Gold bond certificate – Treated as asset, sale consideration liable to be taxed as short term capital gain.

Gold received by assessee on redemption of gold bond certificates issued under Gold Deposit Scheme, 1999, is a new asset. Therefore, when assessee sold said gold within a period of twelve months from date of its acquisition, income arising from sale transaction was to be taxed as short‐term capital gain. (AY 2008‐09)
Shiv Kumar Agrawal v. DCIT (2012) 139 ITD 572 (Agra)(Trib.)

Advance rent – premium for agreement to lease.

On facts “advance rent” received by the assessee from the lessee being the consideration for being let into possession of the leased premises as evident from the report of the assessee’s council of Management and the terms of the lease, it was in fact a premium rather than advance rent and constituted the assessee’s income; leasing out of commercial spaces by the assessee cannot be regarded as sale of properties as the assessee was only a lessee of the land which belonged to the Govt. and it was not even entitled to sell the construction put up on the land. Constituted the assessee’s income. (A.Y. 1989 – 90 & 90 – 91)
M. Visvesvaraya Industrial Research and Development Centre v. CIT (2012) 79 DTR 387(Bom.) (High
Court)

Amount received for transfer of indefeasible right of connectivity for 20 years is assessable over the period of 20 years.

RI Ltd. in terms of the agreement, had only the right to use the network during the tenure of the 20 years agreement. Further, the agreement was liable to be terminated at the sole discretion of RI Ltd. and consequently, the amount received as advance for 20 years lease period would have to be returned on such termination for the balance unutilized period. Tribunal also held that the agreement dated 30th April 2003 was only in the nature/form of a lease agreement. Therefore, the assessee had in terms of AS‐19 correctly spread the entire fee of Rs.3,037 crores over the period of 20 years and to pay tax thereon over the entire period. Entire amount was not assessable during the relevant year. (A.Y. 2004 –2005)
CIT v. Reliance Communication Infrastructure Ltd. (2012) 79 DTR 198 /254 CTR 251(Bom.) (High Court)

S.2(22)(e): Definitions‐ Dividend‐ Deemed dividend ‐ Trade advances to sister concern – Provisions of S. 2(22)(e) is not applicable

Provisions of section 2(22)(e) is not applicable to trade advances given to sister concern in which shareholders of assessee have substantial interest, therefore provision of section 194 cannot be applicable and assessee cannot be treated as assessee in default and levy of interest under section 201 (IA) was deleted .As the Commissioner (Appeals) has passed a reasoned order the matter was set aside. (AY 2005‐06 to 2006‐07) Jaypeem Granites (P.) Ltd. v. ITO (2012) 139 ITD 564 (Hyd.)(Trib.)

Occupancy rights to shareholders are taxable as deemed dividend

The assessee was the substantial shareholder of a closely held company which owned a building. The Articles of the company provided that each shareholder would have occupancy rights to a flat on the ondition that an interest‐free refundable deposit be paid. The occupancy rights were transferable. The AO held that the grant of occupancy rights by the company amounted to a “distribution of assets” and that the same was assessable as “deemed dividend” in the hands of the assessee u/s 2(22)(a) to the extent of the accumulated profits. On appeal, the CIT(A) held that as the occupancy rights were given against payment of a refundable deposit, there was no “distribution of assets” and so no deemed dividend. Instead, he held that the occupancy rights conferred a “benefit/perquisite” on the assessee which was assessable u/s 2(24)(iv). On cross appeals before the Tribunal, held:
(i) U/s 2(22)(a), any distribution by a company of accumulated profits, whether capitalized or not, constitutes “dividend” if such distribution entails the release by the company to its shareholders of all or any part of the assets. As the assessee received the occupancy rights to the flat in perpetuity and could transfer them, it effectively meant that he had full ownership over the flat. Accordingly, the value of the flats was assessable as deemed dividend u/s 2(22)(a);
(ii) However, as the said occupancy rights were given in lieu of holding shares and an interest‐free refundable deposit towards proportionate land cost and development cost and were transferable, there is no “benefit or perquisite” which is assessable u/s 2(24)(iv). (A. Y. 2006‐07 & 2007‐08)
Shantikumar D Majithia v. DCIT ( Mum.)(Trib.)www.itatonline.org

Marathon conducted in commercial sense – Cannot be said to be existing only for charitable purpose

A trust conducts marathon in a commercial manner, then it cannot be said to be existing only for
charitable purposes in view of amended definition of charitable purpose with effect from 1‐4‐2008,
matter remanded. (AY 2012‐13)
Hyderabad Runners Society v. DIT (Ex) (2012) 139 ITD 464/ 20 ITR 675 (Hyd.)(Trib.)

