Exemption to SEZ Developers from obtaining distribution licence ;

Exemption regarding setting up of offsite ATMs and branches in SEZs by Banks;

Good news for CBEC - FM gives nod to proposal for 'de-freezing' SIXTH Member-post for Board; File moves to DoP&T;

President appoints four full-time Judges for Bombay HC;

Vigilance cases against All India Service Officers up in 2009;

National Archives is 'ageing; to host lecture on 'what are Archives for';

Grant of ‘Certificate of Registration' - For commencing business of credit information – Experian Credit Information Company of India Private Ltd;

Govt to conduct special drive for recruitment of 490 IPS officers by giving chance to junior officers from State and Central Police forces: Ajay Maken;

TIOL COMMENTARY

ddt 10 mar.pdf

Modification of Electricity Act for Deemed Licensing to SEZ Developers;

stgst.pdf

Service Tax Notifications – Impact analysis;

RBI NOTIFICATION

rbi_notification.pdf

Grant of ‘Certificate of Registration' - For commencing business of credit information – Experian Credit Information Company of India Private Ltd;

MIXED BUZZ

mbuzz1372.pdf

Vigilance cases against All India Service Officers up in 2009;

mbuzz1371.pdf

President appoints four full-time Judges for Bombay HC;

mbuzz1370.pdf

National Archives is 'ageing; to host lecture on 'what are Archives for';

2010-TIOL-11-ARA-IT.pdf + ara story.pdf

M/s Wavefield Inseis ASA (Dated : March 5, 2010)

Income Tax - ‘plant and machinery' which includes a ship or vessel has been supplied on hire for being used in the prospecting operation - the second limb of Section 44BB was clearly attracted: The applicant is a marine geophysical company incorporated in Norway that conducts seismic survey and provides offshore seismic data acquisition and other associated services to global oil companies. The applicant was awarded a three year contract by ONGC for 3D Seismic data acquisition and onboard processing Offshore India during field season 2008-09, 2009-10 and 2010-11.

Held: the second limb of Section 44BB was clearly attracted for the reason that the ‘plant and machinery' which includes a ship or vessel has been supplied on hire for being used in the prospecting operation. section 44BB being a specific and special provision providing for computation of income arising from such services rendered in connection with the prospecting for or exploration of mineral oil has to be computed under that section and Section 44DA cannot be applied in preference to Section 44BB even if the income partook the characteristics of “fees for technical services” within the meaning of Explanation 2 to Section 9(1 )( vii):ADVANCE RULING;

2010-TIOL-119-ITAT-DEL.pdf

M/s Solomon Exports India Vs ITO, New Delhi (Dated: December 23, 2009)

Income Tax - Section 263, 80HHC, 80IB - AO while completing the assessment allows deduction u/s 80HHC without reducing the amount of deduction allowed u/s 80IB on the entire income - CIT invokes jurisdiction u/s 263 and cancels the order - Assessee submits that the issue before the CIT (A) related to quantification of deduction u/s 80-IB and 80-HHC and the assessment order has merged in the order of the CIT (A) and after that Revenue came up in appeal before the Tribunal which has annulled the assessment. The order passed by the AO is merged with the order passed by the Tribunal - Held, the amount or deduction allowed u/s 80-IB was not considered by the AO nor by the CIT(A) and, therefore, the assessment order had not merged with the order of CIT(A) and consequently the order passed by the CIT directing the AO to allow deduction u/s 80-HHC after reducing the amount of deduction u/s 80-IB cannot be said to be bad in law. The AO has passed order ignoring the provisions of section 80-IA(9), which was inserted in the statute with effect from 1/04/1999. The order is erroneous and prejudicial to the interest of Revenue. The AO had not examined the matter at all - there is non-application of mind on the part of the AO while allowing deduction u/s 80-HHC without reducing the amount of deduction allowed u/s 80-IB - Assessee's Appeal dismissed:DELHI ITAT;

2010-TIOL-118-ITAT-DEL.pdf

M/s Paramount Metal Factory Vs ACIT, Moradabad (Dated: December 31, 2009)

