Jurisprudentiol- Tomorrow's cases

By Vijay Kumar

Legal Corner Icon — the image was hosted by the publisher and was not captured.Central Excise

Central Excise - destruction or loss of goods, by natural causes or unavoidable accident, is essentially a subjective satisfaction - No question of Law - Supreme Court

IN the very nature of things, contemplated by Rule 21, the aspect of satisfaction, about the destruction or loss of goods, by natural causes or unavoidable accident, is essentially a subjective satisfaction of the authority concerned, and that having been recorded by the Tribunal, it is a pure satisfaction of fact, altogether subjective.

Income Tax

Tax-free dividend income - disallowance u/s 14A - onus to prove that no part of expenditure attributable to such income was directly or indirectly incurred, lies with assessee - ITAT disallows part of administrative expenses incurred in relation to such income

IT is common knowledge that if an income does not form part of taxable income, expenditure incurred in relation to such income is also not allowable as deduction. But deciding the disallowable component of such expenditure is a ticklish job, and often leads to protracted legal battles. However, in the latest decision, the Delhi Bench of the Tribunal has held that the onus to prove that no part of expenditure is attributable to such tax-free income lies on the assessee. And since the assessee failed to produce adequate evidence in this regard, the tribunal has disallowed a part of administrative expenses, direct as well indirect, incurred in relation to such income in harmony with Rule 8 and Sec 14A of the Income Tax Act.

Central Excise

Tribunal deprecates the order passed by CCE and remands the case

FINDING that it was not discernible from the manner in which the adjudicating authority was convinced with the submissions made by the assessee; that there was nothing to indicate that he had examined the applicability of the case law, the Bench deprecated the order passed and accordingly remanded the matter.

See our columns tomorrow for the judgements