Jurisprudentiol -Monday's cases

By Vijay Kumar

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

Pre-deposit order of Tribunal - Remand by a Division Bench - Another Division Bench does not agree with remand - Matter referred to Larger Bench: HC

WITHOUT entering any finding, even prima facie, at this stage the Division Bench remanded the matter back to the Tribunal. Ordinarily in a matter such as the present, a Division Bench of this Court would be inclined to follow the view taken by a coordinate Bench particularly at the interim stage on an application for waiver of predeposit. The Revenue implications for the Union Government are significant. Larger Bench to consider whether the remand order passed by Division Bench needs reconsideration.

Income Tax

Whether when assessee sells out old flat and buys new one after receiving full consideration, Sec 54 benefits cannot claimed if registration of sale deed of old flat was delayed more than one year - NO, benefits are available: ITAT

ASSESSEE, owner of a flat, sold out the same and purchased a new flat within one year of transfer of the old flat - claimed deduction under section 54 of the Income Tax Act in respect of capital gains arising on the transfer - During the course of assessment proceedings the AO observed the deed of transfer in respect of old flat was registered after few months of the completion of one year and hence he denied the claim of section 54 - CIT(A) affirmed the order of AO - Appeal was filed in the Tribunal.

Service Tax

'Raw water reservoir' and 'ash dyke' cannot be equated with a dam, not exempted from levy of service tax - Pre-deposit of Rs. 75 lakhs ordered: CESTAT

A taxing entry brought to the statute book at a later stage does not mean that legislature is prevented to tax an activity in terms of a former entry embracing an activity defined by law for taxation. When the work executed by the appellant could not be held as "dam"constructed, the appellant lost exemption. Service tax is not commodity taxation. The authorities have taxed the service, which was taxable under law for the time being in force.

See our columns Monday for the judgements