Jurisprudentiol-Monday's cases

By Vijay Kumar

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

Income tax - Whether when royalty agreement clearly states that no proprietory interest shall be transferred to assessee with respect to any service being rendered by licensor, even then sum paid is to be treated as capital in nature - NO: HC

THE issue before the Bench is - Whether when the royalty agreement clearly states that no proprietory interest shall be transferred to the assessee with respect to any service being rendered by the licensor, even then the sum paid is to be treated as capital in nature. NO is the answer.

Customs

Cus - CA issuing false certificate for an undisclosed consideration thereby facilitating M/s Elit to import goods under advance authorisation without any bank guarantee & which goods were diverted into local market - act of aiding and abetting M/s Elit to evade customs duty rightly attracts penalty - Appeal dismissed: CESTAT

M/S Elit imported polyester knitted fabrics under DEEC scheme. For issuance of the DEEC certificate from DGFT, the appellant issued a Chartered Accountant certificate. Those certificates were taken as evidence of the financial turn-over for the purpose of issue of licence.

See our Columns Monday for the judgements