Interest income of finance co. not taxable as other sources of income if it was held as business inc

IT : Interest income of finance co. not taxable as other sources of income if it was held as business income in earlier yrs

Retro amendment in sec. 115JA can't be deemed as reasons to believe that income has escaped assessme

IT: Retro amendment in section 115JA can't be deemed as reasons to believe that income has escaped assessment

Courses in Mass Communication, Management & IT are vocational courses; exempt from service tax

Service Tax : Courses in : (i) Mass Communication, (ii) International Business Management, (iii) Telecom Management, (iv) Information Technology, (v) Management Studies, (vi) Geo-informatics and (vii) Operational Management are 'vocational courses' and exempt from service tax

No TDS on interest paid to NR on FCCBs when borrowed sum was utilized by payer for its overseas busi

IT/ILT: Where assessee issued FCCB to foreign investors and remitted interest to them, since said money was utilized for overseas business of assessee, no income could be said to have accrued or arisen in India in hands of non-resident investors and, therefore, no TDS was deductible

Transfer of stock from warehouse of SEZ unit to branch in DTA is liable to Tamil Nadu VAT

CST & VAT: Tamil Nadu VAT - Where assessee set up a unit in SEZ area in Tamil Nadu for trading and wherehousing services for mobile phones, etc. and during year it purchased goods from another company located in same SEZ area and supplied them to its branches in other States by way of stock transfer, levy of purchase tax on inter-State stock transfer effected by assessee was justified

High Court can't dismiss appeal by considering monetary limit if matter had cascading effect: SC

IT: Instruction No. 3 of 2011, dated 9-2-2011 providing monetary limit should not be applied by High Court ipso facto, particularly when matter had a cascading effect

No denial of credit on capital goods which was used by job-worker to manufacture semi-finished goods

Cenvat Credit : Semi-finished goods removed under job-work without payment of duty do not amount to "exempted final product" under Rule 6 of Cenvat Rules; hence, credit of capital goods exclusively used in such job-work cannot be denied

No penalty on basis of ad-hoc additions without producing any clinching material indicating concealm

IT: Imposition of penalty upon assessee under section 271(1)(c) on basis of ad hoc and estimated disallowance/addition, without bringing any clinching material suggesting concealment of income or furnishing of inaccurate particulars of income, was not justified

Issue of time barred demand can't be raised for the first time before Tribunal

Service Tax : Where issue of demand being time-barred was not raised before adjudicating authority and Commissioner (Appeals), same cannot be raised for first time before Tribunal

No VAT on free supply of medicines; HC declares sec. 15(5) of Bihar VAT Act as unconstitutional.

CST & VAT: Bihar VAT - Patna High Court declares section 15(5) of Bihar Vat Act (which provides for levy of tax on basis of MRP) as unconstitutional

Buy-back consideration paid above face value, as per CLB's direction, held as revenue exp.

IT : Where in terms of directions issued by CLB, assessee-company paid certain amount over and above face value of shares to departing group of shareholders, amount so paid was to be allowed as revenue expenditure

CBDT constitutes Committee to deal with taxpayers' grievance from high pitched assessments

IT/ILT : Section 143 of the Income-Tax Act, 1961 – Assessment – General – Constitution of Local Committees to Deal With Taxpayers Grievances from High-Pitched Scrutiny Assessment

Contractor wasn't liable to pay service-tax when sub-contractor fulfilled all compliances

ST: Where assessee-real estate company appointed sub-contractors for construction of residential complex for principal company which intended same for personal use of staff, and sub-contractors fulfilled all service tax compliances, assessee-contractor could not be liable to services tax

Sum received by Irish Co. for providing online access to its e-learning products in India is taxable

IT/ILT : Consideration paid by an Indian distributor to foreign company for use or right to use confidential programme software (especially designed software) itself constitutes royalty in terms of DTAA between India and Ireland

Exp. on development of machines is revenue exp. if such machines becomes obsolete

IT : Where assessee incurred certain expenditure on development of machines and same were not put to use and they were also not sold and it was decided to use parts of machines so developed by way of spare parts in future, aforesaid expenditure was allowable as revenue expenditure

No denial of sec. 10(21) relief to research association due to non-furnishing of form for accumulati

IT: Where Assessing Officer denied exemption under section 10(21) to assessee on ground that during previous year it had accumulated part of its income and had failed to furnish Form 10 as provided under section 11(2) within time, denial of exemption merely on ground that assessee had not filed Form 10 within time was not justified

No service tax on maintenance charges collected from prospective buyers in compliance with state law

Service Tax : Maintenance charges collected by builders from prospective buyers of flats for payment of local taxes and other charges in compliance with their obligation under State laws, are not liable to service tax under 'Management, Maintenance or Repair Services'

No sec. 153C notice on basis of seized papers indicating collection of capital fee without its year-

IT : Where loose papers found and seized from residence of President of assessee, an educational institution, indicating some 'on money' receipt during admission process did not establish co-relation document-wise with assessment years in question, notice issued under section 153C to assessee was invalid

Tribunal gets flak from HC for not levying interest on delayed payment of differential duty

Excise & Customs : Where there was price variation clause in contract and assessee had paid differential duty on price-variation without any interest, Tribunal had to consider validity of demand of interest in light of provisions of rule 8(3) of Central Excise Rules, read with section 11AA of Central Excise Act

IRDAI notifies new norms on Insurance surveyors and Assessors

INSURANCE/INDIAN ACTS & RULES : IRDAI (Insurance Surveyors and Loss Assessors) Regulations, 2015