TIOL-DDT 2433 · the untouched capture
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<!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.01 Transitional//EN" "http://www.w3.org/TR/html4/loose.dtd"> <html> <head> <title>Untitled Document</title> <meta http-equiv="Content-Type" content="text/html; charset=iso-8859-1"> </head> <body> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><strong><strong><s><strong><strong><strong><strong><strong><font color="#663399"><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=20079"><img src="http://www.taxindiaonline.com/RC2/image/stories/limca_book2014_1.jpg" alt="DDT in Limca Book of Records - Third Time in a row" width="250" height="123" hspace="5" border="0" align="right"></a></font></strong></strong></strong></strong></strong></s></strong></strong><font color="#663399" size="3">TIOL-DDT 2433</font><br> </strong></font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>09.09.2014 <br> </strong></font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Tuesday</strong></font></p> <p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><em>Kabaddi Kabaddi </em>- Babus to play <em>Kabaddi </em></strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>ABHISHEK BACHCHAN</strong> whose Pink Panthers won the recent inaugural Pro <em>Kabaddi</em> league said it has made a huge impact in the world of sports. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Babus of India seem to be equally excited about the All India Civil Services <em>Kabaddi</em> Tournament 2014-15, to be held at Rajiv Gandhi Indoor stadium in Puducherry from October 8 to 10, 2014. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">A letter from the Central Civil Services Cultural and Sports Board in the DoPT says that the event is being organised in collaboration with the government of Puducherry. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>DRESS CODE: </strong>The team members are required to wear one colour depicting the name of the team. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>DISCIPLINE:</strong> As the babus will be deemed to be ON DUTY while playing or otherwise, they are subject to the Central Civil Services Conduct Rules. Not reporting at the venue at the scheduled time will be considered as an act of indiscipline. It is not mentioned whether the tournament is only for the gentlemen officers or whether ladies are also allowed. </font></p> <p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Alleged Offenders Meeting Investigators - Charges are Serious - Supreme Court tells CBI Chief </strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>A</strong> few years ago, the DRI had booked a case against one of the top Industrial Houses in the Country. The Company Chief who is one of the most powerful businessmen of this country wanted to meet the DG, DRI after the case was booked. The DG politely declined. Then he wanted to talk to the DG over phone. The DG politely declined. The DG informed the tycoon's representative that the case will be investigated in a fair and just manner. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Supreme Court yesterday told the CBI Chief that the allegation that he frequently met at his residence people accused in the 2G scam, was SERIOUS. </font></p> <p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>PM's Relief Fund - Blatant Disregard for PMO's Directive </strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> Prime Minister's Office in a letter to the Secretaries of various Departments in the Government had directed that </font><font size="2" face="Verdana, Arial, Helvetica, sans-serif" style="background-color:#FFFF00" span="span"><em>arrangements may be made to display a caption "All donations towards the Prime Minister's National Relief Fund (PMNRF) are notified for 100% deduction from taxable income under Section 80G of the Income Tax Act, 1961." by your Department at its home webpage.</em></font></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="#663399"><a href="https://pmnrf.gov.in/payform.php"><img src="http://www.taxindiaonline.com/RC2/banner/12df53fea8b3adfa6c2ec456dd22e20491.jpg" alt="" width="630" height="30" hspace="5" border="0" align="center"></a></font></strong></font></strong></font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Not many departments have cared to obey the directives from the PM's Office. In the Revenue Department, the CBDT website has this caption in its home page, but the CBEC website seems to be unaware of this. Even the Fin Min website does not show this. This is the kind of response the babus give to a letter from the PMO - what can the poor Prime Minister do. Babus are full time into government - governance is a far cry. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Actually the PM's website has a link to <strong>"<a href="https://pmnrf.gov.in/payform.php" target="_blank">Donate to PM National Relief Fund</a>"</strong> where you can make online donations to the PM's Relief Fund. I think this link should be shown in every website in India and even if a few netizens are motivated into making an online donation to the fund, it will be a great achievement. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif" style="background-color:#00FFFF" span="span"> <font size="2" face="Verdana, Arial, Helvetica, sans-serif">Considering its reach in the trade and tax fraternity, Taxindiaonline, on its part, is happy to carry this link " <a href="https://pmnrf.gov.in/payform.php">Donate to PM National Relief Fund </a>" on its home page and enable the spread of this noble cause. Incidentally, we would be the first non-governmental website to become a part of this fund raising effort. </font> </font></p> <p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Babus get more time to file Return of Assets </strong></font></p> <p align="left"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>GOVERNMENT</strong> has notified the <em>Public Servants (Furnishing of Information and Annual Return of Assets and Liabilities and the limits for Exemption of Assets in Filing Returns) Rules, 2014 </em> under the Lokpal and Lokayuktas Act, 2013 on 14.07.2014. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">As per the Act and the Rules framed thereunder, every public servant shall file declarations, information or return as the case may be regarding his assets and liabilities as on the 31st day of March every year to the competent authority, on or before the 31st day of July of that year. As per Section 2 of the Act, <em>"Public Servant"</em> covers all Central Government servants (Groups A, B and C). Therefore, all Central Government servants are required to file the declaration, including the lowest. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The returns as per the new rules are to be filed on or before the 15th day of September 2014 for the year 2014.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now this date is extended till 31st day of December 2014.