Tool kits and first aid kits supplied along with two-wheelers were eligible for input credit

Cenvat Credit : For motor vehicle, tool kit and first aid kit has to be part of vehicle before same can be put to use; therefore, tool kits and first aid kits supplied along with two-wheelers are eligible for credit as input

HC couldn’t stay criminal proceedings against Co. and its director after sanctioning scheme of arran

CL : Where scheme of arrangement was sanctioned by High Court, application filed for stay on complaints against company and its directors for failure to pay amount due as stipulated in scheme was liable to be dismissed as section 391(6) does not empower court to grant stay on criminal proceedings after sanctioning of scheme

ITAT adopts LIBOR rate as benchmark for international transaction of lending of sums to AEs

IT/ILT: LIBOR being inter-bank rate fixed for international transaction has to be adopted as arm's length rate in case of lending of money in foreign currency to AE

MCA prescribes transitional period for resolutions passed under Companies Act, 1956

COMPANIES ACT, 2013 : Section 465 of The Companies Act, 2013 - Repeal of Certain Enactments and Savings – Clarification On Transitional Period for Resolutions Passed Under Companies Act, 1956

SC: Department must supply to assessee all docs relied upon by it before confirming demand

Excise & Customs : Adjudicating authority must follow principles of natural justice and supply to assessee all documents on which it proposes to place reliance

SC: Sahara can sell hotel properties overseas to raise money; Subrata Roy would continue to remain i

SEBI : Supreme Court allows three offshore hotel properties owned by Saharas to be transferred, sold or encumbered subject to condition that entire sale consideration received by Saharas after repayment of loan outstanding towards Bank of China is deposited with SEBI towards compliance with directions contained in conditional bail order dated 26-3-2014 passed by Court

AO couldn’t levy penalty by taxing trial run receipts on incomplete projects as they were capital re

IT : Where assessee, engaged in scientific research activities, consistently followed practice of Capitalising amount received during trial run period which was duly disclosed in its balance sheet, AO could not pass a penalty order under section 271(1)(c) taking a view that said amount being result of assessee's regular business activity, was liable to be added to its taxable income

ITAT upheld concealment penalty on MAT Co. as additions to its income led to increase in its book pr

IT : Where assessee, engaged in scientific research activities, consistently followed practice of Capitalising amount received during trial run period which was duly disclosed in its balance sheet, AO could not pass a penalty order under section 271(1)(c) taking a view that said amount being result of assessee's regular business activity, was liable to be added to its taxable income

Construction of residential units was liable to ST even if they were further transferred without con

Service Tax : When residential unit is transferred to another person, residential unit may not be considered to be for personal use even if such transfer is done without any consideration and, therefore, construction of houses for society transferring such houses without consideration to homeless fishermen is liable to service-tax

Agricultural land to be deemed as capital asset after its conversion into a non-agricultural land

IT : Where requisite approval for converting agricultural land into non-agricultural land was taken, said land no more remained agricultural land

Writ dismissed as assessee had filed writ without availing of opportunity of being heard provided by

CST & VAT : Where Assessing Officer issued on assessee notices for revision of assessments and assessee without availing opportunity given to it by filing objections to impugned notices filed writ petition, approach of assessee in rushing to High Court challenging notices simpliciter without even filing objections before Assessing Officer could not be sustained

No sec. 36(1)(iii) disallowance if interest wasn’t charged on advances when recovery of principal wa

IT : Where assessee had not charged any interest on amount advanced as amount was recovered only by filing a civil suit and with assistance of influential people, charging of interest on notional basis by Assessing Officer was not justified

If revenue intends to change classification of goods, onus is on it to prove otherwise

Excise & Customs : Where issue is in respect of classification of goods, onus is on revenue to show that goods are classifiable differently than that claimed by assessee

RBI enhances investment limit of Govt. securities by USD 5 billion for FIIs/QFIs/FPIs

FEMA/ILT : Foreign investment in India by SEBI registered Long term investors in Government dated Securities

