Jurisprudentiol – Wednesday's cases

By Vijay Kumar

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

Income tax - Whether, for purpose of applying indexation of costs, year in which previous owner had acquired property is to be considered as relevant year for computing capital gains - YES, rules ITAT

THE issues before the Tribunal are - Whether, for the purposes of applying Indexation of costs, the year in which the previous owner had acquired the property is to be considered as the relevant year and whether in view of the fact that the fair market value has not been calculated in a fair manner, a reasonable estimate is justified to end the matter. Another question before the Bench is - Whether Department can take contrary stand for estimating FMV by enhancing the FMV when it is question of determination of sale consideration and by reducing the same when it is question of determination of LTCG. And the decision partly goes in favour of the assessee.

Service Tax

Service Tax – Liability to pay service tax on spare buses having spare bus permits – Carriages which run under public transport system where passengers have a right to board or alight according to their choice and pay fares for journey individually, do not fall under definition of ‘tourist vehicle’ under section 2(43) of Motor Vehicles Act: Madras High Court

THE petitioners filed Writ Petitions in the High Court which raises a common question as to whether the petitioner, a stage carriage operator having a spare bus permit is liable to be brought under the tax net for payment of service tax in respect of such spare bus.

Central Excise

Sales Tax deferment Scheme under Tamilnadu General Sales Tax Act, 1959 – Circular issued under Section 28A of TNGST Act is binding on the adjudicating authority – Supreme Court

THIS is a case involving deferment scheme under Tamilnadu General Sales Tax Act, 1959. In order to promote the industry in specified areas, State Industries Promotion Corporation of Tamilnadu launched a sales tax deferment scheme and the relevant provisons of the GO ...

See our columns tomorrow for the judgements