Jurisprudentiol - Wednesday's cases
Legal Corner Icon — the image was hosted by the publisher and was not captured.Service Tax
Benefit of Notfn. - Commercial training and Coaching Institutes - when language of Notification does not restrict exemption only to ‘standard text books' sold, same cannot be whittled down by Board Circular 59/08/2003 -ST - Demand of Rs.2.82 Crores set aside and appeal allowed: CESTAT
THE Revenue has not disputed the fact that the study materials were purchased by the appellants from M/s. Bulls Eye. Therefore, there is nothing in the Notification No. which would help Revenue in their arguments. The Circular of CBEC quoted by the DR states that such exemption will be applicable only if material sold is ‘standard textbooks'. The question as to what is a ‘standard textbook' can lead to disputes. Since the expression is not used in the notification and the fact that the books sold are of another entity namely "Bulls Eye', no reason to deny the benefits of the Notification No. .
Income Tax
Whether when assessee earns income in form of refund by encashing bogus TDS Certificates, Income Tax provisions do not distinguish between legally or illegally earned income, and thus such income is also taxable - YES: Madras HC
ASSESSEE is a tax practitioner and was en-cashing bogus TDS certificates by using fraudulent means. Initially, the CBI conducted a search on the premises of the assessee. Revenue later joined the search and found that assessee was engaged in preparing bogus TDS certificates and en-cashing the same from the Income Tax Department. The statement of the assessee was also recorded as the time of the search and it was admitted by the assessee that he was en-cashing the bogus TDS certificates. In this backdrop the AO on the basis of seized materials framed assessment of both the years and held that the income earned by the assessee by using illegal means was taxable. The CIT(A) after considering the profession of the assessee reduced the taxable amount and held that such income was taxable under the residuary head. The ITAT accepting plea of the assessee held that the real owner of the money was Income Tax department and not the assessee and it was a case of stolen property. The Tribunal allowed the appeal of the assessee and held that the receipt of TDS even though by fraudulent means was not taxable under the provisions of Income Tax.
Central Excise
Plastic casing of Audio Cassette manufactured with brand name ‘Universal' - since casing is not traded in market under brand name 'Universal' but is further used in manufacture of pre-recorded audio cassettes, benefit of SSI Notfn. 175/86-CE cannot be denied - Revenue appeal dismissed: CESTAT
M/s. UNIVERSAL (India) Pvt. Ltd., owner of 'Universal' brand name had placed an order to M/s. Sagarika Accoustronics Pvt. Ltd. for the supply of 1,00,000 numbers of 'Universal' brand pre-recorded audio cassettes. M/s. Sagrika Accoustronics Pvt. Ltd. placed an order for the manufacture plastic casing of the Audio Cassette, with the respondents. The casing is not traded in the market under the brand name 'Universal' and is further used in the manufacture of pre-recorded audio cassettes. In these circumstances, no infirmity in the impugned order.
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