TIOL-DDT 1799 · the untouched capture
Rendered as it looked. Links and images are disabled in this view; the file itself is untouched.
<!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.01 Transitional//EN" "http://www.w3.org/TR/html4/loose.dtd"> <html> <head> <title>Untitled Document</title> <meta http-equiv="Content-Type" content="text/html; charset=iso-8859-1"> </head> <body> <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> <p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#663399" size="3">TIOL-DDT 1799 </font><br> 21.02.2012 <br> Tuesday </strong></font></p> <p align="center"><font color="#006600"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Uttaranchal and Himachal Exemption - Clarification </font></strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>NOTIFICATIONS</strong> No. 49/2003-CE and 50/2003-CE, both dated 10.06.2003 provide full exemption from excise duties to specified goods cleared from industrial units in the states of Uttaranchal and Himachal Pradesh for a period of ten years from the date of commencement of commercial production. The exemption is available to new units set up or existing units, which have undergone substantial expansion in terms of the Notifications and commence commercial production before the cut-off date, that is, on or before 31.3.2010. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Doubts and CBEC Clarifications regarding admissibility of benefit under area-based exemption Notifications No. 49/2003-CE and 50/2003-CE, both dated 10.06.2003: </font></p> <blockquote> <p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">1. When there is a change in the ownership of a Unit already availing of the benefit of an area-based exemption Notification. </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">As the exemption is extended to a ‘Unit', any change in its ownership would not jeopardize the admissibility of exemption for the remaining part of the ten year exemption period subject to the condition that the new owner exercises his option in writing to avail of the benefit of the exemption Notification before effecting the first clearance. </font></p> <p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">2. When a Unit availing of the exemption physically shifts to a new location within the areas specified in the exemption Notification. </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The exemption in such cases should be available for the residual period of exemption. However, the cases of relocated units should be examined on a case–to-case basis and the exemption should be allowed to continue subject to certain safeguards like establishing through proper inventorisation and certification by a Chartered Engineer that the unit has relocated its plant, machinery, equipment, manpower etc. and relocation to areas specified in the relevant Notification only and not across States and/or Notifications. </font></p> <p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">3. When a Unit availing of the exemption under an area-based Notification expands by acquiring a plot of land adjacent to its existing premises and installing new plant/machinery on such land. </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In the context of expansion of a Unit by acquiring an adjacent plot of land and installing new plant and machinery on such land, attention is invited to Board's Circular No. 939/29/2010-CX dated 22.12.2010 wherein it was, interalia, clarified that any growth in the production/output of a unit by installing fresh plant and machinery would be eligible for exemption under these area-based Notifications. The situation of expansion of an eligible unit by acquiring an adjacent plot of land and installing new plant and machinery on such land, is akin to expansion by way of installing new plant and machinery inside the existing plot/premises. It is, therefore, clarified that in such cases, the exemption should continue to be available for the residual period of exemption. </font></p> </blockquote> <p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=31&filename=notification/excise/2012/excircular960.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Circular No. 960/3/2012-CX, Dated: February 17, 2012 </font></strong></a></p> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Adoption of uniform Customs Procedure for calculating contents of Iron Ore - CBEC clarifies</font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>IT</strong> seems divergent practices are being followed in different ports for calculation of iron contents for charging Export duty. Two types of calculation methods are being followed i.e. on the basis of Wet Metric Ton (WMT) and other on the basis of Dry Metric Ton (DMT). </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">To maintain uniformity in all Custom Houses, CBEC clarifies that for the purpose of charging of export duty the assessment of Iron ore for determination of Fe contents shall be made on Wet Metric Ton (WMT) basis which in other words mean deducting the weight of impurities (inclusive of moisture) out of the total weight/Gross Weight to arrive at Net Fe contents. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In case of any difficulty in arriving at the net Fe content, assessment may be based on test result, which directly determines the Fe contents. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Pending assessments on the issue, if any, should be finalized accordingly. </font></p> <p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=25&filename=notification/custom/2012/cuscir12_004.