"20 December 2009" Archive

Perquisites for salaried will be taxed from April 2009

Salaried employees may burn a hole in their pockets with the Government all set to impose tax on all perks –residential accommodation, conveyance and others -- paid for by the company, under a new law that replaces the already abolished Fringe Benefit Tax. Perquisites given by the employer such as residential accommodation, conveyance...

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Posted Under: Income Tax |

ISMT Ltd. Vs. Commissioner of Central Excise & Customs (Cestat Mumbai)

ISMT Ltd. Vs. Commissioner of Central Excise & Customs (CESTAT Mumbai)

The appellant is entitled to Cenvat Credit availed on the garden maintenance service which are used in or in relation to the manufacture of final products or used in relation to the business activity and in this case the services used by the appellants are in relation to the business activity, he is entitled for Cenvat Credit....

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Provision of section 41(1) not applicable where assessee is still showing some amount as liability in its books and not written off the same

CIT Vs G.P. International Ltd. (Punjab & Haryana High Court)

We have heard learned counsel for the appellant-revenue. As far as the addition of Rs. 3,30,000 is concerned, it has been held that during the proceedings under section 143(3) read with section 250 of the Act, the assessee furnished a confirmation certificate from M/s Axis Chemicals and Pharmaceuticals Ltd., Faridabad along with PAN numbe...

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If Assessee already paid tax then interest can not be recovered further u/s. 234A, 234B or 234C

CIT Vs Emilio Ruiz Berdejo (Bombay High Court)

In the instant case, the deductee has already discharged tax liability with interest payable under Section 201(1)(a) of the Act. As such no further interest can be claimed by the revenue from the respondents either under Section 234A or 234B or 234C of the Act. The view taken by the Tribunal for the reasons stated cannot be faulted....

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Whether individual asset is put to use in a particular year or not is of no consequence for purpose of allowing depreciation thereon

Commissioner of Income Tax Vs Bharat Alumunium Co. Ltd. (Delhi High Court)

It is not possible to accept the contention of the learned counsel for the Revenue that unless a particular asset is used for the purpose of business or provision, depreciation is not allowed. No doubt, as per Section 32(1) of the Act, in order to be entitled to claim depreciation, the asset is to be owned by the assessee and it is also t...

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In the case of remittances by banking channel the onus on the assessee U/s. 69 stands discharged, and therefore, section 5(2)(b) does not apply

Sushila Ramasamy Vs. ACIT (ITAT Chennai)

The assessee, who is a non-resident, brought money into India through banking channel and the manner in which this money was utilized in India is described in the Annexure. We have observed in the above paragraphs that because of the mode of banking channel, admittedly, used for the remittance in this case, the onus on the assessee u/s 69...

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Dismissal of appeal for failure of pre-deposit, Interpretation of Section 35B & 35F of Central Excise Act

It must be understood that right to appeal is not an absolute right nor essential ingredient of process of natural justice. Supreme Court held in Vijay Prakash v. CC [1989(39) ELT 178(SC)], “Right to appeal is neither an absolute right nor an ingredient of natural justice the principles of which must be followed in all judicial and quas...

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Posted Under: Income Tax |

Taxability of Income of a non-resident shipping company can in India

DDIT (IT) Vs Star Cruises (India) Travel Services Pvt. Ltd. [ITAT Mumbai]

There is no dispute about the fact so far as M/s. SCML is concerned, it is a foreign company which is operating the Cruises in the international waters. The said company has entered into the agreement with the assessee company and as per the terms of the agreement, ...

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Terms "any trade, commerce or business" occurring u/s 2(15) refer to trade, commerce or business pursued by recipient to whom service is rendered

Infopark Kerala Vs DCIT (TDS) [Kerala High Court]

From the nature of activities being pursued by the petitioners, particularly as contained in the 'memorandum of association' extracted by the respondent in the statement filed in WP(C) 6899/2009 (stated as more or Jess similar in the other case as well), it is very much evident that the derivation of income by the petitioner cannot be hel...

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Interest expense cannot be claimed if TDS not deducted

DCIT Vs Umang Dairies Ltd. (ITAT Delhi)

It will also be relevant to mention that in the Memorandum explaining the provisions relating to direct taxes in the Finance Act, the above clause has been described under the head `Measures to plug revenue leakages' and the relevant portion of Memorandum Explaining the Provisions Relating to Direct Taxes is reproduced below:-...

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