TIOL-DDT 2099 · the untouched capture
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<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><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=17063"><img src="http://www.taxindiaonline.com/RC2/image/stories/limca_book2013.jpg" alt="DDT in Limca Book of Records" width="175" height="120" hspace="5" border="0" align="right"></a></font></strong></font></strong></font></strong></font></strong></font><font color="#663399" size="3">TIOL-DDT 2099 </font><br>
</strong></font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>07.05.2013 <br>
Tuesday </strong></font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Income
Tax Department spends Rs 790 Cr on Computerisation - CAG not happy
with results </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><em><strong>THE </strong>main objectives of the IT Applications in Income Tax Department (ITD) were to improve the efficiency and effectiveness of the tax administration and provide management with reliable and timely information towards effective planning as also broaden the tax base. </em></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><em>ITD has spent Rs. 790 crore on computerisation during FY 06 to FY 11. Yet ITD has not utilized important functionalities of modules. AST/CPC applications do not link up assessee's legacy details. It does not record scrutiny assessment details nor does it record penalty proceedings and appeals. All non filers identified by AST are not being issued notices. ITD did not reconcile the revenue collections as reported by Banks and as accounted by Zonal Accounts Office, with implications on correctness of Government Accounts. De-authorised bank branches are collecting taxes. Large amounts of un-posted credits are lying in OLTAS. The Individual Running ledger Accounts are not being populated completely. Multiple uses of same Challans have been found which accorded inadmissible tax credit to assessees. ITD has already confirmed 3089 cases amounting to Rs. 153 crores of extra credit through the system at our instance. IT applications do not generate important MIS reports like CAP-I and CAP-II online; and, do not co-relate Certificate for deduction of tax at lower/nil rate while processing returns</em>. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">These are the observations of the CAG in his latest report to Parliament on computerisation in the Income Tax Department. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">And CAG Recommends: </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Efficient and effective management of audited ITD system” </strong></font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1. Database be adequately utilized towards broadening the tax base.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2. Tax payment details in different modules be linked more reliably. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3. Adequate system checks be provided against multiple erroneous credits for the same Challan. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">4. Comprehensive recording of all transactions be ensured to achieve optimum benefits of computerization initiatives. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">5. Legacy issues of assessments be factored in the system for summary processing; and basic linkages regarding unabsorbed depreciation, carry forward of losses etc. ensured. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">6. Results of scrutiny assessments as post transaction events be recorded. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">7. NSDL claim of 90 percent data accuracy with regards to the data uploaded by banks be reconciled with ITD's averment that challans cannot be posted into IRLA due to poor quality of challan data.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">8. Chain of tax collection and reporting be strengthened. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">9. Linkages amongst IT modules, viz. OLTAS, AST, e-TDS and IRLA be strengthened. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">10. Information be adequately populated in IRLA. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">11. Correctness of lower deduction/no deduction claimed in TDS returns be verified through eTDS application. </font></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Outsourcing and vendor management: </strong></font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">12. Vendor performance be monitored and their contractual obligations enforced. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">13. Outsourced activities be monitored periodically to ensure achievement of business objectives. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">14. Conditions relating to security audit be enforced. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">15. Comprehensive provisions be made in contracts for digitisation for ensuring security and confidentiality of information. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">16. Comprehensive password, physical and logical access controls be ensured. </font></p>
