TIOL-DDT 1611 · Thursday, 19 May 2011

Jurisprudentiol – Friday's cases

Rule ZQ - Penalty has to be equal to the duty - No discretion: Supreme Court

IF there is any failure to pay the amount of duty by the date specified in sub-rule (3), the assessee is liable to pay penalty equal to an amount of duty outstanding from him at the end of such month or Rs.5,000/-, whichever is greater. The expression 'shall' used in the said provision, also indicates that such a provision is mandatory. The same view is also taken in the decision of this Court in Union of India and others v. Dharamendra Textile Processors and others ().

Sec 263 - Whether when assessee lends colour of business income to dividend income declared as 'income from other sources' in previous year, and AO allows set-off of brought forward losses against such income, it is a fit case for CIT to invoke revisionary powers - YES, says Delhi High Court

THE issue before the High Court is - Whether when assessee lends colour of business income to dividend income declared as 'income from other sources' in the previous year and AO allows set off of brought forward losses against such income, it is a fit ground for CIT to invoke revisionary powers u/s 263. YES is the High Court's answer.

One Statement retracted but penalty imposed on the basis of un-retracted statement and corroborative evidence - Penalty Upheld: High Court

TRIBUNAL has come to a specific finding that the appellant herein had issued airway bills; he had acted as an agent of the 5 concerns which were owned by Sh. Tejwant Singh; he played his role on specific instructions of Sh.Tejwant Singh; and he was dealing with the Customs Officers in respect of export of these very goods. The Tribunal is thus categorical that the appellant was connected with the procurement of the goods by the exporters and there were other statements and sufficient material to implicate the appellant.

See our columns Tomorrow for the judgements

Until Tomorrow with more DDT

Have a Nice Time.

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