TIOL-DDT 1549 · 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 1549</font><br>
14.02.2011<br>
Monday </strong></font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">CBDT Extends Time Limit for Filing ITR-V Forms to 31 July 2011 </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>RULE</strong> 12(3)(iii) of the Income-tax Rules, 1962 provides that any assessee can file a return of income electronically without the use of a digital signature. Once a return of income is filed electronically on successful transmission of the data, Form ITR-V duly filled shall be generated by the Income-tax Department's server to the assessee. This ITR-V will also contain the acknowledgement number of electronic transmission and the date of the transmission as an evidence of filing for the benefit of the assessee. The assessee is required to download a copy of such duly filled Form and verify under his signature in the space provided. In case the return was prepared by a Tax Return Preparer (TRP), the particulars of TRP be also filled and this verification form be countersigned by the TRP. The assessee should print out two copies of Form ITR-V. One copy of ITR-V, duly signed by the assessee, has to be sent by ordinary post to Post Bag No. 1, Electronic City Office, Bengaluru–560100 (Karnataka). The other copy may be retained by the assessee for his record.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now the CBDT has extended the last date for filing this ITR-V for the AY 2010-11 (FY 2009-10), till 31st July 2011 or within a period of 120 days from the date of uploading of the electronic return, whichever is later. CBDT has done this to mitigate the hardship and grievances of the tax payers who have been prevented by reasonable causes to file the ITR-V in time. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In our Post-Budget Seminar in Hyderabad in 2009, a delegate asked the then Member CBDT, Mr. Khan, what he should do if the CPC at Bengaluru does not get the ITR-V sent by ordinary post. He said, “please send it again.” </font></p>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=wnew/press_release_225_2010.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CBDT Order under Section 119(2)(b) in F. No. 225/25/2010/ITA.II Dated: February 10, 2011.</font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Longer Foreign Jaunt for IRS (Income Tax) Probationers </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> IRS(Income Tax) Probationers undergoing training at the National Academy of Direct Taxes, Nagpur had requested the Chairman, CBDT to increase the period of their foreign attachment. Their request is engaging attention. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Chairman, CBDT has started issuing communications to his staff – <strong><u>“From the desk of the Chairman, CBDT”</u></strong>, and the above information was given by the Chairman in his latest communique. </font></p>
<p><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><a href="http://www.taxindiaonline.com/RC2/pdfdocs/wnew/CBDT_04.pdf" target="_blank">From the desk of the Chairman, CBDT - S.N. 4/Feb 12, 2011 </a></font></strong></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Cadre Review for Income Tax cleared by FM - What About CBEC? </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> CBDT
Chairman also informs that the proposal of Cadre Restructuring, after the
approval of Union Finance Minister, has been sent to DoPT. He says he understands
the agony of the officers awaiting their promotions for a long time. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">What is the position in CBEC? There are Inspectors and Superintendents waiting for that promotion with nearly 20 years of stagnated service in the same cadre. </font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">No Drawback on Milk Products</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> Government has amended the Drawback Rules, to stipulate that no drawback shall be determined on milk products falling under heading 0401 to 0406. </font></p>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=24&filename=notification/custom/2011/cnt11_009.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Notification No. 9/2011-CUSTOMS (N.T.), Dated: February 10, 2011 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Nil Rate of Drawback on Milk Products</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> Government has amended Notification No. 84/2010 – Custom (N.T.) dated 17th September, 2010, to stipulate that drawback rates shall be ‘nil' on milk products falling under heading 0401 to 0406. </font></p>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=24&filename=notification/custom/2011/cnt11_010.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Notification No. 10/2011-CUSTOMS (N.T.), Dated: February 10, 2011 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Onion Exports - Exemption for export of Bangalore rose onions and Krishnapuram onions </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> Government has stipulated that export of Onions (all varieties except Bangalore Rose onions and Krishnapuram onions) excluding cut, sliced or broken in powder form shall be prohibited and export shall not be allowed. In case of Bangalore Rose onions and Krishnapuram onions excluding cut, sliced or broken in powder form, the export shall be ‘restricted' and allowed under licence subject to Minimum Export Price(MEP) of US$ 1400 per Metric Ton. </font></p>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=45&filename=notification/dgft/2010/dgft10not019.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Notification No. 19 (RE–2010)/2009-2014, Dated: February 10, 2011 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Prohibition on Export of Non-basmati Rice - exemption for Sona Masuri, Ponni Samba and Matta rice </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>CERTAIN</strong> verities of rice (Sona Masuri, Ponni Samba and Matta) are permitted to be exported with a limit on quantity of export. </font></p>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=45&filename=notification/dgft/2010/dgft10not021.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Notification No. 21 (RE–2010)/2009-2014, Dated: February 10, 2011 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Anti Dumping Duty on Cellophane Transparent Film - Extended Before Expiry </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> anti dumping duty on Cellophane Transparent Film originating in, or exported from People's Republic of China was imposed with effect from 30th March 2006 and is to expire on 29th March 2011. This time around the CBEC woke well in time and extended the duty till 30th November 2011. It is heartening to see the Board extending the validity of a notification before its death. This would avoid a lot of confusion at the ports and there would be some clarity as to the rate of duty at the time of import. </font></p>
