Jurisprudentiol - Friday's cases

By Vijay Kumar

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

Business Support Services - Freight and Terminal Sharing from Railways;providing of vacant land with facilities to get water connection and electricityconnection;-Not BSS: CESTAT

THE Railways operates the said railways and after recovering all the operation cost, pays balance amount to the investors. Admittedly, the payment is the cost of investment made by the private parties. As such, it cannot be said that such consideration paid by the railways is towards service of providing infrastructural facilities to the railways.

Income Tax

Income tax - Whether loss arising on account of reduction in share capital can be subjected to provisions of Sec 45 and thus such notional loss can be allowed as capital loss - NO, rules ITAT Special Bench

THE issues before the Special Bench were - Whether the loss arising on account of reduction in share capital can be subjected to provisions of section 45 r.w.s. 48 and, thus, such loss can be allowed as capital loss; Whether notional loss or income can be subjected to the provisions of the Income Tax Act and whether assessee’s rights can be said to have been extinguished upon reduction of share capital for the purpose of charging under capital gains. NO is the Tribunal's answer.

Central Excise

Classification of Treated Tamarind Powder - CESTAT ought to have considered whether by the process of treatment the Tamarind Kernel Powder has undergone achange-Supreme Court remands the issue.

THE CESTAT ought to have considered whether by the process of treatment the Tamarind Kernel Powder has undergone a change when TPT-12 is manufactured and sold as a marketable commodity. However, the CESTAT has not answered this issue. This is a primary issue which should have been considered and answered by the CESTAT. The CESTAT is the last finding authority on the question of fact. Therefore, the matter requires to be remanded to the CESTAT for a fresh determination of the issue which it had raised for its consideration.

Saraswati namastubhyam varade kaamarupini vidyaarambham karishyaami siddhirbhavatu me sadaa.

See our columns Friday for the judgements