Jurisprudentiol– Tomorrow’s cases

By Vijay Kumar

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

Law is absolutely clear that interest is payable under s.11BB on expiry of period of three months from the date of receipt of refund application: Bombay High Court

M/s Ballarpur Industries Ltd., who are engaged in the manufacture of paper and paper board filed three refund claims for Rs. Rs. 24,00,925/-, Rs 96,71,550/- and Rs 62,96,976/- before the jurisdictional Assistant Commissioner which were summarily rejected. On appeal, their claims were allowed by the Commissioner (Appeals). Pursuant to this the assessee claimed interest in terms of s. 11BB of the Act. While the Assistant Commissioner disallowed the interest claim, it was allowed by the Commissioner (Appeals). On appeal by the Department, the Tribunal upheld the Appellate Commissioner’s order allowing claim of interest.

Income Tax

Aggregate of brought forward unabsorbed losses, depreciation and investment allowance required to be reduced as per section 80-I(6) of the Income Tax Act from current year's profits derived from its eligible industrial undertaking for the purpose of computing deduction under section 80-I(1): ITAT by Majority

For the purposes of determining the quantum of deduction under section 80-I, the taxable income of the industrial undertaking is to be ascertained as if such undertaking were an independent unit owned by the assessee and the assessee had no other source of income. Consequently, the unabsorbed losses, unabsorbed depreciation, etc. relating to the eligible industrial undertaking are to be taken into account in determining the quantum of deduction under section 80-I even though these may actually have been set off against the profits of the assessee from other sources of income of the assessee.

Service Tax

Management Consultancy - An ocean separates a manager from a management consultant, a performer from an advisor or a coach – Nirulas is not a consultant: CESTAT

The definition of management consultant makes it clear that what is envisaged from a consultant is advisory service and not the actual performance of the management function. Any other meaning to the term management consultant would render the entries relating to many other services which are rendered in connection with the management of any organisation such as "manpower recruitment or supply agency" service, "business auxiliary" service as redundant. In the common parlance also, the role of a consultant is to render advice, consultancy and technical assistance in the matters on which he has the expertise. However, the decision on acceptance or otherwise of such advice is left to the management and the consultant does not have right to impose his advice. In such a situation, it ceases to be an advice and becomes an order or direction.

See our columns Tomorrow for the judgements