"22 July 2012" Archive

Same income cannot be taxed twice

R. Natarajan Vs Assistant Commissioner of Income-tax (ITAT Chennai)

If Act authorizes a designated authority to collect tax for State, the same Act always permits the said authority to rectify any proceedings, which has resulted in double taxation. When the income of Rs. 4,28,750 has been assessed for the assessment year 2008-09, the assessment of the same amount for the impugned assessment year 2007-08 i...

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Dairy Farming –Business Opportunity for Farmers

We are already 122 Cr and will be 143 Cr and the demand for milk in India will be highest. As per data produced by National Dairy Development Board, the milk production in 2010-11 was 121.8 Mn Tn, i.e. 280 gms/per day per capital milk consumption, which has grown @ 5% per annum. If the growth continues @ 5% per annum, the production will ...

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Posted Under: Income Tax |

Change In Filling Form 23B- An Overview

Every statutory auditor appointed by the company in the Annual General Meeting under section 224(1) of the Companies Act, 1956 in form 23B has to intimate whether he has accepted the appointment or not to the concerned Registrar of Companies, within 30 days of the intimation received from the company by the auditor. Till date the form is ...

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Posted Under: Income Tax | ,

Revised List of Hawala Dealers in Maharashtra

VAT Dept. of maharashtra has issued Fresh Hawala Dealer List containing 1277 dealer. They have removed one dealer from the list. 27760631776V SUJASH STEEL & IRON PVT LTD Download List of Suspicious Dealers who has issued false bills without delivery of goods. Source – http://mahavat.gov.in/Mahavat/index.jsp...

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Posted Under: Income Tax |

Section 10B – Blending & processing of tea amounts to manufacturer

Madhu Jayanti International Ltd. Vs Deputy Commissioner of Income Tax (ITAT Kolkata)

Hon'ble Kerala High Court in the case of Girnar Industries (supra) and Tata Tea Limited (supra), we hold that the assessee is entitled for exemption under Section 10B of the Act on account of blending of tea. Similarly, in our view, the industrial units engaged in the very same activity i.e. blending, packing and export of tea in the fre...

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Notice u/s 148 issued without sufficient reason to believe is invalid

The Commissioner of Income Tax III Vs Shonkh Technology Ltd. (Delhi High Court)

A perusal of the reasons recorded by the AO in the present case shows that there was no rational or intelligible nexus between the reasons recorded by him and the belief entertained about the escapement of income of the assessee company. There was nothing in the said reasons to show existence of any positive income arising to the assessee...

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S. 80IC deduction not admissible on Interest Income

Flex Foods Ltd. Vs. Deputy CIT (ITAT Delhi)

The assessee has not advanced any arguments with regard to the proposition that on interest income deduction under sec. 80-IC is admissible, therefore, there is no idea to examine the provisions of sec. 80-IC and in what condition the computation for such deduction has to be made. According to the judgment of Hon'ble Delhi High Court in t...

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Assessment made by Settlement Commission cannot be reopened by a different authority

M/s Omaxe Ltd Vs ASSTT. Commissioner of Income Tax and ANR. (Delhi High Court)

An assessment order passed by an Assessing Officer can be rectified or amended under Section 154 or Section 155 or reopened under Section 148 only by him, and by no other income-tax authority. Similarly, an assessment by way of settlement of a case, which is made by the (Income Tax Settlement Commission) ITSC, can be reopened only by the ...

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ESOP – Difference Between Market & Offer Price is Deductible Expenditure

CIT Vs PVP Ventures Limited (Madras High Court)

On the issue of expenditure of 66.82 lakhs towards the issue of shares to the Employees Stock Option is concerned, the Tribunal pointed out that the shares were issued to the employees only for the interest of the business of the assessee to induce employees to work in the best interest of the assessee. The allotment of shares was done by...

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ITAT criticises AO for harnessing Assessee & imposed Penalty on A.O.

Smt. Sushila Suresh Malge Vs ACIT (ITAT Mumbai)

It is very sad that AO without following the principles of natural justice and inspite of clear findings of the ITAT in the order dated 18.06.2010 has repeated the same orders as was done originally way back in 1998. Inspite of levying the cost of 5000/- on AO, which we were informed was paid to assessee, there is no change in the attitud...

