Jurisprudentiol – Wednesday's cases

By Vijay Kumar

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

Detention of imported goods without assessment and without issue of Notice - Strictures by High Court - Excuse by department for not issuing notice is just like excuse given by a person who does not know dancing, but who blames stage for his failure to perform: HC

THE High Court came down heavily on the department and remarked that the department did not wake up from slumber even after wake up call by petitioner. Also, the High Court observed that the excuse given by the respondents for not issuing a notice under Section 124(a) is just like the excuse given by a person who does not know dancing, but who blames the stage for his failure to perform. The High Court ordered the goods to be released within one week and further directed the department to issue notice in two weeks.

Income Tax

Whether when NRI's properties remained vacant during year, it is to be assessed as NIL or ALV is to be worked out as per deeming provisions of Sec 23(1)(a) - ruled in favour of assessee by ITAT

THE assessee is a non-resident Indian owning eight properties in India. The assessee had shown income from house property and offered annual letting value for taxation from four properties, claimed an exemption on one property for self-occupation and offered three properties in Mumbai for NIL income as these had remained vacant and could not be let out during the year as these were inhabitable. All these three Mumbai properties had yielded income and been taxed in earlier assessment years. The assessee had filed a digital return of income declaring taxable income. The return was processed under section 143(1) and later selected for scrutiny.

Central Excise

Taking of suo moto credit - As appeal against LB decision in BDH Industries Ltd. has been admitted by the Bombay High Court balance of convenience lies in applicant's favour - Stay granted and pre-deposit waived: CESTAT

THE issue of whether an assessee is entitled to take suo moto credit without sanction by the proper officer or not is pending before the Bombay High Court in the case of BDH Industries Ltd. vs. Commissioner and hence the applicant has made out a case for waiver.

See our columns Tomorrow for the judgements