TIOL-DDT 1956 · the untouched capture
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<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><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></font><font color="#663399" size="3">TIOL-DDT 1956 </font><br>
</strong></font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>05.10.2012 <br>
Friday </strong></font></p>
<p align="center"> </p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>RTI - Details disclosed by taxpayers in returns are <em>"personal information"</em> exempted from disclosure under RTI: SC</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> petitioner sought for copies of all memos, show cause notices and censure/punishment awarded to the third respondent from his employer and also details viz. movable and immovable properties and also the details of his investments, lending and borrowing from Banks and other financial institutions. Further, he has also sought for the details of gifts stated to have accepted by the third respondent, his family members and friends and relatives at the marriage of his son. The information mostly sought for finds a place in the income tax returns of the third respondent. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The question that has come up for consideration is whether the above-mentioned information sought for qualifies to be "personal information" as defined in clause (j) of Section 8(1) of the RTI Act. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Supreme Court observed, "<em>The details disclosed by a person in his income tax returns are "personal information" which stand exempted from disclosure under clause (j) of Section 8(1) of the RTI Act, unless involves a larger public interest and the Central Public Information Officer or the State Public Information Officer or the Appellate Authority is satisfied that the larger public interest justifies the disclosure of such information</em>." </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Apex Court further observed, "<em>The performance of an employee/officer in an organization is primarily a matter between the employee and the employer and normally those aspects are governed by the service rules which fall under the expression "personal information", the disclosure of which has no relationship to any public activity or public interest. On the other hand, the disclosure of which would cause unwarranted invasion of privacy of that individual. Of course, in a given case, if the Central Public Information Officer or the State Public Information Officer of the Appellate Authority is satisfied that the larger public interest justifies the disclosure of such information, appropriate orders could be passed but the petitioner cannot claim those details as a matter of right</em>." </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=50&filename=legal/sc/2012/2012-TIOL-92-SC-RTI.htm" target="_blank"><strong>We bring you this Supreme Court order today</strong></a>. </font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Exchange Rates Notified</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>CBEC</strong> has notified the Exchange Rates for imported goods and export goods with effect from 05.10.2012. </font></p>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=24&filename=notification/custom/2012/cnt12_091.htm" target="_blank"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Notification No. 91/2012-Cus.,(N.T.), Dated: October 04, 2012 </strong></font></a></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Can Railways avail CENVAT Credit? </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>WITH</strong> effect from 1 st October 2012, service tax is applicable on transport of passengers by rail in First Class and Air Conditioned coaches and transportation of goods by rail. According to the Notification No 26/2012 ST dated 20 th June 2012, an abatement of 70% is provided to both these services and tax is payable only on 30% of the amount charged for the respective services. (Sl No 2 & 3 of the Notification). </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Unlike other entries in the Notification, for services at Sl No 1, 2 and 3, the condition for availing the exemption/abatement is mentioned as Nil in column (4) of the Notification. For all other entries, the exemption/abatement is only on the condition the service provider shall not avail CENVAT Credit as specified against each entry. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Since in column (4) for Sl No 2 and 3, it is mentioned as Nil, it appears that the Notification does not bar the railways from availing CENVAT Credit on inputs/input services/capital goods used for providing the service. Interestingly, prior to 01.07.2012, the abatement Notification No. 1/2006 ST dated 01.03.2006 had a condition common to all the services, including the “transportation of goods by rail" that the service provider shall not avail CENVAT Credit on inputs/input services/capital goods used for providing the services. It is not known whether the change is intentional. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Another interesting point is whether the Railways will be eligible for abatement on the cancellation charges collected. If one has to go by the recent draft circular issued with regard to air travel, if the cancellation fee is separately collected, no abatement will be admissible. If the amount is retained from the originally charged amount, (in railways, mostly the cancellation charges are not separately collected, but are retained from the originally charged amount) then abatement will be admissible. But should the mode of collection of cancellation charges be a factor to determine the admissibility of abatement? </font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Don't Believe Fraudsters - Mumbai Air Customs </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>CUSTOMS</strong> Commissioner at CSI Airport Mumbai in a Press Release states, "<em>It has been brought to notice that innocent citizens are made to believe that they have won/received some international prize/award/parcel and money is demanded to fulfil some customs formalities. </em></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><em>All are hereby informed that Mumbai Customs is in no way concerned with the International Prize/award Money. </em></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><em>Public is requested not to believe in such fraudsters and if any one approaches or issues a receipt in the name of any Mumbai Customs Office/Officers, the same may be reported to the nearest Police Station.