TIOL-DDT 1980 · the untouched capture
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<!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.01 Transitional//EN" "http://www.w3.org/TR/html4/loose.dtd"> <html> <head> <title>Untitled Document</title> <meta http-equiv="Content-Type" content="text/html; charset=iso-8859-1"> </head> <body> <p><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 1980 </font><br> 09.11.2012 <br> Friday </strong></font></p> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">RTI - Information on Disciplinary Proceedings (Against Central Excise Chief Commissioner) need not be provided by UPSC - HC </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>RESPONDENT</strong>, RK Jain wanted to inspect all the records relating to the proposed disciplinary action and/or imposition of penalty against Sri GS Narang, IRS of 1974 batch, with the UPSC. On being denied the information, he approached the Central Information Commission. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The CIC ruled that:<strong><em><font size="1">[<a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=70&filename=pitara/sercaselaw/caselaw/2011/2011-TIOL-01-CIC.htm" target="_blank">2011-TIOL-01-CIC</a>]</font></em></strong></font></p> <blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ Whatever records it (UPSC) holds in regard to this case will have to be disclosed because this cannot be classified as personal information merely on the ground that it concerns some particular officer. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ Information regarding the disciplinary matters against any government employee cannot be withheld by claiming it to be personal information. </font></p> </blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Commission directed the UPSC to invite the Appellant on any mutually convenient date within 15 working days from the receipt of its order and to show him the relevant records in the possession of the UPSC for his inspection. After inspection, if he chooses to get the photocopies of some of those records, the CPIO shall provide the same <strong>free of cost</strong>. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">UPSC was not prepared to part with the information and filed a writ petition in the Delhi High Court. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">A Single Judge Bench of the Delhi High Court upheld the order of the CIC. <strong> <em><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=51&filename=legal/hc/2012/2012-TIOL-547-HC-DEL-RTI.htm" target="_blank"><font size="1">[2012-TIOL-547-HC-DEL-RTI</font></a><font size="1">]</font></em></strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The High Court (Single Judge) had observed, </font></p> <p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The thrust of the legislation is to secure access to information under the control of public authorities in order to promote transparency and accountability in the working of every public authority, unless its disclosure is exempted under the Act. The access to information is considered vital to the functioning of a democracy, as it creates an informed citizenry. <strong>Transparency of information is considered vital to contain corruption and to hold Government and its instrumentalities accountable to the governed citizens of this country</strong>. </font></em></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The UPSC was not relenting and took the matter in appeal to a Division Bench. The Division Bench in its judgement dated 6th November 2012, set aside the order of the Single Judge and CIC and allowed the appeal of the UPSC. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Recently, the Supreme Court in <em>Girish Ramchandra Deshpande Vs. Central Information Commissioner reported as <a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=50&filename=legal/sc/2012/2012-TIOL-92-SC-RTI.htm"><strong><font size="1">2012-TIOL-92-SC-RTI</font></strong> </a>had held that, "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 High Court asked the respondent as to whether the present controversy was not squarely covered by the said recent dicta of the Supreme Court. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The counsel for the respondent argued that in the case before the Supreme Court the CIC itself had denied the information while in the present case CIC itself has allowed the information.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">High Court found this irrelevant. In the light of the dicta of the Supreme Court and which if applicable to the facts of the present case is binding on this Bench, the Court was not required to go into the correctness or otherwise of the reasoning given by the Single Judge. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">When the Court asked the counsel for the respondent as to what was the public interest in which the said personal information was sought, he replied by stating that an information seeker under the Act is not required to state the reasons for seeking the information. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">So, the High Court followed the Supreme Court judgement and allowed the appeal of the UPSC. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Yet another piece of information goes into the vast chest of Government secrets! </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">We bring you this judgement today. Please see <a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=51&filename=legal/hc/2012/2012-TIOL-899-HC-DEL-RTI.htm" target="_blank"><font size="1" face="Verdana, Arial, Helvetica, sans-serif"><strong>2012-TIOL-899-HC-DEL-RTI</strong></font></a></font></p> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">CESTAT - Division Benches to function at Chennai and Bangalore</font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>JUST</strong> a week ago, <strong>DDT</strong> carried representations from the Tax Bars of Bangalore and Chennai about the non-functioning of Benches at Bangalore and Chennai and requests to post Members at these places. [<strong>Please see</strong> <a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=16209"><strong>DDT 1974 - 01 11.2012 </strong></a><strong>and <a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=16216">DDT 1975 02.11.2012</a></strong>] </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The CESTAT President has responded favourably. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Member(T), Mathew John is transferred from Delhi to Chennai. He and Bangalore Bench Member(J) PG Chackowill sit as Division Bench at Chennai and Bangalore on fortnightly basis. So, their first Division Bench will be at Chennai from 03.12.2012 and at Bangalore from 17.12.2012. This is the best arrangement possible under the circumstances and lawyers can dust their coats and get ready for their appearances. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CESTAT President has also transferred two other technical Members - SK Gaule from Kolkata to Mumbai and Sahab Singh from Mumbai to Delhi. </font></p> <p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=70&filename=pitara/sernews/order/CESTAT_ORDER_07_12.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CESTAT Transfer Order, Dated: November 07 2012</font></strong></a></p> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Income Tax - In De novo proceedings, AO cannot travel beyond directions of CIT(A) - ITAT </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>YOU</strong> go in appeal against an order of an Assessing Officer and the Appellate Authority is pleased to set aside that order and remand it to the AO for a fresh consideration. The Over-active AO in de novo proceedings is angry with you and adds a few more demands which were not there in the original assessment proceedings. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">You go in appeal to be in a better position and for the sin of appealing you can't be punished and placed in a worse position. