Jurisprudentiol – Monday's cases

By Vijay Kumar

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

Appellant manufacturing Aluminium structures and clearing on payment of duty - since no credit has been availed on 'Aluminium structures' prima facie case in favour - Stay petition allowed: CESTAT

THE applicant is clearing aluminium structures on payment of appropriate duty and availing the benefit of credit in respect of inputs used and thereafter the applicant is not availing credit of the duty paid structures when the same were used for providing construction service. In these circumstances, prima facie, the applicant has a strong case in their favour. Therefore, the amount already deposited is sufficient for hearing of the appeal. Pre-deposit of the remaining duty, interest and penalty is waived and recovery of the same is stayed during the pendency of the appeal.

Income Tax

Whether when individual-assessee maintains no books but undertakes huge number of share transactions in a year, inference based on conduct of assessee that it was a case of business profit is legally sustainable - YES, rules ITAT

THE assessee is an individual and derives income from salary, house property and capital gains. In one year the assessee earns capital gains from share transactions relating to 52 companies; and in other years, the transactions are lesser. The assessee being individual maintains no books of account. In this backdrop, the AO formed an opinion that the income declared by the assessee under the head STCG and LTCG was taxable as business income. The CIT(A) allowed the appeal of the assessee in parts.

FEMA

FEMA - Merely because some complaint has been filed by the petitioner with regard to alleged forgery and fabrication is no ground to stay the investigation by the Enforcement Directorate: High Court

THE prayer in this writ petition is for stopping the investigation initiated by the Enforcement Directorate pursuant to a summon dated 27.04.2011 and notice dated 9.5.2011 issued by the 3 rd respondent.

See our columns Monday for the judgements