Income Tax - Assessee is a manufacturer exporter - entitled to 100% deduction u/s 80-IB - incurs expenses on foreign traveling of different partners of the firm - AO disallows 10% of expenses attributing it to personal entertainment - CIT(A) reduces  the said disallowance to 5% - Held, action of the department in making ad hoc disallowance without any basis is not valid - It is nobody's case that any expenditure incurred by the Assessee is for non-business purposes. They were incurred abroad for business purposes only. The element of any personal entertainment in such an expenditure is not borne from the records. Moreover, the Assessee is an hundred percent exporter and all the expenses are incurred for the purpose of Assessee's business. The disallowance deleted:DELHI ITAT;

2010-TIOL-117-ITAT-DEL.pdf

Climate Systems India Ltd Vs ACIT, New Delhi (Dated: December 17, 2009)

Income Tax - AO disallows royalty expenses by treating the same as capital expenditure - CIT(A) upholds the disallowance - Held, since facts of the case are identical to the facts of the case for A.Y 2002-03, the issue is covered in favour of the Assessee by the decision of  Delhi High Court.

On the issue of AO treating expenses incurred for ISO certification, as capital expenditure - Held, the issue is covered by the decision of I.T.A.T. Jodhpur Bench in the case of ACIT vs. Tirupati Mircrotech (P) Ltd. The amount is allowable as revenue expenditure:DELHI ITAT;

2010-TIOL-116-ITAT-MUM.pdf

M/s Elder Pharmaceuticals Ltd Vs ITO, Mumbai (Dated: January 21, 2010)

Income Tax - Deduction u/s 80HHC - AO while computing deduction u/s. 80HHC does not allow netting off of interest income against interest expenditure despite the claim of the Assessee that there is direct nexus between the interest income and interest expenditure - CIT(A) following the order of his predecessor for previous A.Ys. and the order of the Tribunal holds that 90% of interest receipts on loan given to employees, deposits with MSEB, FDR (margin money) and ICD are not to be reduced from the profits of the business for the purpose of computing deduction u/s. 80HHC. Items of interest such as interest on overdue debts and interest from credit society has rightly been reduced for the purpose of computing deduction u/s. 80HHC - Held, issue remanded to AO with a direction to decide the issue afresh in the light of the decision of the Special Bench of the Tribunal in the case of Topman Exports vs. ITO and Kalpataru Colours and Chemicals vs. Addl. CIT ( 2009-TIOL-531-ITAT-DEL-SB ) .

On the issue of CIT(A) confirming the AO's action of reducing of 90'% of the marketing fee, manufacturing and distribution charges from the profits of the business for the purpose of computing deduction u/s. 80H - Held, in view of the Apex Court decision inCIT vs. K. Ravindranathan Nair (2007-TIOL-202-SC-IT ) where Apex Court held that independent income having no nexus with the export turnover of the assessee are required to be deducted from the business profit under clause (baa). No infirmity in  order of CIT(A). Assessee's ground dismissed.

On the issue of CIT(A) holding that 90% of insurance claim, scrap sale and sundry balances written off should not be reduced from the profits of the business for the purpose of computing deduction u/s. 80HHC - Held, principle of Apex Court in case of in CIT vs. K. Ravindranathan Nair will apply to other items such as insurance claim and sundry balance written off. Revenue Appeal allowed:MUMBAI ITAT;

SEZ NOTIFICATION

sez_notification_228_10.pdf

Exemption to SEZ Developers from obtaining distribution licence ;

sez_notification_527_10.pdf

Exemption regarding setting up of offsite ATMs and branches in SEZs by Banks;

SERVICE TAX SECTION

2010-TIOL-375-CESTAT-AHM.pdf

M/s Lucky Security & Personnel Services Vs CST, Ahmedabad (Dated: January 7, 2010)

Rent-a-cab service – Merits of demand not disputed – claim that demand confirmed without invoking section 73(1)(a) of Finance Act, 1994 unfounded – No prima facie case – applicant directed to make pre-deposit of entire amount:AHMEDABAD CESTAT;

2010-TIOL-374-CESTAT-BANG.pdf

M/s Macmillan India Ltd Vs CST, Bangalore (Dated: October 23, 2009)

Service Tax – Payment of commission to agents appointed abroad – No prima facie case for complete waiver of pre-deposit – Pre-deposit of Rs. 35 lakhs ordered:BANGALORE CESTAT;