<p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=23&filename=notification/custom/2011/ctariff11_005.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Notification No. 5/2011-Cus., Dated: February 7, 2011 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Anti Dumping Duty on Barium Carbonate - Yet another Resurrection </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> Government had imposed provisional anti dumping duty on Barium Carbonate originating in, or exported from, People's Republic of China, vide Notification No. 37/2010-Customs, dated the 23rd March, 2010. This Notification very clearly stated that the anti dumping duty imposed under this notification shall be effective up to and inclusive of the 22nd day of September 2010. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now the Government has imposed definitive anti dumping duty on this product for a period of five years from date of imposition of the provisional antidumping duty, that is, the 23rd March, 2010. For nearly five months, there was no anti dumping duty on this product and now the government has imposed it with retrospective effect. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">If somebody in the Board sleeps, the importer suffers. </font></p>
<p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=23&filename=notification/custom/2011/ctariff11_006.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Notification No. 6/2011-Cus., Dated: February 7, 2011 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Yes Minister – I gave you three copies </font></strong></p>
<p align="justify"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">AN</font></strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> Indian Minister was invited to address a science conference for 15 minutes. The Minister asked his Secretary to prepare a 15 minute speech, which he did and gave to the minister. At the conference the minister spoke for 45 minutes much to the discomfort of the scientists. After the speech was over the President of the conference expressed his protest and told the minister that he had exceeded his time very badly and this has irked the scientists. The minister was clearly embarrassed and shouted at the Secretary when they reached the office. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The good babu had a ready excuse. He said, “Sir as usual, I gave you the speech in triplicate and you read all the three copies” </font></p>
<p align="justify"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">SM Krishna's Best Speech </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">SM Krishna, our beloved External Affairs Minister recently delivered the best speech in his life in the UN Security Council – but there was a minor hitch – the speech was written by/for the Portuguese Foreign Minister, who had already delivered that speech. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Why didn't the scientists realize that the minister was reading his speech all over again? The simple fact is that when a minister speaks, nobody really listens – the scientists must have been playing Sudoku. The situation in the UN Security Council is the same – rather worse. Most of the members don't understand the language of the other members – so they just sit there and listen politely! </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Our own VK Krishna Menon holds the record for the longest speech in the United Nations – he spoke for nearly eight hours! And in those days there was no translation facility. Atal Behari Vajpayee once spoke in the UN in Hindi. Hindi or Hebrew – the fact is nobody listens. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">SM Krishna could have continued reading out the Portuguese Minister's speech without any one realizing it – but our bureaucrat spoiled the show by pointing out the mishap. Now if any body is going to be punished for this lapse – it will be a babu for not putting up the right speech for the Hon'ble Minister. </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"> – Tuesday's cases</font></strong></font></strong></font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><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"><font color="#663399"><strong>Service Tax</strong></font></font></p>
<p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Commercial or Industrial Construction Service - Laying of pipelines for water supply projects run by Gujarat Water Supply and Sewerage Board, not leviable to tax – NCC case (<font size="1"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=44&filename=legal/cestat/2010/2010-TIOL-789-CESTAT-BANG.htm" target="_blank">2010-TIOL-789-CESTAT-BANG</a></font>) – followed: CESTAT </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> purpose of buying water and bringing it from Narmada Dam was not for selling it, but for supplying it to needy people. In this case, buying and selling is incidental. The purpose is supply of water to the needy citizens of the State. The term used "for commerce" would mean that only purpose would be buying and selling, which is definitely not the case here. The term used "primarily for commerce" would mean that primary purpose should be buying and selling and the other purposes also may be served incidentally. In this case, purchase and sale of water are incidental and the main purpose is supply of water to needy citizens of the State. </font></p>
<p align="justify"><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">Income Tax</font></strong></p>
<p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Whether when assessee borrows funds at high interest rate from sister concern and invest same in another sister concern which yields low dividend, AO is right in questioning wisdom of assessee's decision, and is justified in disallowing interest expenditure - NO, rules High Court Full Bench </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> issue before the Full Bench of the HC is - Whether when assessee borrows funds at high interest rate from sister concern and invest the same in another sister concern which yields low dividend, AO is right in questioning the wisdom of assessee's decision and, therefore, is justified in disallowing the interest expenditure. And the full bench answer is NO. </font></p>
<p align="justify"><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">Central Excise</font></strong></p>
<p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Goods should be assessed in stage in which they are removed - all through out, stand of department is to include Erection & Commissioning charges and value of bought out items: CESTAT</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> department initiated proceedings against the respondent for including the erection and commissioning charges and value of bought out items in the assessable value of the product, which emerges at the customer's site. Accordingly, a show-cause notice for demanding differential duty along with proposal for penal action was issued against the assessee and the Director. </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="justify"><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Until Tomorrow with more <strong>DDT</strong></font></p>
<p><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Have a Nice Time. </font></p>
<p><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"><strong> <a href="mailto:vijaywrite@taxindiaonline.com">vijaywrite@taxindiaonline.com </a></strong></font></p>
</body>
</html>