Jurisprudentiol – Wednesday's cases

By Vijay Kumar

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

Valuation - Value of designs, drawings etc, - Settlement Commission erred in computing value - Matter remanded: HC

THEREis no dispute that certain amount of guess work and latitude has to be given to calculate the value but the Settlement Commission has to apply its mind to reach a particular figure and give reasons why a particular method/formula is acceptable.

Income Tax

Whether when assessee has disclosed full material facts necessary for assessment, AO can issue reassessment notice based on findings of audit party - NO, rules HC

NOTICE u/s 148 was issued on the ground that book profit u/s 115JB of the Act was not computed correctly and that excess deduction u/s 80HHC was allowed. The assessee approached the Court by filing Special Civil Application, which was allowed. Again the AO issued a fresh notice for the reasons recorded that the company had entered into an international transaction with associated enterprise for product registration services on which TDS was not deducted and the assessee had failed to disclose fully and truly all material facts necessary for his assessment while making computation of income.

Central Excise

No extended limitation for second Show Cause Notice on same set of facts and question – Valuation – Price to be accepted if not influenced by relationship: CESTAT

EVEN the earlier SCN was issued on the same investigation and has been held to be barred by limitation. There is no justifiable reason to attribute any suppression or mis-statement to the appellant for issuance of second SCN based upon the same set of investigation by invoking the extended period of limitation.

See our columns Tomorrow for the judgements