Jurisprudentiol – Friday's cases

By Vijay Kumar

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

SAD Refunds - In case of provisional assessments, claim for refund can be made within one year of finalisation of assessment: HC

WHERE the goods are released on provisional assessment followed by the Final assessment, the application seeking refund can be made within the period of one year or six months, as the case may be, of the final assessment as stipulated by Explanation II to section 27 of the Act or within the enlarged period of one year from the date of provisional release as stipulated by the notification dated 1st August, 2008 read with Circular No. 23/2010-Customs dated 29th July, 2010.

Income Tax

Whether income derived from air-conditioning and other charges of let out property can be considered as income from other sources entitled for deduction of expenses u/s 57 - YES: ITAT

THE assessee had received rent of Rs. 45,00,049/- from letting. The Assessee had also received a sum of Rs. 66,25,957/- on account of air conditioning, electricity and water charges. The assessee had declared the rental income under the head "income from house property" and the air conditioning and other charges had been declared as income from other sources against which property maintenance expenses of Rs. 82,54,091/- had been claimed resulting into net loss of Rs. 20,28,134/- under the head " income from other sources". The AO held that since the assessee had let out the property on rent along with air conditioning and other services the entire income should be assessed as income from house property. The issue before the Bench is - Whether income derived from the air-conditioning and other charges of the let out property can be considered as income from other sources entitled for deduction of expenses u/s 57. And the answer goes in favour of the assessee.

Central Excise

Interest liability arises under provisions of Section 11AB of Central Excise Act, 1944, and even prior to 11.05.2001: CESTAT LB

THE issue referred to the Larger Bench in these cases is:

"whether interest on duty/cenvat credit demanded by applying proviso to Section 11A or Section 11AA with Cenvat Credit Rules or under Rule 57(I), is payable under Section 11AB prior to 11.05.01."

Held: interest liability arises on the appellants under the provisions of Section 11AB of Central Excise Act, 1944, and even prior to 11.05.2001.

See our Columns Tomorrow for the judgements