Jurisprudentiol – Thursday's cases

By Vijay Kumar

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

Appeal rejected by CESTAT as not maintainable but Jt. Secretary, GOI holding that application is beyond jurisdiction – application filed belatedly for restoration of appeal – delay explained satisfactorily – ROA application allowed: CESTAT

AS per Section 129A(a) of the Customs Act, 1962, the appeal is maintainable before this Tribunal. The appellant has explained the reasons for causing the delay in filing for application in the restoration of appeal and the same are satisfactory. Hence, both miscellaneous application for condoning the delay and the application for restoration of appeal are allowed. The registry is directed to restore the appeal at its original number.”

Income Tax

Sec 80IA - Deduction to be computed on profits from eligible business and not on basis of sum invested in plant and machinery like telephone exchanges

SECTION 80IA has over the years become one of the most disputed sections like Sec 80HHC of the I-T Act. The issue in the present dispute is - Whether deduction is to be computed on the profits of the eligible business and not on the basis of the amount invested in plant & machinery in the form of telephone exchanges. Whether in view of the fact that after 1995 MTNL has underwent tremendous changes, the AO was not justified in restricting the deduction u/s 80IA alleging that the assessee has simply modified its earlier set-up and also generating income from old set-up.

See our columns Tomorrow for the judgements