If primary activity of packing/labelling amounted to manufacture then no ST was leviable on ancillar

Service Tax : Where packing and labelling amounts to manufacture, secondary activity being movement of packed goods cannot be subject to service tax under Cargo Handling unless there is a proper bifurcation of charges; manufacture is not liable to service tax

No concealment penalty if assessee opts to take route of presumptive taxation to escape sec. 40A(3)

IT : Where at time of initiating penalty proceedings Assessing Officer did not have any material on record showing that payments made by assessee to suppliers of building materials were bogus, he could not have merely on basis of assessee's offer to be taxed on estimate basis, concluded that assessee had provided inaccurate particulars in its return and, thus, impugned penalty order passed under section 271(1)(c) was to be set aside

No addition under sec. 68 if all share applicants were taxpayers and their identities were establish

IT : Where assessee-company had submitted details of contribution/loans, as well as confirmations, returns, affidavits, bank statements, PAN numbers, etc. of creditors and contributors of share capital, addition under section 68 could not be made

Telephone services availed of by senior employees of Co. in their residence were eligible for credit

Cenvat Credit : Service tax paid on charges for mobiles/telephone installed at residence of Managing Director and other senior employees of Company is eligible for input service credit

CCI approves of proposed acquisition of hydro-power project as it wouldn’t affect competition advers

Competition Law: Where acquirers had acquired hydroelectric project of JPVL and acquirers had only small presence in power generation, proposed combination was not likely to have appreciable adverse effect on competition in India and, therefore, same was to be approved

ITAT remanded case relating to taxation of royalty on software due to conflicting views of High Cour

IT/ILT: In view of conflicting decisions of two High Courts regarding treatment of payment made by assessee to a foreign company for getting licence to use a software, matter was to be remanded back for disposal afresh on basis of evidence brought on record

TPO can’t estimate operating cost of EOUs on basis of their turnover when their segmental results ar

IT/ILT : Where segmental working is available on basis of separate books of account maintained for EOU unit, TPO is not justified in estimating operating cost on basis of proportionate turnover

Converting scrap into an entirely new product to be treated as manufacturing activity for sec. 80-IB

IT: Where assessee put imported scrap to series of manual and mechanical processes and thereby brought into existence entirely new and distinct commodity which was marketable, it was to be regarded as 'manufacturing' activity and, thus, assessee's claim for deduction under section 80-IB was to be allowed

Sum taxed as undisclosed income couldn’t be challenged if made on basis of sworn statements under se

IT: There can be no complaint against amount being taxed as undisclosed income where same has been disclosed by way of voluntary statement given by assessee under section 132(4)

Institute of Cost Accountants asks for expansion of ambit of cost audit; expresses concern over new

COMPANIES ACT, 2013 : Companies (Cost Records and Audit) Rules, 2014 Notified under Section 148 of Companies Act, 2013 - Letter of ICWA's President to Union Minister for Finance, Corporate Affairs and Defence on Specified Areas Which Have not been Covered under New Rules Seeking Modification and Rectificatory Action Thereon

HC can only entertain question of law; no appeal lies to HC merely due to error in finding of lower

Excise & Customs : High Court has power to answer substantial questions of law; a mere error in findings of one or other lower authorities would be insufficient to invoke restricted nature of jurisdiction conferred on High Court

Conversion of industrial land into residential plots isn’t akin to conversion of cap assets into sto

IT : Where assessee, a sick unit, having obtained permission from State Government, converted its industrial land into residential plots and sold a part of it during relevant year, it was not a case where land in question had been transferred after converting it into stock-in-trade of business and, therefore, provisions of section 45(2) did not apply to assessee's case

HC affirms sec. 68 addition relying on cash book seized by Sales-tax Dept. which revealed unrecorded

IT: Addition under section 68 can be made on basis of cash book found during inspection by sales-tax department

HC slams Tribunal for disposing of appeal on merits even if impugned issue related to pre-deposit re

CST & VAT : Where against order of Appellate Commissioner directing assessee to deposit twenty per cent of tax demand by way of pre deposit, assessee filed appeal and Tribunal directed assessee to deposit certain amount and on deposit of such amount it decided appeal on merits, Tribunal could not have entertained appeal on merits

No denial of Sec.54 relief for non-execution of sale deed within time if assessee was thwarted doing

IT : Where assessee having executed an agreement to sell in respect of a house property, purchased a new residential property within one year from date of agreement to sell, in view of fact that subsequently sale deed could not be executed within prescribed time for reason that assessee had been prevented from dealing with said residential house by an order of a competent court, a valid 'transfer' took place within meaning of section 2(47) by executing agreement to sell and, consequently, relief

Chief Justice can’t decide whether disputed matter can go for arbitration; to be adjudicated by arbi

CL : While dealing with an application under section 11(6), Chief justice or his designate was not justified to decide controversy pertaining to arbitrability of disputes on merit and same should have been left to be adjudicated in arbitral proceedings

Ministry extends initial validity of industrial license to 3 years; calls it a measure for easing do

FDI/FEMA/ILT : Streamlining the Procedure for Grant of Industrial Licenses - Extension of Period of Its Validity

In view of Circular 134/3/2011-ST, exemption from service tax applies to education cess as well

Service Tax : In view of Circular No. 134/3/2011-S.T., dated 8-4-2011, exemption from whole of service tax applies to education cess as well