TIOL-DDT 1796 · the untouched capture
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<p><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=14276"><img src="http://www.taxindiaonline.com/RC2/image/ddt/ddt_1794.jpg" alt="DDT in Limca Book of Records" width="175" height="120" hspace="5" border="0" align="right"></a></font></strong></p>
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<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#663399" size="3">TIOL-DDT 1796 </font><br>
15.02.2012 <br>
Wednesday </strong></font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Government to improve Taxpayer Services </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>UNION</strong> Finance Minister Pranab Mukherjee said that initiative of the Government is to provide citizen-centric governance in order to improve taxpayer services and redressal of public grievances. The Finance Minister said that to unearth the black money, the Government has taken various steps within the country as well as outside. The Finance Minister was addressing the 4 th meeting of the Central Direct Taxes Advisory Committee (CDTAC) in New Delhi yesterday. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Finance Minister informed that Directorate of Transfer Pricing in the Ministry helped in saving Rs. 66,085 Crores during the last year by timely stopping the illegal transfer of money through transfer pricing. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Members requested the FM to allow standard deduction of Rs. 50,000 to salaried employees. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Chairman, CBDT informed that the Department is setting up another Central Processing Centre at Ghaziabad to process the TDS returns which will result in reduction of TDS mismatches during processing of returns of income.</font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">GOI Resolution on Public Interest Disclosure and Protection of Informer (PIDPI) </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> Government of India has authorized the Central Vigilance Commission (CVC) as the ‘Designated Agency' to receive written complaints for disclosure on any allegation of corruption or misuse of office and recommend appropriate action. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The jurisdiction of the Commission in this regard would be restricted to any employee of the Central Government or of any corporation established by or under any Central Act, government companies, societies or local authorities owned or controlled by the Central Government. Personnel employed by the State Governments and activities of the State Governments or its Corporations etc. will not come under the purview of the Commission. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Commission, which will accept such complaints, has the responsibility of keeping the identity of the complainant secret. Hence, any complaint made under this resolution should comply with the following aspects. </font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">i) The complaint should be in a closed/ secured envelope. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">ii) The envelope should be addressed to Secretary, Central Vigilance Commission and should be superscribed "Complaint under The Public Interest Disclosure". If the envelope is not superscribed and closed, it will not be possible for the Commission to protect the complainant under the above resolution and the complaint will be dealt with as per the normal complaint policy of the Commission. The complainant should give his/her name and address in the beginning or end of complaint or in an attached letter. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">iii) <strong>Commission will not entertain anonymous/pseudonymous complaints.</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">iv) The text of the complaint should be carefully drafted so as not to give any details or clue as to his/her identity. However, the details of the complaint should be specific and verifiable. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">v) In order to protect identity of the person, the Commission will not issue any acknowledgement and the whistle-blowers are advised not to enter into any further correspondence with the Commission in their own interest. </font></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>The Commission can also take action against complainants making motivated/vexatious complaints</strong> under this Resolution. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The CVC wants the Government Departments and PSUs to give wide publicity to the PIDPI resolution and the guidelines to encourage the public and insiders to report information about corruption and misuse of office. </font></p>
<p><strong><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=wnew/cvccir/2012/circvc_12_004.htm" target="_blank"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CVC Order No. 04/02/12, Dated: February 13, 2012 and Public Notice. </font></a></strong></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">The
Way to rebuild the Economy is to make sure that everyone gets a fair shot
at success </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>PRESENTING</strong> his Budget for 2013, US President Barak Obama said, </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">America was built on the idea that anyone who is willing to work hard and play by the rules, can make it if they try-no matter where they started out. By giving every American a fair shot, asking everyone to do their fair share, and ensuring that everyone played by the same rules, we built the great American middle class and made our country a model for the world. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Today, America is still home to the world's best universities, most productive workers and most innovative companies. But for many Americans, the basic bargain at the heart of the American Dream has eroded. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Long before this recession hit, there was a widespread feeling that hard work had stopped paying off; that fewer and fewer of those who contributed to the success of our economy actually benefited from that success. Those at the very top grew wealthier while everyone else struggled with paychecks that did not keep up with the rising cost of everything from college tuition to groceries. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Then, in the middle of 2008, the house of cards collapsed. Too many mortgages had been sold to people who could not afford—or even understand—them. Banks had packaged too many risky loans into securities and then sold them to investors who were misled or misinformed about the risks involved. Huge bets had been made and huge bonuses had been paid out with other people's money. And the regulators who were supposed to prevent this crisis either looked the other way or did not have the authority to act. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">And millions of hardworking Americans lost their jobs, their homes and their basic economic security. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Today, we are seeing signs that our economy is on the mend. But we are not out of the woods yet. Instead, we are facing a make-or-break moment for the middle class, and for all those who are fighting to get there. What is at stake is whether or not this will be a country where working people can earn enough to raise a family, build modest savings, own a home, and secure their retirement. This is the defining issue of our time. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The way to rebuild our economy and strengthen the middle class is to make sure that everyone in America gets a fair shot at success. Instead of lowering our standards and our sights, we need to win a race to the top for good jobs that pay well and offer security for the middle class. To succeed and thrive in the global, high-tech economy, we need America to be a place with the highest-skilled, highest-educated workers; the most advanced transportation and communication networks; and the strongest commitment to research and technology in the world. This Budget makes investments that can help America win this race, create good jobs and lead in the world economy. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">I believe that in our country, everyone must shoulder their fair share—especially those who have benefited the most from our economy. In the United States of America, a teacher, a nurse, or a construction worker who earns $50,000 a year should not pay taxes at a higher rate than somebody making $50 million. That is wrong. It is wrong for Warren Buffett's secretary to pay a higher tax rate than Warren Buffett. This is not about class warfare; this is about the Nation's welfare. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Understanding and honouring the obligations we have to ourselves and each other is what has made this country great. We look out for each other, pull together and do our part. But Americans also deserve to know that their hard work will be rewarded. </font></p>
