TIOL-DDT 1268 · 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 1268 </font><br>
31.12.2009 <br>
Thursday </strong></font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Avoiding harassment in course of enquiry/search of air passengers by Air Intelligence Units/Investigation Units of Income Tax Department – CBDT guidelines</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>RECENTLY</strong> a foreign returned computer engineer had taken the Income Tax Department to the Supreme Court highlighting the harassment he faced at Chennai airport, where the Income Tax Department seized cash(legitimate and white) of Rs. 65 lakhs from him. During the course of the proceedings, the Supreme Court asked the Solicitor General to suggest a solution. [we are carrying the Supreme Court decision today – please see <strong><font color="#663399">Breaking News</font></strong>] In pursuance to that, the CBDT has issued guidelines to be followed strictly by Air Intelligence Units or Investigation Units while dealing with air passengers at the airports of embarkation of destination. </font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(i) On the basis of information through the scanner in check-in-are and security hold area, further enquiry/action u/s 131/132/133A of the Income Tax Act, 1961 may be conducted within the time available before the departure of the flight of the passengers(s). Alternatively, the information may be passed on quickly to the Air Intelligence Unit at the Airport of destination and, in case there is no Air Intelligence Unit at the airport of destination to the local Investigation Unit. On getting such information, the recipient Unit will carry out necessary enquiries as quickly as possible so as to intercept the passenger at the exit of the destination airport. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(ii) When the passenger is intercepted at the airport of destination and his statement is recorded to ascertain the accounted or unaccounted nature of the cash, bullion, jewellery etc. being carried by him, the Unit recording the statement may not wait for the conclusion of the statement before taking steps to obtain warrant of authorization from the concerned Authority. As soon as the information is sufficient to infer that the assets are unaccounted, the concerned authority may be contacted and the information may be furnished to him for obtaining warrant of authorization. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(iii) For issuing such warrant of authorization, the Director of Income-tax (Investigation) should carry blank forms and his official seal. Before issuing such authorizations, he may try to obtain the administrative approval from the Director General of Income-tax (Investigation) telephonically. In case he is not able to contact him, he should still issue the authorization under his statutory powers without loss of time. Such warrant of authorization may be communicated expeditiously. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(iv) The statement may be recorded in the language which the passenger understands. The statement should invariably be read to him before asking for his signature. He should be given full opportunity to go though the statement, questions as well as answers, before putting his signature and to make amendments under his signature if these is variation in what he said and what was recorded. It should be ensured that what is recorded is stated voluntarily without any coercion. At the end of the statement, the passenger should be requested to write in his own handwriting that it was given voluntarily and it recorded truthfully what was stated by him. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(v) The procedure regarding administering of oath may be duly followed. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(vi) The proceedings of enquiry and action may be completed as expeditiously as possible. In the course of these proceedings, the passenger should be provided drinking water, tea, snacks and food in case the passenger desires the same. He should also be provided medical assistance in case it is required. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(vii) In case the seizure involves bullion or jewellery the services of an approved valuer should be obtained expeditiously. For this purpose, while granting approval under section 34B of the Wealth Tax Act, the Chief Commissioners/Director Generals should put a condition that the approved valuer shall be available for providing his services at any time, at any place, at short notice and even at odd hours. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(viii) On the conclusion of the search, the passenger should be dropped at the place he wants to go in the government vehicle, if he makes a request on the ground of security etc. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(ix) The office would take adequate precautions and steps to ensure that enquiry/investigation undertaken at the airports is kept confidential and any premature disclosure to the media (print/electronic) is avoided. </font></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Supreme Court appreciated the efforts of the Solicitor General to find a solution to reduce the hardships of the travelling public without compromising the security/intelligence concerns. </font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=67&filename=notification/cbdt/2009/letter_01.htm" target="_blank">CBDT F.No. 286/140/2009-IT(Inv.II) Dated : November 18, 2009</a> and</strong> <a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=67&filename=notification/cbdt/2009/letter_02.htm" target="_blank"><strong>amendment Dated : November 30, 2009 </strong></a></font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Service Tax - Accounting Codes for new services – issued long ago, but kept a close secret </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>A</strong> leading lawyer sent us a mail on Monday. – “Has the Accounting code been issued for the new services, including legal services? The ST for the Quarter 31.12.09 has to be paid on or before 5th Jan? How to pay? Can you highlight this?”. The new services were effective from 1.9.2009 and there was no point in simply highlighting the issue now. We were eagerly waiting for the Principal Chief Controller of Accounts, to notify the accounting codes. But nothing came out of his office. Even the Board had no clue. Finally our research team came up with the “eureaka” – from the banks – yes the bank's e payment portal had the list of accounting codes for all services and it seems the codes were issued in September 2009 – only the Board and the Principal Chief Controller of Accounts kept it a closely guarded secret. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Neither the CBEC website nor the Principal Chief Controller's website provides the accounting codes for the new services. We were told by a top Revenue Official that the Principal Chief Controller has informed the banks the new codes. But why don't they inform the taxpayers? Or are they not important? </font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Anyway here are the codes for the new services: </font></p>
<table width="450" border="1" align="center" cellpadding="3" cellspacing="0">
<tr bgcolor="#CCCCCC">
<td valign="top"><p align="center"><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Service Name </strong></font></p></td>
