Jurisprudentiol– Tomorrow's cases

By Vijay Kumar

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

To apply the provisions of section 10A, one has to consider the profit and gains as derived by an undertaking

INCOME TAX - Sec 10A - assessee owns two STP units for export of software - Unit 1 logs profits whereas Unit 2 records losses - CIT invokes Sec 263 for setting off loss of Unit 2 against profit of Unit 1 before Sec 10A benefits are allowed - held, the word 'an' has been used before the undertaking in Sec 10A( 1), and deduction is to be allowed on such profit and gains as are derived from the undertaking. Hence, to apply the provisions of section 10A, one has to consider the profit and gains as derived by an undertaking. CIT order set aside and assessee's appeal allowed

Excise

Commissioner(Appeals) going beyond the issue involved in the O-in-O as well in the Show cause notice – Matter remanded by Tribunal

AS maladroit as it gets can best describe the happenings of the present case. The assessee manufactures textile hose pipes and was enjoying the benefit of small scale exemption 1/93-CE at the material time. The ‘unlined textile hose pipes' were being sent to a job worker for carrying out the process of lining and subsequent return to the assessee for clearance from the factory. But naturally, the exemption notifications 83/94-CE and 84/94-CE, both dated 11.04.1994 were being put into circulation by the assessee for enjoying the exemptions envisaged therein.

Finalisation of Provisional assessment - LB decision in Cadbury helps Revenue get back refunds of 'interest' granted by the Assistant Commissioner relying on MSEB Pole Factory decision – Tribunal directs respondent to pay back the refund amounts within ten days of receipt of order

Interest is required to be paid even when the differential amount is paid before the finalization of the assessment and that the none of the decisions viz. MSEB Pole Factory etc. had considered the language of Rule 7(4) ie . the words “succeeding the month for which such amount is determined” inasmuch as all the decisions had proceed on an unreasoned basis that the interest is payable ‘from the month in which the amount is determined/assessment is finalized'.

See our columns tomorrow for the judgements