TIOL-DDT 683 · the untouched capture
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<p align="justify"><font size="2"><b><font color="#663399" size="3" face="Verdana, Arial, Helvetica, sans-serif">TIOL</font></b><font color="#663399" size="3" face="Verdana, Arial, Helvetica, sans-serif"><b>-DDT 683</b></font></font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><br>
22.08.2007<br>
Wednesday </b></font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Multiple Criminal Codes </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">A Committee constituted under the Chairmanship of Prof. Madhava Menon has submitted a Draft National Policy on Criminal Justice to the Government on 1st August, 2007. The Draft Policy has recommended classification of all offences under Indian Penal Code into four codes, namely, </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1.Social Welfare Offences Code, </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2.Correctional Offences Code, </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3.Penal Code and </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">4.Economic Offences Code. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Draft Policy has also recommended changes in criminal law and procedure, the institutions of police, prosecution, judiciary and prisons including correctional services etc. for streamlining the Criminal Justice System in the country. It has also been suggested that Draft Policy should identify all such crimes affecting the unity and integrity of the country and create a united National Agency to undertake prevention, investigation and prosecution of such crimes with the support and cooperation of the State machinery concerned. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Draft Policy is being circulated to all the State Governments for their views/comments as the Criminal Law and Criminal Procedure are on the Concurrent List of the Seventh Schedule to the Constitution of India and are administered by the State Governments. On receipt of the same, a final view will be taken by the Government on the Draft Policy. </font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Tax Holiday To Himachal Pradesh </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#663399">Minister of State in the Ministry of Finance, Shri S.S. Palanimanickam while replying to a question raised by Shri Naresh Gujaral in Rajya Sabha yesterday informed that since 2002 the Central Government have extended tax holiday to the State of Himachal Pradesh, Uttrakhand and Jammu and Kashmir.While income-tax concessions have been continuously provided to the State of Jammu and Kashmir and Himachal Pradesh since 1.4.1993, the tax concession was extended to the State of Uttarakhand w.e.f. 7.1.2003.</font></strong></font></p>
<p align="justify"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>The quantum of fresh investments made and employment generated in these States are as under:</strong></font></p>
<table width=450 border=1 align="center" cellpadding=3 cellspacing=0>
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<td width=273 valign=top>
<p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>State</strong></font></p></td>
<td width=106 valign=top>
<p align=center><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Investment in Crores (Rs)</strong></font></p></td>
<td width=113 valign=top>
<p align=center><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Employment generated</strong></font></p></td>
</tr>
<tr>
<td width=273 valign=top>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Jammu & Kashmir <br>
</font><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(14.6.2002 to 31.3.2007)</font></p> </td>
<td width=106 valign=top>
<p align=center><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3403.47</font></p></td>
<td width=113 valign=top>
<p align=center><font size="2" face="Verdana, Arial, Helvetica, sans-serif">72,209</font></p></td>
</tr>
<tr>
<td width=273 valign=top>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Himachal Pradesh <br>
</font><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(7.1.2003 to 31.3.2007)</font></p> </td>
<td width=106 valign=top>
<p align=center><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2053.24</font></p></td>
<td width=113 valign=top>
<p align=center><font size="2" face="Verdana, Arial, Helvetica, sans-serif">37,893</font></p></td>
</tr>
<tr>
<td width=273 valign=top>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Uttrakhand <br>
</font><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(7.1.2003 to 30.6.2006)</font></p> </td>
<td width=106 valign=top>
<p align=center><font size="2" face="Verdana, Arial, Helvetica, sans-serif">19035.88</font></p></td>
<td width=113 valign=top>
<p align=center><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1,40,972</font></p></td>
</tr>
