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Tuesday , April 21, 2015 | Updated : Apr 21, 18:21 IST
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CBI nabs Mumbai-based CX Superintendent & Chandigarh-based EPF official demanding bribe CBDT bags Prime Minister's Award for excellence in Public Administration (See 'Mixed Buzz') Govt gets stuck at 8.7% interest rate for PF for current fiscal (See 'Mixed Buzz') Govt approves Rs.500 cr price stabilization fund for perishable agri-horticultural commodities (See 'Mixed Buzz') CST - Whether where no demand is made after scrutiny, it is open to Revenue at time of issuance of Form-C, to discover something beyond what is required and refuse to issue Form-C, even if assessee has paid tax - NO: HC (See 'Breaking News') Climate change a challenge, not business opportunity: 'Green' Minister (See 'Mixed Buzz') CX - Cocoa Shells arise unavoidably during process of manufacturing cocoa butter and powder from beans - they are nothing but by-product - no question of payment of any amount under rule 6(2) when Cocoa shells are cleared at Nil duty rate: CESTAT (See 'Breaking News') WTO - Concerns about investment measures favouring local products in India (See 'DDT') I-T - Whether if two notices are issued to assessee on different dates, it vitiates order passed under Sec 263 - NO: ITAT (See 'Breaking News') India should act on IMF's generic advice on energy tax reforms (See 'TIOL Edit') NDPS - Convicted for possession of drugs on date of enactment of Act - Accused came into possession prior to enactment - Thus, it was possession in continuum and hence, principle with regard to continuing offence gets attracted: SC (See 'Breaking News') Foreign Trade Policy 2015-20 - CBEC Explains (See 'DDT') I-T-Whether assessee is entitled for claiming deduction u/s 36(1)(ii), if he has failed to establish that payments by him to concerned persons are by way of commission - NO: HC (See '2015-TIOL-968') FM hails progress made in BEPS Project (See 'Mixed Buzz') High Level 'Customs Clearance Facilitation Committee' (CCFC) (See 'DDT') Meerut Central Excise arrests erection & commissioning service provider for collecting ST of Rs 4.5 Crore but not depositing in Govt a/c Relief for farmers - Govt eases quality norms for procurement of wheat IGI Airport Customs seizes more than 21 kg gold worth Rs 5.9 Crore from pax coming from Dubai Anti-dumping duty on Phenol extended for one more year (See Notifn No 14 in 'What's New') Beep, Beep... BIPA & Taxation (See 'EDIT' in Cus - Valuation - Arbitrary loading of 1% as loading, unloading and handling charge, unsustainable - will apply only when actual charges are not ascertainable - Supreme Court (See 'Breaking News') Cus - Drawback - deemed Imported Goods - CBEC amends the wrong notification (See 'DDT') I-T - Whether when CBDT issues directions to field formations for proper administration, it is to be construed as giving directions for doing assessment in particular manner - NO: ITAT (See 'Breaking News') Spectre of Section 35C(2A) rises again (See 'Guest Column') Civil Services Day - PM to release 'Best Practices - Tomorrow is Here'(See 'Mixed Buzz') CX - CENVAT Credit on inputs used in intermediate goods manufactured in other factories under Strategic Alliance Agreement - Credit is admissible: High Court (See 'Breaking News') Babus can accept gifts up to Rs. 25,000 (See 'DDT' Column) VAT - Whether 'Marker' & 'Highlighter' would fall in category of 'all types of pen', for purpose of levying tax at rate of 8% - YES: HC (See 'Breaking News') Cr.PC - Public servants have, in fact, been treated as special category under Section 197 CrPC, to protect them from malicious or vexatious prosecution - Such protection from harassment is given in public interest; same cannot be treated as shield to protect corrupt officials (See 'DDT') CII supports Rs 40,000 Cr tax demand raised against FIIs Budget Session going to be full of 'outcomes': PM Revise Lame-duck real estate bill to spawn employment & growth (See 'Ice Cubes') MoF to hold meeting with CMDs of PSBs over funding of major infra projects
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Income Tax - How to find out the difference between trader in stocks and investor in stocks

19 05 2006

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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