Jurisprudentiol – Thursday's cases

By Vijay Kumar

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

Whether Revenue can have any legitimate grievance when CIT(A) suomoto issues SCN for enhancement of income but does not do so after an inquiry - NO, rules ITAT

THE issues before the Tribunal are - Whether Revenue can have any legitimate grievance when CIT(A) suomoto issues SCN for enhancement of income but does not do so after inquiry and whether when AO has not made any disallowance with respect to tax-free income, CIT(A) is right in invoking provisions of Sec 14A. The answer to the first question goes in favour of the assessee and the second is remanded.

SEZ

Development Commissioner has no power to appoint and terminate Custodian; only Customs Commissioner has the power to appoint Custodian: HC

THE power under section 45 of the Customs Act is specifically conferred on the Commissioner of Customs, who is the only authority in whom the power of appointing a custodian under sub-section (1) thereof is vested. section 12 of the SEZ Act does not empower the Development Commissioner to appoint a custodian under section 45 of the Customs Act, inasmuch as the powers under the Customs Act are required to be expressly assigned to the Development Commissioner under clause (e) of sub-section (2) of section 12 of the Act.

Service Tax

TDS? Tax paid by service recipient instead of provider - Demand and penalty quashed: CESTAT

IN this case the service tax liability and interest have has been discharged, though not by the service provider but by the person who received the service. So there are technical violations of the relevant laws. However considering that these difficulties were caused due to the improper stand of a Government Company, a lenient view is taken in the matter. Since all duties have been remitted into the treasury as per submission of the Appellant the related demands made in the impugned order are waived. Further invoking the provisions of section 80 of the Finance Act, 1994 all penalties imposed in the impugned order dropped.

See our columns Tomorrowfor the judgements