Govt clarifies on issues relating to Free Trade Warehousing Zones + washing process in manufacture of agglomerates from imported plastic waste and scrap in SEZs;

Mobile Number Portability likely to miss yet another deadline: Minister;

MCA designing e-form under MCA-21 to enable corporate to file corporate social responsibility report online: Secretary;

Industrial production jumps to 16.7% growth in January;

FM asks IRS officers to collect taxes with human touch;

Govt is ready with Bio-technology Regulatory Authority Bill;

TIOL COMMENTARY

ddt 12 mar.pdf

Commissioner (Appeals) divested of Power to remand cases - Board's Instructions;

special column.pdf

Draft Press Note on FDI - A welcome step forward in right direction;

MIXED BUZZ

mbuzz1379.pdf

Industrial production jumps to 16.7% growth in January;

mbuzz1378.pdf

FM asks IRS officers to collect taxes with human touch;

mbuzz1377.pdf

Mobile Number Portability likely to miss yet another deadline: Minister;

NOTIFICATION

it10not015.pdf

Fee for technical services paid to Sinclair Knight Merz Pty for Project Seabird is exempted by CBDT;

CASE LAWS

2010-TIOL-13-ARA-IT.pdf + real resourcing story.pdf

Real Resourcing Ltd (Dated : March 5, 2010)

Indo-UK DTAA- Articles 5,13- Whether income from referral services amount to fees for technical services- whether in the absence of a PE, the same could be taxed in India

Income Tax - Section 195

A UK resident company,Real Resourcing Limited sought a ruling from the AAR. In the original application filed, the nature of services to be provided in India was stated to be two-fold; (i) recruitment services where the applicant would place a candidate with an Indian company and receive payment for providing such service (ii) referral services where the applicant would refer potential Indian clients to a third party based in India which was likely to be another Indian-based recruitment agency for which the payment will be received by applicant from the third party in India. Subsequently, it was clarified that the services will include making referrals of potential Indian clients and Indian candidates to the Indian based recruitment company for which Real Resourcing will be paid a referral fee by the Indian based recruitment company. The Indian based recruitment company will be providing the recruitment services to the Indian clients and placing the candidates with the clients. The Indian based recruitment company will get a fee for recruitment services from its Indian clients which were referred to the Indian based recruitment company by Real Resourcing:ADVANCE RULING;

2010-TIOL-165-HC-MUM-IT.pdf

Anil Radhakrishna Wani Vs ITO, Mumbai (Dated : March 4, 2010)

Income tax - Writ - Sec 147, 148 - Assessee is an advocate - retires from a partnership firm - on retirement, assessee is entitled to receive certain payments in eight instalments - receives first instalment and discloses the same in his return - scrutiny - notice u/s 148 after four years - AO takes the view that under clause 35 of the Deed of Partnership, a partner who has retired voluntarily shall not, as long as the continuing or surviving partners shall carry on the business, solicit the clients of the firm for a period of three years from the date of his retirement - the amount payable to the petitioner was on account of a renunciation of his right to freely practice his profession for a period of three years and that the amount was consequently liable to “capital gains tax under Section 28(va)” - assessee opts for writ petition - held, since the assessee has made full disclosure of all the material facts, the conditions precedent for invokign powers u/s 147 do not exist - Assessee's appeal allowed :BOMBAY HIGH COURT;

2010-TIOL-164-HC-MUM-IT.pdf

CIT, Mumbai Vs M/s Earnest Exports Ltd (Dated : February 25, 2010)

Income tax - Sec 254(2), 263, 80HHC - Assessee is an exporter - claims benefits of exports incentives - CIT invokes powers u/s 263 on the ground that the profits arising out of sale of DEPB licence is not covered u/s 28(iiia) - Tribunal agrees with the CIT after considering the decisions of the other benches of the Tribunal - assessee files ROM application - Tribunal allows the appeal by holding that in view of the decisions of the Tribunal's other benches the benefits are admissible - held, Tribunal u/s 254(2) does not have the power to re-appreciate the correctness of its own decision - it is confined to rectification of a mistake apparent on record - Section 254(2) is not a carte blanche for the Tribunal to change its own view by substituting a view which it believes should have been taken in the first instance. Section 254(2) is not a mandate to unsettle decisions taken after due reflection. The provision empowers the Tribunal to correct mistakes, errors and omissions apparent on the face. The Section is not an avenue to revive a proceeding by recourse to a disingenuous argument nor does it contemplate a fresh look at a decision recorded on merits, however appealing an alternate view may seem. Unless a sense of restraint is observed, judicial discipline would be the casualty. That is not what Parliament envisaged - Revenue's appeal allowed:BOMBAY HIGH COURT;

2010-TIOL-163-HC-DEL-IT.pdf

CIT Vs Forech India Ltd (Dated : February 24, 2010)

Income tax - Survey u/s 133A - Revenue finds excess stock and bills not entered into purchase account in the financial books - makes additions - CIT(A) and Tribunal disagree with the AO on the ground that the assessee had purchased the goods on high sea basis and although the goods had been received at the factory premises but since the bills were not handed over to the accountant, the same were not entered into the financial books - held, these are findings of facts and do not call for interference - Revenue's appeal dismissed:DELHI HIGH COURT;

2010-TIOL-162-HC-MAD-IT.pdf

CIT, Tiruchirappalli Vs M/s Kamalambika Co Operative Urban Bank Ltd (Dated : February 16, 2010)

Income tax - Sec 80P(2)(a)(i) - Assessee is a cooperative bank - files its return of income from banking activities - AO disallows a part of income attributable to sale and purchase of securities which does not partake the character of banking activities - Tribunal allows the deduction - held, the Revenue's argument that as per RBI guidelines only 10% of fund is to be invested in securities and anything above it would be taxable income, does not hold good as it is being raised for the first time before the HC and is also not consistent with the apex court decision in Nawanshahar Central Co-operative Bank Ltd.2005-TIOL-94-SC-IT - Revenue's appeal dismissed:MADRAS HIGH COURT;

SEZ - INSTRUCTION

sez09ins049.pdf

Clarifications on FTWZ issues –regarding;

sez09ins048.pdf

Employment of washing process in the manufacture of agglomerates etc from imported plastic waste and scrap –reg;

SERVICE TAX SECTION

2010-TIOL-387-CESTAT-MAD.pdf

M/s Suolificio Vs CST, Chennai (Dated: November 20, 2009)

Service Tax – No service tax is payable on the services received from outside India prior to 18.04.2006:CHENNAI CESTAT;

2010-TIOL-386-CESTAT-KOL.pdf

M/s Tata Steel Ltd Vs CCE & ST, Jamshedpur (Dated: October 14, 2009)

Service Tax - Tax liability being a creature of statute and borne by statutory provisions cannot be determined or apportioned based on agreement entered between the applicant and foreign service provider – Demands prior to introduction of section 66A of Finance Act w.e.f 18.04.2006 when the service recipient is made liable to pay Service Tax - Pre-deposit waived and recovery stayed :KOLKATA CESTAT;