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Income Tax:
Dis-allowance of interest expense from allegadly interest income by Revenue The interest paid to the power procurement utilities on commitment advances was capitalized. Interest paid and interest received were inextricably linked and have a commonality about their nature and character. They cannot be treated differently..... - HC
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Income Tax:
Though assessee furnished the directors report, the actual write off, filing of balance sheets, memorandum and articles of association, letter to DISL etc. however, the assessee did not bring to the notice of the A.O. that no interest from the converted loan had been offered and assessed to income tax in any of the earlier previous years. - Penalty confirmed.... - HC
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Income Tax:
Treatment of Share Application money as loans & Advances(269SS) - Penalty under 271D - Share application monies received by a company, pending allotment of shares, do not amount to loan or deposit..... - HC
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Income Tax:
Only the business loss can be carried forward u/s 72 of the Act and it can also be set off only against the business income of the assessee. In present case, assets sold were capital assets and capital gains on sale of capital assets is not to be set off against the brought forward loss of earlier years. .... - AT
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Income Tax:
Whether a transaction is shame - held that:- The existence or non-existence of written agreement would not be fatal to claim deduction on account of expenditure on account of commission. - the finding of the AO with regard to the agreement being a sham document cannot be sustained.... - AT
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Income Tax:
Income escaping assessment - Where AO in the original assessment order,made an addition u/s 41(1) but not in respect of other unconfirmed creditors - This was a factual lapse, which was pointed out in the audit objection and then examined by the authorities. - reassessment upheld .... - HC
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Income Tax:
First appellate authority, namely; DCIT (Appeals) or CIT (Appeals) have inherent, implied and ancillary powers to grant stay against the recovery of disputed demand of tax while seized of the appeal filed before them in accordance with Section 246 or 246A of the Act. .... - HC
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Income Tax:
Undisclosed income u/s 68 - genuine or bogus gifts - The assessee failed to produce the donor as also his bank statement to prove that gift was actually given by the assessee. - NRI gift from a stranger was held to be bogus.... - HC
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Income Tax:
Assessee had no liability to pay advance tax in view of the fact that his entire income was subject to tax at source. Thus, no interest is chargeable u/s 234B..... - HC
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Customs:
Drawback under Section 75 of the Customs Act - petitioner though applied for drawback at 'Brand Rate' is eligible for drawback on the copper used by them in the manufacture of the imported goods in view of the notification in which copper has been declared as deemed imported material under Section 75(1A) of the Customs Act..... - HC
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Customs:
Applicability of unjust enrichment on refund of fine and penalty - in the case of refund of fine and penalty unjust enrichment is not applicable.... - AT
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Customs:
Revision application - Duty drawback claim under Section 74 of the Customs Act - re-export of goods - goods being usable parts/attachments of the main equipment which were never specifically and separately mentioned in detail at the time of claimed import any benefit of doubt cannot be extended..... - CGOVT
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Customs:
Prescribes rate of custom duty in Respect of diamonds, Platinum, Gold and Silver. - Ntf. No. 01 /2012-Customs Dated: January 16, 2012
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Customs:
Prescribes rate of custom duty on Import of Gold & Silver when imported other then through post, courier or baggage. - Ntf. No. 02/2012-Customs Dated: January 16, 2012
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Customs:
Prescribes rate of custom duty on Import of Gold & Silver by an eligible Passenger. - Ntf. No. 03/2012-Customs Dated: January 16, 2012
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Customs:
Amends notification no. 36/2001-Cus (N.T.) - Palm oil, Palmolein, Soyabean Oil (Crude) and Brass Scrap (all grades) - Traiff Values. - Ntf. No. 03/2012 - Customs (N.T.) Dated: January 16, 2012
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Customs:
Amends notification No.70/2010-Customs - Anti-dumping duty on Poly Vinyl Chloride Paste Resin also called as Emulsion PVC Resin (hereinafter referred to as the subject goods), falling originating in, or exported from European Union. - Ntf. No. 08 /2012 Customs (ADD) Dated: January 16, 2012
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Customs:
Refund of 4% CVD (SAD)-Extension of time upto 31st March 2012, for using re-credited 4% CVD (SAD) amount in DEPB-Regarding. - Cir. No. 02/2012-Customs Dated: January 16, 2012
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Service Tax:
Cenvat Credit of service tax paid on GTA for disposal of by product - sugarcane is definitely is a raw material for sugar and Press Mud and Ash are used as manure for growing sugarcane and therefore utilization of Press Mud and Ash are used for production of raw material which can be definitely said to be related to manufacture itselfu.... - AT
