A relating to SION;

Exim Bank's Line of Credit of USD 15 million to the Government of the Republic of Benin;

BSNL being restructured on basis of recommendations of Sam Pitroda panel;

UPSC announces results of written test for Civil Services exams

Cabinet permits creation of major port trust for Andaman & Nicobar islands

CCEA gives nod to proposal of IIDF Ltd (Mauritius) to invite international investors to invest in India Infrastructure Development Fund

India, EU agree to widen scope of Trade & Investment Agreement

Corporate tax mop-up leapfrogs by 11% between Apr-Feb this fiscal; Total direct taxes collections grow by 7.5% during same period;

BUDGET ANALYSIS

budget_news_71.pdf

All izz well with Baby and clinical diapers and sanitary napkins;

TIOL COMMENTARY

ddt 5 mar.pdf

Leviability of cess on tractors under Tractor Cess Rules – CBEC Clarifies;

ice cubes.pdf

Bullish on Centre's revenues; Finance Commission opens pandora's box;

RBI CIRCULAR

rbi09cir041.pdf

Exim Bank's Line of Credit of USD 15 million to the Government of the Republic of Benin;

MIXED BUZZ

mbuzz1359.pdf

No demand from any PSU steel company for time-bound anti-dumping mechanism: Minister;

mbuzz1358.pdf

World Wide Web Consortium to meet in May in National Capital;

mbuzz1357.pdf

Law Ministry working on comprehensive bill to grant voting rights to NRIs;

mbuzz1356.pdf

BSNL being restructured on basis of recommendations of Sam Pitroda panel;

2010-TIOL-107-ITAT-BANG.pdf + it story.pdf

Syndicate Bank, Manipal Vs ACIT, Udupi (Dated: October 9, 2009)

Income Tax - If the business of an assessee is in the nature of indivisible, then expenditure cannot be disallowed; "In view of the fact that a perusal of the question itself discloses that income from various ventures is earned in the course of one indivisible business, the impugned order upholding the apportionment of the expenditure and allowing deduction of only that proportion of it which is referable to taxable income, is unsustainable,"

Assessee cannot be penalised for following RBI instructions: The assessee is bound to follow the RBI guidelines and secondly the same method of account was being followed by the assessee consistently which was always accepted by the revenue. Since the assessee is bound to follow and has only followed the RBI guidelines, the reversal of the entry cannot be faulted with :BANGALORE ITAT;

2010-TIOL-106-ITAT-DEL.pdf

DCIT, New Delhi Vs M/s Cosmo Films Ltd (Dated: October 23, 2009)

Income Tax - Sec 80HHC – CIT (A) directs the A.O. to recompute deduction on the basis of net income arrived at after allowing only the brought forward losses relating to the export business and not the losses from other businesses - Held, the gross total income has to be worked out for the purpose of computing deduction u/s 80HHC. Provisions of section 80HHC are to be applied to find out the amount to be deducted so however that the amount to be deducted does not exceed the gross total income. Revenue ground allowed.

On the issue of CIT(A)  directing the A.O. to compute deduction u/s 80HHC on the interest income - Held, the interest on the margin money and the interest from the deposits with the Electricity Board, MIDC, the employees and inter-corporate deposits are not derived from the business of the assessee and the same cannot be treated as the profits of the business of the assessee. The interest from the customers is liable to be treated as the business income in so far as it has direct nexus of the business of the assessee. In view of the decision of High Court of Delhi in the case of Sriram Honda Power Equipments, as the A.O. had treated the interest income as income from other sources, the same is also outside the purview of the profits & gains of the business and profession and consequently cannot be considered for computation of deduction u/s 80HHC. Revenue's appeal partly Allowed:DELHI ITAT;

2010-TIOL-105-ITAT-MUM.pdf

ACIT, Mumbai Vs M/s Backbone Unity (Dated: December 2, 2009)

Income Tax - Assessee is a joint venture (JV) between two partners each having profit sharing ratio of 50% - Contract receipts received in the same financial year - AO makes addition on account of suppression of gross profit - CIT (A) deletes the addition on the ground that the opening work in progress for this A.Y is nothing but the closing working in progress of the preceding A.Y - In case the AO doubted the opening work in progress, the proper course of action before AO is to resort to the provisions of section 147/148 - Impugned A.Y do not constitute a proper forum to make investigations or to give finding in respect of the matter pertaining to A.Y. 2002-03 - Held, since one of the partners has been assessed to tax and has paid tax on their income on account of bills raised by them on the joint venture in the preceding assessment year, bringing the same to tax in the current assessment year, is also not justified. No distinguishable features brought on record by the Revenue to controvert the findings given by the CIT (A) - Revenue's ground dismissed:MUMBAI ITAT;

2010-TIOL-104-ITAT-MUM.pdf

M/s Akistex World Wide (Impex) Ltd Vs DCIT, Mumbai (Dated: February 8, 2010)

Income Tax - Section 144 - Assessee submits its business is closed at present and the office premises are sealed by the bank and therefore, no books of account are available - further submits that due to various actions taken by the Excise Department, one of the Directors, of the Assessee company is put behind bars for a month and he is ill – In the absence of details AO completes the assessment u/s. 144 and makes addition for unexplained cash credit on account of interest income and other expenses - Held, there was a reasonable cause on the part of the Assessee for non-appearance before the CIT(A). Therefore, no details were furnished before the AO. Matter restored to the file of the AO with a direction to give one more opportunity to the Assessee to substantiate with documentary evidence to the satisfaction of the AO regarding the income declared by the Assessee. Assessee Appeal allowed:MUMBAI ITAT;

Order 56 of 2010.pdf

CBEC promotes 23 as Commissioner;

SEZ - INSTRUCTION

sez09ins047.pdf

Export of 'Prohibited item' from SEZs: Govt may grant permission provided raw materials are imported for same;

SERVICE TAX SECTION

2010-TIOL-353-CESTAT-BANG.pdf

M/s ICE Network Pvt Ltd Vs CST, Bangalore (Dated: November 6, 2009)

Service Tax – Advertising/Broadcasting Service and Multi System Operator Service – When reasonable cause is shown by appellant for failure to discharge service tax liability, no infirmity in adjudicating authority invoking Section 80 of Finance Act for waiver of penalties – Provisions of Section 80 can be invoked in the absence of any fraud, collusion, misrepresentation etc – Imposition of penalty by Commissioner in review order not justified – Penalties set aside:CHENNAI CESTAT;

2010-TIOL-348-CESTAT-MAD.pdf

JPP Mills Private Ltd Vs CCE, Salem (Dated: December 17, 2009)

Service Tax - Condonation of delay - the appellant filed appeal against that part of the order confirming the demand – bonafide belief that they were not required to file appeal against the revision order by the Commissioner against dropping the other part of the demand is not acceptable - COD application, Stay application and the Appeal dismissed:CHENNAI CESTAT;