From our Legal Corner – tomorrow's casesLegal Corner Icon — the image was hosted by the publisher and was not captured.

By Vijay Kumar

Customs

Customs AC flouts law laid down by HC - hauled up for contempt - let off on unconditional apology : Bombay HC

WHEN will the babus learn to obey the courts? However high you are, the law is above you!

Here is a case of yet another Assistant Commissioner hauled up before the Court for contempt but let off after an apology.

The High Court had, in several cases, held that during the period of limitation available for filing an appeal, no coercive action should be taken to enforce the order.

Service Tax

Highly aggrieved Tata Technologies finds solace in Tribunal order - Rs 1.77 Cr Service Tax demand set aside

HAD it not been for the Tribunal making such a remark, we would not have known that Tata Technologies was highly aggrieved with what appears to be a routine confirmation of duty demand by the Commissioner of Central Excise. Just imagine the fate of thousands of assessees whose life is blown to smithereens by confirmation of high value duty demands which usually are proved unsustainable!

Income Tax

Assessee company shuts down business but claims deduction for expenditure on salary and bonus - Since expenditure has no nexus to capital gains and dividend income, no deduction allowable : HC

HERE is an interesting scenario where a public limited company shuts down its business totally, but claims deductions for expenses on account of heads like wage, bonus etc. While answering the question of admissibility, the High Court held that since the deduction is not related to the income earned nor relevant to keep the status of the company alive and, therefore deduction on that account cannot be allowed.

See our columns tomorrow for the judgements