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Service Tax:
Terms and conditions of the agreement clearly shows that though the appellant has been termed as consignment agent by the principal, the relation between them is business relation. Therefore, assessee cannot be treated as C&F agent.... - AT
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Central Excise:
Whether the addition and mixing of polymer and additives to base bitumen results in the manufacture of a new marketable commodity - The said process did not result in transformation of bitumen into a new product having a different identity, characteristic and use. It is well settled that mere improvement in quality does not amount to manufacture..... - SC
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Central Excise:
The word 'consumer' in the said Note 11 of Chapter 29 of the Central Excise Tariff Act, 1985 means any consumer including an industrial consumer and the said word is not related exclusively to retail consumer..... - AT
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Central Excise:
Manufacture of Ion Exchange Resins it was not necessary that identical product should be marketable. Even if similar product is proved to be marketable, the test of marketability is satisfied. - copolymer beads are marketable. .... - AT
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Central Excise:
Cenvat credit - Cenvat credit on the goods, i.e., paints, used for repair and maintenance of various equipments and the pipes and machines - goods which are used as paint within the factory of production are eligible for availing Cenvat Creditt.... - AT
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Central Excise:
Admissibility of CENVAT Credit of Education Cess in respect of invoices issued by 100% EOU - The issue is no longer res-integra and credit of Education Cess is admissible.... - AT
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Central Excise:
Valuation - central excise - The Revenue cannot pick only those matters where the goods were sold at higher rates from the depot and ignore the clearances which were ultimately sold at a lower value, though the duty was paid at the higher assessable value - Hence , that such excess payment and short payment have to be neutralised.... - AT
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Central Excise:
Notification No.7/2010-CE(NT), dt.27.2.10, replaces the words 'used in' by the words 'used in or in relation to' by amending Notification No.5/2006-CE(NT). Therefore, the services which have been used in relation to manufacture, the admissibility of CENVAT Credit cannot be disputed. .... - AT
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Central Excise:
Amends notification no. 05/2006-CE - Effective Rate of Duty on goods of Chapter 54 to Chapter 82. - Ntf. No. 02/2012-Central Excise Dated: January 16, 2012
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Central Excise:
Amends notification no. 23/2003-CE - EOUs/EHTP/STP Units Excise Exemption on Goods Cleared to DTA . - Ntf. No. 03/2012-Central Excise Dated: January 16, 2012
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Central Excise:
Cenvat / Modvat Credit - the flexible plastic films used for testing the FandS machines are inputs used in relation to the manufacture of the final product and would be eligible for Modvat credit.... - SC
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Income Tax
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2012 (1) TMI 25
Dis-allowance of interest expense from allegadly interest income by Revenue assessee, wholly owned subsidiary of Power Finance Corporation (PFC) was incorporated as a special purpose vehicle (SPV) for inviting bids for construction and building of an ultra mega power project - Commitment Advance received from Power Procurement Utilities of the States concerned transferred to PFC - PFC paid interest on the unutilized Commitment Advance - interest paid to the Power Procurement Utilities on the Commitment Advance reduced from interest income received from PFC credited to the capital work in progress - Held that:- CIT (Appeals) and Tribunal have specifically held that the interest income & interest expense, both were on capital account. This is not a case of surplus funds, which were available and investment were made in fixed deposits to earn interest. The interest paid to the power procurement utilities on commitment advances was capitalized. Interest paid and interest received were inextricably linked and have a commonality about their nature and character. They cannot be treated differently. - Decided against the Revenue
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2012 (1) TMI 24
Penalty for concealment u/s 271(1)(c) Business of money-lending share application money deposited converted into loan in A.Y. 98-99 non-acknowledgement of debt by receiver company(DISL) no interest charged on such converted loans wrote off loan as bad debts deduction of bad debts disallowed by Department Held that:- Though assessee furnished the directors report, the actual write off, filing of balance sheets, memorandum and articles of association, letter to DISL etc. however, the assessee did not bring to the notice of the A.O. that no interest from the converted loan had been offered and assessed to income tax in any of the earlier previous years. If no interest was charged the amount cannot be considered as a money lending advance since the essence of money lending business is the charging of interest. When one of the important conditions for the allowability of bad debt u/s 36(2)(i) was not satisfied and the same was within the knowledge of the assessee, it was duty bound to disclose the same in order to show its bonafide. The particulars furnished by the assessee were thus not complete, and were, therefore, inaccurate. Order of the Tribunal restoring the penalty is upheld. - Decided against the Assessee.
