TIOL-DDT 1082 · the untouched capture
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<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#663399" size="3">TIOL-DDT 1082</font><br>
31.03.2009<br>
Tuesday</strong></font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>VAT and service Tax on Tata Teleservices – Pre-deposit – Supreme Court does not interfere</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>OUT</strong> there, the Netizens are very well-informed. A leading lawyer told us sometime back that TIOL is putting him to embarrassing situations. Earlier, the assessees came to know about the Laws and cases only when he told them; now they see it in TIOL and call him up and inform him; so he is forced to spend time with TIOL many times a day.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Even we were hauled up – yesterday I received several calls from enlightened Netizens finding fault with us for not reporting the <em>Tata Teleservices </em> case, wherein the Supreme Court dismissed the party's appeal as reported in the pink media.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Actually there was nothing very serious to report – it was only a matter of pre – deposit.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Anyway here is the dramatic story.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Tata Teleservices approached the High Court of Andhra Pradesh in Writ Petition seeking stay of recovery of VAT imposed by the Assistant Commissioner, Commercial Taxes on the ground that they are paying service tax and so are not liable to pay any tax under the provisions of the Andhra Pradesh Value Added Tax Act. It has been further submitted that according to the law laid down by the Supreme Court in the case of <em>Bharat Sanchar Nigam Ltd. V. Union of India </em> -<strong>[<a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=42&filename=legal/sc/2006/2006-TIOL-15-SC-CT-LB.htm" target="_blank"><font size="1">2006-TIOL-15-SC-CT-LB</font></a>]</strong>, the petitioner is rendering services and, therefore, there is no question of paying tax under the provisions of the Act. It was, therefore, submitted that no amount of tax should be recovered under the provisions of the Act and the proceedings whereby tax is sought to be recovered should be stayed during pendency of the petition.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The State Revenue pleaded that in similar cases, the High Court had stayed the recovery proceedings on a condition that the petitioners pay one-third of the amount of tax payable by them. The Party argued that payment of one-third of the amount of tax should not be treated as a precedent and the matter should be considered on merits by the Court and, therefore, looking to the facts of the case, no amount should be directed to be paid by the petitioner.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The High Court in its order, <strong>[<font size="1"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=43&filename=legal/hc/2009/2009-TIOL-157-HC-AP-VAT.htm" target="_blank">2009-TIOL-157-HC-AP-VAT</a></font>] </strong>directed by way of interim relief, that there shall be stay with regard to recovery of the amount covered by the impugned order subject to a condition that the petitioner pays one-third of the disputed tax.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The disputed tax amounts were Rs.12,02,20,876 /- for the year 2005-06 and for Rs. 17,62,70,299/- for the year 2006-07, totalling Rs. 29,64,91,175/-. So they were required to deposit about Rs. 9.88 Crores.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Against the order of the High Court, Tata Teleservices approached the Supreme Court. The Apex Court did not find any ground to interfere with the impugned order and so dismissed the petition. However the Supreme Court gave time till 15th April, 2009 to make the deposit. <strong>[<a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=42&filename=legal/sc/2009/2009-TIOL-49-SC-VAT.htm" target="_blank"><font size="1">2009-TIOL-49-SC-AP-VAT</font></a>]</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">So that's the whole story.</font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Anti dumping duty on Cathode Ray Colour Television Picture Tubes</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Government has imposed anti dumping duty on import of Cathode Ray Colour Television Picture Tubes falling under sub-heading 8540 11 originating in or exported from Indonesia.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=23&filename=notification/custom/2009/ctariff09_031.htm" target="_blank">Notification NO. 31/2009 - Cus ., Dated: March 27, 2009</a></strong></font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>CBDT issues Explanatory Notes to the Provisions of the Finance Act, 2008</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The CBDT has issued detailed explanatory notes to the provisions of the Finance Act, 2008</font></p>
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<td valign="top" colspan="2"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Income-tax Act</strong></font></p></td>
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<td valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>section</strong></font></p></td>
<td valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Particulars </strong></font></p></td>
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<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2(1A), Explanation 3. </font></p></td>
<td valign="top"><p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Widening the scope of “agricultural income”. </font></p></td>
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<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2(15). </font></p></td>
<td valign="top"><p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Streamlining the definition of “charitable purpose” <strong>. </strong></font></p></td>
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<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">10( 26AAA ). </font></p></td>
<td valign="top"><p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Exemption to a “ Sikkimese ” individual. </font></p></td>
