Jurisprudentiol - Tuesday's cases

By Vijay Kumar

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Seizure, Storage, Destruction of Narcotic Drugs - Report sought from Police, DRI, Customs Commissionerates: SC

THE problem is both wide-spread and formidable. There is hardly any State in the country today, which is not affected by the production, transportation, marketing and abuse of drugs in large quantities. There is in that scenario no gainsaying that the complacency of the Government or the officers dealing with the problem and its magnitude is wholly misplaced. While fight against production, sale and transportation of the NDPS is an ongoing process, it is equally important to ensure that the quantities that are seized by the police and other agencies do not go back in circulation on account of neglect or apathy on the part of those handling the process of seizure, storage and destruction of such contrabands. There cannot be anything worse than the society suffering on account of the greed or negligence of those who are entrusted with the duty of protecting it against the menace that is capable of eating into its vitals.

Income Tax

Whether when an assessee mistakenly fails to claim a deduction in its return, same can be allowed as additional claim by CIT(A) and Tribunal in exercise of discretions: YES: HC

THE Assessee had claimed a deduction u/s 43B in respect of payment of SEBI fees of Rs.10,00,000/- relevant to A.Y 2005-06. Thus, admittedly, for the relevant A.Y viz. 2004-05, the respondent was not entitled to a deduction in respect of the said payments. The respondent, in the course of the proceedings before the AO, stated that the claim was made through inadvertence. The respondent, however, made a claim of Rs.40,00,000/- u/s 43-B also being payment of the SEBI fees but made on 9th May, 2003 i.e. in the A.Y in question. The AO rejected the claim on the ground that he had no authority to allow any relief or deduction which had not been claimed in the return. The CIT(A) allowed the assessee's claim for deduction u/s 43B. Tribunal dismissed the Revenue Appeal.

Central Excise

Dutiability of Sugar Syrup consumed within factory of production for manufacture of Biscuits having per kg retail sale price not exceeding Rs. 100/- - for period prior to 12.09.2011 as Government has floated a survey for issuance of s.11C notification, pre-deposit of dues waived and stay granted from recovery: CESTAT

THE Bench observed -

"4. We find that on the request of the biscuits manufacturer's Association, Revenue had already floated survey regarding issuance of Notification under sec. 11C of the Central Excise Act and in view of the decision of the Tribunal in the case of M/s Ajmer Food Products P. Ltd., pre-deposit of dues is waived and recovery of the same is stayed during the pendency of the appeals."

See our columns Tomorrow for the judgements