TILL a few months back, it used to be a rare event in which the Delhi High Court used to impose costs on the Income Tax Department. And this is what perhaps encouraged the Revenue to keep filing appeals indiscriminately and virtually in all cases. But such a cosy run has evidently run out of luck now. So much exasperated is the High Court over the Department’s thick-skinned approach to curb frivolous appeals that it can now be seen imposing costs in most of the cases. And it happened even in this case where the issue revolves around allowance of bad debts and stock damages. While computing book profits u/s 115JA, the AO added back the provisions of doubtful debts and stock damages as he felt that such provisions cannot be categorised as ascertained liabilities in advance.
Even a conjoint reading of Section 36(1)(iii) as existing prior to the proviso thereto and Section 43(1) explanation 8 clearly shows that any interest paid on the capital borrowed for the acquisition of an asset cannot be allowed as a revenue expenditure. The capital might have been borrowed by an assessee for the purpose of business. However, once it is admitted that a part thereof was used by the assessee for the purpose of acquisition of an asset, which is not in the form of replacement or modernization the interest component thereon upto the date it is first put to use has to be dealt with in terms of provisions of Section 43 (1) explanation 8 as otherwise cost of the asset shown in the balance sheet will not depict its true picture. This is in conformity with law and the accounting principles.
The undersigned is directed to refer to the notification No.1/2008-CE dated the 18th January, 2008 vide which amendments have been carried out in notification Nos. 49 and 50/2003-CE, both dated 10.06.2003. Attention is also invited towards the amendment carried out in rule 12 of Central Excise Rules, 2002 vide notification No.3/2008-CE(N.T.) dated the 18th January, 2008 in this regard.
for quarterly return for production and removal of goods under exemption notification of the Government of India, Ministry of Finance (Department of Revenue) No. 49/2003-Central Excise, dated the 10th June, 2003 vide number G.S.R. 471(E), published in the Gazette of India, Extraordinary,
The principal rules were published in the Gazette of India, Extraordinary, Part-II, section 3, sub-section (i), vide notification No. 4/2002-Central Excise (N.T.), vide number G.S.R. 143(E), dated the 1st March, 2002, and were last amended vide notification No. 36/2007-Central Excise (N.T.) vide number G.S.R.597(E), published in the Gazette of India, Extraordinary, Part-II, section 3.
Commissioner of Central Excise Vs. Nandeshwari Packaging (Cestat Ahemdabad)- Show cause notice issued on 9-7-2004 is barred by limitation, inasmuch as, the same stands issued after the period of six months from the date of search and even after completion of the investigations.
Notification No. 10-Income Tax It is hereby notified for general information that the organization Nature Conservation Foundation, Mysore has been approved by the Central Government for the purpose of clause (ii) of sub-section (1) of section 35 of the Income-tax Act, 1961 (said Act), read with rules 5C and 5E of the Income-tax Rules, 1962 (said Rules), with effect from 1-4-2006 in the category of ‘other Institution’
Notification No. 9-Income Tax It is hereby notified for general information that the organization The Foundation for Medical Research, Mumbai has been approved by the Central Government for the purpose of clause (ii) of sub-section (1) of section 35 of the Income-tax Act, 1961 (said Act), read with Rules 5C and 5E of the Income-tax Rules, 1962 (said Rules), with effect from 1-4-2007 in the category
Notification No. 8-Income Tax It is hereby notified for general information that the organization Bombay Natural History Society, Mumbai has been approved by the Central Government for the purpose of clause (ii) of sub-section (1) of section 35 of the Income-tax Act, 1961 (said Act), read with Rules 5C and 5E of the Income-tax Rules, 1962 (said Rules), with effect from 1-4-2004 in the category of ‘other Institution’
The principal notification No. 49/2003-Central Excise, dated the 10th June, 2003, was published in the Gazette of India, Extraordinary, Part-II, section 3, sub-section (i), vide number G.S.R. 471(E), dated the 10th June, 2003 and was last amended by notification No. 48/2006-C.E., dated the 30th December, 2006 published in the Gazette of India, Extraordinary, Part-II, section 3, sub-section (i) vide number G.S.R. 804(E), dated the 30th December,2006.
