Jurisprudentiol – Thursday's cases

By Vijay Kumar

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

Market Research for foreign parent company - Not covered under Management Consultancy Service before 2007: CESTAT

BY the Finance Act, 2007, the definition of "Management or business consultant" was substituted. In the substituted definition of 'Management or business consultant", the services rendered in respect of marketing was specifically brought into definition. Both sides could not produce anything to indicate that this definition was with retrospective effect. In the absence of any evidence, the substituted definition could be only perspective.

Income Tax

Whether when assessee declares higher profits in revised return filed after detection of concealment, penalty u/s 271(1)(c) is warranted - YES, ITAT Third Member

SEARCH & seizure operation u/s. 132 of the Act was conducted on 24/1/2005 in Ritwika Group of companies. The assessee, was one of the associates of the group and proprietor of M/s. Ritwika Creations. The assessee dealt in wholesale saree business. During the search action, some documents were found and impounded. In response to notice issued u/s. 153A of the Act, the assessee filed return showing income of Rs.2,11,297/- without disclosing any unaccounted income, which was also the total income declared by the assessee in the return filed u/s. 139(1) of the Act. On the basis of the seized documents, the A.O. made enquiries during assessment proceedings and issued show-cause notices on several occasions to the assessee requiring her to explain, inter alia, as to why purchases made from about 20 parties should not be treated as bogus; the books of account should not be rejected and the expenses recorded in the seized documents should not be treated as unexplained expenditure.

Customs

Import of raw materials for export under QBAL Scheme cannot be subjected to anti-dumping duty; Once it is held that there is no dumping, there is no question of retaining Provisional anti dumping duty: HC

THE purpose of introducing the EXIM Policy is to accelerate the economic growth to derive maximum benefits from the expanding global market opportunities. In giving a stimulus to sustain the economic growth, the Government thought it fit to provide access to essential raw materials, intermediates, components, consumables and capital goods required for promoting production. The object of this policy, hence, could be achieved only through the coordinated efforts of all the Departments of the Government, in general. As enunciated in the Policy, given the objective as stated above, the various Wings of the Government must act with a shared vision and commitment to facilitate better export promotion.

See our columns Tomorrow for the judgements