</blockquote>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Anti-dumping duty on 'Phenol' imported from South Africa continued </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>BASED</STRONG> on the findings of the designated authority definitive anti-dumping duty was imposed on Phenol [Chapter 27 or 29] originating in, or exported from, European Union, South Africa and Singapore in terms of notification No. 114/2008-Customs, dated the 31 st October, 2008. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">This duty was supposed to be effective for a period of five years from the date of the notification unless revoked, superseded or amended earlier. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The designated authority had initiated a review in the matter of continuation of anti-dumping duty on imports of the subject goods, originating in, or exported from, the subject countries as mentioned in the notification. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Vide notification dated 6 th February, 2013 the designated authority had concluded that- </font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(i) the dumping margin of the subject goods imported from European Union and South Africa is positive whereas for Singapore it is negative during the period of investigation; </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(ii) subject goods are likely to enter the Indian market at dumped prices from South Africa should the present measures be withdrawn and the likely dumping margin and injury margin in respect of imports from South Africa is significant; </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(iii) the injury to the domestic industry is not likely to continue or recur on account of imports of subject goods from Singapore and European Union, if the existing anti-dumping duty is withdrawn; </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(iv) even though the domestic industry has improved its performance during the period of investigation, the situation of domestic industry continues to be fragile and should the present anti dumping duties from South Africa be withdrawn, injury to the domestic industry is likely to recur, </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">and had recommended continuation of anti-dumping duty on imports of subject goods from South Africa and withdrawal of anti-dumping duties on subject goods from Singapore and European Union.</font></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">So, the Central Government has superseded the earlier notification No. 114/2008-Customs and now the Anti-dumping duty stands imposed on Phenol only when it is imported/originates from South Africa. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">This duty will be valid upto 30 th October, 2013. </font></p>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=337&filename=notification/custom/2013/ctariffadd13_010.htm" target="_blank"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Notification No. 10/2013-Cus (ADD) dated May, 03, 2013. </strong></font></a></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>SION for Verdyl Propionate </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>DGFT</strong> has notified a SION bearing number A-3641 in respect of the export product “Verdyl Propionate” n the Chemicals and Allied Products Group. </font></p>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=47&filename=notification/dgft/2013/dgft13pn008.htm" target="_blank"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>DGFT Public Notice No. 8/(RE: 2013)/2009-2014, Dated: May 6, 2013. </strong></font></a></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>SION for Amyl Salicylate </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>DGFT </strong>has notified a SION bearing number A-3642 in respect of the export product “Amyl Salicylate” in the Chemicals and Allied Products Group. </font></p>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=47&filename=notification/dgft/2013/dgft13pn009.htm" target="_blank"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>DGFT Public Notice No. 9/(RE: 2013)/2009-2014, Dated: May 6, 2013. </strong></font></a></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Cobrapost Expose – Finance Ministry instructs Banks </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>IN</strong> connection with Cobrapost, Red Spider 2 Expose that was released yesterday, the Secretary, Department of Financial Services Rajiv Takru has asked the Chairman cum Managing Directors (CMDs) of various Public Sector Banks (PSBs) as well as Life Insurance Corporation (LIC) of India for immediate action on the following lines:</font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(i) Any officer/employee of the bank/institution who clearly appears to be advising potential customers along lines that would be an infringement of the legal process/could facilitate money laundering/could defeat the KYC norms or the norms of due diligence prescribed by RBI and the law from time to time, <font color="#FF0000">may be placed under suspension with immediate effect pending inquiry</font> . </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(ii) In case where the behaviour and conduct of the officer / agent is not such as would attract point (i) above but fails to meet the standards of conduct and behaviour expected of an officer / employee / agent of a public sector institution and/or brings the institution or is likely to bring the institution into disrepute, <font color="#FF0000">such person may immediately be divested of their work / portfolio and advised to voluntarily proceed on leave</font> while a detailed examination on the same lines as above is conducted. </font></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Cobrapost expose says, <em>Twenty-Three Major Indian Banks, Both Public and Private, and Insurance Companies, are Running a Nation-Wide Money Laundering Racket, Blatantly Violating the Laws of the Land. And the culprits being exposed are: Life Insurance Corporation, State Bank of India, Bank of Baroda, Punjab National Bank, Canara Bank, Indian Bank, IDBI Bank, Yes Bank, Federal Bank, Reliance Capital, Birla Sunlife and many, many others</em>. The expose says that <em>money laundering is not confined to private banks, and is not an aberration, as is being made out in certain quarters in the wake of the first expose on March 14 in which HDFC Bank, ICICI Bank and Axis Bank were shown involved in money laundering; it is rather endemic overarching the entire banking system and insurance sector, without exception, however shocking it might be. The scale is vast and unfathomable. </em></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The expose declares that: </font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(i) Money laundering practices are part and parcel of banking and insurance business across the board;</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(ii) Even a walk-in customer can avail of such services that help him launder all his unaccounted cash;</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(iii) Money laundering services are being offered openly as a standard product across the board. </font></p>
