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Certified Facilitation Centres for ACES (See 'DDT' Column) STPI, New Delhi, offers employment, deputation opportunity for DG-level post; Guwahati DRI seizes 1523 kg from oil tankar; Promotion to Commissioner-rank: CBEC trying to hold DPC before March 31; Bill introduce to make tougher provisions for pilferage of petro products; Govt rationalises procedures for selection of sports awards; India is first to set up environmental court; Kolkata DRI seizes 39000 bottles of phensedyl cough syrup worth Rs 35 lakh; |
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| Dear Member, Sending the following files: |
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TIOL COMMENTARY Verification Mechanism and monitoring of export obligation under duty exemption / reward Schemes; Taxability of 'supply rights', assigned to related enterprise-fallacy in AAR's ruling; DEPUTATION POST STPI, New Delhi, offers employment, deputation opportunity for DG-level post; MIXED BUZZ Govt rationalises procedures for selection of sports awards; India is first to set up environmental court; Bill introduce to make tougher provisions for pilferage of petro products; |
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2010-TIOL-16-ARA-IT.pdf + ABB story.pdf ABB Limited (Dated : March 15, 2010) Income tax - Sec 195 - India-Swiss DTAA - Article 7, 12 - Applicant is incorporated in India - belongs to a Swiss Group of Cos - proposes to enter into cost contribution agreement with ABB Zurich undertaking basic R&D activities - also pays 'Coordination fee' for coordinating the research efforts with the research centres and all the participating group entities - Whether payments made to the non-resident Group Co amount to royalty or fees for technical services - whether it is business income as per Article 7 of the DTAA - Whether it is mere reimbursement of expenditure incurred towards the R&D:ADVANCE RULING; DCIT, Faridabad Vs Shri Pawan Kumar Malhotra (Dated: January 8, 2010) Income Tax - Assessee is in the business of manufacturing of sheet metal components - claims long term capital gains on sale of shares that is 70 times the purchase price in one year AO issues commission u/s 131(1)(d) and makes additions holding it to be a sham transaction - CIT(A) takes the view that the transaction in question cannot be held to be colourable device - Held, AO has carried out meticulous enquiries, and non-availability of relevant supporting materials clearly questions the veracity of purchase and sale transaction of shares - The same is further strengthened by the fact that the Assessee in his return for A.Y 2004-05 has not reported the cash purchases of shares. On the sale front also, except cheque payments, nothing worthwhile is forthcoming - its trading activities still remain mysterious and exorbitant share price is unbelievable on the facts - merely on the broker's note, it cannot be held that the transaction was infallible. The totality of facts, surrounding circumstances and human probabilities militate against the stand of the Assessee. Revenue Ground allowed :DELHI ITAT; Sanjay Kumar Keshary Vs ACIT, New Delhi (Dated: December 31, 2009) Income Tax - Penalty u/s 271(1)(c) - assessee is an individual and derives income from salary as director - AO makes addition in respect of deposits in the bank account as Assessee fails to explain any source for the said deposits - AO also levies penalty at 100% of the tax sought to be evaded - CIT(A) directs AO to recompute the quantum of penalty - Held, it is not that the claim of the opening balance of cash in hand should always be accepted without there being a ''cognizable or corroborative" material in support of such claim. The paper book filed does not contain any such evidence. It is the clear case of failure to give explanation which a reasonable man could accept having regard to the attending circumstances or available sources of income. It is pure and simple case of concealment of income and the department has proved the concealment with reference to the actual deposits in the bank account and the penalty has rightly been levied by the assessing officer and sustained by the CIT(Appeals). Asessee Appeal dismissed:DELHI ITAT; DCIT, Faridabad Vs Smt Seema Singh (Dated: January 21, 2010) Income Tax - Sec 148, 45(5) - Assessee's husband receives compensation on land acquisition which is subsequently enhanced by appellate authority - before proceeding u/s 147 could be initiated to assess the compensation the husband dies and thereafter notice served in name of the assessee CIT(A) nullifies and cancels the assessment on the ground that out of 4 legal heirs, assessment has been made only on one heir - Held, here in the assessment, there is confusion as both capital gain and enhanced compensation u/s 45(5) has been assessed. However, this issue was not examined by the CIT(A) as he cancelled the assessment order. This