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Please also see <font color="#006600"><strong>Babuji do you own ship/aircraft/yacht? Inform Department by 15 September in</strong></font> <a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=21099" target="_blank"><strong>DDT 2405 28.07.2014 </strong></a></font></p> <p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=70&filename=pitara/sernews/empanelment/DoPT_Notification_407122014.htm" target="_blank"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>DoPT Notification, Dated: September 08, 2014.</strong></font></a></p> <p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Linguistic Hyperboles in Tax Laws? </strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>ADDRESSING</strong> the PHD Chamber of Commerce recently, the CBDT Member Anita Kapur is reported to have said, </font></p> <blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ The government should draft the tax laws in a manner so that their intent comes out more forcefully and plug possibilities of misinterpretation of laws to benefit vested interests as also prevent chances for dragging the interpretation of laws to courts and tribunals. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ The intent of the laws particularly those of tax laws in modern times matter much more and acquire significance for developing nations like India that is attempting to woo cross border investments to revive its economy for growth, manufacturing, creating demand and host of other such things so that interpretation of the laws are not misinterpreted time and again on account of linguistic hyperboles which are filled in Indian statutes law. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ When the intent in the laws exhibit its meaning and becomes more visible and pronounced, its misinterpretation is prevented to enable the country earn large volumes of revenues and stop enterprises evade and delay payment of taxes and refuge it to take the legal recourses to further delay and avoid the tax payments. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ The attempt of the government should be to draft laws that can be condensed and compressed in thinner volumes of the statutes as practised in economies of scale especially that of United Kingdom which is known worldwide for drafting its GAAR laws. </font></p> </blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Is the Government listening? </font></p> <p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><strong><font color="#006600">Jurispruden</font><font color="#FF6633" size="5">tiol</font><font color="#006600"> - Wednesday's cases</font></strong></strong></font></p> <p align="justify"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#663399"><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></strong></font></strong></font><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">Service Tax </font></strong></p> <p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Measure of levy does not determine the nature of levy - It is not for maintenance or repair that appellant is making payments but for usage of software - Services would fall more appropriately under ‘Information Technology Service' - Stay granted: CESTAT</strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> CST-II, Mumbai confirmed a service tax demand of Rs.30,79,501/- along with interest thereon against the appellant by classifying the service received by them under the category of ‘Management, Maintenance or Repair Service' for the period 18/04/2006 to 15/05/2008. Penalties were also imposed in adequate measure. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Before the CESTAT, the appellant submitted that they had entered into a software usage agreement with M/s. Lear Corporation of USA, as per which the appellant was allowed usage of specified software mentioned in the agreement. For the services rendered, the appellant was liable to pay Lear USA, proportionate amount of annual maintenance charges which Lear USA pays to various vendors of this software. </font></p> <p align="justify"><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">Income Tax </font></strong></p> <p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Whether when assessee acquires running business of AMC which is key income earning apparatus, AMCs are commercial rights to be categorised as 'business or commercial rights' for purpose of Sec 32(1)(ii) - YES: ITAT</strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> Assessee Company acquired the running business of M/s. ECE Industries Limited. The Assessee had acquired the “Elevator Division” business of ECE Industries Limited which comprised of marketing, selling, erection, installation, commissioning, service, repair, maintenance and modernization including major repairs of products on slump basis. The Assessee had valued the business at Rs. 20,32,10,000, out of which the valuation for Maintenance division of ECE Ltd. alone was worked out to the tune of Rs. 18,34,74,000 which was reflected under the transfer and undertaking agreement. The balance consideration i.e. out of the total consideration of Rs. 20,32,10,000 which was Rs.1,85,44,612/- was separately shown in the balance sheet and was treated to be "good will" pertaining to the business. It was this value of "goodwill" which was claimed by the assessee as eligible for depreciation for the first time directly before the Tribunal. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The issue before the Bench is - Whether when the assessee acquires a running business of AMC which is the key income earning apparatus for the assessee, the AMCs are nothing but commercial rights to be categorised as 'business or commercial rights' for the purpose of Sec 32(1)(ii). And the answer is YES. </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>Exemption not claimed while filing B/E - Refund claim is not maintainable without challenging assessment of Bill of Entry: Tribunal by Majority</strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> Bill of Entry was assessed and duty was paid accordingly. Later on, the appellant realised that they are entitled for exemption under Notification No. 11/97-Cus& were not required to pay duty on the imported goods. Therefore, they filed refund claim before the Dy. Commissioner of Customs, Mumbai who sanctioned their refund claim but the same was credited to Consumer Welfare Fund on the ground that the appellant failed to pass the burden of unjust enrichment. </font></p> <p align="justify"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>See our Columns Tomorrow for the judgements</strong></font></p> <p align="justify"><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Until Tomorrow with more DDT </font></p> <p align="justify"><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Have a nice day. </font></p> <p align="justify"><font color="#FF6666" 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@tiol.in"><strong>vijaywrite@tiol.in </strong></a></font></p> </body> </html>