Assessee‐society provided citizen's services to common people ‐ Charged very huge fees, in addition to charges levied by State Government – Activities not treated as charitable purpose

Where assessee‐society provided citizen's services to common people by charging very huge fees which was in addition to charges levied by State Government and was additional burden upon common man, activities of assessee could not be treated as charitable in nature making it eligible for registration under section 12AA, refusal of registration was held to be justified.
Sukhmani Society for Citizen Services v. CIT (2012) 139 ITD 307 (Asr.)(Trib.)

Proviso to section 2(15),introduced by the Finance Act, 2008 with effect from 1‐4‐2008 ,applies to trust which has object of 'advancement of any other object of general public utility' and does not apply to other categories of charitable trust i.e., relief to poor and medical relief.

Krupanidhi Educational Trust v. DIT(IT) (2012) 139 ITD 228 (Bang)(Trib.)

Educational Institution-Investment in Trust publishing magazines dealing with education ancillary to main object of running educational institution ‐ trust is entitled to exemption

The assessee was allowed the benefit u/s. 11 of the I.T Act 1961, till 1985‐86. But, for the asst. years 1986‐87 and 1987‐88, the A.O. denied the exemption for the reason that (i) the assessee was not a public charitable trust; its objects were limited for the benefit of a few people; (ii) the assessee was running educational institution only for the purpose of commerce; and (iii) there was violation of the provisions of section 11(5) of the Act, inasmuch as the assessee invested the monies in two organizations publishing magazines and thereby infringed section 13(1)(c). The Commissioner (Appeals) and the Tribunal held that the assessee was entitled to exemption. On appeal the High Court held that the A.O. did not give any clear finding regarding violation of section 11(5) except making such a comment. Investing monies in the two organizations publishing magazines could not be said to be commercial ventures. They were incidental and ancillary to the main activities of the trust. The assessee was entitled to exemption under sec. 11.The Supreme Court in Yogiraj Charity Trust (1976) 103 ITR 777 (SC) held that if the primary or dominant purpose of a trust is charitable, another object which by itself may not be charitable but which is merely ancillary or incidental to the primary or dominant purpose would not prevent the trust from being a valid charity. (A.Ys. 1986‐88, 1987‐88, 1988‐89) 
CIT v. Vijaya Vani Educational Trust (2012) 349 ITR 280(AP)(High Court)

Capital Gain on Agriculture Land of area not notified by Central Government

It is contended that land is located within 8 kms. within the municipal limits of Dasarahalli City Municipal Council, in the absence of any notification issued under cl. (b) to s. 2(14)(iii), it cannot be looked in as a capital asset. Capital gains were not therefore chargeable on sale of agricultural land. (A.Y. 2005‐ 2006)
CIT v. Madhukumar N. (HUF) (2012) 78 DTR 391/254 CTR 564(Karn.)(High Court)

VDIS cases on sale of jewellery favoring assesee

Manoj Kumar Aggarwal ITAT Delhi Special Bench on 25-07-2008 ITA/404/DEL/2003
Tehinder Singh HUF ITA /163/ASR/2003 (However Remanded by Punjab and Haryana High Court on 8-02-2011 in 292 CTR 352 to Special Bench for hearing on 4-04-2011)
Kiran Deepak Kukreja 190 Taxmann 393 Bombay High Court
Uttam Chand Jain 182 Taxmann 243 Bombay High Court
Jagdish Mitter ITA 268/2002
Mohan Lal Aggarwal Allahabad HC ITA 136/2010
Yogesh Chand Sharma ITA 131/Agra/2011
Sanjay Mahipal ITA 452/Delhi/2009

Transaction of Rishi Grover Prop Vishnu Jewellers held genuine by ITAT Amritsar ITA 198 to 202/ASR/2006 26-06-2009.MA 55 to 59/2010 of Department dismissed by ITAT on 26-06-2012

P&H explains difference between AOP and Individual

ITA No. 463 of 2009

Date of Decision: 26.7.2012 Sudhir Nagpal and others

Penalty for not quoting PAN in Form 16A upheld by ITAT Amritsar

ITA/18/ASR/2012 dated 17-7-2012

On Embroidery Machinery 50% depreciation is allowable

ITA 36 & 37/2011/ASR  dated 4-6-12 Amit Embroidery Fair Land Colony
ITA 357/2010/ASR dated 23-4-2012  S.S. Embroiders

The ITAT held that words "processing and garment sector" are wide enough to cover embroidery machinery by inviting refrence to Credit linked Capital Subsidy Scheme

Decision of Coordinate Bench of ITAT when no contrary decision of Bench itself is binding on the ITAT Bench hearing the case

ITA 357/(ASR)/2010 ACIT vs S.S. Embroiders

Capital Gain on Development Agreements

Where  assessee enters into agreement with developer to surrender his plot or building in consideration of receiving back cash and/or constructed flat/building, the transaction becomes exigible to capital gain.But the moot point is point of taxation of transaction as to whether it is:
i) Point of entering into agreement
ii) registration of plot/building in favor of developer
iii) when new plot/flat/ building is allotted
iv) when possession of plot/flat/ building is  handed over.

