Jurisprudentiol – Thursday's cases

By Vijay Kumar

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

Recovery proceedings against defaulter - Properties in name of wife and sons of defaulter cannot be attached: HC

THERE is no vested right in the Department to take over any of the properties which are in the name of the dependents of the defaulter and the statute does not permit such a course of action. In the instant case, the 'defaulter' was the person who was conducting the business and the notice of default under the Rules was also served only on him. The transactions said to have been made by the defaulter in the name of the wife and children are all before such notice was served on the "defaulter".

Income Tax

Whether when running division of business is transferred to Group company as per amalgamation plan approved by High Court and no sale consideration is involved, even then such transfer gives rise to capital gains taxable u/s 50B - NO: ITAT

THE issue before the Bench is - Whether when a running division of the business is transferred to a Group company as per the amalgamation plan approved by the High Court and no sale consideration is involved, even then such a transfer gives rise to capital gains taxable u/s 50B. And the verdict goes against the Revenue.

Service Tax

Public facility means facilities owned by governments - Sports Stadium constructed for conducting Games is non-commercial construction - merely because some amount is charged for using facility, it cannot become commercial -Appellant not liable to Service Tax under ‘Commercial or Industrial Construction Service' - Appeal allowed: CESTAT

EVEN in a Children Pak, entry fee is levied for maintenance of the Park. Merely because some amount is charged for using the Park, it cannot be said that it is a commercial or industrial construction. Adopting the same logic, the Sports Stadia in the present case is also a non-commercial construction for use by the public. Therefore, we are prima facie of the view that the Sports Stadium constructed for conducting Commonwealth Games, is a non-commercial construction.

See our Columns Tomorrow for the judgements