<td valign="top"><p align="center"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Tax Code </strong></font></p></td>
<td valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Interest/Penalty Code </strong></font></p></td>
</tr>
<tr>
<td valign="top"><p><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>TRANSPORT OF COASTAL GOODS AND GOODS THROUGH NATIONAL WATERWAYS AND INLAND WATER </strong></font></p>
<p> </p></td>
<td valign="top"><p><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">00440470 </font></strong></p></td>
<td valign="top"><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">00440473 </font></strong></p></td>
</tr>
<tr>
<td valign="top"><p><font color="#666666" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>COSMETICS AND PLASTIC SURGERY SERVICE</strong></font> </p>
<p> </p></td>
<td valign="top"><p><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">00440460 </font></strong></p></td>
<td valign="top"><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">00440463 </font></strong></p></td>
</tr>
<tr>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>LEGAL CONSULTANCY SERVICE </strong></font></p>
<p> </p></td>
<td valign="top"><p><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">00440480 </font></strong></p></td>
<td valign="top"><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">00440483 </font></strong></p></td>
</tr>
<tr>
<td valign="top"><p><font color="#663366" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>TRANSPORT OF GOODS BY RAIL </strong></font></p></td>
<td valign="top"><p><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">00440390 </font></strong></p></td>
<td valign="top"><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">00440391 </font></strong></p></td>
</tr>
</table>
<p align="justify"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">WE</font></strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> are also giving a full list of all services and their codes as given by a bank. We request the CBEC and the Principal Chief Controller of Accounts to upload it in their websites so that more stake-holders are aware of this important information.</font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=wnew/service_tax_code.htm" target="_blank">Click here </a><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=wnew/service_tax_code.htm"> for the full list. </a></strong></font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Exchange Rates for January 2010 - Notified </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> CBEC has notified the rate of exchange of conversion for Imported Goods and goods for Export for the month of January, 2010.<a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=24&filename=notification/custom/2009/cnt09_174.htm" target="_blank"> <em><strong>Notification No. 174/2009-Cus.,(N.T.), Dated: November 26, 2009</strong></em></a> is superseded. </font></p>
<p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=24&filename=notification/custom/2009/cnt09_186.htm" target="_blank"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Notification NO. 186/2009-Cus., (N.T.), Dated: December 29, 2009 </strong></font></a></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Indian economy cannot sustain a high fiscal deficit for very long - FM </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>FINANCE</strong> Pranab Mukherjee said in Delhi yesterday that the Indian economy cannot sustain a high fiscal deficit for very long. However he added that it is still too early to pull out of the fiscal stimulus. “We shall have to strike a balance between the requirement of the economy and also the capacity of the economy to bear this level of fiscal deficit and borrowing”, he said. Fiscal prudence is necessary, borrowing cannot go on indefinitely. </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"> – Friday'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>Permission granted to clear goods without duty for processing – withdrawal of permission cannot be retrospective – High Court </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>IN</strong> the communication dated 6.1.1992 the Assistant Collector, Trichur, while withdrawing its earlier permission dated 7.10.1991, specifically stated that such withdrawal would take effect immediately and that the parties should apply to the Collector of Central Excise, for permission. Therefore, there can be no dispute nor can the first respondent or the other tyre manufacturer, viz., Apollo Tyres can be faulted for their action based on permission letter dated 7.10.1991 which was in operation between the date of issuance viz., 7.10.1991 and its withdrawal on 6.1.1992. </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>Sec 195 - Assessee books tickets for non-resident cruise tour company - remits sale proceeds of tickets after deducting commission - AO for TDS - since non-resident operates solely through agents and never touches any port in India, merely because tickets are booked for tour packages it cannot be said to have 'business connection' in India as per Sec 9(1)(i): ITAT </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>IN</strong> the present case services rendered by the assessee are general in nature as it s routine business activities and that cannot be interpreted to give colour of 'business connection as contemplated in sec. 9(1)(i) of the Act. In our opinion, it cannot be said that any income has been accrued to M/s. SCML in India in respect of the booking of tour packages of Cruise made by Assessee in India. </font></p>
<p align="justify"><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>Export obligation could not be fulfilled due to cyclone destroying unit – Interest on duty paid in terms of bond – Bond is a contract and contract is discharged where its performance becomes impossible. Revenue writ against Settlement Commission order dismissed – High Court </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>CAN Settlement Commission waive interest? </strong> Assuming that Settlement Commission has no power to grant immunity from the payment of interest but in the facts and circumstances of the case, the Settlement Commission has no power to enforce the contract which is already frustrated or which does not exist in the eye of law. </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="center"><font color="#006600" size="6" face="Verdana, Arial, Helvetica, sans-serif"><strong>Best Cartoon of the year</strong></font></p>
<p align="center"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><img src="http://www.taxindiaonline.com/RC2/image/stories/ddt_31dec.jpg" alt="Legal Corner Icon" width="329" height="287" hspace="5" border="0" align="center"></strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>A Netizen sent us this cartoon </strong></font></p>
<p align="justify"><strong><font color="#663399" size="5" face="Verdana, Arial, Helvetica, sans-serif">Wish you a very</font><font size="5" face="Verdana, Arial, Helvetica, sans-serif"> <font color="#FF6633" size="6">H</font><font color="#FF6633">APPY</font> <font size="6">N</font>EW <font color="#999999" size="6">Y</font><font color="#999999">EAR</font></font></strong></p>
<p align="justify"><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Until Tomorrow with more <strong>DDT </strong> in the <strong>NEW YEAR </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>