Jurisprudentiol - Thursday's cases

By Vijay Kumar

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ROM filed without reading final order - Frivolous application dismissed: CESTAT

ROM application filed on the ground that in final order there is no finding in respect of penalty imposed u/r 173Q by the adjudicating authority - it appears that application is filed without reading the final order as in the last paragraph it has been specifically held penalty imposed u/r 173Q is set aside - Frivolous application dismissed.

Income Tax

Whether in case of composite housing project, Sec 80IB(10) benefits are to be allowed based on principle of proportionality if conditions are partly satisfied by assessee - YES: HC

THE assessee is engaged in the business of development and construction of flats. There were four projects to its credit. Of these four projects, in Agrini and Vajra, the assessee had constructed and sold flats measuring less than 1500 sq.ft as well as more than 1500 sq.ft. The assessee claimed deduction u/s 80IB(10) and did not claim deduction in respect of flats exceeding an extent of 1500 sq.ft. The AO viewed that the deduction under the Section being for the project as a whole and all the residential units in the project must satisfy the conditions therein, on the admitted facts as to the units having built-up area more than 1500 sq.ft., the assessee was not eligible for deduction for the entire projects Agrini and Vajra, but was only eligible for deduction in respect of the other two projects.

Service Tax

Contempt notice for misleading Bench - Application for modification of Miscellaneous order - in view of unconditional apology tendered, SCN issued for initiation of contempt proceedings withdrawn: CESTAT

VIDE order dated 28/06/2012, the Tribunal has issued a show-cause notice to the applicant that why not contempt of Court proceedings be initiated against them for misleading the Court by stating wrong facts. The show-cause notice has been replied by the appellant and they have tendered unconditional apology for the inconvenience caused to this Bench, therefore, the show-cause notice issued to the applicant is withdrawn.

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