Jurisprudentiol – Friday's cases

By Vijay Kumar

Legal Corner Icon — the image was hosted by the publisher and was not captured.Income Tax

If the business of an assessee is indivisible in nature, then expenditure cannot be disallowed; assessee cannot be penalised for following RBI instructions: ITAT

THE assessee is bound to follow the RBI guidelines and secondly the same method of account was being followed by the assessee consistently which was always accepted by the revenue. Since the assessee is bound to follow and has only followed the RBI guidelines, the reversal of the entry cannot be faulted with.

Central Excise

Clearance of Parts and accessories of Arms and ammunition without payment of Special Excise duty - Confusion in Budget Speech resulted in such non-payment – No ingredients for imposition of penalty u/s 11AC of CEA, 1944 : CESTAT

WHEN goods are not available or had not been cleared under bond, redemption fine cannot be imposed – Appeal allowed.

THE appellants were diligent in their duty to discharge duty liability and due to the confusion of the Budget speech made by the Finance Minister during the Budget they could not pay the duty in time. Moreover, they made it clear to the department through their monthly returns. The department did not ask them for the same. Moreover the appellants sought clarification from the office of the Finance Minister to this regard and they have discharged duty when they came to know of the same.

See our columns Tomorrow for the judgements