Jurisprudentiol – Tuesday's cases

By Vijay Kumar

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

Revocation of CHA licence - Whether Commissioner has to power to disagree with findings of Enquiry Officer - Matter referred to Larger Bench: HC

THE judgment to the effect that the Commissioner of Customs has no power to differ with the report of the Enquiry Officer requires reconsideration. As a matter of first principle, an authority which is vested with the power under a statutory regulation to take a final decision on the basis of an enquiry to be conducted by another authority subordinate to the authority in whom the power to decide is vested, is entitled to differ with the findings which are arrived at by the enquiring authority.

Income Tax

Whether merely incurring expenditure and paying by account payee cheques apart from deducting tax at source on such payments are not enough to claim an expenditure as revenue expenditure - Yes, rules ITAT

THE questions before the Tribunal are - Whether merely incurring business expenditure and paying by cheque apart from deducting tax at source on such payments are not enough to claim business expenses; Whether assessee is required to establish that such expenses were incurred wholly and exclusively for the purpose of business; Whether interest paid on capital can be disallowed notionally ignoring that no disallowance was made in earlier year in which such advances were made and the assessee had sufficient interest free funds and whether failure to attend proceedings before AO attracts penalty for non-appearance. And the verdict partly goes against the assessee.

See our columns Tomorrow for the judgements