Jurisprudentiol – Monday's cases

By Vijay Kumar

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

Imports under Target Plus - Broad nexus with export product - CBEC Circular dated 8th May 2007 is ultra vires Foreign Trade Policy - Bombay HC

CBEC Circular dated 8th May 2007, clarifying that imported goods are required to be used as an input in the product exported for which TPS benefit is sought is ultra vires the Foreign Trade Policy - Paragraph 3.7.6 of the FTP, does not incorporate a requirement that the goods which are imported as inputs must find physical incorporation in the export products in relation to which the benefit of the Target Plus Scheme is claimed.

Income Tax

Whether income assessed by applying Sec 69C is available for deduction under Sec 10(23C) - NO, says ITAT

ASSESSEE, a Trust, is engaged in dissemination of education. It filed its return of income without showing rent paid in cash to landlord. During search on landlord and consequent survey on assessee, assessee filed revised return of income disclosing these expenses. AO took the view that they were the expenses met out from undisclosed sources, and accordingly he made addition. The CIT(A) allowed the appeal of the assessee. On appeal to the ITAT the DR pointed out that assessee had deliberately concealed these expenses in order to hide its cash income.

Central Excise

Remission of Duty - Goods lost in fire - Issue is whether fire was avoidable or not avoidable - Denial of remission set aside: CESTAT

THE main reason for denial of remission of duty by the adjudicating authority was that the fire was avoidable. But going through the case records and independent reports by all the five authorities, who found that the fire occurred due to unavoidable circumstances, therefore, no reason for denial of claim of remission of duty. Accordingly, the order of denial of remission of duty is set aside and the claim of remission of duty is allowed.

See our columns Monday for the judgements