Jurisprudentiol– Tomorrow’s cases

By Vijay Kumar

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

Appeals – High Court has no power to condone delay- Limitation Act not applicable: Supreme Court Larger Bench

The Supreme Court LB was of the view that the legislature provided sufficient time, namely, 180 days for filing reference to the High Court which is more than the period prescribed for an appeal and revision.

FERA/FEMA

Acquisition of property by residents abroad – no penalty because of an amendment in Act, for acts before amendment – alternate remedy no bar when fundamental rights are violated: High Court

The petitioner has been an Indian citizen, holding an Indian Passport.

On 5.11.1999 he purchased a plot situated in Ludhiana at an open auction conducted by the Debt Recovery Tribunal, Jaipur. On 18.2.2003, the Enforcement Directorate, Jalandhar initiated investigation against the petitioner alleging that the plot purchased by him in the open auction is an agricultural plot which the petitioner had purchased by violating the provisions of FEMA Act. He was summoned and his statement was recorded. On 13.3.2003 during the course of investigation the respondent informed the petitioner that the plot purchased by him fell under industrial zone and hence there was no violation of any penal law.

Income Tax

Bad debts - deduction u/s 36(1)(vii) - After amendment in the Act burden is no longer on assessee to establish that a debt has become bad - A bad debt decided on basis of commercial wisdom becomes allowable once it is written off in accounts: Bombay HC

CHALLENGING the write-off of a bad debt has indeed become a bad appeal for the Revenue to file! For decades this issue has been so 'bad' that the Legislature had to amend the relevant Section to overcome the mischief of law and respect the wisdom of a business if it writes off the same as irrecoverable and bad debt. In the latest decision the Bombay HC has upheld the ITAT Special Bench decision in the M/s Oman International Bank SAOG case, and held that after the amendment with effect from 1-4-1989, it is not obligatory on the part of the assessee to prove that the debt written off by him is indeed a Bad Debt for the purpose of allowance u/s.36(1)(vii).