Jurisprudentiol - Wednesday's cases

By Vijay Kumar

Legal Corner Icon — the image was hosted by the publisher and was not captured.Central Excise

CE - Appellant not able to produce Notification under which they cleared goods without payment of duty - Pre-deposit ordered of duty amount - in interest of justice more time granted for payment - Modification application dismissed: CESTAT

WHILE every other day, the Revenue is blamed for clogging the Tribunals by filing frivolous appeals and applications, the present case is an indicator that assessees too are partly responsible for the same.

Income Tax

Whether commission paid by company to an HUF consisting of Directors of company can be construed as perquisites in hands of Directors u/s 2(24)(iv) - NO: Madras High Court

THE issues before the Bench are - Whether commission paid by the company to an HUF consisting of the Directors of the company can be construed as perquisites in the hands of Directors u/s 2(24)(iv); Whether it is irrelevant through whom the amount was paid/routed, when once it is established that amount received from the company is used for meeting personal expenses of the directors; Whether admission made during survey proceedings u/s 133-A can be made basis for making any addition of amount, which is liable to be taxed and Whether when there is contradiction on the factual aspects of modus operandi of payment of commission arising out of complex group of transactions, the matter can be remanded for fresh consideration. And the ruling goes in favour of the assessee.

Customs

Departmental officers have no respect to orders of Tribunal as well as orders of High Court - 'Concerned' officer is directed to comply with order of High Court within two days failing which contempt proceedings would be initiated: CESTAT

THE revenue is bound by the undertaking given by the Counsel for the Revenue to comply the order of this Tribunal within six weeks of the communications of the order which was pronounced on 09.10.2012, this act of the revenue clearly shows that the departmental officers have no respect to the orders of this Tribunal as well as the orders of the Hon'ble High Court of Bombay.

See our Columns Tomorrow for the judgements