TIOL-DDT 1175 · the untouched capture
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<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#660099" size="3">TIOL-DDT 1175 </font><br>
13.08.2009 <br>
Thursday </strong></font></p>
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<p align="center"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong> New Direct Taxes Code – Great
Indian Media Circus takes people on a ride</strong></font></p>
<p align="center"><font color="#660099" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#660099" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><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/code_dt.jpg" alt="Legal Corner Icon" width="400" height="241" hspace="5" border="0" 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<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> Indian Ignorant TV Channels had a field Day with one channel trying to
score over the other to cover the launch of the proposed Direct Taxes Code.
Most of the channels thought that it was something like a budget and even
the great Prannoy Roy of NDTV ran a programme “Better than Budget”. They all
thought that the code is effective from tomorrow. And every channel and every
newspaper is concentrating on the proposed rates of taxes in the new code.
Nobody understands that the proposed code is not about tax rates; it's about
tax laws – and they are all talking about tax rates! If I can make an analogy
in Central Excise, what is proposed is not an amendment in the Central Excise
Tariff, but the Central Excise Act. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">All the great commentators who had given you pearls of wisdom have not realised that the tax rates decided every year by Finance Acts are now proposed to be part of the Code and the rates shown in the draft code are only examples and need not necessarily become part of the Code. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In a rare exemplary show of political sagacity, Finance Minister Pranab Da invited his illustrious predecessor P. Chidambaram for the launch and allowed him to take some of the thunder.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> Here is a quick summary of the new Code: </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Code is not an attempt to amend the Income Tax Act, 1961; nor is it an attempt to "improve" upon the present Act. However, it will replace the existing Income Tax Act, 1961 and the Wealth Tax Act, 1957 and consolidate all direct tax laws into a uniform direct tax code. In drafting the Code, the Central Board of Direct Taxes has, to the extent possible, started on a clean drafting slate. </font></p>
<p align="left"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Single Code for direct taxes </strong>: All the direct taxes have been brought under a single Code and compliance procedures unified. It will come into effect from April 1, 2011. [if everything goes well] </font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Use of simple language </strong>: using simple language in drafting so as to convey, with clarity, the intent, scope and amplitude of the provision of law.</font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> <strong><em>Reducing the scope for litigation </em></strong><em>: </em>An attempt has been made to avoid ambiguity in the provisions that invariably give rise to rival interpretations.</font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> <strong>To ensure that the law can be reflected in a Form </strong>: For most taxpayers, particularly the small and marginal category, the tax law is what is reflected in the Form. Therefore, the structure of the tax law has been designed so that it is capable of being logically reproduced in a Form. </font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Consolidation of provisions </strong>: In order to enable a better understanding of tax legislation, provisions relating to definitions, incentives, procedure and rates of taxes have been consolidated. </font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Elimination of regulatory functions </strong>: Traditionally, the taxing statute has also been used as a regulatory tool. However, with regulatory authorities being established in various sectors of the economy, the regulatory function of the taxing statute has been withdrawn. </font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Concept of <em>financial year </em>– <em>Previous year </em>no more relevant: </strong>Under the 1961 Act, the income earned in a year is taxed in the next year. The year in which income is earned is termed as 'previous year' and the following year in which it discharged to tax is termed as 'assessment year'. The use of the two expressions has caused confusion in both compliance and administration. In order to simplify the provisions, the separate concepts of 'previous year' and 'assessment year' will be replaced by a unified concept of 'financial year'. </font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Certain expenditure not to be allowed: </strong>Under the Code, the following expenditure will not be allowed as a deduction in the computation of total income :-</font></p>
<blockquote>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> (a) any expenditure attributable to income which does not form part of the total income under this Code and determined in accordance with the method as may be prescribed;</font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> (b) any expenditure incurred for any purpose which is an offence or which is prohibited by law; </font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(c) any provision made by a person for any liability if the liability remains unascertained by the end of the financial year; and</font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> (d) any expenditure where the source of funds for such expenditure is unexplained; </font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(e) any expenditure incurred by a non-resident in respect of,- </font></p>
<blockquote>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(i) royalty; </font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(ii) fees for technical services; or </font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(iii) any income which is liable to tax at the special rate of income-tax specified in Part II of the First Schedule. </font></p>
</blockquote>
</blockquote>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>COMPUTATION OF INCOME FROM EMPLOYMENT – also known as salary:</strong> "Income from employment" will be the gross salary as reduced by the aggregate amount of permissible deductions. The permissible deductions will be the following:-</font></p>
