Jurisprudentiol – Friday's cases

By Vijay Kumar

Legal Corner Icon — the image was hosted by the publisher and was not captured.Central Excise

Whether discounts actually passed on to buyer - Respondents have discharged their onus by filing the CA certificate certifying their claim of discount, freight and insurance - Since Revenue has no evidence to controvert same, abatements are to be allowed: CESTAT

REVENUE is in appeal against the impugned orders wherein both the lower authorities allowed the post manufacturing expenses as deduction with regard to Trade discount and Additional discount, insurance and transportation charges as per Chartered Accountant Certificate.

Income tax

Whether when assessee, a registered Trust, fulfils requirements of Sec 10(23FB) and also meets conditions of SEBI Regulations, can be treated as venture capital fund - YES, rules Tribunal

ASSESSEE is M/s Gujarat Information Technology Fund (a venture capital fund) and is constituted under a trust deed executed by Gujarat Venture Finance Ltd. on 21.3.2000 with initial corpus of Rs.5 lacs. The main object of the fund was to obtain capital growth by making investments in the concerns engaged in information technology sector or related business. During the year under consideration the assessee has earned substantial income from interest and claimed it to be exempt- AO while completing the assessment observed that assessee was not infact a venture capital fund per se and hence interest income of it, is taxable under the head income from other sources

Customs/Port

No permission required from Customs for clearance of containers from Port – Port Trust cannot demand charges beyond 75 days: HC

THE stand taken by the Port Trust authorities in deferring the sale process on a plea that since the cargo was not abandoned either by the consignee or by the line operator and further since the necessary permission was not obtained from the Customs authority for sale of the said cargo, the Port Trust authorities were unable to take steps for sale of the said cargo, was contrary to law and as such the Port Trust authority cannot penalise the Line operator by demanding payment of demurrage for stay of the containers in the port area beyond 75 days for no fault on the part of the Line operator.

See our columns Tomorrow for the judgements