Jurisprudentiol - Tomorrow's cases

By Vijay Kumar

Income Tax

Gujarat Maritime Board is entitled to the status of a Charitable Institution under Section 11 of the Income Tax Act - Supreme Court

Gujarat Maritime Board is a statutory Authority constituted under Section 3(2) of Gujarat Maritime Board Act, 1981. Before 13.11.2002, the Board was registered as "Local Authority" as defined under Section 3(31) of the General Clauses Act, 1897 which was a very wide definition. Prior to 2002, the Board was availing exemption as Local Authority under Section 10(20) of the Income Tax Act. Accordingly, prior to 2002 the income of the Board was not liable to income-tax under Section 10(20) of the Income-tax Act, 1961.

Income Tax - Manufacturing and production need not necessarily mean by the owner only, but also includes job work. Job worker also and can claim deduction under section 80IB of the Act : ITAT

THIS is an appeal by the revenue against the order of Commissioner of Income Tax (Appeals) directing AO to allow deduction u/s 80- IB relating to manufacturing of Glucon D ignoring the fact that :-

i ) The assessee was doing the work on job basis for its principals.

ii) The assessee is not engaged in the manufacture of Glucon D as such but is processing only by mixing the various finished products constituting Glucon D.

iii) The assessee claimed similar deduction u/s 80IB on the manufacture of " Complan " but withdrew its claim at appellate stage and therefore similar claim for ' Glucon D' should have been disallowed.

Central Excise

Belated filing of Modvat declaration - Tribunal order correctly appreciates amending notification 7/99- CE( N.T ) and guidelines issued by Board - Revenue appeal dismissed by Madras HC

IN this Revenue Appeal filed against the Final Order of the CESTAT, SZB , Chennai, the following questions of law were formulated -

1. Whether the credit of duty on capital goods can be allowed when the respondents have not filed statutory declarations which is a mandatory provisions under Rule 57T (1) of CER 1944?

2. Whether credit of duty on capital goods can be allowed when the respondents have not intimated about the date of receipt of capital goods into the factory which is a mandatory provisions under Rule 57T (2) of CER 1944?

3. Whether the Hon'ble Tribunal is right in holding that the Revenue has no case that any of the substantive conditions for capital goods credit was not fulfilled by the respondents when the respondents have violated to sub-rules namely Rule 57T (1) and 57T (2)?

See our columns tomorrow for the judgements