</em>" </font></p>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=wnew/Press_Release_CSI.htm"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Mumbai Customs (CSI Airport) Commissioner Press Release Dated: October 01, 2012 </strong></font></a></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>UN Releases Draft Transfer Pricing Manual </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE </strong>United Nations Practical Manual on Transfer Pricing for Developing Countries is a response to the need, often expressed by developing countries, for clearer guidance on the policy and administrative aspects of applying transfer pricing analysis to some of the transactions of multinational enterprises (MNEs) in particular. Such guidance should not only assist policy makers and administrators in dealing with complex transfer pricing issues, but should also assist taxpayers in their dealings with tax administrations. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">While it is for each country to choose its tax system, this Manual is addressed at countries seeking to apply the “arm's length standard" to transfer pricing issues, as the approach which nearly every country seeking to address such issues will decide to take. Such an approach minimises double taxation disputes with other countries, with their potential impact on how a country's investment "climate " is viewed, while combating potential profit-shifting between jurisdictions where a MNE operates. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">By showing ways in which the “arm's length" approach to transfer pricing can operate effectively for developing countries, while giving a fair and predictable result to those investing in such countries, the Manual will also help explain why that approach has been found so broadly acceptable, including in both major Model Tax Conventions. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Subcommittee on Transfer Pricing - Practical Issues was constituted by the Committee of Experts on International Cooperation in Tax Matters at its annual session in 2009. The Committee held meetings in Kuala Lumpur, New Delhi, Tokyo, Johannesburg and Shanghai and submitted its draft report this week, which will be discussed and perhaps approved at the Eighth Session of the Committee of Experts on International Cooperation in Tax Matters at Geneva from 15th through 19th October 2012. </font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>CBI Arrests Enforcement Officer </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>CBI</strong> yesterday arrested an Enforcement Officer of the Enforcement Directorate working at Calicut. It was alleged that the Enforcement Officer had demanded Rs.2 lakh as "bribe" for favouring an NRI in an on-going investigation by the Enforcement Directorate. Rs.10 lakh was seized from the possession of the NRI suspecting it to be "hawala money". But, on production of necessary documents & proving the genuine nature of the money so seized, the accused person was reluctant to release the money. The accused had offered that on payment of Rs.1.5 lakh as advance, a favourable report would be made by which the NRI Complainant could get back his money of Rs.10 lakh within one month. Or else, even if that were legal money, it would take 2-3 years to get his name cleared of the legal tangle. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The name ED sends a chill down the spines of our spineless politicians, some of whom are in jail, but what can you do when the ED Officer gets caught red-handed? </font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Greeks hand over Children to Tax Officer in Protest </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>ANGRY</strong> Greek parents handed over their children to an amazed tax official in a symbolic protest against the abolition of tax breaks for large families as part of cuts demanded by foreign lenders. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><em>"Here you go, you can raise them,"</em> one of the protestors told the tax Director. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The parents held banners reading "Stop killing our families" in one hand and strollers in the other as they walked straight into the director's office and pushed their children towards him to make their protest. <a></a></font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Raghavendra Rao Joins TIOL </strong></font></p>
<p align="justify"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><img src="http://www.taxindiaonline.com/RC2/image/stories/RaghavendraRao.jpg" alt="Raghavendra Rao" width="100" height="124" hspace="5" border="0" align="left"></font></strong></font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>I </strong>met
him nearly 20 years ago when he was just a newly-joined Inspector in the
Central Excise Department and I <em>felt like some watcher of the skies when
a new planet swims into his ken</em>. Raghu, as we call him is not new to
TIOL Netizens as he has written several analytical incisive articles for
us and had won the first prize in an essay competition conducted by us. He
brings with him over two decades of experience in the Customs and Central
Excise Department. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">An extract from <a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=1020">DDT 48 07.02.2005</a>, "<em>Do you know how to calculate the education cess payable by the EOUs while making DTA clearances? The Development Commissioner of an SEZ, (who is also the Development Commissioner for all the EOUs in his State) the other day in a meeting expressed his anguish that nobody is clear on what exactly is the amount payable. He said, “now there is the RaghavendraRao formula". He was referring to Taxindiaonline last week's guest column article by Raghavendra Rao</em>." </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Today, Raghu joins Team TIOL as Senior Editor. He will also head our Consulting Wing at Hyderabad. </font></p>
