Jurisprudentiol– Monday's cases

By Vijay Kumar

Legal Corner Icon — the image was hosted by the publisher and was not captured.All Tax (and some not so taxing) Laws

Writ petition against orders of pre- deposit clearly maintainable - Delhi High Court

The relief under Article 226 can be refused on the ground of existence of alternative remedy only if that alternative remedy is effective and equally efficacious. Evaluation of circumstances which warrant waiver of pre-deposit would fall within the purview of Article 226 of the Constitution of India.

Income Tax

Research and development for developing enhanced and improvised versions of optical transmission telecom equipments – Revenue Expenditure – ITAT

IN an interesting case before the Tribunal, the issue was whether project development expenses incurred in development of a specified product as prototype would be eligible as either revenue expenditure or capital expenditure. The Tribunal after deliberating on the facts of the case and the relevant case laws overturned the decisions of the lower authorities and held that such expenses are revenue in nature in terms of s. 37 (1) of the Act. It also held that such expenses are available as deduction in terms of s. 35 (1) (iv) of the Act even if they are held to be capital in nature by agreeing with the alternative submissions of the appellant's authorized representative.

Customs

Atlas and Globes showing incorrect external boundaries of India are prohibited goods and hence have to be absolutely confiscated without any option for re-export – As revised instructions were not communicated through a Public Notice, importer cannot be saddled with penalty – Tribunal

THE appellants imported 750 pieces of Atlas (printed books) and 320 pieces of Globes totally valued at nearly Rs.6 lakhs . On examination of the said goods, it was found by the Customs authorities that the external boundaries of India on the maps in the Atlas and globes being imported were not represented correctly.

See our columns Monday for the judgements