From our Legal Corner - Monday's cases
Legal Corner Icon — the image was hosted by the publisher and was not captured.

By Vijay Kumar

Income Tax

Transfer of immovable property - capital gains - To attract clause (v) of Sec 2(47), it is not necessary that full sale consideration is received by the owner : Advance Ruling

IN a highly interesting and eruditely interpretational ruling which may have serious implications for the bulk transfer of landed property for setting up Special Economic Zones across the country and the liability of capital gains on the transferors, the Authority for Advance Ruling has held that to attract clause (v) of section 2(47), it is not necessary that the entire sale consideration upto the last installment should be received by the owner. Where the agreement for transfer of immovable property by itself does not provide for immediate transfer of possession, the date of entering into the agreement cannot be considered to be the date of transfer within the meaning of clause (v) of Section 2(47) of the Income-tax Act.

Customs

Hair is very much an animal part - 'Shahtoosh' derived from the fallen hair of Chiru woven into a shawl - covered under the ban - seizure upheld

The exporters are in writ petition against, Customs, Ministry of Environment and the State Government. The whole controversy revolves around the question whether hair is an animal article under the Wildlife Protection Act. Plea of the petitioner was that the 'hair' of the animal Chiru does not form or part of an animal article as defined in Section 2(2) of the Act and hence the user of such 'hair' in producing the Shahtoosh shawls was not hit by the bar prescribed under Section 49 (B) of the Act

Central Excise

High Purity Burnt Lime is correctly classifiable under Tariff Item 2825 90 90 @16% adv -AAR

The applicant states that the two possible classifications of the high purity burnt lime in the First Schedule to the Central Excise Tariff Act 1985 are : 2522 under Chapter 25 and 2825 in Chapter 28. Chapter 25 covers "Salt; sulphur; earths and stone; plastering materials; lime and cement". The Tariff head 2522 under this Chapter covers "Quick lime, slaked lime and hydraulic lime, other than calcium oxide and hydroxide of heading 2825".

See our columns on Monday for the judgments