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<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">10( 26AAB ). </font></p></td>
<td valign="top"><p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Exemption of income of Agricultural Produce Marketing Committee or Board. </font></p></td>
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<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">10 (29A), sub-clause (h). </font></p></td>
<td valign="top"><p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Exemption of income of Coir Board. </font></p></td>
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<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">10A (1) proviso, 10B (1) </font><font size="2" face="Verdana, Arial, Helvetica, sans-serif">proviso . </font></p> </td>
<td valign="top"><p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Extension of time limit for availing deduction under section 10A and 10B <strong>. </strong></font></p></td>
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<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">35(1)(iia). </font></p></td>
<td valign="top"><p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Weighted deduction for sum paid to a Company to be used by such company for scientific research. </font></p></td>
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<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">35D (1)( ii). </font></p></td>
<td valign="top"><p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Extending the provision of section 35D relating to amortization of preliminary expenses to all undertakings. </font></p></td>
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<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">40(a)(ia). </font></p></td>
<td valign="top"><p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Amendment to the provisions of section 40(a)(ia) of the Income-tax Act. </font></p></td>
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<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">40A (3), 40A (3A). </font></p></td>
<td valign="top"><p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Amendment to the provisions of section 40A (3) of the Income-tax Act. </font></p></td>
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<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">43(6), Explanation 6. </font></p></td>
<td valign="top"><p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Clarification regarding definition of ‘written down value' under section 43(6). </font></p></td>
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<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">10(43), 47(xvi). </font></p></td>
<td valign="top"><p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Amendment to give effect to reverse mortgage scheme. </font></p></td>
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<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">49(2A). </font></p></td>
<td valign="top"><p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Capital gains on transfer in the context of foreign currency exchangeable bonds. </font></p></td>
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<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">80C (xxiii) & (xxiv). </font></p></td>
<td valign="top"><p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Enlargement of the scope of eligible saving instruments under section 80C . </font></p></td>
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<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">80D. </font></p></td>
<td valign="top"><p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Additional deduction for health insurance premium paid for parents. </font></p></td>
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<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">80IB (9), proviso. </font></p></td>
<td valign="top"><p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Sunset provision for deduction for refining of mineral oil under section 80- IB (9). </font></p></td>
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<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">80IB (11C). </font></p></td>
<td valign="top"><p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Five year tax holiday to hospitals located in certain areas </font></p></td>
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<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">80ID (2)( iii). </font></p></td>
<td valign="top"><p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Five year tax holiday for hotels located in specified districts having a World Heritage Site. </font></p></td>
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<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">115JB , Explanation 1 </font><font size="2" face="Verdana, Arial, Helvetica, sans-serif">clause (h) and clause </font><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(viii), Explanation 2. </font></p> </td>
<td valign="top"><p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Clarification regarding add back of ‘deferred tax', ‘dividend distribution tax', etc. for calculating book profit under section 115JB . </font></p></td>
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<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">115O (1A). </font></p></td>
<td valign="top"><p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Relief in respect of tax on distributed profits of domestic companies. </font></p></td>
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<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">115WB (2)(B)(iii), </font><font size="2" face="Verdana, Arial, Helvetica, sans-serif">115WB (2)(E)Explanation,</font><font size="2" face="Verdana, Arial, Helvetica, sans-serif">115WB (2)(K), </font><font size="2" face="Verdana, Arial, Helvetica, sans-serif">115WC (1)(C),</font><font size="2" face="Verdana, Arial, Helvetica, sans-serif">115WC (1)(d). </font></p> </td>
<td valign="top"><p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Rationalisation of the provision of the Fringe Benefit Tax. </font></p></td>
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<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">115WKB. </font></p></td>
