From our Legal Corner – tomorrow's cases

By Vijay Kumar

Income Tax

ITAT has power to extend stay, even after 2007 amendment - Identical cases in Central Excise followed : Bombay High Court

THE question: "Does the third proviso to Section 254 (2A) of Income Tax Act, have the effect of denuding the Tribunal of its incidental power to grant interim reliefs?

This question is settled on the Central Excise side, but the matter is in the High Court from the Income Tax side.

Indian company's PE in Japan makes losses - Deduction for such losses is available in India even though positive income is taxed in Japan : ITAT

WITH more and more Indian companies setting up shops on foreign lands and generating both incomes as well as losses, the issue of taxation is becoming more and more interesting and taxing! In this case, involving Patni Computer Systems Ltd, the dispute is about allowing deduction for losses incurred by the assessee's trading branch in Japan when the income from the same branch has been taxed locally in the source country.

Central Excise

J & K exemption - education cess also to be refunded : Tribunal

It is evident that when the exempted amount of duty was required to be refunded for operationalising the exemption, Education Cess, which was in the nature of piggy back duty on the excise duties under the said three Acts, was also required to be refunded, because it was not at all leviable, in view of the entitlement to exemption

No penalty if suppression and mis-statement are not even alleged : High Court

Once there was no allegation, there was no question of any finding in that regard.

See our columns tomorrow for the judgements