The Karnataka High Court, in its recent ruling, in the case of CIT v. Expert Outsource Pvt. Ltd. held that deduction under section 10A of the Income-tax Act, 1961 is available to the assessee on conversion of existing Domestic Tariff Area (DTA) unit into a Software Technology Park (STP) unit.
Mohan Meakin Limited vs. CIT (Delhi High Court) – Merely because the claim was not made out under one particular provision of the Act, but was so made out under another provision of law, the assessee could not be debarred to raise such legal question. It is legally permissible to raise question of deduction under Section 37 of the Act even if it was not raised before the authorities below.
Joseph Vilangadan. v. Phenomenal Health Care Services Ltd. & Anr. – As per the said contract, Contractors deposited the sum of Rs. 10 lacs by undated cheque no.027840 drawn against South Indian Bank Ltd., Palarivattom Branch, Cochin branch with the respondent no.1 as refundable security deposit for the due performance of the agreement. The said undated cheque was in custody of the respondent 2 no.1 and it appears that the respondent no.1 filled in the date on undated cheque as 4.6.2008. The cheque was presented to the drawee bank through the banker of the respondent no.1. Cheque was returned unpaid on the ground that the drawer had stopped the payment. Therefore, notice was issued by the respondent to the contractor as well as its managing partner for the payment of the cheque amount. In spite of notice, payment was not made.
Mr.Vinoskumar Ramachandran vs The State Of Maharashtra – The Bombay high court has ruled that when a bank account is sought to be seized during criminal investigation, the account-holder need not be given prior notice. In this case, Essar Logistics vs Vinoskumar, the account holder argued that natural justice demanded that he should be given notice before freezing his account. The division bench of the high court rejected his contention and remarked: It would indeed be absurd to suggest that a person must be told that his bank account, which is suspected of having been used in the commission of an offence by himself or even by another, is being frozen to allow him to have it closed or to have its proceeds withdrawn or transferred upon such notice.
Carriages which run under public transport system fall under category of stage carriages where passengers have a right to board or alight according to their choice and convenience and pay fares for the journey individually, do not fall under definition of ‘tourist vehicle’ under Section 2(43) of the Motor Vehicles Act.
The term transfer used in Article 12(4) does not refer to absolute transfer of right of ownership. The assessee, a non-resident company engaged in the business of providing consultancy for infrastructure projects, entered into an agreement with the National Highway Authority of India (NHAI) for providing technical drawings and reports to NHAI for its infrastructure projects. The assessee was required to investigate the availability and viability of various modern technologies to ensure most economical cost estimate without affecting the quality of work. The scope of the services included preparation of the detailed project report, which covered the entire design for rehabilitation and strengthening of the existing carriage ways and required structures. It also included the study of environmental resettlement and rehabilitation needs as per the guidelines of the Government of India.
CIT v Steinle Machine Fabric India – The Circular is specific that in group cases also, each single case must be taken up individually to decide the monetary limits. It appears that these instructions were issued to avoid unnecessary litigation and also litigation where the tax effect was much less and it waste time and money recovering small amounts but we hasten to add that dismissal of such appeals on the ground that the tax effect is low does not mean that we have given any decision on merits nor have we decided such questions of law. These questions can be decided in appropriate proceedings where the tax effect is more than the limit prescribed in the circular.
There is no justification on the part of the revenue in retaining the amount of interest earned on the seized amount especially, on the touchstone of the doctrine of accretion.
Provision under which the penalty was levied by the original adjudicating officer permits benefit of reduction in the penalty; subject to party paying the entire amount of tax determined interest and 25% of the penalty within 30 days of the communication of the order. As provision appears to be pari materia to Section 11AC and the order of Gujarat High Court in the case of Akash Fashion Prints (P) Ltd. followed by the Tribunal, in case of provision of Section 11AC of Central Excise Act, there is no infirmity in view adopted by the Tribunal. Revenue Appeal dismissed.
CONSULTING ENGINEERING SERVICES (INDIA) PVT. LTD.Vs.THE CHAIRMAN, ESI CORPORATION & ORS (DELHI HIGH COURT) -The present appeal filed under Section 82 of the Employees‟ State Insurance Act, 1948 is directed against the judgment and order FAO 124/2002 15.02.2002 passed by the learned Senior Civil Judge, ESI Court, Delhi in ESI Petition No.19/99, whereby it was held that the appellant is covered by the Employees State Insurance Act, 1948 (hereinafter referred to as “the Act”) and is not entitled to the relief claimed by it in the petition filed under Section 75 of the Act.
