Jurisprudentiol - Tomorrow's cases
Legal Corner Icon — the image was hosted by the publisher and was not captured.Income Tax - Mayawati wins
Income Tax - Rs 60 lakhs gift to Mayawati - these gifts are made out of natural love and affection by donors - Element of reverence, veneration or personal esteem and faith all depend upon personal feelings and desire - Mayawati wins huge case in ITAT
IT is not elections alone that Mayawati can win emphatically. She has proved that she can win income tax cases with equal force.
The issue before the Tribunal is the gifts amounting to Rs. 12 lakhs in cash and Rs . 62 Lakhs in immovable property received by Mayavati . The donors had even borrowed money and made the gifts to her. The AO was not convinced but the CIT ( A) was and Revenue is in appeal before the Tribunal. Assessee Mayavati is also before the Tribunal pleading Standard deduction of Rs. 30,000/-.
Why would totally unrelated persons want to donate such huge sums to Madam Mayawati ? Out of natural love and affection borne out of her selfless service to the downtrodden!
Service Tax
Service Tax - Even wayside painters would, for an amount, quickly paint out advertisements for anyone who engages them and they would surely not become an 'advertising agency' : CESTAT
A good name is to be chosen over great riches. It's tax free! - Anon.
Unfortunately, the above quip did not hold good as far as the present appellant was concerned for he was taxed by the enterprising Central Excise officials - well almost !
How did the case originate -
During the scrutiny of the records of M/s Mangalam Cement Ltd., it was noticed by the officers that the appellant had received an amount of Rs. 24 ,76,417 /- on account of advertisement. Without wasting much time, the Revenue concluded that the appellant was a commercial concern engaged in providing services connected with making, preparation, display and exhibition of advertisements and also providing consultancy in advertisements; that the appellant had not obtained registration in respect of the said taxable service, 'Advertising Agency'. Noticing that no reply was being filed, the Revenue proceeded to confirm the Service Tax demand of Rs. 1 ,23,821 /- & imposed penalties.
The order was challenged on the ground that the appellant was only a painter
Central Excise
Cenvat Credit on capital goods - AC of assessee availing credit can not change classification of capital goods - it is job of his counterpart having jurisdiction over supplier's factory: CESTAT
THE eligibility of the Cenvat Credit is decided by the classification of the goods. The credit is allowed only on the goods falling under specified chapters. Obviously the document to decide the classification and the eligibility of credit is the supplier's invoice. But, what if the receiver of the goods contends that the classification shown is the invoice is not correct?
Until Tomorrow with more DDT
Have a nice time.
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