Sums paid by purchaser of land towards income-tax dues of seller couldn’t be treated as income of pu

IT : Where assessee paid part of sale proceeds of disputed land to owner and balance to IT Department as instructed for recovery of tax dues of land owner, and whole amount was shown as liability in books, said sum could not be added to assessee's income

Winding-up plea to be dismissed if Co. pays overdue sum and raise dispute on claim of interest

CL : Winding up petition against company was to be dismissed when it paid principal due amount during pendency of winding up proceedings and had disputed petitioner's claim of interest

Courses run by flying training institutes and aircraft maintenance institutes are exempt from servic

Service Tax - Training and coaching in field of flying of aircraft for obtaining Commercial Pilot License from Director General Civil Aviation and training for obtaining Basic Aircraft Maintenance Engineering Licence are exempt, as they are qualifications recognized by law

No penalty on MAT Co. if it was liable to pay same amount of taxes even after addition of concealed

IT : Simply because before and after additions, assessee remained a MAT company and paid tax under section 115JB, that by itself does not mean that no penalty could be imposed

No denial of Cenvat credit merely on technical grounds if necessary ingredients for its availment we

Cenvat Credit : Technicalities cannot stand in way of Cenvat Credit, if necessary ingredients required for availing same under prescribed forms are otherwise available

NTPC could make downward revisions of provisional sales when final tariff of electricity was determi

IT: Where assessee electricity generating company had to carry on billing in terms of instruction of Regulatory authority CERC, till approval of tariffs and it was subject to adjustment after final tariff determination, reduction of sales was to be allowed

No unjust enrichment if assessee got refund of duty paid under protest in pursuance of SCN of earlie

Excise & Customs : Where assessee has paid duty under protest in pursuance of a show-cause notice for clearances already made during prior period and later, on winning case, applies for refund thereof, principle of unjust enrichment would not apply, as there was no occasion for assessee to recover said amount

Co. can’t be absolved from redressing investor’s grievance when its management is taken over by work

CL: Since company was obliged to redress investor grievances from time to time as long as it existed as a juristic person, contention of appellant that management was taken over by workers and factory premises were in possession of auction purchaser did not absolve company from its obligation

TPO couldn’t choose Cost Plus Method to fix ALP if there was functional differences in export and do

IT/ILT : Where assessee was engaged in business of manufacture and sale of industrial products such as decanters, separators etc. to its AE located abroad as well as in domestic sector, in view of fact that there were various differences in export segment and domestic segment such as market functions, geographic difference, volume difference, credit risk, related party transactions etc., TPO was not justified in adopting CPM as most appropriate method in order to make adjustment to assessee's AL

Time spent by EOU in legal remedies can’t be compensated by extension of its original period of Lett

Excise & Customs : Attachment and recovery after conformance of demand and order of Commissioner (Appeals) in favour of revenue, cannot be regarded as arbitrary or mala fide, merely because same is prior to disposal of stay petition before Tribunal

ITAT teaches basics to AO; reference should be made to DVO if assessee objects to stamp duty valuati

IT : Where assessee had title over land and he objected before Assessing Officer about value adopted by Stamp Valuation Authority which exceeded fair market value of land, Assessing Officer should have made reference to valuation officer under section 50C(2)

Now banks can decide on lending cap of loans to be granted against pledging of gold by non-agricultu

BANKING : Loans Against Gold Ornaments and Jewellery for Non-Agricultural End-Uses

RBI eases approval procedure for export of goods and services

FEMA/ILT : Export of Goods and Services - Project Exports

Operation and maintenance of windmills weren’t liable to ST under consulting engineer’s services

Service-tax : Operation and maintenance of windmills sold by client to their customers does not amount to advise/consultancy in any field of engineering and cannot not, therefore, be covered under consulting engineer

ITAT denies TDS credit to deductee on failure of deductor to deposit TDS amount to credit of Govt. i

