As per the clarification issued by the Commissioner of Commercial Taxes, in exercise of the power conferred on him under Section 28A of the TNGST Act, the benefit of sales tax deferral scheme would be available to a dealer from the date of reaching of BPV or BSV, whichever is earlier. It is trite law that circulars issued by the revenue are binding on the departmental authorities and they cannot be permitted to repudiate the same on the plea that it is inconsistent with the statutory provisions or it mitigates the rigour of the law.
S E Investments Limited Vs Union of India and Others- The Delhi High Court held that there is no provision for charging stamp duty on the increase in authorized stamp duty in Stamp Act. A statute authorizing the levy of stamp duty is in the nature of a fiscal statute, hence stamp duty cannot be levied except by the authority of law. The High Court placed reliance on the Supreme Court of India judgment in the case of AV Fernandez vs. State of Kerala (AIR 1957 SC 657) and
Rane Brake Lining Ltd Vs ITO (ITAT Chennai) A perusal of the assessment order clearly shows that the Assessing Officer has not invoked the provisions of sec. 14A. In fact the Assessing Officer has pointed out that the total investment in shares as on 31.03.2003 was Rs. 26,00,31,694/- which included a sum of Rs. 5,28,82,350/- invested during the year. No dividend income has also been admitted during the relevant assessment year. A peRs.rusal of the order of the learned CIT(A) clearly shows that the assessee had put forward the plea that it had surplus and reserves sufficient to cover such investment in purchase of shares.
Assessment dispute: ITAT Chennai ruling on book profit computation, bad debts provision, and disputed tax liabilities under Section 115JB.
State of Tamil Nadu & ANR. Vs. India Cements Ltd. & ANR. -The Supreme Court last week dismissed the appeal of the Tamil Nadu government which denied sales tax benefits to India Cements Ltd. The high court had held that the cement firm was entitled to the benefit of deferral of sales tax as claimed by it under the interest free sales tax deferral scheme.
Siemens Aktiencesellschaft v. DCIT – ITAT Mumbai held that royalty received by the taxpayer was in pursuance to agreement entered into before 1976 and therefore not covered under Section 1 15A of the Act. The Tribunal has meticulously examined concepts such as novation/recession/modification and alteration as provided in the Contract Act to analyse the substance of the agreement and in conclusion rule that the 1981 agreement was an extension of 1974 agreement.
The above four appeals filed by the Revenue, for assessment years 2002-03 to 2005-06, are directed against the common order dated 27-5-2008 passed by the ld. CIT(A)-VIII, Chennai. In all these appeals almost identical issues are involved, therefore, for the sake of convenience and brevity, we are deciding them by a common order.
Exchange traded derivative transactions carried on by the assessee during AY 2003-04 are speculative transactions covered under Section 43(5) of the Act and the loss incurred in those transactions are liable to be treated as speculative loss and not business loss. We further hold that clause (d) inserted to the proviso to Section 43(5) with effect from 1/4/2006 is prospective in nature and the ITAT was in error in holding that clause (d) to the proviso to Section 43(5) applied retrospectively so as to apply to the transactions carried on by the assessee during AY 2003-04. CIT vs. Bharat R. Ruia (Bombay 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 incurred by them towards the outward transportation of goods cleared by them at their factory gate.
Recently, the Chennai bench of the Income-tax Appellate Tribunal in the case of Wheels India Ltd. v. ACIT I.T.A No. 1793/Mds/2006 (Chennai) held that payment made to US companies for ‘developing tooling’ and ‘validating new process for manufacture’ of wheels for commercial vehicle was ‘fees for included services’ as per Article 122 of the India-USA tax treaty.