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2011 (12) TMI 162
Whether the brought forward loss from the earlier years can be set off against the income from "capital gains" u/s 72 land, building and bore well used for business purposes being sold assessee claiming it to be business assets - Held that:- Only the business loss can be carried forward u/s 72 of the Act and it can also be set off only against the business income of the assessee. In present case, assets sold were capital assets and capital gains on sale of capital assets is not to be set off against the brought forward loss of earlier years. Case is posted before the Division Bench to give effect to the order of the special Bench - Decided against the assessee.
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2011 (12) TMI 161
100% EOU software development sale of software to its subsidiary company - computation of Arm Length Price in respect of interest free loans given to its wholly owned subsidiary in USA - Revenue charging notional interest on the loan TNMM method vs CUP method - deduction u/s 10(B) assessee claiming positive income of profitable units as deduction & carrying forward the loss of other units Held that:- The international transaction of interest free loan to the AE is an independent transaction, requiring determination of ALP. Since neither the assessee nor TPO/AO and CIT(A) have examined the applicability of CUP method as the most appropriate method in order to determine ALP of the international transaction of interest free foreign currency loan to its subsidiary by the assessee, the matter is restored to the file of the AO for fresh adjudication and to recompute the ALP of the aforesaid international transaction following CUP method. In respect of deduction u/s 10B, order of CIT(A) providing total income arrived at by setting off loss of units against profits of other units allowed as deduction is set aside and matter is restored back to the file of the AO for deciding the issue afresh. - Decided in favor of assessee for statistical purposes.
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Service Tax
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2012 (1) TMI 28
Whether service provided to the assessee by a non-resident prior to insertion of Section 66A of the Finance Act, 1994, is exigible to service tax The provision was introduced on 18.4.2006 - period involved 9.7.2004 to 18.1.2006 - Held that:- Any service provided to the assessee by a non-resident prior to insertion of Section 66A of the Finance Act, 1994, was not exigible to service tax. See Commissioner of Central Excise v. Bhandari Hosiery Exports Ltd. (2009 - TMI - 35335 - Punjab And Haryana High Court ) and Indian National Ship Owners Association v. Union of India (2008 -TMI - 32013 - HIGH COURT OF BOMBAY) Decided against the Revenue.
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Central Excise
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2012 (1) TMI 27
Whether the addition and mixing of polymer and additives to base bitumen results in the manufacture of a new marketable commodity and as such exigible to Excise duty assessee engaged in the supply of Polymer Modified Bitumen (PMB) & Crumbled Rubber Modified Bitumen (CRMB) Revenue contended that such process carried out amounted to manufacture Held that:- In this case, neither in the Section Note nor in the Chapter Note nor in the Tariff Item do we find any indication that the process indicated is to amount to manufacture. Thus, it is evident that the said process of adding polymers and additives to the heated bitumen to get a better quality bitumen, viz. PMB or CRMB, cannot be given an extended meaning under the expression manufacture in terms of Section 2(f) (ii) of the Act. The said process did not result in transformation of bitumen into a new product having a different identity, characteristic and use. It is well settled that mere improvement in quality does not amount to manufacture. Thus, PMB or CRMB cannot be treated as bituminous mixtures falling under CSH 27150090 and shall continue to be classified under CSH 27132000 pertaining to tariff for petroleum bitumen. - Decided against the Revenue.
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2012 (1) TMI 19
Whether the glass bottles and crates which are used for selling beverages and were re-usable would be exigible to excise duty or not Section 35 G of the Central Excise Act - Held that:- Once there is a pure finding of fact that beverage alone are sold without selling of bottles and crates then it would be obvious that no excise duty would be chargeable on the bottles and crates. No question of law much less a substantive question of law within the meaning of Section 35G of the Act would arise. - Decided against the Revenue.
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2012 (1) TMI 17
Cenvat / Modvat Credit - plastic films/poly paper used for testing machines - for forming commercial/technical opinion as to their marketability/ excisability - whether plastic films/poly paper would be eligible for credit - whether use of plastic films/poly paper used for testing machines would be held as used in the manufacture of or use in relation to the manufacture of the final products - held that:- the process of testing the customised FandS machines is inextricably connected with the manufacturing process, in as much as, until this process is carried out in terms of the afore-extracted covenant in the purchase order, the manufacturing process is not complete; the machines are not fit for sale and hence not marketable at the factory gate. - the manufacturing process in the present case gets completed on testing of the said machines and hence, the afore-stated goods viz. the flexible plastic films used for testing the FandS machines are inputs used in relation to the manufacture of the final product and would be eligible for Modvat credit under Rule 57A of the Rules. - Decided in favor of assessee.
