Jurisprudentiol - Friday's cases

By Vijay Kumar

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

DRI refuses to give documents to accused and petitions HC that they are not required to do so. Filing of Petition by DRI appears to be mala fide ; dismissed : HC

THE DRI by a petition seeks to invoke inherent powers of the Delhi High Court under Section 482 of the Code of Criminal Procedure for setting aside of an order dated 20.01.2010 passed by the Additional CMM, New Delhi whereby in the complaint case filed by the Petitioner, directions were issued to it to supply copies of the documents which consisted of more than 300 pages. In order to have a fair trial and to have its case expedited, the Petitioner (DRI) ought to have supplied the Respondents with the copies of the documents promptly so that the trial could have proceeded. The Petitioner (DRI) is unable to make out a case for invoking the powers under Section 482 of the Code. Rather, the filing of the Petition appears to be mala fide; the same is accordingly dismissed

Income Tax

I-T - Whether a sum can be added to income of assessee u/s 40A(2) although same has not been claimed as expenditure - NO: Delhi HC

THE issues before the Bench are - Whether a sum can be added to the income of the assessee u/s 40A(2), although the same has not been claimed as expenditure; Whether depreciation can be disallowed on the intangible assets, although the same has been allowed on the tangible assets and whether an amount which has been paid as a part of the sale price in a slump sale transaction can be added back to income of the assessee, merely on the pretext that the transaction was alleged to be sham in nature. And the verdict goes in favour of the assessee.

Central Excise

Common inputs used in manufacture of CI castings which were cleared on payment of duty and also captively used in manufacture of PD pumps which were cleared under exemption - Amount of 8% to be paid should be on price of PD pumps and not CI castings: HC

THE appellants manufactured Castings. They took MODVAT credit on the inputs received for that purpose. Part of the Castings produced is captively used for the manufacture of exempted PD pumps and the remaining is sold in the market. The captively consumed castings are exempt from duty. Issue that arose was as to what action is required to be taken in respect of the credits taken on the inputs used in the production of captively consumed castings. The appellant was making payment at the rate of 8% of the value of the Castings in terms of Rule 57CC of the CER, 1944. The jurisdictional authorities were of the view that the assessee should be paying 8% of the price of the exempted PD pumps and so a demand notice was issued. However, the lower adjudicating authority dropped the proceedings by holding that the payment being made by the assessee was proper.

See our Columns Tomorrow for the judgements