can now be examined in accordance with law. The matter remanded to the CIT (A) for passing a fresh order in accordance with law and in the-light of observation:DELHI ITAT; DCIT, Mumbai Vs M/s Suyash Chemicals (Dated: January 29, 2010) Income Tax - Deductions u/s 80HHC and 80IA - Asessee engaged in manufacturing of bulk drugs and chemicals - claims deduction u/s 80IA and 80HHC(1) as a supporting manufacturer on the basis of Disclaimer Certificate - AO forms the opinion that deduction u/s 80IA has to be given only after allowing deduction u/s 80HHC on a priority basis and it should be allowed on the remainder amount of profit of the business. - CIT(A) directs the AO to compute deductions u/s 80HHC and 80IA separately on stand alone basis Held, in view of the decision of the Special Bench in the case of ACIT vs. Hindustan Mint & Agro Products Pvt. Ltd. matter remanded to the AO |
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SERVICE TAX SECTION M/s Secure Meters Ltd Vs CCE, Jaipur (Dated: January 20, 2010) ST - Cenvat Credit - Assessee receives certain services from two service providers - at the time of providing the services the service providers had no registration - they take registration later and raise supplementary invoices on the assessee which avails cenvat credit - Revenue denies it - held, since the input services have been availed to provide output services and the service providers have taken registraiton and paid taxes, cenvat credit cannot be denied - Assessee's appeal allowed:DELHI CESTAT; Shri Ram Prakash Vs CCE, Jalandhar (Dated: January 4, 2010) ST - Classification of service - Assessee pleads it is into manpower supply service - Revenue takes the stand that it is cargo handling service - held, the point where manpower supply ends, begins the cargo handling service - fit case for waiver of pre-deposit:DELHI CESTAT;
CENTRAL EXCISE SECTION 2010-TIOL-414-CESTAT-MUM.pdf + reliance story.pdf Reliance Industries Ltd Vs CCE, Pune (Dated: February 12, 2010) Cenvatted Acetone sent to job work for blending with Ethyl alcohol and subsequently the denatured spirit is cleared to assessee on payment of duty whether credit rightly availed on Acetone Stay granted of a little short of One crore demand and out-of-turn hearing fixed :MUMBAI CESTAT; 2010-TIOL-413-CESTAT-MAD.pdf + computer story.pdf CCE, Chennai Vs M/s Computer Graphics Ltd (Dated: November 25, 2009) Central Excise Valuation - Advertisement Expenses There is no evidence to show that the reimbursements made by the supplier of raw material is an additional consideration flowing directly or indirectly from the buyer of the impugned goods who are independent customers not connected with or related to the raw material supplier. The price at which the respondents are selling their product to independent buyers can be taken as the assessable value as they would recover their cost and profit from such independent buyers. The additional expenses incurred by them towards advertising for which they are receiving reimbursement from raw material supplier has no relationship with the assessable value of the impugned goods sold to the independent customers, the same is not flowing back directly or indirectly from the buyers and the valuation rules do not provide for including such amounts in the assessable value . (Para 4) :CHENNAI CESTAT; M/s Hyva India Ltd Vs CCE, Bangalore (Dated: October 23, 2009) Central Excise Valuation Activity of body building undertaken on duty paid chassis sent by principal Inclusion of transportation cost and all other expenses incurred, till raw materials reach job workers premises, in AV of job worker Duty paid chassis cleared to appellant by following valuation in terms of Section 4(1)(a) by principal after payment of duty based on net dealer's price of principal by claiming deduction towards transportation cost and other charges AV of final products at job workers end to be worked out based on cost of inputs received by principal Prima facie case for waiver of pre-deposit :BANGALORE CESTAT; M/s Handum Industries Ltd Vs CCE, Hyderabad (Dated: October 27, 2009) Central Excise Appeals Attachment of property worth Rs. 35.35 crores sufficient to secure interest of revenue against total dues of Rs. 9.25 crores Earlier stay order for pre-deposit of Rs. 75 lakhs modified:BANGALORE CESTAT;
CUSTOMS SECTION Shri Prakash Poonia Vs CC, Kandla (Dated: November 12, 2009) Customs clearance of duty free imports on the strength of forged / bogus DEEC licences - Revenue has not made out the case that the appellants were having any knowledge of the forged/ bogus licenses, during the process of clearances of the goods - reliance placed by the appellants support their contention that they were not having any knowledge of bogus/forged licenses during the process of clearances of goods - the appellants are not liable to any penal action : AHMEDABAD CESTAT; |
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