IT : Tax deducted at source by deductor but not paid to Central Government within financial year could not be treated as payment of tax on behalf of assessee deductee and thus, assessee, could not claim credit of TDS in that financial year

No denial of export rebate on non-production of ARE-1 if other evidences proved that goods had been

Excise & Customs : Export rebate cannot be denied merely for non-production of original and duplicate copies of ARE-1, provided there is evidence that : (i) goods have been exported and (ii) they were duty-paid

No bar on block assessment if panchnama was signed by assessee even if locker mentioned in warrant y

IT : Where panchnama was signed by assessee, merely because warrant issued was limited to a locker maintained in her name which yielded nothing, same would not bar assessment under section 158BD

No service tax on maintenance or repair of motor vehicle parts by non-authorized service stations

Service Tax : Non-authorised Service/maintenance centre or workshop doing maintenance or repairs of any part of motor vehicle are excluded from scope of 'Management, Maintenance or Repair Services

Sum received on transfer of carbon credits isn’t taxable as no profit element is involved on their t

IT : Where assessee, engaged in business of power generation, received carbon credits for project activity of switching off fossil fuel from naptha and diesel to biomass, carbon credits not being linked with power generation, amount received on their transfer did not have element of profit or gain and it was not taxable

TPO couldn’t select three wheeler manufacturer as a comparable for ‘Yamaha Motors’ dealing in two wh

IT/ILT: Company manufacturing three wheeler is functionally dissimilar to company engaged in trading of two wheelers and cannot be selected as comparable

Signing a less favourable franchisee agreement with seller or denial to recall dead stock isn’t abus

Competition Act : Where fact that OP sports goods manufacturer signed agreement with informant seller that was less favourable or that OP did not take back dead stock, would not be said to be abusive of dominant position

Rebate is allowable on export of goods only when excise duty thereon is paid prior to export

Excise & Customs : Rebate is allowable only if excisable goods are exported after payment of duty i.e. duty is paid prior to export; payment of interest on belated payment of duty after goods have been exported cannot be construed to mean that condition of payment of duty prior to export of goods has been complied

HC affirms sec. 68 additions as assessee had failed to substantiate source of huge cash deposited in

IT : Where in respect of huge amount of cash deposited in bank, assessee failed to give list of persons who advanced cash to him along with their confirmation in respect of said cash credits, Assessing Officer was justified in adding said amount to assessee's taxable income under section 68.

Show Cause Notice held void as it was issued on employee of railways instead of Railways

Service Tax : Where notice is issued in name of employee of Railways and not in name of service provider/assessee being railways, entire proceedings including notice, adjudication and appeal in name of said employee was void

Sum incurred on higher studies of an associate’s daughter disallowed as it would benefits her career

IT : Where sending daughter of an associate to foreign for higher study was not in interest of profession of advocate firm but for furthering her career, expenditure was to be disallowed

Insurance services provided to vehicles used in residential colonies of employees isn’t eligible for

Service Tax : Service tax paid on insurance of vehicles provided by assessee-manufacturer for use by residents of colony maintained for its workers is not eligible for credit

No preferential shares at 85% discount despite financial exigencies if no efforts were made to rehab

CL: Where in spite of unsound financial position no efforts were made to rehabilitate company and it was proposed to issue equity shares at rate of 85 per cent discount on preferential basis on ground to meet fund requirement for company's new business, it did not constitute special circumstance to sanction petition for issuing share at a discount beyond 10 per cent

TPO couldn’t choose comparables after rejecting objections of assessee by passing cryptic order

IT/ILT : Where TPO selected companies which were not functionally comparable to assessee for purposes of benchmarking international transaction entered into by assessee and objections of assessee in that regard were rejected by a cryptic and laconic order, issue pertaining to said comparables was remanded to TPO for fresh consideration

MCA directs ICAI to suggest parameters for fraud reporting by auditors

COMPANIES ACT, 2013 : Section 149 of the Companies Act, 2013 - Company to have Board of Directors – Changes in Companies Act

Details of funds utilized by Cos on CSR activities would be available upto Sept. 2015, says

