Jurisprudentiol – Tuesday's cases

By Vijay Kumar

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

Value of free issue materials - Commissioner to record a clear finding - matter remanded: SC

THE Commissioner has not recorded any clear finding as to whether for the tubes that were cleared by the appellant during the relevant periods in respect of which show cause notices were issued, the caps were supplied free of cost by the customers of the appellant and such caps were fitted to the tubes manufactured in the factory of the appellant. The Commissioner, therefore, will have to record a clear finding as to whether for the tubes cleared during the three relevant periods, the caps were supplied by the customers of the appellant free of cost and accordingly pass a fresh order.

Income Tax

Whether assessee can set off interest paid on housing loan against interest earned on such sum by advancing same as loan to third party - NO, rules ITAT

THE issues before the Bench are - Whether when the AO has reason to believe that income had escaped assessment as the assessee made a wrong claim of payment of housing loan interest paid to Bank as allowable u/s 57(iii) of the Act, notice was correctly issued u/s 148; Whether the assessee is entitled to claim the interest paid on housing loan against the interest income earned on the loan advanced by it to some other person out of the housing loan received from the bank u/s 57(iii) or can be claimed as interest payment on housing loan u/s 24(iv) and Whether the AO can also assess or reassess any other income which has escaped assessment and comes to his notice during the course of reassessment proceedings. And the verdict goes against the assessee.

Customs

Release of seized passport - Power to impound passport vests with competent officer under Passport Act and no other authority has power to impound same as held by Apex Court in Suresh Nanda case: HC

IN the instant case, direction cannot be issued to DRI/Customs Mangalore as the passport is not in their custody but in the custody of Sessions Court, Mangalore where prosecution proceedings were initiated against petitioner – Petitioner at liberty to approach Special Court for release of passport

See our columns Tomorrow for the judgements