Jurisprudentiol – Monday's cases

By Vijay Kumar

Legal Corner Icon — the image was hosted by the publisher and was not captured.Central Excise/Service Tax

Bereavement in Consultant's family a sufficient cause for condoning delay in filing appeal - COD application allowed and matter remanded to Commissioner(A) with a direction to hear appeal on merits: CESTAT

ALTHOUGH these appeals were filed within the condonable period of delay of 30 days prescribed under the proviso to sec. 35 of the Central Excise Act, 1944, the Commissioner(Appeals) refused to condone the delay by observing that the reason for delay stated by the appellants was not supported by any evidence. Inasmuch as the reason stated was that the father of the appellants' consultant was seriously ill during the material period and passed away.

Income Tax

Income tax – penalty - even when AO has not recorded his satisfaction in explicit terms, assessment orders should indicate that AO had arrived at such a satisfaction. Tribunal is not correct in holding that since expenditure was arrived at on estimation, penalty cannot be imposed. Claiming excessive deductions also amount to concealment of income: High Court

THE respondent/assessee is a company engaged in the business of providing consultancy services. Consultancy services were provided to some foreign clients from whom the appellant earned foreign exchange. To the extent, any expense is incurred in foreign currency, the same is reduced from the foreign consultancy income and deduction under Section 80-O of the Act claimed @ 50% of the net foreign consultancy income. No expenses incurred in India are allocated/apportioned to earning of foreign consultancy income.

Customs

Customs – Demand without Show Cause Notice - no law permits Revenue to twist arms of importer - ‘be you ever so high, laws are above you'. Every holder of a statutory office is a trustee to whom statutory powers are entrusted. His highest duty is to follow mandate of statute.- cost awarded: High Court

THE High Court reminded the officers of the department that every holder of a statutory office is a trustee to whom statutory powers are entrusted. His highest duty is to follow mandate of the statute. Therefore, every holder of a statutory office must discharge his duty without bias and ill will. In modern society, no authority can arrogate to itself the power to act in a manner which is arbitrary. Every State action or action of the statutory authority, in order to survive, must not be susceptible to the vice of arbitrariness which is the crux of Article 14 and basic to the rule of law the system which governs us.

See our columns Monday for the judgements