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Newly Elected President & Vice President of Institute of Cost Accountants of India

The Institute of Cost Accountants of India (ICAI) Newly Elected President & Vice President CMA Rakesh Singh has been elected as President of the Institute for the year 2012-13 CMA S.C. Mohanty has been elected as Vice President of the Institute for the year 2012-13 Source- http://www.icwai.org/icwainew/index.asp...

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Posted Under: Income Tax |

S. 80GGB -AO to accept claim of assessee, though not claimed in original or revised return

M/s. Britannia Industries Ltd. Vs DCIT (ITAT Kolkata)

It is noticed that the Hon’ble Supreme Court in the case of Goetze (India) Ltd (refer to supra) has held that the appellate authority being the tribunal did have the powers to direct the Assessing Officer to accept the claim of assessee, though the same has not been made in the original return nor has been claimed in the revised return....

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Payments made for transmission of electricity by transmission lines do not constitute rent payment U/s.194-I

Maharashtra State Electricity Distribution Co. Ltd. Vs DCIT TDS Range-2 (ITAT Mumbai)

Payments made for transmission of electricity by the transmission lines owned by PGCIL do not constitute payment for rent under section 194-I, it is not really necessary to go into this aspect of the matter. The question as to whether the definition of expression rent, introduced in section 194-I with effect from July 2006, is prospective...

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S. 80-IB(10) – Deduction can’t be denied just because Assessee did not construct himself

Abdul Khader Vs Assistant Commissioner of Income-tax (ITAT Bangalore)

Assessee entered into an agreement with M/s Reddy Structures Pvt. Ltd., for development and building of the housing project on the land belonging to him. The assessee contributed the land, undertook the developmental activities in the said land and thus complied with all other conditions which have to be fulfilled before claiming the bene...

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Write back of amount not allowed as expenditure in earlier years cannot be considered as income

ACIT Vs VN Parekh Securities Ltd (ITAT Mumbai)

With reference to the income treated as’income from other sources’, the CIT (A) analyzed the position of the income and noticed that it comprises of bad debts, miscellaneous receipts written back which were to be taxed under section 41(1) of the I.T. Act. With reference to the gratuity written back, he observed that assessee made prov...

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S. 10(15A) To Claim benefit Airline should have acquired aircraft(s) on lease before 01.04.2007

Go Airlines Private Limited Vs Union of India (Delhi High Court)

On reading of Section 10 (15A) of the Act it is apparent to us that for this Section, an Indian company engaged in the business of operation of aircrafts should have acquired aircraft(s) on lease under an agreement. It is only when an Indian company acquires aircraft on lease under an agreement, which was entered into on or before the 1st...

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Sale of space in monthly news publication by chemist association not covered under BAS

Federation of Gujarat State Chemist & Druggist Association Vs Commissioner of Central Excise (CESTAT Ahmedabad)

Mere publication of name of the company and name of the product along with details relating to price, packaging and dosage would not promote the sale or marketing of the product but the information would be of use only for the chemists/druggists. In fact that information would not be of use even to the chemist who was required to dispense...

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Extended period of limitation can been invoked on suppression of facts by assessee

National Aviation Co. of India Ltd. Vs Commissioner of Service Tax, Mumbai (CESTAT Mumbai)

On verification of the records, we find that the details submitted by the applicants on 14.05.2007, does not cover the amount of tickets sold prior to 01.05.2006 for the journey carried out on or after 01.05.2006. We find that this is a suppression of fact on the part of the applicants prima facie therefore, the extended period of limitat...

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Cenvat credit available on transportation charges incurred towards outward transportation of goods from factory gate

Commissioner of Central Excise Vs Triveni Engineering & Industries Ltd. (Karnataka High Court)

The assessee is engaged in the manufacture of goods and availed Cenvat credit on Inputs/Capital goods/Input services under the provisions of Cenvat Credit Rules. During the course of audit it was found that the assessee had availed Cenvat credit of Rs. 5,45,460/- for the service tax paid by the assessee on the transportation charges incur...

