It is no doubt true that the Tribunal as well as the Assessing Officer had recorded the fact that the assessee was following the mercantile system of accounting. Hence, the accrual theory of interest income was to be assessed in the year in which it had accrued and had become due. As already pointed out by the Apex Court, in the mercantile system of accounting, even though the principle of accrual is followed, the real income theory, nevertheless, has its relevance to find out the assessability of an income.
As is the settled legal position, in the light of Hon’ble Supreme Court’s decision in the case of ACIT vs. Saurashtra Kutch Exchange Ltd. (305 ITR 227) , a judicial decision acts retrospectively. As Their Lordships observed in this case, judges do not make the law, they only discover or find the correct law and, therefore, a rectification of mistake in an order can also be carried out in the light of Hon’ble Supreme Court’s judgment passed after the subject order is passed. The action of the CIT (Appeals) was thus correct and does not call for any interference.
Thus according to judgment of Hon’ble High Court of Punjab & Haryana in Mohan Bottling Co (P.) Ltd.’s case (supra), it can safely be said that sending the order at correct address by registered post is a sufficient compliance of section 37-C of Central Excise Act, 1944 and it is for the assessee to rebut the presumption of service by cogent evidence that in fact order was never served upon him. The appellant in the present appeal in hand failed to discharge its burden of proof, we are able to notice this is a case of service on any authorized person, nor the case of closure of factory nor the case of rebuttal of presumption of by appellant.
We are of the opinion that the Tribunal could not have rejected the cross-objections without entering into the factual matrix and being satisfied itself that the appellant had not in fact filed cross-objections at the time when it could have originally when the appeals had been filed before the ITAT.
CA Final Results Declared: Results of the Chartered Accountants Final Examination held in May 2012 have been declared with 16.38% candidates as passed in Both Group category, whereas 25.32% and 29.62% candidates have been declared as passed in Group I and Group II categories respectively. I would congratulate all the successful candidates especially Abhishek Gupta from Kolkata, Divyang Bhandari from Chennai and Shruti Sodhani from Bangalore who got first, second and third rank respectively in the final examination. Results of the CPT (Common Proficiency Test) conducted on 17th June, 2012, have also been declared with a pass percentage of 37.56. Female candidates have taken lead from their male counterpart by a margin of 2%, i.e. 40.04 against 37.56%. It is quite satisfying to note that more and more female candidates are successfully joining our profession.
The Central Bureau of Investigation has arrested an Income Tax Officer posted at Yamunanagar (Haryana) and an Advocate of Ladwa, Distt. Kurukshetra (Haryana) in a bribery case.
In this case the appellant have tried to ensure that the law is followed and is implemented properly. Therefore, as soon as the dispute arose in 2005-06, they made the payment under protest. Further, I also found from the Chartered Accountant’s certificate that the certificate clearly says that the incidence of the said service tax had not been passed on by them to any other person and it was not recovered from the clients.
In the present case, the learned Judge rightly observed that the conduct of the company was dishonest. There had been transactions galore running into crores. More than Rupees sixty-four lacs were admittedly paid by the company. Even then, the company initially denied the relationship, subsequently took a different stand in the affidavit that would make the position of the company vulnerable.
We find that the impugned exemption notification allowing refund of service tax paid in respect of exports has been issued with the sole objective of removing the burden of service tax from the export goods. It has been rightly contended by the ld. advocate that it is the avowed policy of the Government not to export domestic tax along with export goods and to make such goods competitive in the foreign market.
So far as the penalties are concerned, we do appreciate that the learned Commissioner has considered waiver but the reasoning for the waiver is not acceptable to us. We make it clear that when there is a levy of tax, liveability of penalty depends on the facts and circumstances of each case. The reimbursement issue has travelled with lot of controversies till conclusions by Larger Bench. Learned Counsel says even the dispute has gone to Apex Court. Appreciating the difficulties faced by the assessee at the infancy stage which is reasonable cause, there shall be no levy of penalty under sections 76 and 78 of the Finance Act, 1994, in the present case. But we confirm penalty levied under section 77 of the said Act, since liability for payment has ensued with obligation for registration arose.
