Jurisprudentiol – Wednesday's cases

By Vijay Kumar

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

Kar Vivad Samadhan - Not applicable to cases where Notice issued after 1.3.2009 - No discrimination; no illegal classification - Advantages or disadvantages to individual assesses are accidental and inevitable and are inherent in every taxing Statute: SC

IT has been laid down in a large number of decisions of this Court that a taxation Statute, for the reasons of functional expediency and even otherwise, can pick and choose to tax some. A power to classify being extremely broad and based on diverse considerations of executive pragmatism, the Judicature cannot rush in where even the Legislature warily treads. Advantages or disadvantages to individual assesses are accidental and inevitable and are inherent in every taxing Statute as it has to draw a line somewhere and some cases necessarily fall on the other side of the line.

Income Tax

Whether assessee is liable to deduct tax at source on payments to be made to stock exchange as fees for rendering managerial services - YES, rules Bombay HC

ASSESSEE is a company engaged in the business of share broking, depositories, mobilization of deposits and marketing of public issues. Trading was carried out through various Stock Exchanges. Trading in securities were carried out under the open outcry system where the member brokers used to assemble in a trading ring for doing transaction in securities. The issue before the Bench is - Whether the assessee is liable to deduct tax at source on the payments to be made to stock exchanges as fees for rendering managerial service. And the verdict goes in favour of the Revenue.

Service Tax

Commercial Training or Coaching service - AP High Court orders pre-deposit of Rs 80 crores, holds order of CESTAT granting full waiver erroneous

NOT all the Stay orders passed by the Tribunal are appealed against by the revenue as basically they are interlocutory orders. But in this case, the Stay order passed by the Tribunal was appealed against by the revenue, not once, but twice successfully before the High Court of Andhra Pradesh.

See our columns Tomorrow for the judgements