COMPANIES ACT, 2013 : Section 135 of the Companies Act, 2013 - Corporate Social Responsibility – Utilisation of CSR Funds for Welfare of SCs/STs

Ministry initiates steps to repeal Donations to National Funds Act

COMPANIES ACT, 2013 : Section 182 of the Companies Act, 2013 – Prohibitions and Restrictions Regarding Political Contributions – Provision Regarding Contribution to Political Parties by the Companies

CLB benches barred from accepting depositor's applications on default in repayment of deposits under

COMPANIES ACT, 2013/COMPANIES ACT, 1956 : Section 74 of The Companies Act, 2013 - Repayment of Deposits, etc., Accepted Before Commencement of this Act – Clarification on Section 58A(9) and Section 58AA of the Companies Act, 1956

FinMin keeps intact interest rates on PPF

IT : Section 5 of the Public Provident Fund Act, 1968 - Interest - Notified Rate of Interest on Subscriptions Made to the Fund on or After 1-4-2014 and Balances at the Credit of Subscriber

[Indian Customs Order] : Appointment of Common Adjudicating Authority

F.No.437/82/2014-Cus IV

Government of India

Ministry of Finance

Department of Revenue

(Central Board Excise & Customs)

*****

New Delhi, dated 21st July, 2014

ORDER

In terms of Notification No.15/2002-Customs (N.T.) dated 07.03.2002 (as amended)

issued under sub-section (1) of section 4 of the Customs Act, 1962 (52 of 1962), the Board

hereby assigns the Show Cause Notice F.No.23/17/2011-DZU/2864-2874 dated 09.06.2014

issued by Additional Director General, Directorate of Revenue Intelligence, Delhi Zonal Unit,

New Delhi in the case of M/s Cortel India, I-17, 1st Floor, Sector-9, NOIDA, Uttar Pradesh

and others to the Commissioner of Customs, Inland Container Depot, Tughlakabad, New Delhi

for the purpose of adjudication.

(R.P.Singh)

Director (Customs)

Copy to:-

1. The Additional Director General, Directorate of Revenue Intelligence, Delhi Zonal Unit,

B-4, 6th Floor, Paryavaran Bhawan, C.G.O. Complex, Lodhi Road, New Delhi.

2. The Commissioner of Customs, C-56/42, Renu Tower, Sector-62, NOIDA, Uttar Pradesh

3. The Commissioner of Customs, Inland Container Depot, Tughlakabad, New Delhi-

110020.

4. webmaster.cbec@icegate.gov.in

[Indian Customs Order] : Appointment of Common Adjudicating Authority

F.No.437/81/2014-Cus IV

Government of India

Ministry of Finance

Department of Revenue

(Central Board Excise & Customs)

*****

New Delhi, dated 21st July, 2014

ORDER

In terms of Notification No.15/2002-Customs (N.T.) dated 07.03.2002 ( as amended)

issued under sub-section (1) of section 4 of the Customs Act, 1962 (52 of 1962), the Board

hereby assigns the Show Cause Notice F.No.23/17/2011-DZU/2663-2669 dated 27.05.2014

issued by Additional Director General, Directorate of Revenue Intelligence, Delhi Zonal Unit,

New Delhi in the case of M/s Malhotra Electronics Pvt. Ltd., 11-C, Udyog Kendra, Greater

NOIDA, U.P. and others to the Commissioner of Customs NOIDA, Uttar Pradesh for the

purpose of adjudication.

(R.P.Singh)

Director (Customs)

Copy to:-

1. The Additional Director General, Directorate of Revenue Intelligence, Delhi Zonal Unit,

B-4, 6th Floor, Paryavaran Bhawan, C.G.O. Complex, Lodhi Road, New Delhi.

