Jurisprudentiol – Friday's cases

By Vijay Kumar

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

No SCN; No OIO; Order in Appeal not valid: CESTAT

IT is a unique case, where no show-cause notice has been issued for proposing the demand against the appellants. Only on a letter of enquiry wherein certain transaction's information asked from the appellant, the said letter was challenged by the appellants before the Commissioner (Appeals). The Commissioner (Appeals) entertained the appeal. As no show-cause notice has been issued and there is no adjudication order, therefore, no appeal was maintainable before the Commissioner (Appeals).

Income Tax

Whether provisions of Sec 40(a)(ia) come into play only when assessee claims an expenditure under Ss 30 to 38 - YES, rules ITAT

ASSESSEE is a firm of solicitors and advocates. Its return of income, disclosing total income of Rs 12,67,520, was initially processed under section 143(1)(a) but subsequently, the reassessment proceedings were initiated on 29th June 2009. In the course of reassessment proceedings, the Assessing Officer noted that the assessee made payments, aggregating to Rs. 30,30,140, to various lawyers for their professional services, but has not deducted tax at source under section 194J from the same. The Assessing Officer was of the view that the assessee was under statutory obligation to deduct tax at source under section 194 J, and since the assessee failed to perform this obligation, such payments were to be disallowed under section 40(a)(ia).

Central Excise

Supplementary Invoice - Interest is payable on differential duty: CESTAT

APPELLANT had raised Supplementary Invoices on their OE customers on account of price revision of goods supplied to them with retrospective effect. Appellant paid Excise Duty on such Supplementary Invoice but did not pay interest on such differential duty even though price revision pertained to clearances made much earlier to the date of raising such Supplementary Invoices.

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