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By Vijay Kumar

Income Tax

Sec 80HHC - 10% deduction from Indirect Costs incurred for earning exports income and Other Income such as rent and exports incentive is allowable; Principle of Attribution not omitted from Sec 80HHC(3)(b) : Supreme Court

GOVT had introduced Sec 80HHC in the Income Tax Act as a beneficial Section for exports. But, for strange reasons, it turned out to be one of the most contentious Sections over the years. The Apex Court has given many a judgements, bringing clarity to the interpretation of various clauses of this Section. However, here comes yet another new dimension where the Supreme Court has held that under Sec 80HHC(b) one has to balance the principle of attribution with the concept of allocation. The concept of allocation is meant to reduce the incentive. However, when allocation has to be balanced with the principle of attribution, the object is to reduce the incentive and not to eliminate it.

Customs

Settlement Commission - Even confiscation involves assessment - Fraud cases can also be covered under settlement - object of settlement includes recovery of locked up Revenue early : Madras HC

What is a case?

A contention has been raised on behalf of the Department that under Section 127-A, the terminology case has been defined to mean any proceeding under this Act or any other Act for the levy, assessment or collection of customs duty or any proceeding by way of appeal or revision in connection with such levy, assessment or collection, which may be pending before the proper officer or Central Government, can only be regarded as a case coming within the purview of Section 127-B since the present case is one of prima facie smuggling, there is no question of levy, assessment and collection of customs duty and as such the dispute will not come within the purview of Section 127-B, which contention was found in favour of the Department by the learned single Judge.

Central Excise

Depot price cannot be taken when factory gate price is available; No cum duty benefit when cash recovered above invoice price - CESTAT

The tribunal found this plea to be untenable in view of the Supreme Court decision in the case of Amrit Agro which clearly says that the cash recovered over and above the invoice price which was never intended to represent duty will be addable. The adjudicating authority should determine the quantum of duty at the applicable rate prevalent during the relevant time on this account and the appellants should pay the amount so calculated.

See our columns tomorrow for the judgements