<p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><br>
<strong><font color="#006600">Amartya Sen at WTO </font></strong></font></p>
<p align="center"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><img src="http://www.taxindiaonline.com/RC2/image/stories/AmartyaSen.jpg" alt="" width="400" height="266" hspace="5" border="0" align="center"></font></strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>NOBEL</strong> Laureate, Prof Amartya Sen visited the WTO HQ on Wednesday and signed the WTO Wall. He spoke at the opening of the academic year of the Geneva Graduate Institute on <em>“What is the use of Economics?". </em></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">WTO DG, Pascal Lamy said, "<em>What Prof. Sen teaches us is that to ensure that trade opening works for the poor, trade reforms need to be accompanied by policies that guarantee an equitable distribution of trade gains. Health and education, safety nets and access to credit are part of poverty reduction strategies as much as economic growth itself. These complementary policies protect the poor against the potentially destabilizing effects of trade opening, while ensuring that trade unlocks income-generating potential for all layers of society. This requires overall coordination between government institutions as well as multilaterally in all areas of international cooperation. In other words, it requires a strong domestic and international set-up. In many ways, we are all in dire need of institutional capacity building</em>. </font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><br>
<strong>DDT Cartoon </strong></font></p>
<p align="center"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><img src="http://www.taxindiaonline.com/RC2/image/stories/ddt_1556cartoon.jpg" alt="Legal Corner Icon" width="400" height="451" hspace="5" border="0" align="center"></font></strong></font></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"> - Monday's cases</font></strong></font></strong></font></p>
<p align="justify"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#663399" 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"></font>Income Tax </strong></font></p>
<p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Whether when shares are held for a very short period and then sold at lowest market price to sister concern, not backed by actual delivery, such transactions can be treated as sham - YES: High Court </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE </strong>issues before the Bench are - Whether speculation loss arising from sale of shares can be allowed, even when the transaction is structured in a manner only to set off the profits earned from the sale of other shares; Whether when the shares are held for a very short period and deliberately sold at the lowest market price to a sister concern not backed by actual delivery, the transaction can be considered as sham and Whether the mere fact that the assessment of the other party's to whom the shares were sold at a low price has been accepted, leads to an automatic inference that the transaction undertaken by the assessee is also genuine. And the verdict goes in favour of the Revenue. </font></p>
<p align="justify"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Customs </strong></font></p>
<p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Ocean going vessel confiscated and sold by Customs department - Buyer is not required to follow procedure under Section 46 of Customs Act: High Court </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> petitioner is engaged in ship breaking business and is a successful bidder of the tender floated by the Commissioner of Customs, Chennai for sale of confiscated vessel. The petitioners submitted that the vessel purchased by them in response to the tender notice issued by customs was a confiscated vessel as contemplated under Section 126 of the Act and therefore, the same cannot be considered to be imported goods. The petitioners are not the importers as defined under Section 2(34) of the Act as the vessel in question on being confiscated as per Section 126 of the Act was a property of Central Government and, therefore, the transaction between the petitioners and customs cannot be termed as ‘Import' and therefore the provisions of Section 46 would not be applicable. </font></p>
<p align="justify"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Central Excise </strong></font></p>
<p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>In absence of any evidence to show that molasses were removed clandestinely, it has to be held that same were destroyed or damaged on account of weather conditions and rainy season - remission has to be granted in such a case - order set aside and appeal allowed with consequential relief: CESTAT </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>APPELLANTS </strong>are engaged in the manufacture of V.P. Sugar with molasses as its by-product. For storage of molasses, appellant have inside their factory premises 2 steel tanks and one covered masonry tank with aggregate storage capacity of 83,000 qtls. However, during crushing season 2002-2003 there being low demand/lifting in comparison to high production of molasses, stocks piled up and all the 3 tanks containing molasses became full beyond their capacity in April, 2003. Storage and disposal of molasses being fully controlled by the State Controller of Molasses, all the stocks of molasses produced were deemed to have been reserved for supply to distilleries, etc. and the appellant is not empowered to dispose of their own will even a gram of it in open market without incurring criminal liability.</font></p>
<p align="justify"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>See our columns Monday for the judgements </strong></font></p>
<p align="justify"><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Until Mondaywith more <strong>DDT </strong></font></p>
<p align="justify"><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Have a Nice Weekend. </font></p>
<p align="justify"><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>
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