<blockquote>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> (a) amount of professional tax paid; </font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(b) transport allowance to the extent prescribed;</font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> (c) prescribed special allowance or benefit to meet expenses wholly and exclusively incurred in the performance of duties, to the extent actually incurred;</font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> (d) compensation under voluntary retirement scheme; </font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(e) amount of gratuity received on retirement or death; </font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(f) amount received on commutation of pension; and</font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> (g) pension received by gallantry awardees.</font></p>
</blockquote>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> <strong>COMPUTATION OF CAPITAL GAINS: </strong>The present distinction between short-term investment asset and long-term investment asset on the basis of the length of holding of the asset will be eliminated. </font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>The Securities Transaction Tax will be abolished </strong>: all capital gains (loss) arising from the transfer of equity shares in a company or units of an equity oriented fund will form part of the computation process.</font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> <strong>Incentive for savings – EET – GPF withdrawal to be taxed: </strong>Tax incentives for savings have been rationalized so as to encourage net savings. Accordingly, in line with the best international practice in this regard, the Code proposes to introduce the ‘Exempt-Exempt-Taxation' (EET) method of taxation of savings. Under this method, the contributions are exempt from tax (this represents the first 'E' under the EET method), the accumulation/accretions are exempt (free from any tax incidence) till such time as they remain invested (this represents the second ‘E' under the EET method) and all withdrawals at any time are subject to tax at the applicable personal marginal rate of tax (this represents the ‘T' under the EET method). Based on the EET principle, the Code provides for deduction in respect of contributions (both by the employee and the employer) to any account maintained with any permitted savings intermediary, during the financial year. Any withdrawal made, or amount received, under whatever circumstances, from this account will be included in the income of the assessee under the head 'income from residuary sources', in the year in which the withdrawal is made or the amount is received. Accordingly, it will be subject to tax at the appropriate personal marginal rate. </font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Deduction for rent paid: </strong>Deduction will be allowed to an individual, who is self-employed, for rent actually paid for his residence, in excess of ten per cent of his gross total income from ordinary sources. However, there will be a ceiling of rupees two thousand per month on the amount allowed as deduction. </font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Area based exemptions <em>grandfathered: </em></strong>The Code does not allow area-based exemptions. Area-based exemptions that are available under the Income Tax Act, 1961 will be <em>grandfathered.</em></font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Deduction for royalty income of authors: </strong>Deduction will be allowed to a resident individual, being an author, in respect of royalty received for the assignment or grant of any of his interest in the copyright of any book of literary, artistic or scientific nature and in respect of any textbook certified by the prescribed authority for an amount upto a maximum of Rs.300,000. <font color="#FF6666"><strong>I have written a book on Excise – will I get this exemption?</strong></font></font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> <strong>Minimum Alternate Tax (MAT): </strong>The Code provides for Minimum Alternate Tax calculated with reference to the "value of the gross assets". The shift in the MAT base from book profits to gross assets will encourage optimal utilization of the assets and thereby increase efficiency. </font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>TAXATION OF NON-PROFIT ORGANISATIONS AND OTHER TRUSTS – <font color="#FF0000">charity </font>is now <font color="#FF0000">welfare</font> : </strong>The Code replaces the phrase "charitable purpose" by the phrase "<em><font color="#FF0000">permitted welfare activities</font></em>". <em>Permitted welfare activities </em>has been defined to mean any activity involving relief of the poor, advancement of education, provision of medical relief, preservation of environment, preservation of monuments or places or objects of artistic or historic interest and the advancement of any other object of general public utility. Advancement of any other object of general public utility will not include any activity in the nature of trade, commerce or business, or any activity of rendering any service in relation to any trade, commerce or business, for a fee or for any other consideration, irrespective of the nature of use, application or retention of the income from such activity. </font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>RATES OF INCOME TAX: </strong>Tax rates are determined by the size of the tax base; if the tax base is higher, the tax rates can be lower. For the purposes of this Discussion Paper, the tax rates provided are such rates which are expected to yield the existing level of revenues with the revised comprehensive tax base proposed in this Code. </font><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The <strong>rates of taxes </strong>are provided in the <strong>First Schedule </strong>to provide stability to the income tax regime. The new tax rate for <strong>individual taxpayers </strong>can be substantially liberalised to levels indicated below:-</font></p>
<p> <font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>WEALTH TAX: </strong>The Code proposes to tax net wealth in the following manner:- </font></p>
<blockquote>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ Wealth-tax will be payable by an individual, HUF and private discretionary trusts. </font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ Wealth tax will be levied on net wealth on the valuation date i.e. the last day of the financial year.</font></p>
<p> <font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ Assets chargeable to wealth-tax will mean all assets, including financial assets and deemed assets, as reduced by exempted assets.</font></p>
<p> <font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ The valuation of financial assets will be at cost or market price, whichever is lower. </font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ The net wealth of an individual or HUF in excess of Rupees fifty crore will be chargeable to wealth-tax at the rate of 0.25 per cent.</font></p>