2. The Commissioner of Customs, C-56/42, Renu Tower, Sector-62, NOIDA, U.P.

3. The Commissioner of Customs, Inland Container Depot, Tughlakabad, New Delhi-

110020

4. webmaster.cbec@icegate.gov.in

Revenue must pass speaking order while rejecting claim of ST refund, rules HC

Excise & Customs : Competent authority is obliged to hear and consider refund claim of assessee on its own merits; mere communication rejecting refund claim could not be termed as an order

Trust can avail of depreciation on asset even if sum incurred on its acquisition is claimed as appli

IT : A trust registered under section 12A, can claim depreciation on assets of which cost has already been allowed as application of income

VAT penalty upheld as assessee failed to obtain transit pass and filed docs without sealing of chec

CST & VAT : Where assessee, a transporter, was transporting in a vehicle goods from Delhi to Tamil Nadu through Bangalore and CTO intercepted said vehicle in Karnataka State and thereupon person in-charge of vehicle had not produced necessary documents immediately and produced Xerox copies of documents after a lapse of five hours, wherein seal and signature of entry check post was not available, imposition of penalty upon assessee under section 53(12) of Karnataka Value Added Tax Act, 2003 was j

Interest on loan taken against FDRs held allowable as it was incurred exclusively to keep intact inc

IT: In order to protect interest earnings from fixed deposits and to meet her financial needs, when an assessee raises a loan against the fixed deposits, so as to keep the source of earning intact, the expenditure so incurred in wholly and exclusively to earn fixed deposit interest income has to be allowed as deduction

TP adjustment set aside as average margin of selected comparables was lower than operating margin of

IT/ILT: Where TPO made addition to assessee's ALP in respect of ITES services provided to its AE, in view of fact that classification of ITES into low-end BPO services and high-end KPO services for comparability analysis was not just and proper and, moreover, mean margin of eleven companies comprising six selected by assessee and five by TPO was lower than assessee's operating profit margin, impugned addition was to be set aside

No need to provide hearing opportunity to assessee before passing provisional attachment order under

IT : Statutory provision of section 281B does not contain requirement of hearing before passing order of provisional attachment of assessee's bank account

No withholding tax from sum paid to non-resident for services rendered outside India if it wasn’t ta

IT/ILT : Where amounts are paid outside India to persons outside Indian territory, who does not have any tax liability as far as I.T. Act, 1961 is concerned, said sum cannot be considered as 'sums chargeable' under provisions of this Act

No custom duty recovery from property of spouse of defaulter even if it was acquired from sums belon

Excise & Customs : Recovery can be made only from 'defaulter' and properties held by him and not from properties held in name of 'wife' or 'children' even if same are purchased out of money belonging to defaulter

Remedy of winding-up not allowed where a different view other than one filed by petitioner was avail

CL : Remedy of filing winding up petition cannot be allowed to be used in a case where it is possible to take different view than one propounded by petitioner

No disallowance for commission paid to NR if tax wasn’t withheld therefrom because NR didn’t have a

IT/ILT: Where assessee relying upon Circular No. 786, dated 7-2-2000, paid commission to non-resident without deducing tax at source taking a plea that parties to whom commission was paid, did not have permanent establishment in India nor had they rendered any technical services, in view of failure of revenue to bring any contrary material on record, payments in question could not be disallowed on account of non-deduction of tax at source

Mere supply of machineries by assessee without transferring its control won’t be deemed as sales

CST & VAT : Where assessee was granted a licence for setting up of a cement plant and thereupon it entered into an agreement with one 'L' and placed order on it of drawing/specifications for supply of certain machineries and subsequently said agreement was followed by yet another agreement, which envisaged a specific condition about supply of machineries by assessee to 'L' and Assessing Officer viewed that supply of machineries by assessee to 'L' was transaction of sale, since machineries procur

Assessee providing educational facilities and constructing dental colleges was engaged in charitable

IT : Genuine objects of providing education and genuine activities of constructing building in which a college was to be established, would entitle assessee to registration under section 12AA

MCA extends further validity of reserved names of companies

COMPANIES ACT, 2013 : Section 4 Of The Companies Act, 2013 – Extension Of Validity Of Reserved Names

