Advance money couldn’t be taken as deemed dividend if it was received pursuant to a sales agreement

IT: Where Assessing Officer made addition to assessee's income in respect of certain amount received from 'P' by invoking provisions of section 2(22)(e), in view of fact that said amount was received through account payee cheques in accordance with sale agreement entered into between assessee and company 'P' for sale of land owned by assessee, impugned addition deserved to be deleted

No transfer of case on non-compliance of summons under sec. 131 without giving an opportunity to ass

IT: Principles of natural justice require that assessee should be given an opportunity to explain whether not responding to summons issued under section 131(1A) was sufficient reason to transfer its assessment from one place to another

Transferee couldn’t avail of benefit of Cenvat Rule 10 when his factory wasn’t operating under Cenva

Cenvat Credit : Rule 10 cannot be read as a provision enabling removal of capital goods from one factory of a manufacturer to another factory of manufacturer where Cenvat Scheme is not applicable; said removal would attract reversal under rule 3(5)

No additions for excess stock declared by MD of Co. if examination of records revealed otherwise

IT : Where examining summary of stock valuation and other relevant material, Tribunal computed valuation of stock and deleted a part, same was not to be interfered

Sale of goods on hire purchase basis during transit amounts to deemed sales; eligible for CST exempt

CST & VAT : Where assessee, a Government of India undertaking, promoted small-scale industries by providing financial and business assistance to manufacturers in Tamil Nadu and it purchased machineries purchased from outside Tamil Nadu and sold same to above manufacturers while in transit on hire purchase basis, there was deemed sale in instant case and further since there was an endorsement of title to goods while in transit, assessee was entitled to exemption under section 3(b) of Central Sale

Accumulated losses of old business are allowable if assessee starts new business with same managemen

IT: For claiming brought forward losses, mere fact that such loss related to business which was closed down and new business was started would not make any difference if unity of control and common management persisted

CLB can pierce corporate veil to find out truth about allegation of siphoning off of funds by respon

CL : Where allegations were that respondents in collusion with other entities had siphoned off funds, CLB was entitled to pierce corporate veil to find out truth of allegations and if allegations were found proved, CLB in exercise of its rights and powers under section 402 entitled to pass an order to recover amounts so siphoned off from such third parties/entities

Rate of abatement on date of providing services would apply instead of rate prevalent on receipt of

Service Tax : Rate of tax/abatement prevalent on date of providing service should be applied and not rate prevalent on date of receipt of consideration; hence, condition introduced in abatement from 1-3-2006 is inapplicable to services provided prior thereto