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By Vijay Kumar

Income Tax

Ss 45 and 48 do not provide for any deemed profit, or gain, to be taxable, as capital gain: Rajasthan HC

Sec.45 & 48, unlike the provisions of Wealth Tax, do not make provision, providing for any deemed profit, or gain, to be taxable, as a capital gain

To charge capital gains under Sec.45 & 48, four conditions are required to be fulfilled,:

1. There should be a capital asset,

2. Capital asset should be transferred,

3. Consideration has been received in lieu of transfer, and

4. There was cost of acquisition and cost of improvement.

Thus, since Sec.45 & 48, unlike the provisions of Wealth Tax, do not make provision, providing for any deemed profit, or gain, to be taxable, as a capital gain, the mere fact that the assessing officer was of the view, that prevalent market interest rate was 18%, or was at any amount above 9%, could not render the assessee liable for being taxed, on the difference amount, as capital gain.

Service Tax

Transport of crude oil through pipeline having been brought to tax specifically w.e.f. 16.6.05, taxation thereof prior to enactment of law is inconceivable – Tribunal sets aside Service Tax demand

• It is settled principle of law that there is no intendment about tax. Every subject is taxed by specific letters of law.

• From 16.6.05, by incorporating sub-clause (zzz) to Section 65 (105) of Finance Act, 1994, transport through pipeline was brought to ambit of tax.

• Transport of crude oil through pipeline having been brought to tax specifically w.e.f. 16.6.05, taxation thereof prior to enactment of law is inconceivable.

Central Excise

Mixing of colourants at Dealers’ premises – Berger Paints obtains stay on demand of duty under Section 4 from Chennai Bench, though failed in West Zonal Bench

You don’t get the stay order for the same submissions at one Bench and get stay at the other! Order of the day???? That’s what LAW is all about!

See our columns Tomorrow for the judgements