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No penalty can be imposed if Service Tax liability & interest thereof stand deposited u/s. 73(3)

IMDC Ltd. Vs Commissioner of Central Excise (CESTAT Ahmedabad)

Provision of Section 73(3) and explanation (ii) to said Section (which was introduced from 8.5.10), specifically indicate that if Service Tax liability and interest thereof stand deposited, there is no need for issuing Show-Cause Notice even for penalty. I find that the ld. Counsel was correct in relying upon the judgment in the case of K...

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Extended period of limitation would not stand for demanding tax on photography service

Laxmi Colour Lab Vs Commissioner of Central Excise (CESTAT Delhi)

The appellant filed this appeal against the impugned order whereby the demand of service tax on the ground that the appellants, for the purpose of paying service tax, did not include the value of materials used by them for providing such service. The contention of the appellant is that demand is time-barred as the show-cause notice was is...

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Cenvat credit on canteen service not available to the extent cost of providing canteen service recovered from workers

Mahle Filters System (I) Ltd. Vs Commissioner of Central Excise (CESTAT Delhi)

Even if it was accepted that the canteen service provided by the assessee was necessary for improving the efficiency of the worker and the same was eligible for Cenvat credit but in terms of Larger Bench decision in the case of CCE v. GTC Industries Ltd. [2008] 17 STT 63 (Mum. - CESTAT) there is no dispute about the fact that as part of t...

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Commissioner (Appeals) has no power to condone delay beyond the period of 90 days in filing appeal

Rajasthan State Mines & Minerals Ltd. Vs Commissioner of Central Excise (CESTAT Delhi)

Hon'ble Supreme Court in the case of Singh Enterprises v. Commissioner 2005 (189) ETL A-113 (SC) has held that Commissioner (Appeals) has no power to condone the delay beyond the period of 90 days. We also refer to a listed decision of the Hon'ble Supreme Court in the case of Rajasthan Mechanical Works vide which Delhi High Court judgemen...

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CENVAT Credit admissible on Service Tax on Commission to Consignment Agent

Vishal Pipes Ltd. Vs Commissioner of Central Excise (CESTAT Delhi)

There is no dispute about role of consignment agent attributing to the promotion of the sale. Once sale promotion falls within Rule 2 (l) of Cenvat Credit Rules 2004, admissibility of cenvat credit of the service tax paid in respect of such service availed is permissible....

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If service tax is not separately charged, amount charged should be taken as inclusive of service tax

Speedway Carriers (P.) Ltd. Vs Commissioner of Central Excise (CESTAT Delhi)

The appellants were engaged in the business of renting out low-floor buses to Rajasthan State Road Transport Corporation (RSTRC) on contract basis. RSTRC was using the buses as stage carriers for transportation of persons. The appellants did not pay service tax on the consideration received from RSTRC during the period 01-06-2007 to 31-1...

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Pending dispute regarding taxability no penalty u/s. 78 can be imposed for non-payment of service tax

M.K. Telecom Vs Commissioner of Central Excise (CESTAT Ahmedabad)

The activity rendered by the assessee was of purchasing of prepaid SIM cards from mobile company and selling them to the ultimate customers or through dealers. For doing such an activity, the mobile company given an amount as a commission which according to the revenue was liable for service tax. The issue involved in the instant case was...

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CENVAT Credit of tax paid on Purchase of share of a company with which Assessee entered into purchase agreement

Commissioner of Central Excise Vs Neuland Laboratories Ltd. (CESTAT Bangalore)

In this appeal of the department, the short question to be considered is whether the view taken by the lower authorities that the respondent was entitled to take CENVAT credit on stockbroker's service which was used by the respondent for acquiring shares in another company with which the respondent had entered into an agreement for purcha...

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Assessee can claim CENVAT of duty paid by job worker on goods sent back

Filtrum Tools & Components (P.) Ltd. Vs Commissioner of Central Excise, Pune (CESTAT Mumbai)

Question involved in the appeal is whether the duty paid by the job worker on goods, received back by the appellant can be availed as Cenvat credit by the appellant. I find that the issue involved in the appeal is clearly covered by the decision of Hon'ble Bombay High court in the case of Nestle India Ltd. (supra). Once the duty has been ...

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