</table>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Reverse Mortgage Scheme For Senior Citizens </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Pursuant to the announcement made in the Union Budget speech 2007-08, that “National Housing Bank will introduce a novel financial product for senior citizens; a ‘reverse mortgage' under which a senior citizen who is the owner of a house can avail of a monthly stream of income against the mortgage of his/her house, while remaining the owner and occupying the house throughout his/her lifetime, without repayment or servicing of the loan”, the National Housing Bank (NHB) formulated the Operational Guidelines for Reverse Mortgage Loan (RML), after taking into account the feedback and suggestions of the senior Citizens, the public and the Technical Working Group constituted by NHB, in this regard.The RMLs are to be extended by Primary Lending Institutions (PLIs) viz. Scheduled Banks and Housing Finance Companies (HFCs) registered with NHB.The the main features of the RML are:</font></p>
<font size="2" face="Verdana, Arial, Helvetica, sans-serif">1.It aims at partially meeting the financial needs of Senior Citizens who may, otherwise be not eligible for availing any kind of financial assistance under conventional bank loan schemes.</font>
<p align="justify"></p>
<font size="2" face="Verdana, Arial, Helvetica, sans-serif">2.RML enables monthly payments that supplement the income of senior citizens during their lifetime when their income sources are generally restricted/limited and show a marked fall as compared to the period when they were in active occupation. </font>
<p align="justify"></p>
<font size="2" face="Verdana, Arial, Helvetica, sans-serif">3.RML obviates the need for senior citizens to meet emergent financial needs by selling their house and perhaps moving to a smaller house possibly located far away, to raise money. </font>
<p align="justify"></p>
<font size="2" face="Verdana, Arial, Helvetica, sans-serif">4.Helps in unlocking the wealth otherwise locked in a residential asset. </font>
<p align="justify"></p>
<font size="2" face="Verdana, Arial, Helvetica, sans-serif">5.Expenses like health care and other needs which are generally expected to rise with ageing can be met from the payments received under RML. </font>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Direct Tax Collections: Growth- 44.39% Up To 15th August, 2007 </strong></font></p>
<p align=justify><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Direct tax collections during fiscal 2007-08 recorded a growth of 44.39% up to 15th August, 2007. Tax collections stood at Rs.59,210 crore, up from Rs.41,006 crore during the same period last fiscal. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Corporate tax recorded a growth of 52.25% at Rs.33,164 crore, up from Rs.21,783 crore during last fiscal, while personal income tax (including FBT, STT and BCTT) grew by 35.57% at Rs.25,989 crore, up from Rs.19,170 crore last fiscal. Securities Transaction Tax (STT) grew by 36.30% at Rs.2,495 crore and Banking Cash Transaction Tax (BCTT) grew by 29.71% at Rs.207 crore. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Government claims that the continued buoyancy in direct tax collections is a reflection of the robust growth in the economy, better tax compliance and improved tax administration.</font></p>
<p align=center><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Customs, police, prohibition, smuggling and Gujarat</b></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Gandhi's Gujarat is the only State in India where official prohibition prevails, but the prohibition there, is a big joke and anyone who wants to drink, will find the finest drinks available at tipsy rates. Of course once in a way, there has to be the mandatory raid and arrest, but things are anything but sober when they arrest Customs officers under the prohibition laws. That is exactly what happened when the local Police raided the Mundra Port and arrested three customs officers alleging that they were selling foreign liquor. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">While the Kutch Superintendent of Police says that the customs employees arrested, have violated the Prohibition rules in the state by allegedly selling off liquor outside the customs area in Mundra, Customs officers say that the Mundra police have violated Customs Act by conducting raids inside the customs area in Mundra port and later taking the liquor consignment outside the port, without paying the required customs duty.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Mundra police raided a godown in customs area inside Mundra port on Sunday evening and arrested three customs officers with 205 bottles of foreign-made liquor, 640 foreign-made beer cans and cash of Rs 2.36 lakh. “The raid and subsequent arrest followed a specific tip-off that the accused used to sell off foreign-made liquor outside the port premises. They are accused of violating Prohibition rules of the state,” according to the Police. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Customs officials, however, have a different version; that the customs area of a port is a demarcated zone under the exclusive jurisdiction of the Customs department and that the local police cannot even enter that area. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Under the Customs Act, any act or omission which renders the goods liable to confiscation is smuggling. Now who is the smuggler? Customs-man or police?</font></p>