<p align="justify"><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">The American Budget has mind-boggling figures. Their deficit in 2013 is going to be about Rs. 70 Lakh crores - about six times our budget! In these difficult times, the US Budget allocates an aid of 2.4 billion dollars to Pakistan.</font></strong></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Most Skilled Workers in India, China? </font></strong></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>IMMEDIATELY</strong> after his Budget Message, the US President said, </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">And to make sure our businesses don't have to move overseas to find skilled workers and make sure higher education is affordable for every hardworking American. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">That's what I want to focus on today -- what we need to do in terms of higher education, and community colleges in particular. Employers today are looking for the most skilled, educated workers.<strong> I don't want them to find them in India or China</strong>. I want businesses to find those workers right here, in the United States. The skills and training that employers are looking for begins with the men and women who educate our children. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">All of us can point to a teacher who's made a difference in our lives. So, I want this Congress to give our schools the resources to keep good teachers on the job, and reward the best teachers. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Higher education cannot be a luxury; it is an economic imperative that every family in America should be able to afford. That is part of the American promise in the 21st century. </font></p>
<p><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">(When will elementary education be a reality in India?)</font></strong></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">CBEC Cadre Review - Oasis in a desert of Despair or a Mirage? </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THOUSANDS</strong> of officers in the Customs and Central Excise (and add Service Tax) Department are waiting for the cadre review with great HOPE. Almost every officer one talks to asks about the cadre review. A couple of years ago an officer was worried as to where he would be posted when he gets his promotion in a couple of weeks. He is going to retire in a couple of months with the promotion nowhere in sight. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">It is learnt that yesterday, the Chairman CBEC along with his officers met the Minister of Personnel and officers of the DOPT to discuss the cadre review. The DOPT has asked the CBEC to justify the large-scale increase in the number of posts. Service Tax, which brings in nearly a Lakh Crore of Revenue, is the CBEC's strong point for more posts. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now, the CBEC has to send its report to DOPT which has to review it and accept or ask for more clarifications, then send it to COS and to cabinet and then the notifications are to be issued and DPCs to be conducted and then promotions to be given – all these are not going to happen in a week. </font></p>
<p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#006600">Jurispruden</font><font color="#FF6633" size="5">tiol</font><font color="#006600"> – Thursday's cases</font></strong></font></strong></font></p>
<p align="justify"><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><img src="http://www.taxindiaonline.com/RC2/image/stories/ddt_hammer.jpg" alt="Legal Corner Icon" width="100" height="84" hspace="5" border="0" align="left">Service Tax</font></strong></p>
<p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Import of Services - Section 66A - Constitutional validity upheld: HC</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>IN</strong> this case the petitioners have challenged the validity of Section 66A of the Act on its extra territorial operation. It is alleged that the amendment seeks to levy service tax on the taxable event outside India. It is submitted by the petitioner that any act of receiving or rendering of service outside the territory of India is not amenable to the Finance Act, 1994. The impugned provisions/rules, it is submitted, create another taxable event namely from services provided to services received in India, which is against the scheme of legislation. It has been challenged as artificial, as taxable services can never be received in India. </font></p>
<p align="justify"><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">Income Tax</font></strong></p>
<p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Whether when assessee's housing society enters into agreement with property developer, cash compensation received by assessee in addition to larger flat does not fall under any of Heads of Income in I-T Act, and thus not taxable - YES: ITAT</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> housing society, along with its members, entered into an agreement with a developer, and, under the said agreement, the developer was to demolish the residential building owned by the housing society, and reconstruct a new multistoried building. Under this arrangement, the assessee, received a slightly larger flat in the new building, a displacement compensation of Rs.6,12,000, and an additional compensation of Rs.11,75,000. The AO was of the opinion that the cash compensation was to be treated as ‘casual income', and, accordingly, taxable in the hands of the assessee. The CIT(A) confirmed the addition.</font></p>
<p align="justify"><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">Customs</font></strong></p>
<p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Nickel Silver Turning imported - Whether eligible for exemption under Notification No 21/2002 Cus - Matter referred to Third Member: CESTAT </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> respondents imported a consignment of Nickel Silver Turning from Italy. To examine the claim of the importer for exemption under Notification No 21/2002 Cus, samples of the scrap were sent to the CRCL. The CRCL, vide its test report opined that the sample contains 60.6 by weight of copper, 13.90 by weight NICKEL and rest is mainly Zinc. Based on the above test report, Revenue entertained a view that the benefit of notification is not available to the respondent, inasmuch as the goods cannot be held to be nickel or article of nickel. </font></p>
<p align="justify"><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">See our columns Tomorrow for the judgements </font></strong></p>
<p align="justify"><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Until Tomorrow with more <strong>DDT</strong></font></p>
<p align="justify"><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Have a Nice Day. </font></p>
<p><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Mail your comments to</font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> <a href="mailto:vijaywrite@taxindiaonline.com"><strong>vijaywrite@taxindiaonline.com </strong></a></font></p>
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