TMI Tax Updates - e-Newsletter
January 10, 2012

Case Laws in this Newsletter:

Income Tax

TMI SMS

• Provisions of section 40A(2) would not and cannot override the provisions contained in Chapter X (transfer pricing) of the Act

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• Deduction u/s 80P - Since assessee is not in the banking business therefore, income on investments cannot be allowed as a deduction under section 80P(2)(a)(i)..

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• Related person under central excise - Sharing of common premises or employing a common statutory auditor, are inadequate to find mutuality of interest

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Highlights / Catch Notes

• Income Tax:

  When circular is issued under Section 119 of the Act and its validity is upheld it is binding on the Assessing Officer. Not taking recourse thereto and passing the order amounted to making assessment without conducting proper inquiry and investigation as enjoyed by law which was also warranted in the facts of this case and, therefore, the Commissioner was right in holding that such assessment was erroneous and prejudicial to the interest of the Revenue. .... - HC
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• Income Tax:

  TDS us/ 194C - The contract between the assessee and the C & F agent is a service contract which has not been specifically included in Explanation III below section 194C.... - AT
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• Income Tax:

  Provisions of section 40A(2) would not and cannot override the provisions contained in Chapter X of the Act. Even otherwise, if there are different provisions over the same subject then in law the specific provisions would prevail..... - AT
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• Income Tax:

  Method of Accounting - to comply with requirement of companies act merchantile system was adopted - overriding provisions of section 209 of companies act over section 145 of the income tax act - Held that:- Tribunal was justified in rejecting cash method. .... - HC
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• Income Tax:

  Deduction u/s 80P - Since assessee is not in the banking business therefore, income on investments cannot be allowed as a deduction under section 80P(2)(a)(i).... - AT
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• Income Tax:

  Annual Let Out value of the property - The property has not been let out at all, during the previous year under consideration, there is no question of any vacancy allowance being provided thereto under section 23(1)(c).... - HC
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• Income Tax:

  Exemption u/s 10(38) - sale of the shares of ICL held by the assessee is in the nature of sale of capital asset and not in the nature of stock-in-trade - Exemption allowed..... - AT
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• Customs:

  Appointment of Common Adjudicating Authority. - Ntf. No. 01/2012-Customs (N.T.) Dated: January 6, 2012
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• Customs:

  Seeks to extend levy of anti-dumping duty imposed vide Notification No. 98/2006-Customs, dated the 13th September, 2006, upto and inclusive of 1st September, 2012. - Ntf. No. 01/2012-Customs (ADD) Dated: January 6, 2012
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• Service Tax:

  Board circular no. CBE&C circular No.137/167/2006-CX.4, dt.3.10.07, clarifies that if the assessee pays Service Tax with interest before issue of Show Cause Notice, no further proceedings will be initiated..... - AT
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• Central Excise:

  Entitlement of Cenvat credit of duty paid on provisionally assessed Bill of Entry - Rule 9 of the Cenvat Credit Rules - Credit allowed..... - AT
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• Central Excise:

  DTA supplied goods to SEZ - the supplies made by DTA units to SEZ units will amount to export for the purpose of all export benefits. .... - AT
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• Central Excise:

  Time limit stipulated under Section 11B of the Central Excise Act is not applicable in the case of refund claim under Rule 5 of the Cenvat Credit Rules, 2004.... - AT
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• Central Excise:

  Related person - Valuation under central excise - Sharing of common premises or employing a common statutory auditor, are inadequate to find mutuality of interest between them.... - AT
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Articles

• NEW TELECOM POLICY, 2011

Notifications

• Customs

• 01/2012 - dated 6-1-2012 - ADD
  Seeks to extend levy of anti-dumping duty imposed vide Notification No. 98/2006-Customs, dated the 13th September, 2006, upto and inclusive of 1st September, 2012.

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• 01/2012 - dated 6-1-2012 - Cus (NT)
  Appointment of Common Adjudicating Authority.

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• F.No.437/136/2009-Cus. IV - dated 4-1-2012 - Cus (NT)
  Appointment of Common Adjudicating Authority.

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• F.No.437/72/2010-Cus. IV - dated 3-1-2012 - Cus (NT)
  Appointment of Common Adjudicating Authority.

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• F.No.437/22/2011-Cus. IV - dated 2-1-2012 - Cus (NT)
  Appointment of Common Adjudicating Authority.

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• F.No.437/21/2011-Cus. IV - dated 2-1-2012 - Cus (NT)
  Appointment of Common Adjudicating Authority.

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• F.No.437/02/2011-Cus. IV - dated 2-1-2012 - Cus (NT)
  Appointment of Common Adjudicating Authority.

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News

• Prime Minister Greets African National Congress on its Centenary Recalls Leadership of Mahatma Gandhi and Mandela Anand Sharma leads Indian Delegation.

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• Union Finance Minister, Shri Pranab Mukherjee's Key Note Address at Pravasi Bhartiya Divas 2012 at Jaipur Today on “Inclusive Growth: Two Decades of Economic Liberalisation.”

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• Anand Sharma Leads Indian Delegation at ANC Centenary Meets with his Counterpart Rob Davies.

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Case Laws:

• Income Tax

• 2011 (12) TMI 148
  Non- production of books of accounts by assessee before Adjudicating Authorities – Tribunal recorded finding that books of account were not considered by CIT(A) – Held that:- Tribunal could not return a finding that books of account were not considered by CIT(A) as nothing was produced before him. Such finding is perverse, and cannot be sustained therfore, the matter is remitted back to the Tribunal to decide the appeal afresh. - Decided in favor of Revenue.

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