Jurisprudentiol – Thursday's cases

By Vijay Kumar

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

Money Transfer from abroad - whether Export or Service rendered in India - Matter referred to Third Member: CESTAT

ARE the provisions of Export of Service Rules, 2005 and Circulars issued by CBEC clarifying the scope of the said Rules in conflict with the theory of equivalence; Whether the issue as to what constitutes export of services is to be determined with reference to provisions in Export of service Rules, 2005 only?; Whether the destination of the impugned service to be determined on the basis of location of the consumer of the service in India or the location of the person abroad who requested for the service to be provided in India; Whether the amounts paid to sub-representatives is excludible from the value of taxable service.

Income Tax

Whether deduction u/s 80HHE is to be worked out before computing book profit u/s 115JA or on basis of profits computed under regular provisions of Income Tax - Apex Court upholds Special Bench decision in Syncome Formulations and rejects Revenue's SLP

ASSESSEE filed its return of income for assessment year 2000-01. Assessee claimed deduction under Section 80HHE to the extent of Rs.1,56,33,719/- against net profit as per profit and loss account amounting to Rs.3,07,84,105/- to arrive at the book profit of Rs.1,51,50,386/- under Section 115JA. AO rejected the claim on the ground that since in normal computation there is no profit after carry-forward loss, deduction under Section 80HHE was not admissible. The issue before the Bench is - Whether deduction u/s 80HHE is to be worked out before computing the book profit u/s 115JA or on the basis of profits computed under regular provisions of the I-T Act. And the decision goes in favour of the assessee.

Central Excise

Central Excise - Refund claim under Notification No. 33/99-CE may be decided based on monthly returns filed by assessee: CESTAT

WHEN appellant filed RT-12 returns with the lower authority claiming benefit of Notification No. 33/99-CE, the refund claims may be decided on the basis of returns filed by the appellant and that the filing of a statement under the Notification was only procedural in nature.

See our columns Tomorrow for the judgements