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By Vijay Kumar

Income Tax

Irrecoverable amounts can be written off, even if dispute is pending in civil court - Interest accrued on loan written off, not to be added to income; Expenditure for court case for recovery of amounts written off, not business expenditure : ITAT

The AO was not justified in rejecting the claim of the assessee merely on the ground that it was premature to write-off the debts in question.

Can Tribunal re-hear a matter on which oral orders have already been pronounced? - loss in trading of shares was a speculation loss : ITAT

Supreme Court had held that unless the order of the Bench was signed by all Members constituting it and was dated, it was not an order of the Tribunal. It was also observed that the signed and dated order had to be communicated both to the assessee and to the Commissioner.

Customs

Allowing Cenvat Credit on duty debited in DEPB no way changes position with regard to non-levy of interest on goods cleared beyond warehousing period : Tribunal

IT is settled law that when the duty payable on the goods cleared from a warehouse is nil, there cannot be any levy of interest. In case of M/s Pratibha Processors Vs UOI, the Supreme Court held that "Calculation of interest is always on the principal amount. The "interest" payable under Section 61(1)(2) of the Act is a mere "accessory" of the principal and if the principal is not recoverable/payable, so is the interest on it. The interest provided under Section 61(2) has no independent or separate existence.

Central Excise

Difference between 'consumables' and 'raw materials' - Tribunal had not considered dominant ingredient test in regard to cost variation - matter remanded : SC

APPELLANT-COMPANY is 100% EOU who claimed partial exemption from duty in terms of Notification NO.8/97-CE dated 1.3.1997 in respect of goods sold in Domestic Tariff Area (in short 'DTA'), which stipulated conditions that the goods have been manufactured wholly from the raw materials produced or manufactured in India. According to the company it procured the raw materials from domestic manufacturers in India and also imported (1) Carboxymethyle Cellulose which is used for sizing of single yarn to give strength to the yarn during weaving after which the woven towels are washed to remove completely the sizing materials and (2) Ultra fresh N.M. which is used for anti bacteria and anti fungus treatment of terry towels. The Commissioner (Appeals) had confirmed the demand of duty on the ground that the sizing materials imported by the company is raw material and as imported raw material has been used, the benefit of Notification No.8/97-CE is not available.

See our columns tomorrow for the judgements