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Archive: 02 December 2010

Posts in 02 December 2010

Live Course on Appeal, Pleading & Drafting under GST by CA Sachin Jain

May 15, 2024 7062 Views 0 comment Print

oin us for an immersive live course led by renowned expert CA Sachin Jain, as we delve into the intricacies of appeal, pleading, and drafting under GST.

If documents asked for are relevant and may help delinquent to prepare his/her defence they have to be furnished

December 2, 2010 441 Views 0 comment Print

Where the details in the charts relied upon in the show-cause notice have been culled out from the trade and order logs and, in the circumstances of the case, it was not only relevant but even necessary that the appellant be furnished with those trade and order logs so that she could possibly make out a case based on other orders punched into the system, non-furnishing of the trade and order logs to the appellant in the circumstances of this case resulted in the violation of the principles of natural justice

Foreign travel tax- If any person fails to pay FTT within statutory period of fifteen days, then such person is well within sweep of words "failure to pay" u/s 38(3) of Finance Act, 1979

December 2, 2010 306 Views 0 comment Print

Had there been no minimum penalty prescribed under sub-section (3) of section 38, it would have been open for the adjudicating authority to consider the conduct of the defaulter and the extent of delay taking into account the extenuating circumstances while imposing penalty. But once the statute prescribes the minimum penalty without giving any discretion in favour of the adjudicating authority, then one has to go by the provisions of the Act

An income, so as to be characterized as `derived from’ an undertaking u/s 80-IA, should directly result from its operations

December 2, 2010 555 Views 0 comment Print

In order to be covered within the expression derived from it is sine qua non that the relation between the income and source must be that of the first degree Where the relation between income and source slips from first to second degree, income stands excluded from the scope of expression derived from and may fall within the purview of attributable to.

Denial of Cenvat on GTA service just because duty on goods been paid on assessable value determined u/s. 4A of Excise Act

December 2, 2010 1587 Views 0 comment Print

For allowing credit of tax paid on input goods/service used in or in relation to manufacture of a finished product, what is relevant is as to whether the items in respect of which input duty credit is being claimed are covered by the definition of “input” or “input service” and finished product is chargeable to duty for allowing the credit of duty paid on input goods and/or of service tax paid on input services; it is not relevant as to whether the duty on the finished product has been paid at specific rate or at ad valorem rate and of at ad valorem rate whether on the assessable value determined under section 4 or section 4A of the Excise Act.

Section 147 of Income-tax Act – Unless twin conditions of proviso to section 147 are satisfied, notice issued under section 148 is without jurisdiction and on that ground alone notice is liable to be quashed

December 2, 2010 633 Views 0 comment Print

In order to fall within the proviso to section 147, apart from stating that there are reasons for the authority to believe that there has been escapement of chargeable income, it should also record that such escapement is due to the failure of the assessee to disclose fully and truly all material particulars necessary for his assessment for relevant assessment year; such a recording is absolutely mandatory as per the provision and as laid down in various judgments

Section 35D of Income-tax Act – Premium collected by assessee on issue of its share capital has to be excluded for purpose of determining amount of capital employed in business of company while computing deduction under section 35D(3)

December 2, 2010 373 Views 0 comment Print

The disallowance of claim under section 35D made by the AO by excluding the share premium from the capital employed in the business of the company is justified.

Fee for conducting feasibility study for oil extraction project should be taxed u/s. 44BB

December 2, 2010 309 Views 0 comment Print

Section 44BB(1) does not talk of `extraction of mineral oil’ simplicitor; it prefixes phrase `in connection with’ to the expression `extraction of mineral oil’, which shows that the section, by virtue of the phrase `in connection with’, is talking of something other than physical operations below the surface of the earth

While forming opinion that a prima-facie case exists, the Commission has to indicate reasons which need not be elaborate but should be sufficient to show application of mind

December 2, 2010 1294 Views 0 comment Print

Coming to the merits of the case, the first question that needs to be decided is whether the appellant had a reasonable opportunity to present its case. It is rightly contended by learned counsel for the respondent that there is no requirement of the Commission to invite parties to present their point of view before forming a prima-facie opinion. But the Commission may for the purpose of satisfying itself on any aspect permit the parties to present

GST – Voltage stabilizer is electronic goods for purpose of taxation under U.P. Trade Tax Act

December 2, 2010 14317 Views 1 comment Print

It is evident from the facts of the case that an automatic voltage stabilizer involves the operation of a number of electronic components. A voltage stabilizer might have many components some of which use electricity. This cannot be the sole reason for classifying it as an electrical good. As noticed earlier, an electrical device can be an electronic device, but an electronic device cannot be an electrical device. The Tribunal which is the last fact finding authority after taking into consideration the components of voltage stabilizer, the purpose for which it is used and the principles on which it works has come to the conclusion that the voltage stabilizer is electronic goods, for the purpose of taxation under U.P. Trade Tax Act, we are in agreement with the reasoning and conclusion reached by the Tribunal.

Merely because assessee had its own ample resources at its disposal, it cannot be denied deduction in respect of interest paid on borrowed funds

December 2, 2010 330 Views 0 comment Print

Once the three conditions pointed out by the Supreme Court in the judgment of Madhav Prasad Jatia v. CIT [1979] 118 ITR 200 are satisfied, the assessee would be entitled to deductions in respect of the interest and charges paid on the loans; the matter would be different only in a case where after borrowing the funds from the bank, the assessee utilizes those very funds by giving interest free loans to others.

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