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Circular No. 4/2012-Cus., Dated : February 17, 2012 </font></strong></a></p> <p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#006600">Provision for Bad Debts – Banks get IT Relief from Supreme Court </font></strong></font></p> <p align="center"><font color="#006600"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Findings recorded in the earlier assessment years not binding on Department for subsequent years </font></strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>A</strong> Larger Bench of the Supreme Court headed by the Chief Justice on Friday allowed a major relief to certain private banks from Kerala. The issue before the Supreme Court was <em>whether a bank is eligible to claim a deduction for bad debts u/s 36(1)(vii) in respect of its (rural & urban) advances and also claim a provision for bad and doubtful debts u/s 36(1)(viia) in respect of its rural advances under the Income Tax Act.</em> </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Supreme Court held that the <em>provisions of Sections 36(1) (vii) and 36(1)(viia) of the Act are distinct and independent items of deduction and operate in their respective fields. The bad debts written off in debts, other than those for which the provision is made under clause (viia), will be covered under the main part of Section 36(1)(vii), while the proviso will operate in cases under clause (viia) to limit deduction to the extent of difference between the debt or part thereof written off in the previous year and credit balance in the provision for bad and doubtful debts account made under clause (viia). The proviso to Section 36(1)(vii) will relate to cases covered under Section 36(1)(viia) and has to be read with Section 36(2)(v) of the Act. Thus, the proviso would not permit benefit of double deduction, operating with reference to rural loans while under Section 36(1)(vii), the assessee would be entitled to general deduction upon an account having become bad debt and being written off as irrecoverable in the accounts of the assessee for the previous year. This, obviously, would be subject to satisfaction of the requirements contemplated under Section 36(2).</em></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">While delivering the judgement, the Supreme Court also made some important pronouncements: </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Findings recorded in the earlier assessment years not binding on the Department for subsequent years:</strong> Merely because the orders of the Special Bench of the ITAT were not assailed in appeal by the Department itself, this would not take away the right of the Revenue to question the correctness of the orders of assessment, particularly when a question of law is involved. There is no doubt that the earlier order of the CIT(A) had merged into the judgment of the Special Bench of the ITAT and attained finality for that relevant year. Equally, it is true that though the Full Bench of the Kerala High Court specifically overruled the Division Bench judgment of that very Court in the case of South Indian Bank (supra), it did not notice any of the contentions before and principles stated by the Special Bench of the ITAT in its impugned judgment. The question raised in the present appeal go to the very root of the matter and are questions of law in relation to interpretation of Sections 36(1)(vii) and 36(1)(viia) read with Section 36(2) of the Act. <strong>Thus, without any hesitation, Supreme Court rejected the contention of the appellant banks that the findings recorded in the earlier assessment years 1991-1992 to 1993- 1994 would be binding on the Department for subsequent years as well. </strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Double Benefit?</strong> Merely because the Department has some apprehension of the possibility of double benefit to the assessee, this would not by itself be a sufficient ground for accepting its interpretation. Furthermore, the provisions of a section have to be interpreted on their plain language and could not be interpreted on the basis of apprehension of the Department. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">We bring you this judgement today. Please see <strong><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=14325" target="_blank">Breaking News</a>.</strong></font></p> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Salaried Taxpayers with income up to Rs. 5 lakh exempted from filing IT Returns </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>CENTRAL</strong> Government has exempted </font></p> <p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">An Individual whose total income for the relevant assessment year does not exceed five lakh rupees and consists of only income chargeable to income-tax under the following head,- </font></em></p> <blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><em>(A) “Salaries”; </em></font></p> <p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(B) “Income from other sources”, by way of interest from a saving account in a bank, not exceeding ten thousand rupees. </font></em></p> </blockquote> <p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">from the requirement of furnishing a return of income under sub-section (1) of section 139 for the assessment year <strong>2012-13</strong>, subject to the following conditions: </font></em></p> <p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The individual </font></em></p> <blockquote> <p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">i) has reported to his employer his permanent Account Number (PAN); </font></em></p> <p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">ii) has reported to his employer, the incomes mentioned in sub-para (B) of para I and the employer has deducted the tax thereon; </font></em></p> <p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">iii) has received a certificate to of tax deduction in Form 16 from his employer which mentions the PAN, details of income and the tax deducted