<td valign="top"><p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Deemed payment of tax by the employee where FBT on securities allotted to him is recovered by the employer. </font></p></td>
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<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">139(1), Explanation 2 (a), </font><font size="2" face="Verdana, Arial, Helvetica, sans-serif">44AB,115WD </font><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Explanation 1(a). </font></p> </td>
<td valign="top"><p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Advancement of due date from 31st October to 30 th September in respect of certain categories of assessees. </font></p></td>
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<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">142( 2C ), proviso. </font></p></td>
<td valign="top"><p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Granting of power to the assessing officer to extend the time for completion of special audit under sub-section (2A) of section 142. </font></p></td>
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<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">143(1), 115WE. </font></p></td>
<td valign="top"><p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Correction of arithmetical mistakes and adjustment of incorrect claim under section 143(1) through Centralised Processing of Returns. </font></p></td>
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<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">147, 2nd proviso, 151. </font></p></td>
<td valign="top"><p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Amendments in respect of reassessment proceedings to clarify correct legislative intention. </font></p></td>
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<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">153A (2), 153B , Expl </font><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(vii). </font></p> </td>
<td valign="top"><p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Provision for assessment in the case of annulment of the proceeding under section 153A/ 153C. </font></p></td>
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<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">156. </font></p></td>
<td valign="top"><p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Intimation u/s 143(1) deemed to be notice of demand u/s 156. </font></p></td>
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<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">193(ix). </font></p></td>
<td valign="top"><p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Removal of TDS on Corporate Bonds. </font></p></td>
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<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">194C (1), clause (k). </font></p></td>
<td valign="top"><p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Enlargement of scope of TDS under section 194C to cover association of persons and body of individuals. </font></p></td>
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<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">195(6), 295. </font></p></td>
<td valign="top"><p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Provision for furnishing of information regarding deduction of tax at source under section 195. </font></p></td>
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<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">199, 203, 206C ( 4). </font></p></td>
<td valign="top"><p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Amendments to the provisions of Dematerialisation of TDS and TCS certificates. </font></p></td>
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<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">201(1), 191. </font></p></td>
<td valign="top"><p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Consequences of non-deduction of tax at source. </font></p></td>
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<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">153(4), 251, 273AA, </font><font size="2" face="Verdana, Arial, Helvetica, sans-serif">278AB . </font></p> </td>
<td valign="top"><p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Rationalisation of revised settlement scheme </font></p></td>
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<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">254 ( 2A ), 3rd proviso. </font></p></td>
<td valign="top"><p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Clarification regarding stay of demand by Income-tax Appellate Tribunal. </font></p></td>
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<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">268A. </font></p></td>
<td valign="top"><p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Consequence of non-filing of appeal in respect of cases where the tax effect is less than the prescribed monetary limit. </font></p></td>
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<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">271( 1B ). </font></p></td>
<td valign="top"><p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Clarification regarding requirement of satisfaction for initiation of penalty under section 271(1)(c). </font></p></td>
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<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">282A. </font></p></td>
<td valign="top"><p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Authentication of documents/notices/letters. </font></p></td>
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<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">292BB, 143(2), proviso, </font><font size="2" face="Verdana, Arial, Helvetica, sans-serif">clause (ii). </font></p> </td>
<td valign="top"><p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Service of notice and the time limit for issuance of notice under section 143 (2) of the Income-tax Act. </font></p></td>
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<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">292C (2). </font></p></td>
<td valign="top"><p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Presumption as to books of accounts, other documents, </font><font size="2" face="Verdana, Arial, Helvetica, sans-serif">etc. </font></p> </td>
