Jurisprudentiol – Tuesday's cases

By Vijay Kumar

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

Central Excise - Summons - Each Non-attendance is a separate offence - Giving false evidence also an offence: HC

IN the case before the High Court, the petitioner challenges the prosecution initiated against him by criminal complaint by the Central Excise Department under Sections 174 and 193 of the Indian Penal Code.

He had not appeared before the Central Excise Authority in response to the first three summons , but he did on the fourth summons.

Income Tax

Income tax - Whether, even if assessee incures interest expenditure on borrowed funds utilised not to earn dividends but to gain controlling stake, such expenditure is subject to disallowance u/s 14A - YES, rules Delhi HC

THE issues before the Bench are - Whether, even if assessee incures interest expenditure on borrowed funds utilised not to earn dividend income but to gain controlling stake in a company, the same is liable to disallowance u/s 14A; Whether Rule 8D is retrospective in nature and whether the disallowance is required to be made only if the expenditure is actually incurred in relation to earning dividends. And the verdict partly goes against the assessee.

Customs

Appellant providing Outdoor catering services and receiving payments but not discharging service tax liability - since liability accepted, pre-deposit ordered and matter remanded - cum-tax benefits and small scale exemption to be considered by adjudicating authority: CESTAT

M/s. SWAMI Samarth Catering Service , rendered outdoor catering services to M/s. Kinetic Engineering Limited and received payments amounting to Rs. 28,17,482/- during the year 2006-07, 2007-08 and 2008-09. However, they did not get themselves registered with the department nor did they discharge service tax liability.

See our columns Tomorrow for the judgements