Jurisprudentiol–Tomorrow's cases
Legal Corner Icon — the image was hosted by the publisher and was not captured.Miscellaneous – Don't miss this important order tomorrow
State Dues vs Dues to banks - DRT Act and Securitisation Act do not provide first charge to banks over State Dues: SC Larger Bench
DRT Act and Securitisation Act do not create first charge in favour of banks, financial institutions and other secured creditors and the provisions contained in Section 38C of the Bombay Act and Section 26B of the Kerala Act are not inconsistent with the provisions of the DRT Act and Securitisation Act so as to attract non obstante clauses contained in Section 34(1) of the DRT Act or Section 35 of the Securitisation Act.
What about Central Excise? Section 11 of the Central Excise Act, which was considered by the two-Judge Bench in SICOM's case - , does not contain a provision similar to those in Central legislations like Section 14A of the Workmen's Compensation Act, 1923, Section 11 of the EPF Act, Section 74(1) of the Estate Duty Act, 1953, Section 25(2) of the Mines and Minerals (Development and Regulation) Act, 1957, Section 30 of the Gift Tax Act, 1958 and Section 529A of the Companies Act, 1956, under which statutory first charge has been created in respect of the dues of workmen or gift tax etc.
Income Tax
JV - non-resident pays additional share capital for land purchase - legal tangle - fund deposited in bank - interest income - Since income was earned prior to commencement of business it is capital receipt and needs to be set off against pre-operative expenses and cannot be treated as 'income from other sources': HC
ONE income head the Revenue is generally seen to be in love with is 'Income from Other Sources'. Quite often it has been seen that the moment an assessing officer finds that a particular type of income does not fit into business income as claimed by the assessee, he tends to treat the same as 'income from other sources'. However, in an interesting decision the High Court has observed that it is a residuary head and an income is to be treated as 'Income from Other Sources' only when it does not fit into other heads. But fitting an income under a specific head requires laborious efforts and application of mind which are generally avoided.
Sales Tax
Taking Delivery of goods by dealers in Delhi for sale in other States – sales are Inter-State sales: Supreme Court
THE Question before the Supreme Court: “Whether the taking of the delivery of chemicals in Delhi by the purchasing dealers, in the context of they being the distributors/stockists of the assessee (appellant), for the assigned territories outside Delhi would take away the transaction in question from the category of sale inter-State sale(s)?”
Until Tomorrow with more DDT
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