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By Vijay Kumar

Income Tax

Interest income from investment in banks not income from an industrial undertaking - not entitled to deduction u/s 80I : Deduction u/s 80I to be made after allowing deduction u/s 32AB : HC

THE questions before the High Court were, Whether on the facts and in the circumstances of the case, the ITAT, is justified in,

1.holding that interest income from investment in banks be treated as income derived from an industrial undertaking and entitled to deduction u/s. 80 I of the Act?

2.in directing that deduction u/s. 80 I should be allowed without deducting the amount of deduction permissible u/s. 32-AB of the Act?

Central Excise

No limitation for taking Modvat Credit - Sec 11B not applicable : Allahabad HC

The High Court had no hesitation in holding that the provisions of Section 11B of the Act is not attracted in the case of Modvat which is governed by Rules 57A to 57P. Further, during the relevant period no limitation had been provided for availing of the Modvat credit. Thus, the respondents were within their right to avail the short fall in the Modvat credit at any time.

Customs

Anti-dumping : Provisional assessments are non est as section 18 of Customs Act has not been borrowed in Sec 9A(8) of Customs Tariff Act : Tribunal

A levy introduced retrospectively cannot be recovered under the provisions of Sec.28 of the Customs Act, 1962 in the light of the High Court decision in Chhotabhai Jethabhai Patel and Co. vs. Union of India.

No anti-dumping duty can be levied on imports made during the interregnum period between the expiry of the provisional levy and the levy of final anti-dumping duty, under Rule 21 of the Anti Dumping Rules, 1995.

See our columns tomorrow for the judgements