Jurisprudentiol- Tomorrow's cases
Legal Corner Icon — the image was hosted by the publisher and was not captured.Income Tax - Settlement Commission
No settlement of income already discovered by AO - Jayalalitha's settlement unsettled by Madras High Court
It has to be noted that the Commission exercises power in respect of income which was not disclosed before the authorities in any proceeding, but is disclosed in the petition under Section 245-C. It is not that any amount of undisclosed income can be brought to the notice of the Commission in the said petition. The Commission exercises jurisdiction if the additional amount of tax on such undisclosed income is more than a particular figure (which at different points of time exceeded rupees fifty thousand or rupees one hundred thousand,as the case may be). The assessee must have in addition furnished the return of income which he is or was required to furnish under any of the provisions of the Act. In essence the requirement is that there must be an income disclosed in a return furnished and undisclosed income disclosed to the Commission by a petition under Section 245C.
Central Excise
Notification 6/2002-CE - Pipes for water supply - Tribunal gives CBEC clarification a thumbs down
IN the month of January 2006 we had carried a story titled CBEC clarification may 'choke' water supply! This piece was prompted by the Board's missive F.No. 354/129/2005-TRU dated 28.10.2005 . At the end of the story, we had made an earnest plea to the Board to have a fresh look at this TRU letter that was apparently choking various notifications that sought to quench the thirst of a million households.
Needless to say, Board never bothered to check up the consequences of this letter except collecting data as to the quantum of Central Excise demands that had been issued and adjudicated & the recoveries made by the department.
Customs
Advance licence - After allowing imports and exports, it cannot be pleaded that licence was wrong - if licence was wrong it should have been rectified : Madras High Court
CAN the Government go in appeal on the ground that the licence issued by it was wrong? This is what exactly happened in this case.
The respondent Company was manufacturing and exporting drugs by importing certain drugs meant for manufacturing the finished formulation for export purpose. During the year 1992, the Government of India announced its export and import policy. Under Chapter XVII of the Export and Import Policy, for the period from 1992 to 1997, duty exemption schemes were framed and explained. Under clause 49, a scheme called "Value Based Advance Licence Scheme" has been introduced. The object of the said scheme was to provide raw materials and components to exporters duty free. Under the said licence, any inputs specified in the licence could be imported duty free for the CIF value stated in the licence. The licensee is obliged to export the manufactured drugs to the value and quantity mentioned in the licence.
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