"01 July 2012" Archive

Where to verify as to whether cost of service was included in assessable value of manufactured castings/patterns, matter was remanded

Hinduja Foundries Ltd. Vs Commissioner of Service tax, Chennai (CESTAT Chennai)

Appellants made a request before the adjudicating authority for an opportunity to produce evidence to show that the cost of design and drawing are included in the assessable value of patterns/castings and appropriate duty is paid. This contention has not been taken into consideration by the adjudicating authority. In view of the above, th...

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Adroit Financial Services (P.) Ltd. v. Securities and Exchange Board of India (SAT)

Adroit Financial Services (P.) Ltd. Vs Securities and Exchange Board of India (Securities Appellant Tribunal Mumbai)

The first allegation relates to transfer of funds in the bank account of the appellant. It is alleged that the appellant has transferred funds from its bank account earmarked in clients trading transactions to the bank account earmarked for its own business operations. In other words, there was no proper segregation of the funds relating ...

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Posted Under: Service Tax |

Expenditure on purchase of software is revenue expenditure

CIT Vs Amway India Enterprises (Delhi High Court)

The first issue being: the treatment to be accorded to expenditure incurred by the assessee on purchase of software applications. These applications being: MS Office Software, Anti Virus software, Lotus Notes Software and Message Exchange applications. The assessee in respect of these applications acquired a licence to use the said applic...

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Typewriter is a machinery for depreciation under Income Tax Act

CIT Vs Lakshmi Vilas Bank (Madras High Court)

Supreme Court in the case of CIT v. Mir Mohammed Ali [1964] 53 ITR 165 had considered the meaning of the word 'machinery' and pointed out that the word is not a technical term and in the absence of any definition under the Act, ordinary meaning would prevail. Indeed rule 8 of the Income-tax Rules treats aero-engines separately from aircra...

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S. 80-I deduction not available on Bank Interest & transportation

Krishak Bharati Co-operative Ltd. Vs Commissioner of Income-tax (Delhi High Court)

Normally, transportation is after or post manufacture. The onus was on the assessee to show and establish that, because of the peculiarity of facts, transportation charges should be treated as sale proceeds or part of sale proceeds of the goods manufactured and were intrinsically connected and had live link with the manufacturing activity...

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Gift from friends not to be doubted just because not received from blood relative

CIT Vs Km. Sonali Jain (Allahabad High Court)

The assessee, while filing her initial return of income, disclosed her income to be Rs. 1.34 lakhs in the relevant assessment year and the said return finds mention of receiving gift of Rs. 2.50 lakhs from 'A'. In the revised return the said amount of gift was declared as part of her income. Thus, there was no concealment in respect of ab...

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Provision for ascertainable liability deductible in book profit calculation

JCIT Vs Shreyans Industries Ltd. (ITAT Chandigarh)

important thing to appreciate here is that the provision created is on account of ascertained liability and the same should logically be excluded out of the calculation of book profits Clause (c) of Explanation (1) of Section 115JB. If the argument of the AO is accepted then every creation of provision will lead to dilution/reduction in t...

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Constitutional validity of Restricted Input tax credit on inter-state stock transfers?

Most of the States have legislated provision in their respective VAT Acts for allowing a restricted input tax credit on the goods purchased within State if such goods are transferred outside the State otherwise than as sale. Ussualy Input tax credit in such cases is allowed only in excess of 4% or 2%. ...

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Posted Under: Service Tax |

If A.O. not mention diffrence between value estimated by departmental & assessee’s valuer in his Assessment Order, it would be erroneous

CIT Vs Kamala Prasad Seth (Allahabad High Court)

In our considered opinion the order passed by the Assessing Officer shows complete non application of mind. He has not discussed as to what was the difference between the value estimated by the departmental valuer as also given by the assessee's valuer and what was the reason for determining the income at such a low figure. The Commission...

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Most services to come under tax net from today

All services except those which are in the negative list will become expensive from today 01.07.2012 with the implementation of the new service tax regime. With the exception of 38 services, which figure in the negative list, all other activities would attract 12% tax. The government had earlier decided to implement the negative list fro...

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Posted Under: Service Tax |

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August 2021