Whether road not available for general public is exempted from service tax

As per Apex Court in Bolani Ores vs. State of Orrisa AIR 1975 SC 15, for definition of road we have to look at Motor Vehicles Act which says that public place includes any road, street or or ther place whether a thorugfare or not , to which public have a right of access. If public does not have right to access to any palce which is not road, street or way or thorough fare, it will not be public place

No remand can be allowed by ITAT to improve upon case of revenue

a) Agra Bench TM ITAT 313 ITR 123 9AT) Laxman Dass Makhija
b) Delhi ITAT TM in Amina 73 ITD 125; In SMC Share Brokers 109 TTJ 700(affirmed by
DHC 288 ITR 345); Chd ITAT in Neena Syal 70 ITD 62; All ITAT TM in 50 ITD 1
c) Zuari Leasing Delhi ITAT TM 112 ITD 205/115 TTJ 721-

Foreign Travel Expenses allowed by Punjab and Haryana High Court

ITA No. 19 of 2009 Date of Decision: 8.10.2012 Kamal Family Trust Punjab and Haryana High Court

Question  relates to the admissibility of expenses on account of foreign travel incurred by Kamal Khanna and his wife which has been allowed to the extent of 50% by the CIT(A) and upheld by the Tribunal. The CIT(A) while allowing 50% deduction on account of expenses incurred on foreign visit by Kamal Khanna and his wife had noted that Kamal Khanna was a heart patient and was looking after the business of the firm. is wife had to accompany for looking after him on visit to the foreign country. It was also recorded that the  visit resulted in increase in the business and after analyzing the factual matrix had allowed 50% expenses as revenue expenditure which was wholly and exclusively expended for business purposes. The said finding was
affirmed on appeal by the Tribunal. It would basically be a question of fact as to how much expense is reasonable and is allowable in a given case. In the present case, on appreciation of evidence, it was recorded
by the CIT(A) and affirmed by the Tribunal that it was 50% which was reasonable and was to be allowed as revenue expenditure. An effort was made by the learned counsel for the revenue to submit that 50% had been allowed without any basis. He, however, could not substantiate the said plea. Accordingly, question (A) is answered against the revenue and in favour of the assessee.

No dis allowance for non deduction of TDS on capital expenditure

Punjab and Haryana High Court held that :
"Learned counsel for the revenue was unable to substantiate that in the absence of any requirement of law for making deduction of tax out of the expenditure on technical know how which was capitalized and
no amount was claimed as revenue expenditure, the deduction could be
disallowed under Section 40(a)(i) of the Act."
ITA 57/2009 decided on 8-10-2012 in case of M/s Mark Auto Industries Limited

Registration to family controlled Trust allowed by Punjab and Haryana High Court

BKK Memorial Trust ITA 5/2012 Order dated 16-10-2012
Followed Punjab and Hryana High Court in ITA No.881 of 2010 The Commissioner of Income-tax, Bathinda Vs. M/s Baba Deep Singh Educational Society, SCF 23, Bharat Nagar, Bathinda

7% Rate without allowing interest and salary applied to contractor

Punjab and Haryana High Court
M/s. Competent Construction Company ITA No. 646 of 2010 (O&M) Date of decision: 01.11.2012

ITAT Amritsar
ITA 493/2010 dated 11-5-2012  Construction Engineers

Employee Contribution paid after due date under PF/ESI law still allowable if paid before due date under 139(1)

Punjab and Haryana High Court in
 Hemila Mills Embroidery Private Limited ITA 16/2009 decided on 27/9/2012.
Mark Auto Industries Limited ITA 57/2009 decided on 8/10/2012

Followed: Alom Extrusions Ltd. [2009] 319 ITR 306 (SC)
                ITA 663/2005 CIT v. M/s Rai Agro Industries Limited (P&H) decided on 30-11-2010

wherein it has been held that Second Proviso to Section 43B of the Act omitted by Finance Act, 2003 with effect from 1.4.2004 was clarificatory in nature and was to operate retrospectively. The above mentioned proviso provided that employee contribution is deductible only if amount is paid before due date under 36(1)(va) Explanation

