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

By Vijay Kumar

Income Tax

Income from house property - notional interest on advance cannot be added to determine ALV; No deduction of expenditure to collect rent when there was no expenditure : ITAT

The assessee had let out a commercial space on an annual rent of Rs.25,30,800/- and has also received an amount of Rs.25,30,800/- as interest free security. The Assessing Officer was of the opinion that the security deposit received by the assessee was an advantage accruing to the assessee as a result of letting out of the property so it was to be taken into consideration for determining the ALV of the property in terms of Section 23 of the Income Tax Act.

Customs

Customs - imported vegetable oil not conforming to standards - liable for confiscation - Tribunal has power to order reprocessing and clearance if found fit - prohibited goods cannot be cleared under bond u/s 143 : Bombay HC

The common question of law raised in all the writ petitions is:-

"Whether on the facts and in the circumstances of the case, the Tribunal was justified in setting aside the order of adjudication and directing the customs authorities to allow reprocessing of the confiscated goods and thereafter allow clearance for home consumption, if the reprocessed goods are found to conform to the standard prescribed under the 1954 Act and the rules made thereunder?

Central Excise

Cost of duty paid bought out items cleared with CPU, no includible in assessable value : CESTAT

THE appellant company was manufacturing and clearing Central Processing Units (CPU). They were also supplying certain bought out item as per the customers' requirement. The appellant's contention is that they had not taken modvat credit in respect of bought out items and such bought out items were of reputed company and were already bearing brand name. Therefore, in terms of the customers requirement such bought out items were supplied. The appellants contend that these bought out items did not form part of the CPU supplied by them to their customers. Therefore, the value of bought out items was not required to be added, as claimed by the department

See our columns Monday for the judgements