Jurisprudentiol- Tomorrow's cases

By Vijay Kumar

Legal Corner Icon — the image was hosted by the publisher and was not captured.Entry Tax

Entry Tax - once again stuck - Does imposition of' entry tax' violate Article 301 of the Constitution? Will the principles of quid pro quo relevant to a fee apply in the matter of taxes? These and several other questions referred to Larger Bench - Supreme Court

• WILL the principles of quid pro quo relevant to a fee apply in the matter of taxes imposed under Part XIII?

• Whether the Entry Tax may be levied at all where the goods meant for being sold, used or consumed come to rest (standstill) after the movement of the goods ceases in the `local area'?

• Whether the Entry Tax can be termed a tax on the movement of goods when there is no bar to the entry of goods at the State border or when it passes through a local area within which they are not sold, used or consumed?

Income Tax

Revenue or Capital Expenditure - it is the aim and object of expenditure, which would, determine its character and not the source and manner of its payment- High Court

THE expenditure incurred towards initial outlay of business would be in the nature of capital expenditure, however, if the expenditure is incurred while the business is ongoing, it would have to be ascertained if the expenditure is made for acquiring or bringing into existence an asset or an advantage of an enduring benefit for the business, if that be so, it will be in the nature of capital expenditure. If the expenditure, on the other hand, is for running the business or working it, with a view to produce profits, it would be in the nature of revenue expenditure.

Central Excise

Appeal - appeal filed by Commissioner himself instead of authorising an officer to do so - appeal maintainable - If Commissioner can authorise, he is empowered to do it himself - High Court

WHEN a person is statutorily entitled to delegate powers to another person to file an appeal on behalf of the first named person, it goes without saying that the power which can be delegated is the power which the first named person would be entitled to exercise. Hence, until and unless the Commissioner is entitled to file an appeal, there is no question of the Commissioner authorising another officer to file appeal on behalf of the Commissioner. The language of the latter part of sub-section (2) of Section 35B of the Act itself makes this more than abundantly clear when the provision uses the phrase 'to appeal on his behalf.' Hence it is not necessary to dilate any further on this aspect of the matter.

See our columns tomorrow for the judgements