"October, 2012" Archive

Market development fee paid to UK based company not taxable in India as fee for technical services

Gama Industries Coimbatore Ltd. Vs Commissioner of Income-tax-III (ITAT Chennai)

Giving marketing services outside India, even if we consider it as technical services, nothing was made available to the assessee in the nature of any technical knowledge, experience, skill know-how or processes. ...

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Depreciation is to be allowed even if not claimed in Return

Rakesh Singh Vs Assistant Commissioner of Income-tax (ITAT Bangalore)

In view of Explanation 5 to section 32(1), the Assessing Officer was duty-bound to grant depreciation allowance, whether the same is claimed by the assessee or not, provided the conditions mentioned under section 32 are satisfied. ...

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Statement under section 132(4) can be retracted

Jyotichand Bhaichand Saraf & Sons (P.) Ltd. Vs Deputy Commissioner of Income-tax, Circle 11(1) (ITAT Pune)

The case of the assessee is that the statement/admission was made under the mistaken belief of law that Rs. 50 lakhs represents the sale value of stock found short was undisclosed income of the assessee instead of the correct legal position that the gross profit on suppressed sale is the income of the assessee....

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No prescribed time-limit for taking Cenvat credit

Central Bank of India Vs Commissioner of Central Excise & Service Tax (CESTAT Chennai)

No where in the Central Excise Act as well as in the Cenvat Credit Rules not prescribed any period in which credit has to be taken. Although it is mentioned in the Cenvat Credit Rules that assessee can take the credit immediately, but there is no prescribed time limit neither in the Cenvat Credit Rules nor in the Central Excise Act...

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Two or more Assessing Officers having territorial jurisdiction in respect of same income, can exercise concurrent jurisdiction

CR Foods (India) (P.) Ltd. Vs Income-tax Officer-4(1), Agra (Allahbad High Court)

In the present case we find that the petitioner had changed his registered office w.e.f. 4th November, 1989 from first floor and 6376 Naya Bans Delhi to Y-192, Loha Mandi, Naraina, New Delhi, and thereafter w.ef. 3rd October, 2000 from Y-92 Loha Mandi, Naraina, Delhi to Room No.9, Y-3C, Loha Mandi, Naraina, Delhi. The principal place of b...

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If Assessment order Silent, Interest U/s. 234B cannot be charged in demand notice

Commissioner of Income-tax, Shimla Vs Ruchira Papers Ltd. (Himachal Pradesh High Court)

No doubt, payment of interest under Sections 234A, 234B and 234C is mandatory but it is for the Assessing Authority while passing the original assessment order or while passing the reassessment or rectification order to direct payment of interest. ...

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Income from solitary sale of shares is not business income

Commissioner of Income-tax, Central Circle Vs Nadatur Holdings and Investments (P.) Ltd. (Karnataka High Court)

To implement the objects of the company two of the shareholders gifted 25000 shares of M/s. Infosys Technologies Limited. The said shares were shown as investment. Merely because the company has earned profits by selling some of the shares, that doesn't mean that the company is engaged in shares trading. ...

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Notification No.96/2012 – Customs (N. T.) – Change in Tariff Value of RBD Palmolein, Brass Scrap (All Grades) Poppy Seeds, Gold &Silver Notified

Notification No. 96/2012-Customs (N.T.) (31/10/2012)

Notification No.96/2012-Customs (N.T.) New Delhi, 31th, October, 2012 S.O. ____ (E).– In exercise of the powers conferred by sub-section (2) of section 14 of the Customs Act, 1962 (52 of 1962), the Central Board of Excise & Customs, being satisfied that it is necessary and expedient so to do, hereby makes the following amendment in ...

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Bottling of LPG into cylinders for use in kitchen amounts to ‘manufacture’

Hindustan Petroleum Corpn. Ltd. Vs Deputy Commissioner of Income-tax (ITAT Mumbai)

Bottling plant wherein the LPG is filled in the cylinders for domestic and non-domestic kitchen use involves various specialized process and therefore, it is an activity of manufacture/production. Accordingly, the assessee's claim for deduction has to be allowed. ...

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Non-compete fees to form part of price offered to public shareholders if payment to promoters not justified

IP holding Asia Singapore Pte. Ltd. Vs Securities & Exchange Board of India (Securities Appelate Tribunal Mumbai)

It was argued by the appellants that the covenants in the non-compete agreement provide for both non-compete obligations as well as an obligation to maintain confidentiality. According to them, it is necessary and advisable to do so as a non-compete obligation without a corresponding obligation to maintain confidentiality, would render an...

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