Jurisprudentiol – Friday's cases
Legal Corner Icon — the image was hosted by the publisher and was not captured.Income Tax
Whether any income of VC Company or fund set up prior to 2007 to raise funds for investment is exempt under Sec 10(23F) - Yes, rules ITAT
THE issues before the Tribunal are - Whether any income of venture capital company or fund set-up, prior to 2007, to raise funds for investment is exempt under section 10(23F) and whether amendment vide Finance Act 2007 restricting the scope of deduction only to income generated from investment by venture capital fund in venture capital undertaking is prospective and not clarificatory. And the verdict goes in favour of the assessee.
FEMA
FERA Violation - Appeal filed under FEMA after abolition of FEMA - High Court cannot condone delay beyond 60 days - HC
INTERPRETING similar provisions contained in the Central Excise Act, 1944, the Apex Court in the case of M/s. Singh Enterprises V/s. CCE reported in () held that where the statute bars appeal beyond sixty days, the Court cannot condone the delay and entertain the appeal filed beyond sixty days. In the present case, since the appeal is filed beyond 120 days, the High Court cannot condone the delay and consequently, the appeal would be time barred. the appeal filed by the applicant against the decision / order of the Appellate Tribunal dated 18/8/2009 being an appeal filed under Section 35 of FEMA would be subject to the limitation prescribed thereunder. Under Section 35 of FEMA, this Court can condone the delay, not beyond 60 days.
Central Excise/Service Tax
Although appellant, a PSU, does not have mala fides to avail excess credit but since they have contravened provisions of law by taking excess credit, penalty is imposable: CESTAT
DR submitted that in the eyes of the department, every assessee is on equal footing. No special treatment has to be given to the public sector undertaking. Their officers may have committed the mistake with an intention to get reward from their higher au thorities. Therefore, the appellants are to be penalized.
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