MCA constitutes expert committee to examine issues related with maintenance of cost records and cost

COMPANIES ACT, 2013 : Section 148 of the Companies Act, 2013 - Central Government to Specify Audit of Items of Cost in Respect of Certain Companies – Constitution of Expert Committee to Examine Issues Relating to Maintenance of Cost Records and Cost Audit

Services received by UBI for transfer of funds to its member banks would fall under Banking and fina

Service Tax : Payment to a foreign co-operative society 'Society for Worldwide Inter-bank Financial Telecommunication (SWIFT)' for transfer of funds to members banks is, prima facie, taxable under Banking and Other Financial Services

Expenditure on upgradation, anti-virus and annual maintenance of software are allowable as revenue e

IT-I : Where assessee rendering detailed engineering services, made provision for costs on completed contracts in respect of various parties, in view of fact that in respect of some of parties liabilities were ascertained whereas in respect of other parties exact amount could not be quantified and provisions were contingent in nature, assessee's claim was to be partly allowed

Assessee couldn’t be liable for interest on pretext of wrong utilization of credit if it was subsequ

Cenvat Credit : Where assessee paid service tax on imported services under reverse charge and took credit thereof, said credit was not wrongly taken and merely because subsequently credit is reversed and tax paid is claimed as refund, assessee cannot be made liable to interest for wrong availment/utilization of credit

HC allows voluntary winding-up of Co. as it didn’t have any pending claims or statutory dues

CL: Where after perusing material on record, neither any claim was found pending, nor any statutory due was there, nor any assets of company were available, it would be appropriate to grant permission for dissolution of company

Income earned from offshore supplies as a part of composite contract isn’t taxable in absence of any

IT/ILT : Where pursuant to Contract entered into by assessee, a foreign company, with Power Grid Corporation for setting up a fibre optic system, AO made addition to assessee's income in respect of offshore supplies of goods, in view of fact that said contract was only for procurement of Cables that too outside India, no part of income could be said to be attributable to assessee's PE in India and, therefore, impugned addition deserved to be deleted

ITAT lays down litmus test to determine ‘closely linked’ transactions for TP purposes and for their

IT/ILT : When the transactions are influenced by each other, particularly in determining the price/profit involved in the transactions then those transactions would be regarded as 'closely linked' transactions - Held, Yes – Transactions of hiring of equipment to be used for execution of a project to be clubbed only to the extent of number of transactions with each AE – Held, Yes

Sum paid to NR for providing equipment and software to Indian clients facilitating 'Forex deal match

IT/ILT : Where, assessee, a UK based company, entered into a contract with Indian clients for providing its foreign exchange deal matching system services, in view of fact that in terms of contract, assessee allowed its subscribers to use software and computer system to have access to its portal for finding relevant information and matching their request for purchase and sale of foreign exchange, it amounted to imparting of information concerning technical, industrial, commercial or scientific e

Assessee had a right to cross examine that witness whose statement had been relied upon by departmen

Excise & Customs : Cross-examination is valuable right of accused/noticee in adjudication/quasi-judicial proceedings, as said proceedings can have adverse consequences; non providing of said opportunity amounts to violation of natural justice

Brokerage in respect of securities transactions is outside the ambit of sec. 194H TDS

IT : Brokerage paid in respect of transaction in securities is specifically excluded from purview of section 194H; no TDS was to be deducted

AO to record his satisfaction under sec. 153C even if he has jurisdiction over searched person and o

IT: Even where Assessing Officer of both 'searched person' and 'other person' is same, recording of satisfaction is still required and mandatory, so as to initiate proceeding against such 'other person'

Audited Books, Sacred Books! Revenue couldn’t reject audited books to make ex-parte assessment

IT : Books of account cannot be rejected and best judgment assessment cannot be done in a case where accounts have been audited under section 44AB

No benefit of ST Amnesty Scheme even if 50% of tax dues wasn’t paid prior to 31-12-2013 due to calcu

