TIOL-DDT 1228 · the untouched capture
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<!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.01 Transitional//EN" "http://www.w3.org/TR/html4/loose.dtd"> <html> <head> <title>Untitled Document</title> <meta http-equiv="Content-Type" content="text/html; charset=iso-8859-1"> </head> <body> <p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#663399" size="3">TIOL-DDT 1228 </font><br> 03.11.2009 <br> Tuesday </strong></font></p> <p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Vigilance Awareness Week - The Annual Farce in Government Offices </strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>ALL</strong> the Central Government offices and organisations will go through the annual farce of celebrating the Vigilance Awareness Week from today to November 7, 2009. Today at 11 am, all the officers will take a pledge that they would work for eradication of corruption and provide value based service to their countrymen. There will be emotional speeches by corrupt babus on how to reduce corruption. The few honest babus in the audience will cringe in their seats at the farce going on and the majority of the corrupt babus will laugh at the farce. All the top dignitaries from the President of India to the Leader of the Opposition have sent in their messages full of empty rhetoric. Madam President says, “It is the moral duty of every person to strive to make society free from corruption” </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Maybe she should say that to some of her ministers! </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Why should we speak so much about corruption, when one of our former prime ministers described it as a global phenomenon? The only way to reduce corruption is to reduce opportunities – certainly not by making speeches and taking pledges which are going to be broken within minutes. </font></p> <p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Paul Daniel Dinakaran Premkumar not to go to Supreme Court </strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now it is almost certain that the Hon'ble Chief Justice of the Karnataka High Court, Justice <strong>Paul Daniel Dinakaran Premkumar </strong>will not go to the Supreme Court. But senior lawyers like Prashant Bhushan are questioning the right of the judge to continue in Karnataka if he is not suitable to go to Delhi. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Once upon a time it was blasphemy to even talk about a judge. Today we are openly analysing the very appointment of a judge to the highest court in the land! It is reported that the judge owns about 440 acres of land. And there is a controversy about the number plate of his car. Chennai based Forum for Judicial Accountability is reported to have sent a representation to the CJI about Mr. Dinakaran. It is alleged that the number plate of his car is done up in red background with gold embossed letters which is permitted only for the President of India and State Governors. Even the Prime Minister and the Chief Justice of India cannot use such a number plate. </font></p> <p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Outsource Notification Manufacture </strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">A concerned Netizen sent us this mail. </font></p> <blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Recently, there are many instances wherein TIOL has highlighted the delay in renewing notification within the time frame. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">I would suggest to CBEC Board through TIOL - why can't they OUTSOURCE this activity to reputed TAX CONSULTANTS like TIOL. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">This will help the Board and also Trade community a lot. Not only keeping track of the records, if any corresponding changes made in other countries for the specific product, this can also be brought to their notice. </font></p> </blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Not necessarily to us, but it would be appropriate for the Board to outsource this work, as they have proved many times over that they are not capable of keeping track of their notifications.</font></p> <p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Software Professional Sentenced in CBI case under IT Act </strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Additional Chief Metropolitan Magistrate, Egmore, Chennai has sentenced accused Shri N.G. Arunkumar to undergo one year Rigorous Imprisonment with fine of Rs.5,000/- U/s 420 IPC (cheating) and Sec. 66 of IT Act. (Hacking). </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The case was registered on the allegation that Shri N.G. Arunkumar, software professional and resident of Bangalore unauthorisedely and illegally used the user-id and password of broadband internet connection of Press Information Bureau, Chennai as well as other 52 BSNL broadband subscribers and caused a wrongful loss of Rs. 38,248/- to these subscribers with corresponding wrongful gain to himself. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Investigation revealed that Shri N.G. Arunkumar, software professional logged on to BSNL broadband internet connection as if he was the authorised genuine user and made alteration in the computer database pertaining broadband internet user accounts of these subscribers. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The CBI also got conviction of an Assistant General Manager, Department of Non-Banking Supervision, Reserve Bank of India, Ahmedabad to undergo four years rigorous imprisonment with a total fine of Rs. 30,000/. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CBI had registered a case against the accused for demanding and accepting a bribe of Rs.15,000/- from the complainant for issue of ‘B' category certificate to his firm and to avoid mandatory RBI audit of his firm. </font></p> <p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Supreme Court Judges declare their assets </strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">It all started with Justice Shylendra Kumar of the Karnataka High Court. Judges rushed in to declare their assets and now the Hon'ble judges of the Supreme Court of India, the most powerful court in the world, as Justice Shylendra described it, have declared their wealth! – Purely on voluntary basis. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Chief Justice of India KG Balakrishnan is not really rich. He owns a 2000 model Santro Car, has no fixed deposits or shares, has just 20 sovereigns of gold, has a residential plot in Faridabad worth 4.5 Lakhs and some small properties in native Kerala. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Justice BN Agarwal has no immovable property and no car. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Justice BS Chauhan has a Toyota Corolla Car purchased in 2009. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Justice JM Panchal has a Wagon R car and has an outstanding loan of Rs. 30 Lakhs. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Justice Markandey Katju has no car but has deposits in banks and shares. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Justice Ravindran has shares in 57 companies ranging from Andhra Cements to Reliance Industries and his wife has shares in 43 companies. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Justice Kapadia who may be the next CJ of India has no vehicle, but has about Rs. 20 lakhs along with his wife, in shares. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Our Judges are not really all that rich! </font></p> <p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Madhu Koda - a rare Success Story </strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Madhu Koda is all of 38 years of age and had been Chief Minister of Jharkand and is alleged to have stashed away Rs. 4000 Crores, almost one fifth of his State Budget. Seventeen years ago, the Jharkand politicians were the cheapest to buy in India and they were so innocent that they would deposit their sale price in the nearest Syndicate Bank. But now they also seem to have learned the tricks of the trade. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In Karnataka the BJP government is in trouble, because some ministers have more money than the State. If there is scope for 4000 Crores in a small state like Jharkand, imagine the possibilities in larger States. One fifth of the state budget in Andhra Pradesh would be 20,000 Crores and if somebody had been Chief Minister for five years, it is a mind boggling one Lakh Crores. With this kind of money, you don't need elections; you can buy your way into the Chief Minister's Chair! But that really doesn't happen and that is the greatness of India. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">And we are talking of reducing corruption and taking pledges during Vigilance Awareness Week! </font></p> <p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><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"> – Wednesday'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, 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/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></strong></font><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Debt Recovery: </strong></font></p> <p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Recovery of debts due to banks – Appeal against orders of Debt recovery tribunal - remedy of an Appeal would not oust the jurisdiction of Civil Court – High Court </strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The judgments of the Courts are not to be interpreted like a statute. The ratio has to be culled out from the facts and what was in issue. What has to be considered is the ratio of the judgment. It is, therefore, not possible to accept the contention that on the consideration of the judgments this Court has taken a view that the jurisdiction of the Court is expressly or impliedly barred. </font></p> <p align="justify"><font color="#663399" 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>TDS u/s 195 - assessee pays non-resident company towards demurrage charges - TDS not deducted - assessee argues it is a case of occasional shipping covered u/s 44B - since non-resident is not a party nor any materials brought on record for application of Sec 172, AO's order disallowing expenditure u/s 40(a)(i) is legally valid: Bombay High Court </strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">IS TDS u/s 195 deductible on payments made to non-resident shipping company towards demurrage charges? The assessee company fails to do so on the ground that it is a case of occasional shipping for the non-resident which attracts Sec 44B read with sec 172, a non-obstante clause. Since Sec 172 has an overriding effect over other sections of the I-T Act, no TDS was deducted by the Assessee. AO disallows the deduction for expenditure u/s 40(a)(i). CIT(A) and Tribunal go with the assessee's line of argument. However, the High Court has held that since the non-resident company is not before the Bench, and there are no pleadings or material brought on record to show that the case is governed by occasional shipping within the meaning of Section 172 of the Act, 1961 and said section applies, the Tribunal's decision is not sustainable. The AO' order is well-reasoned and legally sound. Since the assessee fails to deduct tax at source as per the provisions of Sec 195, the disallowance made by the AO u/s 40(a)(i) is legally sustainable. </font></p> <p><font color="#663399" 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>Breach of Customs barrier not relevant to adjudicate case when seized goods are proved to be of foreign origin and smuggled in nature and have not suffered customs duties – Authorities at place of seizure competent to adjudicate case – Revenue appeal allowed setting aside Tribunal's order – High Court </strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In May 2000, the Directorate of Revenue Intelligence, Bangalore wing seized 25 bales of raw mulberry silk of Chinese origin valued at Rs. 25 lakhs from a godown of transporters which were mis-declared as waste cloth/chindis. Subsequently, action was initiated by the Bangalore Customs authorities for demand of customs duties and imposition of penalties on the offenders i.e. consignees from whom goods were seized. </font></p> <p align="justify"><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">See our columns Tomorrow for the judgements </font></strong></p> <p align="justify"><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Until Tomorrow 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> </body> </html>