</blockquote>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Bar Association Meets CESTAT President </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> Bar Association met the CESTAT President recently and offered various suggestions for liquidation of pendency, in the matter of sittings of the Larger Bench, improvement and up-gradation of CESTAT website etc. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Bar informs that the President has agreed for: </font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1. Listing of 60-70 Stay Matters on every Monday as the present listing of more than 100 cases is not practical. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2. Devoting one full month so that all 11,000 pending Stay Applications be decided. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3. Listing of 25 Regular Matters per day so that Cause List be practical as far as possible. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">4. Giving copies of orders immediately. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">5. Listing cases strictly in chronological order. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">6. Placing on CESTAT website a list of all pending Larger Bench cases with subject/issue involved. </font></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Bar Association also wanted: </font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(1) Digital board may be linked to CESTAT website so that Members of Bar could plan reaching the court room in time.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(2) Canteen facility for Members of the Bar - Canteen Room already allotted may be renovated.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(3) Discussion rooms/Chambers for the Members of the Bar. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(4) Service Centre for litigants and members of Bar with the following facilities: </font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(a) Stationary Shop with Stamp Vendor. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(b) Photo Copier. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(c) Telephone and Fax. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(d) Internet. </font></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(5) Visitor Room for public with Drinking water facilities.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(6) Re-installation of Water Coolers with filters on the 1 st and 2 nd floor. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(7) CESTAT own building in close vicinity to Hon'ble Supreme Court/High Court. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(8) Earmark bungalow for the residence of the President, CESTAT, as it was available, since 1998 till 2012. </font></p>
</blockquote>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Cost Imposed on Writ Petitioner in Income Tax case for wasting Court's time </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE </strong>High Court of Uttarakhand imposed cost of Rs. 1000 on a petitioner for wasting the Court's time. The petitioner did not want to proceed further after four days. The Court observed, </font></p>
<p align="justify"><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif"><em>The petitioner unnecessarily wasted the Court's valuable time for the last four days. The learned Senior Counsel for the petitioner argued the matter taking Court's valuable time for four days and the respondents contested also. As a matter of fact, the Court had to summon the Officer of the Department, who came yesterday. Therefore, this wastage of time must be compensated. </em></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Please See
<em><a href="http://www.taxindiaonline.com/RC2/caseLawDet.php?QoPmnXyZ=ODgwNDU=" target="_blank"><font size="1">2013-TIOL-360-HC-UKHAND-IT </font></a></em></strong> </font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Whose pipeline is it, anyway? - CESTAT remands matter for factual verification </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>BRIEF </STRONG>facts are that the facility of removal of petroleum products without payment of duty from refineries to warehouses was withdrawn w.e.f 6.9.2004. The Revenue raised a duty demand of Rs.3.51 Crores in respect of the petroleum products which remained in the pipeline namely <strong><em>BPT pipeline </em></strong> and <strong><em>Pirpau </em></strong> pipeline. Accordingly to revenue these pipe lines are outside the factory of appellant and certain quantity of Petroleum products remained in the pipeline as 6.9.2004 on which no duty was paid. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The appellant submitted that the <strong>BPT pipeline belongs to Bombay Port Trust </strong> (BPT) and hence the duty cannot be demanded from them. In respect of the other pipeline i.e. <strong>Pirpau pipeline </strong> it is their contention that the pipeline is <strong>within the factory </strong> of the appellant and petroleum products which are lying in the pipeline on the specific date are accounted in the inventory stock of the refinery and the same was cleared on payment of duty subsequently. This fact was also recorded in the affidavit filed by their Sr. Manager-Production Planning and hence the demand is not sustainable. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Revenue representative submitted that the petroleum products in both the pipelines are of the appellant and so appellants are liable to pay duty. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The CESTAT set aside the order and remanded the matter by observing that the facts submitted by the appellant require verification afresh by the adjudication authority. </font></p>