at source and deposited to the credit of the Central Government; </font></em></p> <p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">iv) has discharged his total tax liability for the assessment year through tax deduction at source and its deposit by the employer to the Central Government; </font></em></p> <p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">v) has no claim of refund of taxes due to him for the income of the assessment year, and </font></em></p> <p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">vi) has received salary from only one employer for the assessment year. </font></em></p> </blockquote> <p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The exemption from the requirement of furnishing a return of income tax shall not be available where a notice under section 142 (1) or section 148 or section 153A or section 153C of the income tax Act has been issued for filing a return of income for the relevant assessment year.</font></em></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">A similar exemption was earlier given for the Assessment Year 2011-12. Please see <strong><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=12683" target="_blank">DDT 1637 - 24.06.2011</a></strong>.</font></p> <p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=35&filename=notification/cbdt/2012/it12not009.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CBDT Notification No. 9/2012, Dated: February 17, 2012</font></strong></a></p> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Annual Statement by non-resident having Liaison Office in India - CBDT amends Rules and Notifies Form</font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>CBDT</strong> has notified Form No. 49C, under which annual statement has to be furnished by a non-resident having Liaison Office in India. The annual statement referred shall be duly verified by the Chartered Accountant or the person authorised in this behalf by the non-resident person, who shall be known as the Authorised Signatory. The annual statement shall be furnished in electronic form along with digital signature. </font></p> <p align="justify"><a href="http://taxindiainternational.com/circularDesc.php?qwer43fcxzt=MTY3MA==" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CBDT Notification No. 5/2012, Dated: February 06, 2012 </font></strong></a></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"> – Wednesday's cases</font></strong></font></strong></font></p> <p><font 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"><strong><font color="#663399">Customs </font></strong></font></p> <p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">DEPB - whether aluminium grills can be termed as Extruded aluminium products, and if it is so, whether assessee can take benefit of Item 7 of Code 61:No, Rules SC</font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>IT</strong> is an admitted position that assessee carries out the fabrication to derive a product known as aluminium grills made out of extruded aluminium products. If that fact situation is accepted, then the Tribunal was wholly incorrect in holding that the aluminium grills are nothing but extruded aluminium products and therefore, they would fall under Entry 7 of Code 61.</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">Income tax - Whether disclosures made under Voluntary Disclosure Scheme can be brought to tax under block assessment proceedings - YES, rules Delhi HC </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>ASSESSEE</strong> is an individual and was working as a broker/agent in aluminum market. Search and seizure operation under Section 132 of the Act was conducted on 27th October, 1998. Thereafter, statutory notice under Section 158BC of the Act was issued to which the assessee had filed the return dated 24th December, 1999 declaring 'nil' undisclosed income. Assessee had earlier made a disclosure of Rs.2,85,00,000/- on 23rd December, 1997 under Voluntary Disclosure of Income Scheme, 1997. Thereafter, certificate under Section 68(2) under the said scheme was issued to him on 24th December, 1997. As per the said certificate, the cash and bank balance declared as on 31st March, 1997 was Rs.1,28,58,390/-. During the course of search, the assessee had surrendered cash amount of Rs.30,10,000/-. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In the block assessment proceedings, the Assessing Officer issued notice dated 14th September, 2000 why Rs.30,10,000/- found in cash should not be treated as undisclosed income of the respondent assessee for the period 1st April, 1998 to 28th October, 1998 and added in the block assessment. </font></p> <p align="justify"><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">Service Tax </font></strong></p> <p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Is Advertisement Tax collected by Municipal Corporation liable to Service Tax?: Issues to be referred to Third Member: CESTAT</font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> appellants-Jalandhar Municipal Corporation entered into a contract with one M/s Shri Durga Publicity Service and certain other parties for investing into the construction of certain Built, Operate, Own and Transfer (BOOT) projects.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In return, the said parties were granted permission to put up specified number of sky-signs, unipoles, kiosks, lollipops etc. at different parts of Jalandhar-Kaparthala railway over-bridge and also rent certain shops under the said railway over-bridge constructed during the period 1.04.06 to 31.03.09. Such places given to the parties under the contract were being used by them for putting advertisements or further allotting the same to the advertisers. </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> </body> </html>