S. 194A TDS: Discounting Charges Is Not “Interest”

CARGIL GLOBAL TRADING PRIVATE LIMITED 

The assessee paid Rs. 3.97 Crores to an associate concern in Singapore on account of discounted charges for getting the export sale bills discounted. The AO held that that the discounting charges was “interest” u/s 2(28A) and that as there was no TDS, the expenditure had to be disallowed u/s 40(a)(i). This was reversed by the CIT (A) and Tribunal. The High Court (335 ITR 94 (Del) included in file) relied on Circular No.65 dated 2.09.1971, Circular No.674 dated 22.03.1993 & Vijay Ship Breaking 219 CTR 639 (SC) held that as the discounting charges were not in respect of any debt incurred or money borrowed and were merely discount of the sale consideration on sale of goods, it was not “interest” u/s 2(28A) and there was no obligation to deduct TDS thereon. On appeal by the department to the Supreme Court, HELD

The special leave petitions of Revenue are dismissed by Supreme Court on 10/5/12 against ITA 331/2011 of Delhi High Court dated 17/2/2012   

Molasses produced in sugar factory is Scrap exigible to TCS

ITAT ASR in Nawanshahar Co-op. Sugar Mills Ltd; I.T.A. Nos. 311, 312, 313 & 314(Asr)/2012 upheld the decision of CIT A quated below:

Transport Subsidy is not eligible for Deduction u/s 80IB

Maken Cement Industries 7-11-2012 ITAT ASR ITA 63/2011
Followed: Sterling Foods(SC) 237 ITR 579 and Pandian Chemicals Ltd 262 ITR 278 (SC)

AIR Information Case onus does not completely shift to the assessee

Just because an AIR indicating the PAN of assessee, the onus does not shift completely to assessee. Provision of section 69 couldn't be applied if assessee claims that the entries in AIR represent sale transactions, and the AO fails to prove otherwise
[2012] 27 taxmann.com 321 (Mumbai - Trib.)
Threadneedle Investment Fund ICVC Asia Fund NOVEMBER 27, 2012

For transportation charges paid in pursuance of contract for purchase no TDS is attracted

[2012] 27 taxmann.com 304 (Gujarat)

HIGH COURT OF GUJARAT

Commissioner of Income-tax (TDS)

v.

Krishak Bharati Cooperative Ltd.*

JULY 12, 2011

Service Tax is payable on value of study material and mock tests

CESTAT, NEW DELHI BENCH

Aditya Kumar

v.

Commissioner of Central Excise, Lucknow

MISC. ORDER NO. ST/M/190 of 2012-CUS.

STAY ORDER NOS. ST/S/543-544 of 2012-cus.

APPLICATION NOS. ST/STAY/3227 & 3363 OF 2011 & ST/COD/409 OF 2011

APPEAL NOS. ST/1527 & 1607 OF 2011

APRIL 30, 2012

Instructions of DIT Systems for procedure for adjustments of demand

As per Instructions dated 27-11-2012 F.No. DIT(S)-III/CPC/2012-13, procedure for adjustments of refunds has been given to be followed by AOs and CPC:
- CPC to issue prior intimation u/s 245 before adjusting demand against refund
- CPC shall fortnightly inform CCIT about intimations sent under his charge.
- Assessee can reach AO with in 15 days from intimation of demand regarding grievance relating to demand.
- AO to rectify or confirm demand with in 30 days from receipt of grievance
- Modifications of demands to be made by AO following verification of documents submitted by assessee.

E-filing of Vat 20 from 1-12-2012/5-12-2012

1. It has been decided that the Annual VAT Returns for the year 2011-12 will be received in form VAT-20 online through the e-Return module being implemented by the Excise and Taxation Department, Punjab. All concerned are requested to note that the annual return will now be filed from 1st December 2012 to 31st December 2012.  “No manual return in form VAT-20 will be received in the offices of the Excise and Taxation Department after 31thOctober 2012.”
2. The annexures which are to accompany the VAT-20 shall be submitted after filing of the return to the respective AETCs in-charge of the district. The annexures must be accompanied by the system  generated acknowledgment of e-Return. The last date for this activity shall be 4thJanuary 2013.
3. Those dealers who have already filed their returns for this period to their respective AETC need not file again.
4. The procedure for e-filing the  Annual VAT returns will be the same as the procedure prescribed for e-filing of the quarterly returns. The facility shall be available on the Department’s website www.pextax.com from 01.12.2012.( Vide Notice on 1-12-2012 date changed to 5-12-2012)

Lucky Coupon Scheme of Vat Department for retail purchase between 4-11-12 to 31-12-2012

The Punjab Government is offering attractive prizes to the customers/retail purchasers who take retail invoices (bills) from their respective shopkeepers for their retail Purchases.  The prizes of amount up to Rs. 10 Lakhs per division will be awarded on the basis of lucky draw in all the seven excise and taxation divisions of the department. These prizes shall be awarded not only to the retail consumers but also to the shopkeepers who have issued these bills. This scheme is applicable for all the retail purchases made by the consumers from 04-11-2012 to 31.12.2012.