<p align="justify"><font size="1" face="Verdana, Arial, Helvetica, sans-serif"><strong>Please See
<a href="http://www.taxindiaonline.com/RC2/caseLawDet.php?QoPmnXyZ=ODgwNDc=" target="_blank">2013-TIOL-697-CESTAT-MUM </a></strong></font></p>
<p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><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"><img src="http://www.taxindiaonline.com/RC2/image/stories/Roadmap.jpg" alt="" width="400" height="406" hspace="5" border="0" align="middle"></font></strong></font></strong></font></strong></font></strong></font></strong></font></p>
<p align="justify"> </p>
<p align="center"><strong><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"> – Wednesday's cases</font></strong></font></strong></font></strong></p>
<p align="justify"><font color="#663399" 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_hammer.jpg" alt="Legal Corner Icon" width="100" height="84" hspace="5" border="0" align="left"></font>Service Tax </strong></font></p>
<p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>So long as person rents a cab either owned by him or cabs procured from elsewhere, liability to pay service tax would arise - it is date of knowledge of the activity by department which is relevant for computing time-limit - demand upheld and appeal dismissed: CESTAT </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THERE </strong>is no stipulation either in the Act or in the Rules that the person renting the cabs should also own the vehicles. So long as the person rents a cab either owned by him or cabs procured from elsewhere, the liability to pay service tax would arise and, therefore, the activity undertaken by the appellant gets squarely covered under the definition of 'Rent-a-Cab Services'. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Inasmuch as the show cause notice has been issued on 13th October 2003, i.e. within a period of one year from the date of knowledge, it cannot be alleged that the show cause notice is time barred, as has been held by the apex Court in the case of <em>Nizam Sugar Factory Ltd. </em> - <font size="1"><strong>(<a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=32&filename=legal/sc/2006/2006-TIOL-56-SC-CX.htm" target="_blank">2006-TIOL-56-SC-CX</a>)</strong></font>. It is the date of knowledge of the activity by the department which is relevant for computing the time-limit. </font></p>
<p align="justify"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Income Tax </strong></font></p>
<p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>I-T - Whether when assessee invests in purchase of land, which is transferred to builder for construction of flats on sharing basis, assessee continues to be eligible for Sec 54 benefits - YES: ITAT </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> assessee along with another person jointly acquired certain property for a consideration of Rs.1,95,430.00. Later another person relinquished her rights over the said property. Thereafter the assessee entered into a development agreement with M/s Tibrewala Builders for construction of flats over the said property on 50:50 sharing basis. Accordingly, five flats fell to the share of the assessee, which were claimed to have been sold by her during the year under consideration for a total consideration of Rs.1,79,00,000. The assessee filed her return of income declaring total income of Rs.58,839. In the return of income, the assessee while computing LTCG claimed exemption u/s 54 towards purchase of plot and construction of house besides deposit in capital gains account scheme. The issue before the Bench is - Whether when assessee invests in purchase of land, which is transferred to a builder for construction of flats on sharing basis, assessee continues to be eligible for Sec 54 benefits. And the verdict favours the assessee. </font></p>
<p align="justify"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Customs </strong></font></p>
<p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Date of receipt of order by the Review section is relevant date for computing period of review and not when Commissioner received it in his dak – Review done within period of limitation: CESTAT </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>ANYONE</strong> who is accustomed with the working in a Commissionerate probably knows by now that any communication addressed to the Commissioner first lands at his PA's desk and then into the 'dak' of the Commissioner who then marks it to the section concerned. Mind you, some of the addressees are so finicky that unless they have their 'directions' engraved on the 'tapal', the letter cannot leave his 'teak table'. Even if he is on leave, the 'communication' cannot leave! </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The 'tapal' then begins its mighty descent and finally reaches the section concerned where more often than not they try to show scant concern for what is engraved thereon. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">But this does not usually happen in sections where matters are 'time-bound'. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In this scenario, Revenue should be mighty pleased with this order for they can now probably buy more time. </font></p>
<p align="justify"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>See our Columns Wednesday for the judgements </strong></font></p>
<p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Until tomorrow with more <strong>DDT </strong></font></p>
<p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Have a nice day. </strong></font></p>
<p align="justify"><font color="#FF6633" 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>
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