TIOL-DDT 1261 · the untouched capture
Rendered as it looked. Links and images are disabled in this view; the file itself is untouched.
<!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 1261 </font><br>
18.12.2009 <br>
Friday </strong></font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Only Advocates entitled to practise profession of law in India - Bombay HC - What will happen to Consultants? </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>IN</strong> a landmark judgement delivered day before yesterday, the Bombay High Court held the permission granted by RBI to foreign Law firms to establish their offices in India as illegal. It may be alright for foreign law firms, but what about Indian Consultants who are not advocates? </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The High Court held: </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#FF6633">Persons practising the profession of law whether in litigious matters or non litigious matters would be governed by the Advocates Act. </font></strong></font></p>
<p><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Only Advocates entitled to practise the profession of law in India</strong></font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong> </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">the expressions ‘to practise the profession of law' in section 29 of the 1961 Act is wide enough to cover the persons practising in litigious matters as well as persons practising in non litigious matters. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#663399">Litigous non-litigous?:</font> </strong>A person can be said to be practising in litigious matters when he renders legal assistance by acting, appearing and pleading on behalf of another person before any Court or authority. Similarly, a person can be said to be practising in non litigious matters, when he represents to be an expert in the field of law and renders legal assistance to another person by drafting documents, advising clients, giving opinions, etc. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">There is no dispute that for a person to practise in litigious matters, he has to be enrolled as an advocate under the 1961 Act. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">It was contended by the counsel for Union of India that if it is held that the 1961 Act applies to persons practising in non-litigious matters, then no bureaucrat would be able to draft or give any opinion in non-litigious matters without being enrolled as an advocate. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The High Court held, “There is no merit in the above argument, because, there is a distinction between a bureaucrat drafting or giving opinion, during the course of his employment and a law firm or an advocate drafting or giving opinion to the clients on professional basis. Moreover, a bureaucrat drafting documents or giving opinion is answerable to his superiors, whereas, a law firm or an individual engaged in non litigious matters, that is, drafting documents / giving opinion or rendering any other legal assistance are answerable to none. To avoid such anomaly, the 1961 Act has been enacted so as to cover all persons practising the profession of law be it in litigious matters or in non-litigious matters within the purview of the 1961 Act.” [1961 Act means the Advocates Act, 1961] </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">But what about former bureaucrats? Now there are a large number of former Revenue officers engaged in the profession of Law – like giving opinions, appearing before Authorities like Departmental Officers and Tribunals, who are not bound by any conduct Rules or any professional Bodies. Now are they allowed to practices? </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">We
bring you the High Court judgement today – Please see - </font><font face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="1" face="Verdana, Arial, Helvetica, sans-serif"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=51&filename=legal/hc/2009/2009-TIOL-709-HC-MUM-MISC.htm">2009-TIOL-709-HC-MUM-MISC</a></font></strong></font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>More than THREE CRORES cases pending in Indian Courts </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>ACCORDING</strong> to information given by Dr. M. Veerappa Moily, Minister of Law and Justice in the Lok Sabha yesterday: </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3,11,39,022 cases were pending in the courts in the country as on 30.6.09. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The following steps have been taken to facilitate speedy disposal of cases in courts: </font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1. increasing the strength of Judges in Supreme Court and the High Courts. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2. Introduction of some legislative measures for improvement in judicial procedure and for expediting disposal of civil and criminal cases in courts. The Civil Procedure Code and Criminal Procedure Code have been amended and the concept of ‘Pleas-Bargaining' has been introduced. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3. Alternative modes of disposal including mediation, conciliation and arbitration have been encouraged. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">4. Other measures like grouping of cases involving common questions of law, constitution of specialized benches, setting up of special courts and organizing Lok Adalats at regular intervals have also been taken. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">5. Steps have also been taken for modernization of the judicial infrastructure through computerization of courts. </font></p>
