Jurisprudentiol – Tuesday's cases
Legal Corner Icon — the image was hosted by the publisher and was not captured.Service Tax
Prior to amendment in 2006 Companies were not included under definition of consulting engineer. Works Contract only from 1.6.2007 - High Court
FROM the combined reading of the definition of Consulting engineer prior to 2006 and after 2006, it is clear to the Court that the service rendered by the Company had not been included under the definition of consulting engineer prior to 2006 as it stood under Section 65(13). As a matter of fact, this Court has decided the said point in CEA 12/2007 on 1st April 2010 - stating that prior to the Amendment Act, 2006, the Companies were not included under the definition of consulting engineer.
Income Tax
Writing off of credit balances - assessee writes off liability of term loan in nature of cash credit used for day to day operations - Sum is taxable if credited to Profit & Loss Account: ITAT
THE issue relating to writing off of credit balances is - Whether in view of the decision of Supreme Court in the case of T.V.Sundaram () a receipt when credited to P&L account changes its character and hence the AO was justified in taxing the benefit arising to an assessee who has written off his outstanding liability of term loan in the nature of cash credit limit used by the assessee for day to day operations. .
Customs
Department can invoke Bank Guarantee when notification conditions are not fulfilled – High Court
WHERE advance licenses were obtained by misrepresentation without even having manufacturing facilities, the Customs Department would be justified in initiating action and no error in invoking the Bank Guarantee.
Until Tomorrow with more DDT
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