<p align=center><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Gangavaram declared Customs port</b></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><b><b><img src="http://www.taxindiaonline.com/RC2/image/stories/gangavaram.jpg" alt="Legal Corner Icon" width="191" height="160" hspace="5" border="0" align="left"></b></b></b>Gangavaram was a beautiful virgin beach attached to the Vizag steel plant, where Pandit Briju maharaj used to dance to the <i>lahar</i> of the waves, where Shekhar kapur got Suchitra all drenched for his famous album, where lovers breached the CISF security for a few brief romantic moments before the turbulent sea; where innocent fishermen got killed in police bullets as man's determined destruction for commercial gains took precedence over protection of nature. A high tech port is coming up at Gangavaram which is being developed as all weather, deepwater, multi-purpose world-class port facility. The port will offer major tangible benefits to Indian shippers and receivers through deeper drafts (20m), advanced cargo handling equipment, highly efficient operations, vast storage areas for all types of cargo and extensive ancillary facilities.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The CBEC has declared Ganagavaram as a Customs port for Unloading of imported goods and the loading of export goods or any class of such goods.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In the meanwhile there is a new International airport coming up at Hyderabad and the State Government has allotted four acres of land near the airport to the Customs Department. This is an area where the land costs around Rs. 4 Crores an acre!</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><u><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=24&filename=notification/custom/2007/cnt07_085.htm" target="_blank">NOTIFICATION NO. 85/2007- Cus., (N.T.), Dated: August 21, 2007</a></u></font></p>
<p align=center><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>From our Legal Corner – Tomorrow's cases</b></font></p>
<p align=center><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><b><b><img src="http://www.taxindiaonline.com/RC2/image/stories/ddt_31.gif" alt="Legal Corner Icon" width="191" height="160" hspace="5" border="0" align="left"></b></b></b></font></p>
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<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><u2:p><font color="#FF0000">Customs</font></b></font></p>
<p align="justify"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>'After eyes had been damaged, he performs Surya Namaskar' - CESTAT dismisses appeal filed by Customs Appraiser against penalty imposed for abetting duty evasion </b></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">IN November 2003, the importer filed Bill of Entry for Compact Fluorescent Lamps (CFL) through Inland Container Depot (ICD), Bangalore. The importer declared the country of origin as Sri Lanka and claimed the benefit of full exemption from basic customs duty in terms of Notification No. 26/2002 dated 01.03.2002 issued under Indo-Sri Lankan Free Trade Agreement. The CFLs if imported from or originating from China are subject to Anti-dumping duty. The appraiser marked the B.E. for first check examination.</font></p>
<p align="justify"><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Income Tax </b></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><u2:p><font color="#663399">Tax can be recovered only when it becomes debt due from assessee and it becomes a debt due when notice of demand is served - tax recovery officer cannot file claim against property attached by court : SC </font></b></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">It is settled by authority long accepted that tax can be recovered from an assessee only when it becomes a debt due from him and that it becomes a debt due when a notice of demand calling for payment of the tax has been served on the assessee.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Special Court could not have entertained the application moved by the Income Tax Department under Section 226(4) of the Income Tax Act for realization of its income tax dues from M/s. Killick Nixon Pvt. Ltd. The application moved by the Income Tax Department was, therefore, rightly rejected by the Special Court.</font></p>
<p align="justify"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Reason for reopening assessment must be genuine - where assessee utilises certain sum for purposes specified in Sec 80HHD(4) and draws the same from '80HHD reserve account' it is open to assessee to utilise the fund for any purpose it deems fit and proper : Bombay High Court</b></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Under the Income Tax Act, concluded assessments can be reopened only if the assessing officer has reason to believe that the income chargeable to tax has escaped assessment.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The reasons for reopening the assessments must be genuine, reliable and not imaginary or based on conjectures or surmises.</font></p>
<p align="justify"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><u>See our columns tomorrow for the judgements</u></b></font></p>
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<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@taxindiaonline.com">vijaywrite@taxindiaonline.com</a></font></p>
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