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<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">36, 40, 88E , and 98, 99 of </font><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Finance Act, 2004. </font></p> </td>
<td valign="top"><p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Rationalization of provision of Securities Transaction Tax. </font></p></td>
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<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">36 and 102 to 121, </font><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Chapter VII of Finance </font><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Act, 2008. </font></p> </td>
<td valign="top"><p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Commodities Transaction Tax. </font></p></td>
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<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">95 (3) of Finance Act, </font><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2005. </font></p> </td>
<td valign="top"><p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Discontinuation of Banking Cash Transaction Tax </font></p></td>
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<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">4th Schedule, Part A, rule </font><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3 (1), proviso. </font></p> </td>
<td valign="top"><p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Extension of time limit set out in Rule 3 for complying with the condition laid down in Clause (ea) of rule 4 of Part A of the Fourth Schedule to the Income-tax Act. </font></p></td>
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<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=36&filename=notification/cbdt/2009/it09cir01.htm" target="_blank">CBDT CIRCULAR NO. 1/2009 Dated: March 27, 2009</a></strong></font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Another Salary hike in PSUs</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> Acting on the recommendations of the Committee of Ministers headed by Mr. P. Chidambaram, Government approves further increase in salary and allowances for PSU officers which will benefit about 400,000 officers of the CPSEs . The Cabinet headed by the Prime Minister took a decision yesterday to approve the increase in salary structure of officers at Board level and below, along with supervisory staff. The improvised pay packages will also include increase in house rent allowance and retirement benefits. However, the pay revision would vary from company to company.</font></p>
<p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> <strong><font color="#006600">Jurispruden</font><font color="#FF6633" size="5">tiol</font><font color="#006600">–Tomorrow's cases</font></strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><strong><strong><strong><strong><strong><strong><b><img src="http://www.taxindiaonline.com/RC2/image/stories/ddt_hammer.jpg" alt="Legal Corner Icon" width="100" height="84" hspace="5" border="0" align="left"></b></strong></strong></strong></strong></strong></strong></strong></font></strong></font><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>FERA</strong></font></p>
<p align="justify"><font color="#FF6600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Raid of former joint secretary's house- criminal complaints against the Petitioners who are 79 and 80 years old respectively and in particular where not even the arguments on charge have been heard for 22 years, quashed – High Court</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> factors that weighed with the Court are that Petitioner No.1 is 79 years old and Petitioner No.2 is 80 years old. They have been facing ordeal of the pendency of the two criminal complaint cases for nearly 22 years now. Charge is yet to be framed. It is anybody's guess as to how many more years the trial of the case would take.</font></p>
<p align="justify"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Income
Tax</strong></font></p>
<p><font size="2"><b style='mso-bidi-font-weight:normal'><font color="#FF6633" face="Verdana, Arial, Helvetica, sans-serif">Income tax - 'non-compete right' acquired by the assessee-company,
eligible for depreciation - ITAT
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</font></b></font></p>
<p style='text-align:justify'>
<font size="2" face="Verdana, Arial, Helvetica, sans-serif">
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</font><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The only
issue involved in this appeal, by the department, relates to the claim of depreciation
on non-compete fee paid by the assessee.</font></p>
<p align="justify"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Central
Excise</strong></font></p>
<p align="justify"><font color="#FF6600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Revenue neutrality - it is an established legal position that, where any duty payable by an assessee would be available as CENVAT credit to the recipient of the goods, such duty cannot be demanded from the former – CESTAT by Majority</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>IT</strong> is not in dispute that CENVAT credit of the amount of duty paid by the assessee on the goods in question was taken by their buyers. <strong>If that be so, similar credit of any differential duty, if paid by the assessee, can also be taken by the buyers. </strong> This certainly is a revenue-neutral situation, a position supported by several decisions available on record.</font></p>
<p align="justify"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>See our columns Tomorrow for the judgements</strong></font></p>
<p align="justify"><font color="#FF6600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Until Tomorrow with more<strong> DDT </strong></font></p>
<p align="justify"><font color="#FF6600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Have a nice day.</font></p>
<p align="justify"><font color="#FF6600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Mail your comments to</font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> <a href="mailto:vijaywrite@taxindiaonline.com">vijaywrite@taxindiaonline.com</a></font></p>
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