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Correction in challan attributes in respect of IDS, 2016 payments - reg32 officers to receive awards on Central Excise Day tomorrowSuman Saxena takes over as full fledged member of Bankruptcy BoardCabinet makes way for mega solar power projects with 40,000 MW capacityAfghani national caught with endangered corals speciesCabinet gives nod to India Poland Agreement on agricultural co-operationIT Ministry launches Cyber Swachhta KendraGovt's limitation in demonetization analytics should rekindle tax reformsCentral Excise - CESTAT cannot reduce mandatory penalty: Supreme CourtI-T - No additions warranted on gross value of cash deposits which represents turnover, if it did not breach profit limit prescribed u/s 44ADST -Collection of data on consumption of electricity by MSEDCL customers by taking photos of meter reading for generation of bills is taxable under BAS: CESTATCash deposit post demon(etisation) - CBDT guidelines for AO'sCBI arrests three Central Excise officials in graft caseITAT Vice President G D Agrawal gets officiating charge of PresidentUplift of 'Digital Payments' - more than INR 150 crore distributed as 'reward'Govt notifies all provisions of protocol amending India Israel DTAA (See 'DTAA' in 'TII')Anti Dumping - Writ Petition against final findings of Designated Authority: High Court was not justified in exercising its writ jurisdiction: SCCivil Services Day - PM Awards to be given today90K more affordable houses sanctioned for urban poorIndia offers tech knowhow to ASEAN in telecom sectorRestricting doubly exempt Corpus DonationST - Tribunal is barred from rendering finding or recording an order on matter in which appellant has not placed itself within Tribunal's appellate jurisdiction: CESTATI-T - No penalty is leviable, if basis of addition itself ceases to survive: ITATCX - SSI notfn. 8/2001 - Intent to take advantage of recognition enjoyed by another brand is critical to invoking of exception provision: CESTATCBEC grants Sec 11C benefit on services provided by Common Effluent Treatment Plant for period 2012 to 2015ACC promotes 292 CBDT officers as Principal CITAppointment of Special Public Prosecutors for income tax cases - JS-level officer from Ministry of Law to join screening panel for metrosCBI books senior IAS officer in graft caseIndia keen to give fillip to relations with African countries: AnsariHome buyers' complaint - SC toughens stand against Unitech; directs to deposit interest within 8 weeksFICN worth about Rs one crore seized on Indo-Bangla borderKalindi Express rams into goods train at Tundla StationChange in rate of tax vs. Change in effective rate of taxI-T - Rent earned by assessee engaged in business of leasing properties, will be taxable as 'business profits': ITATST - 'gross amount charged', is not an isolated phrase but to be read in conjunction with expression 'for such service provided': CESTATCX - Merely because Autolite India Ltd is a group company, appellant cannot use its brand name and claim SSI benefit: CESTAT
 
Income Tax - How to find out the difference between trader in stocks and investor in stocks

TIOL-DDT 366
19 05 2006
Friday

The CBDT proposes to issue guidelines to determine whether a person is a trader in stocks or an investor in stocks. One of the guidelines is the time devoted and to the extent to which it is the means of livelihood. Board invites comments from the public on this.

Deduction under 80HHC – Cascading effect of amendment in other statutes

The Income Tax Department has encountered a strange problem. As per Section 80HHC certain deductions are allowed on income earned from profits from exports. The Section mentions the Customs and Central Excise Duty Drawback Rules, 1971. But these rules have been replaced by the Customs and Central Excise Duty Drawback Rules, 1995. Now there are some smart officers who wanted to deny the benefit of 80HHC on the ground that there is no Duty Drawback Rules, 1971.

Now the CBDT has clarified that by virtue of the General Clauses Act, the benefits of Section 80HHC cannot be denied just because the Section mentions the 1971 Rules and not the 1995 rules.

This is what happens with too many enactments finding place in too many other acts and too many amendments with no clue as to what is mentioned where.

CBDT Circular No. 5/2006, dated May 15, 2006

Customs and Central Excise  amendments

Re-import of exported goods – Exemption Notification No. 94/96-Cus. grants exemption to various categories of exported goods when reimported. Now cut and polished precious and semiprecious stones exported for treatment abroad is included in the list.

Cut and polished diamonds Cut and polished diamonds when reimported after certification/grading by certain agencies are exempted. Now one more agency “Diamond Trading Company U.K.” is included in the list of grading agencies.

Exemption to EOUs – Conditions relaxed Notification No. 52/2003-Cus. dated 31-3-2003 allows exemption to goods imported by EOUs, STP and ESTP. Under the scheme certain conditions are now relaxed:

1) Goods may be transferred to other EOUs/SEZ under intimation to the proper officer - no need of permission.

2) Goods may be removed for test, repair etc under intimation to the proper officer  - no permission required.

3) Exemption is now allowed for import of promotional materials like brochures, literatures, pamphlets, hoardings, catalogues and posters.

Similar changes are made in the Central Excise exemption for procurement of goods by EOUs.

Notification No. 44/2006-Customs and 31/2006-C.E., dated May 17, 2006

FTP Amendments - The DGFT had amended the Hand Book of Procedures

1) In Para 2.12 the validity period of 24 months for DFIA is deleted.

2) Certain sea ports/air ports/ICDs/LCS added to the list of ports for imports and exports under the advance authorisation and DEPB.

3) The period of fulfilling export obligation in case of import of spices is restricted to 120 days.

Vehicles imported for R&D – Registration

As per Notification No. 2 dated 7.4.2006 vehicle manufactures and auto component manufacturers were allowed to import vehicles for R & D purposes. One of the conditions for such imports was that the vehicle will not be registered under the CMVR Rules in the country and will not ply on Indian roads. Now DGFT clarifies that the condition is applicable only for use as a passenger vehicle. For the limited purpose of carrying out endurance test, evaluation test and for other testing purposes, the vehicle may be registered as provided for in the CMVR Rules.

POLICY CIRCULAR NO. 06(RE-06)/2004-2009 Dated: May 18, 2006

non obstante - Notwithstanding. (any statute to the contrary)

In absence non obstante clause allowing prevailing of Narcotic Drugs and Psychotropic Substances Act, 1985 over Evidence Act, 1872 such statements could only be treated as previous statements under Section 145 ibid and not as substantive evidence

Retrospective amendment of excise rules empowering Revenue to recover duty - Even in such a case, demand has to be within limitation prescribed under Section 11A of Central Excise Act, 1944, in absence of non-obstante clause in amendment

Although a non obstante clause is used in Article 253 of the Constitution of India, it only explains and provides for the legislative competence of the Parliament for the whole or any part of the territory for the purpose of implementing any treaty or agreement with any other country or any decision made at any international conference etc. If the Parliament or the State Legislature are competent to lay down the guidelines and leave the implementation of the guidelines to the rule making authority, such a law cannot be held to be ultra vires because of a non obstante clause in Article 253.

Until Monday with more DDT

Have a nice Weekend.

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