Service Tax : Under Voluntary Compliance Encouragement Scheme, 2013 tax payment less than 50 per cent of total declared tax dues prior to 31-12-2013, even if on account of bona fide calculation error, would amount to violation of section 107(3); declaration was to be rejected

No penalty or prosecution if return was voluntarily filed in good faith prior to detection of concea

IT : Where return filed by petitioner is voluntary, filed in good faith and before detection of any concealment, neither penalty would be levied under section 271(1)(c) nor any criminal proceedings under section 276C could be allowed

Department can’t demand duty from a person dealing in smuggled goods without confiscating said goods

Excise & Customs : Section 125 applies only if goods are confiscated; therefore, A person dealing in smuggled goods cannot be asked to pay duty under section 125 of Customs Act, if said goods are not seized/confiscated

HC upheld disallowance of commission as assessee failed to prove nature of services rendered by sub-

IT : Since appellant failed to produce evidence regarding sub-agency commission paid by showing nature of services rendered by sub-agents, said expenditure could not be allowed

Winding-up proceedings initiated through GPA didn’t get vitiated due to defect in form of GPA if it

CL : Winding up proceedings instituted through General Power of Attorney (GPA) were not to be rejected only on ground of defect in GPA when steps had been taken to cure that defect

Sale of Thermoseal and Ra Thermoseal is liable to VAT at 8%; they are not ‘medicine’

CST & VAT : Where assessee was engaged in manufacture of Thermoseal and Ra Thermoseal and it sought determination as regards classification of above products sold under its invoice dated 13-9-1993 and contended that both products were 'medicines' covered by Entry No. 24 of Part I of Schedule C of Bombay Sales Tax Act, 1959, said products would not fall under above entry because of exclusion clause contained therein

Employer’s and employee’s contribution to PF and ESI are deductible if paid before due date of filin

IT-I : Payments of employee's and employer's contribution to provident fund and ESI made on or before due date for filing return of income under section 139(1) have to be allowed as deduction while computing taxable income

Laying of pipelines or conduit for inter-connection of storm water drainage pipeline isn’t liable to

Service Tax : Laying of pipelines or conduit for inter-connection of storm water drainage pipeline for Municipal Corporation or Urban Development Authority is not liable to service tax under Works Contract Services/Construction Services

Transfer of ownership rights via agreement to sell held as ‘transfer’, even if possession wasn’t giv

IT : Where assessees being, owners of a property entered into agreement to sell whereby they transferred their right of ownership in favour of purchasers who on basis of said agreement, resold a part of property and further carried out certain development work, transaction in question was to be regarded as transfer of capital asset within meaning of section 2(47)(v)

Credit of Basic Excise Duty can be utilized for payment of National Calamity Contingent Duty

Cenvat Credit : Merely because CENVAT credit in respect of NCCD can be utilized only for payment of NCCD, it does not follow that any other credit of duty cannot be utilized for payment of NCCD; hence, CENVAT credit of basic excise duty cannot be utilized for payment of NCCD on final product

Provisions of both SICA and SARFAESI Act need to be complied with for abatement of reference to BIFR

CL: For abatement of reference of sick company to BIFR satisfaction by secured creditor of condition under section 13(9) of SARFAESI Act, 2002 cannot automatically be taken as satisfaction of condition prescribed in 3rd proviso to section 15(1) of SICA as both conditions prescribe different threshold

AO’s referral to TPO doesn’t take away his powers of determining nature of exp. under sec. 37(1)

IT/ILT : Jurisdiction of Assessing Officer under section 37(1) and TPO under section 92CA is distinct and, therefore, a referral made by Assessing Officer to TPO for limited purpose of determining ALP does not take away power of Assessing Officer to determine as to whether payment made by assessee to its AE for services rendered was basically an expenditure incurred for purpose of business so as to allow same under section 37(1)

Services availed of at retail stores were not eligible for input credit, rules HC

Cenvat Credit : Internet charges, labour supply, professional services, rent, security guard charges, store maintenance and cleaning charges etc. availed at retail stores are, prima facie, ineligible for credit

