Jurisprudentiol - Friday's cases

By Vijay Kumar

Legal Corner Icon — the image was hosted by the publisher and was not captured.Service Tax

Back office services like preparation of Federal Tax Returns, Co-sourcing services, Analyzing Client Data and calculating estimates of tax amount - not IT Services: HC

THESE activities even though performed by using computer programmes are not in relation to computer systems. The service provider, merely because he is using a computer to provide the said service, cannot be said to be providing "information technology service" to the service receiver. Non-Speaking Confirmation of Tribunal's Order by Supreme Court - Not Binding on High Court:

Income Tax

Whether if assessee makes certain payments to holding company for rendering specific services, such payments can be said to be diversion of income merely because holding company is eligible for Sec 10A benefits - NO: ITAT

THE issues before the Bench are - Whether if the assessee makes certain payments to the holding company for rendering specific services, such payments can be said to be diversion of income merely because the holding company is eligible for Sec 10A benefits; Whether the assessee is required to deduct TDS on purchase of software and disallowance can be made for the full amount though only part of the amount was payable as on the last day of the financial year and Whether disallowance is correctly made under section 14A by applying rule 8D and rejecting the claim of the assessee that it could only be restricted to the amount of exempt income earned. And the verdict partly goes in favour of the assessee.

Central Excise CENVAT credit denied on ground that appellant has availed credit of inputs which were received prior to 10.09.04 and there is delay in taking credit even after registration was granted - Prima facie case for waiver of pre-deposit - Stay granted: CESTAT

PRIMA-FACIE, there cannot be any dispute regarding the availment of CENVAT credit by the appellant in this case as there is no dispute as to receipt of the plates and the duty paid nature of the same and consumption thereof for the fabrication of storage tanks in the appellant's factory premises. The appellant has made out a prima-facie case for the waiver of the pre-deposit of the amounts involved. Application for the waiver of the pre-deposit of the amount involved is allowed and recovery thereof stayed till the disposal of appeal.

See our columns Tomorrow for the judgements