TIOL-DDT 1136 · Friday, 19 June 2009

Jurisprudentiol–Monday's cases

ROM application filed after 471 days along with COD – CESTAT has no power to condone delay and admit applications filed beyond six months period

AGAINST the Tribunal order dated 13.4.2006, the Revenue filed an appeal before the Bombay High Court. For reasons best known, this appeal was withdrawn and a Rectification of Mistake (ROM) Application was filed before the Tribunal with an application for Condonation of Delay – the delay sought to be condoned is of 1 year and 3 months and 16 days.

Creation of reserve had no implication and even it did not alter in any manner computation of total income - decision of the AO was one possible view in matter - CIT's review not correct – ITAT

TRIBUNAL held that the order cannot be said to be erroneous and prejudicial to the interest of revenue. In view of the fact that the decision of the AO was one possible view in the matter, the other cases relied upon by the ld. DR regarding lack of enquiry etc. cease to have any implication.

Development Commissioner cancelling the provisional permission given earlier on the ground that for determining the DTA sale entitlement only physical exports were to be taken into consideration and not deemed exports – Revenue has a strong prima facie case – CESTAT orders pre-deposit of Rs. Four Crores

THE Tribunal observed that in the preliminary round of deciding the stay applications, the Revenue has been able to put up a strong prima facie case in their favour relying on the letter of the Development Commissioner rejecting the request of the applicants to include the ‘deemed export' clearances for determining their DTA sale entitlement. On the ground of financial hardship, the Bench noted that a balance had to be struck between the applicant's claim and that of safeguarding government Revenue in view of the Apex Court decisions in Monotosh Saha [] and Benara Valves Ltd []

See our columns Monday for the judgements

Until Monday with more DDT

Have a nice Weekend.

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