Why a Bank does not agree to any of the rights conferred on sureties by section 133, 134, 135, 139 and 141 of Contract Act, and any Rule of Law or Equity? A Case Study– Dena Bank (Letter of Guarantee):- Extracts of Paragraph nos. 4, 5, 6, 10 and 15 of Letter of Guarantee of Dena Bank are reproduced below–
To cover up Rs 200 crore illegal gratification made to Kalaignar TV, agreements were executed after lodging of FIR in the 2G scam and money was channelled back to its source on A Raja’s resignation as Telecom Minister, the CBI has claimed. The agency has supported this contention on the basis of the statements of an accountant of DB Realty and Director of the Cineyug Films Pvt Ltd to establish that the money travelled between December 23, 2008 and August 7, 2009 from Shahid Balwa’s firm to Kalaignar TV in which DMK MP Kanimozhi has stake.
Vinod K Nevatia (2011-TIOL-65-ITAT-MUM) CIT (A) has rightly deleted the addition applying the decision of Kotak Securities Private Limited and Angel Broking observing that transaction fees paid to the stock exchange could not be said to be fees paid in consideration of stock exchange rendering any technical services to the assessee. Therefore, provisions of section 9(1)(vii) and section 40(a)(ia) are not applicable.
Since the taxes have been deducted from the payment made to the assessee and it is also in receipt of TDS certificate, the credit for TDS cannot be declined on the basis of an administrative action of refund which is neither envisaged by the provisions of the ITA nor in the control of the assessee. Tribunal directed the AO to grant credit to the assessee on the basis of original TDS certificates produced and in accordance with the provisions of the ITA uninfluenced by any refunds subsequently granted to R. Lucent Technologies GRL LLC v DCIT (9 taxmann.com 182) (Mumbai ITAT)
The assessee is a firm and engaged in business of financing and follows cash system of accounting. It gave a loan to a company on interest. The borrower while crediting the interest deducted TDS and issued TDS certificate. The assessee claimed the credit of TDS without offering the corresponding income to tax . The AO disallowed the claim of the assessee .The CIT (A) allowed the appeal of the assessee- ITO Business Ward –II (4) v. M/s Shri Anupallavi Finance & Investments (2011-TIOL-78-ITAT-MAD)
Infosys Technologies Ltd. v. DCIT (10 taxmann.com 1) (Bang ITAT) – As regards the subscription charges, the Tribunal relied on its own decision in the assessee’s own case where it was held that the information was available on subscription to anyone willing to pay .It was copyrighted information and could not be passed on to anyone else. There was no license granted to the assessee to use in any manner or quote to anyone else. The access was restricted to specific individuals named by the assessee. The recipient did not have any PE in India. Further such an access to data base could not fall within the scope of Article 12(3)(a), as found in the DTAA with USA.
The Textiles Ministry has said it will ask the Finance Ministry to review imposition of excise duty on branded garments and made-up textiles as the levy is “hurting” the industry. The excise duty is hurting the industry. We are assessing the situation. I will take it up with the Revenue Secretary (this month), Textiles Secretary Rita Menon told PTI.
The Kolkata High Court has held that the interest paid by the Indian branch of ABN to its HO was tax deductible in the hands of the branch while computing the profits of the branch, and the branch was not required to withhold tax on the interest paid to the HO as the interest was not chargeable to tax in India under the provisions of the India-Netherlands tax treaty. ABN AMRO Bank NV (Kolkata High Court) 23 Dec, 2010. ADIT, Mumbai Vs M/s Antwerp Diamond Bank
As many as 230 persons, including ex-Finance Secretary Ashok Chawla, former Corporate Affairs Secretary R Bandyopadhyay and other senior bureaucrats and eminent economists have lined up for the two high profile jobs at the country’s anti-monopoly watchdog, Competition Commission of India (CCI).
As Mauritius prepares to receive Indian investigators from CBI and ED, the corporate lobbies especially those associated with the 2G scam are working overtime to cover their tracks so that Indian sleuths do not have much access to the island’s banking details.