<p> <font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ The threshold limit of Rupees fifty crore will not apply to a private discretionary trust. </font></p>
</blockquote>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">This is only at a loud thinking stage and is not really likely to become LAW in the near future. Let's all discuss it in the meantime and try not to confuse the people. </font>
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<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>No Appeal to High Court? </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The new Code does not provide for any appeal to the High Court. Section 192 provides for an appeal to the National Tax Tribunal, from an order passed in appeal by the ITAT and Section 193 provides for an appeal to the Supreme Court from any order of the National Tax Tribunal. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">For the last few years the CBDT had been busy preparing this code and they seem to be unaware of the fact that the NTT is nowhere in sight! </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">If the NTT is not constituted before the Code comes into existence, there would be a big gap in the law. </font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Towering Inferno - Fire In Central Excise Offices in Mangalore – All Safe </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Trade Centre at Mangalore had a major fire accident yesterday. This building houses the Central Excise offices in the fifth, sixth and seventh floors. Commissioner Ajit and his staff are safe and they hope to work as usual today. </font></p>
<p align="center"><font face="Verdana, Arial, Helvetica, sans-serif"><strong><font face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#006600" size="2">Jurispruden</font><font color="#FF6633" size="4">tiol</font> <font color="#006600" size="2">– Monday's
cases</font></strong></font></strong></font></p>
<p><font color="#660099" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, 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face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><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></strong></font></strong></font></strong></font></strong></font></strong></font></strong></font></strong></font></strong></font></strong></font></strong></font></strong></font></strong></font></strong></font></strong></font></strong></font></strong></font></strong></font></strong></font></strong></font></strong></font></strong></font></strong></font></strong></font></strong></font></strong></font></strong></font></strong></font></strong></font></strong></font></strong></font></strong></font></strong></font></strong></font></strong></font></strong></font></strong></font></strong></font></strong></font></strong></font></strong></font></strong></font></strong></font></strong></font></strong></font></strong></font></strong></font></strong></font></strong></font></strong></font></strong></font></strong></font></strong></font></strong></font></strong></font>Central Excise </strong></font></p>
<p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Clearance of wires and cables specially designed for aircrafts, satellite launch vehicles and battle tanks – Lower authorities do not regard them as parts of aircrafts, satellite launch vehicles and battle tanks – Member Technical partially agrees while allowing appeal and Member Judicial allows appeal fully as appellant eligible for benefit of one of the notifications – No difference of opinion :CESTAT </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Can aircrafts, battle tanks and satellite launch vehicles operate without wires and cables? Excise authorities think so. Because their reasoning goes beyond common sense application of exemption notifications. Fortunately or unfortunately, even CESTAT partially came to this conclusion but allowed the appeal of the assessee. Fortunately, for the assessee, claim of exemption under different notifications saved the day. </font></p>
<p><font color="#660099" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Income Tax </strong></font></p>
<p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>When
the expenditure of interest is incurred in relation to income which does
not form part of total income, it has to suffer the disallowance irrespective
of fact whether any income is earned by assessee or not - case held against
assessee in </strong></font><font color="#FF6633" size="1" face="Verdana, Arial, Helvetica, sans-serif"><strong> <a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=39&filename=legal/itat/2008/2008-TIOL-509-ITAT-MUM-SB.htm" target="_blank">2008-TIOL-509-ITAT-MUM-SB-ITAT-SB</a></strong></font> </p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">When there is no income, it cannot form part of anything and certainly it does not, in any case form part of total income. In a contrast to put it differently, can one say 'does it form part of total income' the answer is no. The words "does not" of course, denotes the present situation, and not the future events as apprehended by the Counsel to have been contemplated/attempted by the Revenue. </font></p>
<p><font color="#660099" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Customs </strong></font></p>
<p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Conversion of free shipping bills to DEEC Shipping Bills - appellants have established link between imported goods and exported products – order of Commissioner rejecting conversion is set aside:CESTAT </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The
assessee had obtained three DEEC licences and imported parts, raw materials
and components, for the manufacture and export of Transformers and spares.
However, Transformers and spares were exported under free shipping bills,
instead of DEEC shipping bills. Realizing the error, the assessee applied
for conversion of the free shipping bills to DEEC shipping bills which was
rejected by the Commissioner. </font></p>
<p align="justify"><font size="3"><em><strong><font color="#FF0000" face="Verdana, Arial, Helvetica, sans-serif">Tomorrow is a HOLIDAY </font></strong></em></font></p>
<p align="justify"><strong><font color="#660099" size="2" face="Verdana, Arial, Helvetica, sans-serif">See
our columns Monday for judgements </font></strong></p>
<p align="justify"><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Until Monday with more <strong>DDT </strong></font></p>
<p align="justify"><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Have a nice day. </font></p>
<p align="justify"><font color="#FF6666" 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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