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In a recent order the ITAT observed, </font></p> <p align="justify"><font color="#0000FF" size="2" face="Verdana, Arial, Helvetica, sans-serif">In the de novo assessment, the AO has travelled beyond the directions of the Ld. CIT(A) by making additions which were not at all there in the original assessment proceedings. As the AO has failed to carry out the legal duty imposed on him, which has resulted into the destruction of a basic principle of natural justice, such action of the AO cannot be upheld. The additions made by the AO were not made in the original assessment and by making such addition the AO has travelled beyond the directions of the CIT(A). It is a settled law that the scope of the proceedings after remand will necessarily have to be determined with reference to the terms of the order whereby the appellate authority has remitted the case to the AO. The AO has same powers in making fresh assessment as he had originally when making the assessment order u/s. 143 of the Act. However, this power can be used only when the First Appellate Authority set aside the assessment and direct the AO to make a fresh assessment, without imposing any restrictions or limitations as to how the fresh proceedings are to be conducted by the AO which means that as long as no restrictions have been placed by the Appellate authority on the scope of the proceedings after remand by directing a fresh assessment to be made by the AO, the AO is competent to redo the assessment in accordance with law after taking into account all matters and aspects that would be relevant in making the original assessment, which also means that it is open to the First Appellate Authority to limit the scope of the enquiry by the AO to any specific aspect or issue. It is well settled that an Appellate Authority while setting aside the case can give directions and lay down limits for the inquiry to be made by the assessing authority. When such a direction is made and limits are laid down, the power and jurisdiction of the assessing authority to deal with the case, after remand, depend on the specifications of the remand order, which means that the assessing officer has no jurisdiction to enter into any question which falls outside the limits laid down . </font></p> <p><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> Please see</font> <font size="1" face="Verdana, Arial, Helvetica, sans-serif"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=39&filename=legal/itat/2012/2012-TIOL-638-ITAT-MUM.htm" target="_blank">2012-TIOL-638-ITAT-MUM</a></font></strong></p> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">WTO - 20 year Banana Dispute Ends </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> European Union and 10 Latin American countries signed an agreement on 08 November 2012 settling the longest-running series of disputes in the history of the multilateral trading system. "This is a truly historic moment," said WTO Director-General Pascal Lamy. "After so many twists and turns, these complicated and politically contentious disputes can finally be put to bed." </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The banana issue is one of the longest running disputes in the multilateral trading system. It has generated considerable debate and litigation among the widest range of the entire WTO membership. And it has resulted in multiple legal rulings by dispute panels, the Appellate Body and special arbitrators. All this attention has focussed on the treatment the EU gives to the import of bananas from the African, Caribbean and Pacific (ACP) countries in preference to bananas from Latin America. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The dispute started in July 1991, when Costa Rica expressed concern in the GATT Council meeting that an impending EU banana import regime would discriminate against Central American countries. It urged agreement in the Uruguay Round for free trade in bananas. Colombia, Honduras, Peru, Venezuela and Mexico shared this concern. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">And we are not on banana republics but the banana problem of Republics. </font></p> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">DDT Cartoon</font></strong></p> <p align="center"><font 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_1980.jpg" alt="" width="400" height="451" hspace="5" border="0" align="center"></font></strong><br> <br> </font><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"><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">Service Tax</font></strong></p> <p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Leviability of tax being an issue for decision, matter has to go before Division Bench: CESTAT</font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE </strong>issue relates to leviability of service tax on a transaction which took place abroad under the reverse charge mechanism under Section 66A of the Finance Act, 1994. The appellant has discharged the tax and interest liability under protest and the stay application is with respect to the penalty levied on the appellant. Leviability of tax being an issue for decision, the matter has to go before the Division Bench in view of the provisions of Section 35 D(3) of the Central Excise Act, 1944. </font></p> <p align="justify"><font size="2"><strong><font color="#663399" face="Verdana, Arial, Helvetica, sans-serif">Income Tax</font></strong></font></p> <p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Income tax - Whether when a chamber of commerce and industry derives income from services rendered to members and non-members, same is to be treated as 'business' warranting satisfaction of conditions u/s 11(4A) even though it has no profit motive - NO: Delhi HC </strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong> THE</strong> issues before the Bench are - Whether when a trade, professional or similar association, such as a chamber of commerce and industry dervies income from services provided to members and non members, the same can be considered as "business" warranting satisfaction of conditions u/s 11(4A), even though it is engaged in charitable activities and has no profit motives; Whether for the purpose of claiming exemption u/s 11, the dominant purpose test i.e. profit motive or charitable motive which needs to be applied, and not merely the generation of surplus; Whether charitable activities must be carried on in such a manner that it does not result in any profit, even though when earning profit is only incidental to such activity; Whether when there is identity between the contributors and participators in the surplus of the association, the surplus is ought not to be taxed under the general principles of mutuality and Whether in terms of section 28(iii) the mutuality principle is destroyed, when the assessee is deriving income or making profits as a result of rendering specific services for its members in a commercial way. And the decision goes in favour of the assessee. </font></p> <p align="justify"><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">Central Excise </font></strong></p> <p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">As there is no requirement for deposit of redemption fine for hearing appeal before Tribunal, therefore, question of waiver of redemption fine for hearing appeal does not arise: CESTAT</font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>AS</strong> per the provisions of Sec. 35F of the Central Excise Act, the requirement for filing the appeal is to deposit duty and penalty only and the Tribunal is empowered to waive the deposit of duty demanded and penalty levied. As there is no requirement for deposit of redemption fine for hearing the appeal before the Tribunal, therefore, the question of waiver of redemption fine for hearing the appeal does not arise. In view of this, there is no merit in this application and the same is dismissed. </font></p> <p align="justify"><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">See our columns Monday for the judgements</font></strong></p> <p align="justify"><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Until Monday with 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> </body> </html>