</blockquote>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Civil Services Bill </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> Government has drafted a Civil Services Bill, which envisages to provide a statutory basis for the regulation of the Civil Services in India, to regulate the appointment and conditions of the service of Civil Servants, to lay down the fundamental values of Civil Services, the Civil Services Code of Ethics, Civil Service Management Code, to establish a Civil Services Authority for facilitating review and to develop Civil Services as a professional, neutral, merit based and accountable instrument for promoting good governance and better delivery of services to citizens. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> A final decision to introduce the Bill has not yet been taken. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">This information was given by the Minister of State in the Ministry of Personnel, Public Grievances & Pensions, Prithviraj Chavan in a written reply to a question in Rajya Sabha yesterday. </font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Service Tax - Hiring of Buses </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>YESTERDAY'S DDT </strong> carried an analysis on the levy of Service Tax on hiring of buses. We have located an order of the Lucknow Bench of the Allahabad High Court wherein the Hon'ble High Court held, <em>“In the present case respondents had to take a decision on the basis of definition provided by Section 65 of the Finance Act 1994 of the word rent a cab operator. Accordingly, we are of the view that the service tax is payable by a private bus operator whose buses are attached with the UPSRTC, through individual agreements. UPSRTC does not seem to be aggrieved party, come into the way of respondent to collect service tax from the private bus operator, whose buses are said to attach with the UPSRTC and falls within the category of rent a cab operator.” </em></font></p>
<p><font size="1" face="Verdana, Arial, Helvetica, sans-serif"><strong>See</strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=43&filename=legal/hc/2009/2009-TIOL-708-HC-ALL-ST.htm"><strong> 2009-TIOL-708-HC-ALL-ST</strong></a></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"> – Monday's cases</font></strong></font></strong></font></p>
<p><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><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">Central Excise</strong></font></p>
<p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Limit on Adjournment of Personal Hearing under proviso to Section 33 A (2) of Central Excise Act, 1944 - The limit of three times is to be understood in facts and circumstances of each case and may be extended if the circumstances so demand – Commissioner also acted with legal bias in disallowing the cross examination – matter to be decided by some other Commissioner - CESTAT </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>VIDE</strong> Finance Act, 2004, Section 33A was inserted the Central Excise Act, 1944, prescribing limitation on number of Adjournments of personal hearings. The relevant provisions read: </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><em>(2) The Adjudicating authority may, if sufficient cause is shown, at any stage of proceeding referred to in sub-section (1), grant time, from time to time, to the parties or any of them and adjourn the hearing for reasons to be recorded in writing : </em></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><em>Provided that no such adjournment shall be granted more than three times to a party during the proceeding. </em></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">After the insertion of this Section, it became a common practice for many adjudicating authorities to give three dates in a single personal hearing letter, often the three hearing dates separated by not more than a day. In fact, the section prescribes a limit on number of adjournments as three. That means, effectively there should be four dates of hearing, but not three. </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>Transfer Pricing - Indian company exports goods to Associated Enterprise in USA at cheaper price - whether provisions of Sec 92CA are applicable even in a case where there is no reduction in total tax liability to domestic assessee - YES, says ITAT </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>TRANSFER</strong> Pricing provisions were inserted into the I-T Act to curb avoidance of tax by transferring profits to Associated Enterprises by undertaking international transactions. The general understanding is that the TP provisions aim at clipping the profit-transferring wings of the transnational companies. But the facts which have emerged after looking at some of the TP cases, are that the domestic companies have so far faced greater wrath of anti-avoidance Sections than the MNCs. Reason: It is much easier for the Revenue to dig out details of their transactions as compared to the data relating to AEs of MNCs. </font></p>
<p align="justify"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Service Tax </strong></font></p>
<p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Only a mistake apparent from record can be rectified under s.35C(2) as applicable to Service Tax appeals – applications styled as ‘modification application' cannot be pressed into service for claiming benefits not claimed earlier – CESTAT. </strong></font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><em>“… THE Revenue's appeal was heard by the regular Bench in September, 2008. Learned Consultant for the assessee has not shown that the High Court's judgment was available during those days, nor has he claimed the existence of any other applicable case law at the time of disposal of the appeal. In this scenario, none of the decision cited by the learned Consultant for the assessee would make the assessees position any better.” </em></font></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><em>Resultantly, the application filed by the assessee was dismissed. </em></strong></font></p>
<p align="justify"><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">See our columns Monday for the 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 Weekend.</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>