Jurisprudentiol – Wednesday's cases

By Vijay Kumar

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

Whether amendment brought out by Finance Act, 2010 to Sec 40(a)(ia) is remedial and curative in nature, and is therefore retrospective in operation - NO, rules ITAT SB

THE assessee is a company engaged in the business of manufacturing of medium-sized ships, barges, tugs etc. A note to the computation of income was attached by the assessee stating that the provisions of section 40(a)(ia) were directory and not mandatory. The AO noted that the assessee failed to deposit tax deducted at source within the specified time. On being show caused, it was stated that the amount of tax deducted at source was paid before the filing of return of income u/s 139(1) of the Act and hence no disallowance of expenses was called for u/s 40(a)(ia). Not convinced, the Assessing Officer made disallowance u/s 40(a)(ia).

Central Excise

Physician Samples - Valuation on transaction value is correct - Appeals allowed: CESTAT

PHYSICIAN Samples manufactured and cleared to brand owners/buyers on principal to principal basis for a consideration and which are further distributed/delivered by the buyer free of cost to physicians/doctors – Valuation on transaction value is correct.

Service Tax

Granting refund to exporters on taxable services that he received and used for export does not require verification of registration certificate of supplier of service - Appeals allowed with consequential relief: CESTAT

THE appellants have exported excisable goods falling under chapters 51 & 55 of the CETA, 1985 to various countries. In pursuance of Notification no. 41/2007-ST dated 6.10.2007 they filed claims for refund of service tax paid by them on various specified services used in relation to goods exported out of India.

FTP

Export of cotton yarn - Challenge to DGFT Circular No17(RE-2010) fails - HC of Calcutta rules that conditions and modalities for fixing quota prescribed vide said circular did not amount to amendment of FTP

CIRCULAR lays down the condition that the exporters with export of cotton yarn in the previous financial year alone will be granted quota - The selection of existing exporters who continued with export till 2009-10 is neither arbitrary nor discriminatory nor violative of Article 14 of the Constitution of India - The Circular lays down the matters of detail within the existing policy, which do not amount to amendment of the Foreign Trade Policy.

See our columns Tomorrow for the judgements