Objective of Trust to finance infra-projects represents general public utility; Sec. 12AA registrati

IT : Where assessee-trust was created with object of financing infrastructure projects in State such as provision of water supply, roads, health services etc. to be implemented through municipal bodies or corporation, said object being in nature of advancement of general public utility, assessee's claim for registration under section 12AA was to be allowed

HC upheld Setcom.’s order of disallowing a sum as otherwise it could reduce undisclosed income offer

IT : Where Settlement Commission while applying gross profit rate on undisclosed income, opined that benefit of payment of excise duty could not be given to assessee as it would negate even undisclosed income shown in statement of facts, there being no illegality in said order, it deserved to be upheld

Mere criminal chargesheet against assessee without final conviction doesn’t lead to denial of CHA li

Excise & Customs : A person qualified as CHA under 1984 Regulations is not required to qualify afresh in 2004 Regulations; further, CHA license cannot be denied on ground that criminal charge sheet has been filed against assessee, as no person can be presumed guilty without conviction

Sec. 263 doesn’t stipulate recording of satisfaction before issuance of SCN if order of AO appears t

IT: Where assessee challenged show-cause notice by Commissioner under section 263 on account of non-recording of requisite satisfaction, since legal, remedy of filing appeal against order under section 263 has been provided, assessee should resort to alternative remedy of appeal

Excise and Taxation Officer can’t ask for bank guarantee from a registered dealer to release detaine

CST & VAT : Where assessee sold goods from Mandi Gobindgarh to a party outside State of Punjab and booked same with a transporter and driver after loading goods in vehicle started journey towards Ludhiana for loading cycle parts belonging to an other party and after loading cycle parts from Ludhiana, when driver was yet to leave Ludhiana, ETO detained said vehicle with goods and insisted that he would release goods only on furnishing of bank guarantee, demand of bank guarantee was unjustified

Transfer of division in exchange of shares only couldn’t be held as slump sale; HC upheld Bharat Bij

IT : Where assessee transferred its lift division to another company in terms of scheme of arrangement under section 391, read with section 394 of Companies Act, 1956, in view of fact that consideration for said transfer was not determined by parties in terms of money but its disbursement was to be in terms of allotment or issue of bonds/preference shares, it was to be regarded as a case of exchange and not a sale and, thus, provisions of section 2(42C) did not apply to assessee's case

SEBI asks AIFs to include disciplinary history of past 5 years in their placement memorandums

SEBI : Clarification and extension of deadline with respect to circular on 'Guidelines on disclosures, reporting and clarifications under AIF Regulations'

Regional offices of RBI allowed to grant authorization to Indian Agents under Money Transfer Service

FEMA/ILT : Money Transfer Service Scheme – Delegation of work to Regional Offices

RBI introduces a uniform list of State and District codes for reporting of FDI details by Indian Cos

FEMA/ILT : Foreign Direct Investment – Reporting under FDI Scheme

RBI empowers its regional offices to approve first time rupee drawing arrangements of banks with NR

FEMA/ILT : Rupee Drawing Arrangement – Delegation of work to Regional Offices

Services availed of for logistical purposes and for insurance of stocks were eligible for Cenvat cre

Service Tax : Air Fare/Air Tickets, Taxi/Car Hiring, Maintenance and Repair Charges services availed for logistical purposes and insurance taken on stocks lying in different branches and for various business assets are eligible for credit

HC dismissed writ as appellant-bank had alternate remedy of filing an appeal on charges of sec. 194A

IT: Where Act specifically provides an appeal remedy under section 246A, same has to be exhausted first by petitioner before approaching Court under Article 226 of Constitution of India

HC admits recovery suit on dishounour of cheque as borrower failed to prove allegation of fraud agai

Negotiable Instrument Act: Where in defence of dishonour of cheque, it was contended that loan transaction was mere paper entry and that there was forgery of signature on cheques but both pleas were found to be misleading, recovery suit was to be admitted