          The procedure for the conduct of the draw and prizes shall be intimated later on. All the consumers are requested to get the bills for the items purchased from the shop keepers and keep the bills with them till these bills are submitted to the department as per procedure laid down. However, this scheme will not be applicable for petroleum products.    

Quality of Scrutiny Assessment to be improved

IMPROVING QUALITY OF SCRUTINY ASSESSMENTS - CENTRAL ACTION PLAN ('CAP') FOR FINANCIAL YEAR 2012-13

LETTER DO F.NO. 225/97/2012/ITA.II, DATED 25-9-2012

As you are aware, the CBDT has laid special emphasis in the CAP 2012-13 for improving the quality of assessments. In this regard, a strategy has been mentioned at Annexure-II (pgs. 38-43) of CAP Document.

2. The then Member (IT) had asked the Chief-Commissioners of Income-tax ('CCsIT') to send list of top 100 quality assessments in respective charges. This direction of Member was not complied with by many of CCsIT which has been viewed seriously by the Board. It is expected from the field-formation that in future the directions of the Board will not be ignored.

3. Some CCsIT have forwarded the list in mechanical manner without bringing out the quality aspect of the assessments. The analysis of the information supplied to the Board shows that the quality of assessments in the FY 2011-12 has been far from satisfactory in majority of cases.

4. The CCsIT are therefore requested to sensitize the Assessing Officers in their Region to pay focused attention towards the pending assessments to be completed till March, 2013. The strategy mentioned in CAP document should be followed by each Assessing Officer to bring out the quality in assessments. The steps suggested in the guidelines for scrutiny cases should also be scrupulously adhered to.

I am confident that if proper attention is paid to this aspect of work at this stage it will help not only in improving quality of assessments but also in augmenting the post assessment tax revenues.

Tax Accounting Standards u/s 145(2) dated 26-10-2012

Section 145(1) of the Income-tax Act, 1961 ('the Act') provides that the income chargeable under the head "Profits and gains of business or profession" or "Income from other sources" shall [subject to the provisions of sub-section (2)] be computed in accordance with either cash or mercantile system of accounting regularly employed by the assessee. Section 145 (2) provides that the Central Government may notify Accounting Standards ('AS') for any class of assessees or for any class of income.

No notice u/s 148 can be issued by predecessor AO

The case of assessee was transferred from Mumbai to Pune. No notice u/s 148 can be issued by Pune ACIT /CIT who quashed the transfer orders secretly at their end without informing assessee.

Fiat India Automobiles Ltd IN THE HIGH COURT OF JUDICATURE AT BOMBAY
CIVIL APPELLATE JURISDICTION WRIT PETITION NO.8657 OF 2012

Arrears of demand not to be adjusted against refunds for AY 2012-13 unless certified correct by AO

Letter dated 5-11-2012  F.No. DIT(s)-III/CPC/2012-13-14161-78

No penalty for human error of invoice being left in vehicle when excise delivery challan was produced by the driver

Punjab and Haryana High Court
M/s. Desai Brothers VAT Appeal No.36 of 2012(O&M)
Date of decision: 26.09.2012

Cancellation of sales of immovable property held as stock in trade entitles assessee to revise return under section 139(5)

[2012] 27 taxmann.com 15 (Mumbai - Trib.)

IN THE ITAT MUMBAI BENCH 'A'

Lok Housing and Constructions Ltd.

v.

Assistant Commissioner of Income-tax-8(3)(OSD)

Cessation of liability to repay loan for capital asset is capital receipt

Section 41(1) of the Income -tax Act, 1961 - Remission or cessation of trading liability - Repayment of loan - Assessment year 2004-05 - Whether cessation of liability to repay a loan taken to purchase a capital asset does not result in a revenue receipt and it is not taxable under section 41(1) - Held, yes [Para 8 & 9] [In favour of assessee]

Section 28(iv) of the Income-tax Act, 1961 - Business income - Value of benefit arising from exercise of business or profession - Whether cessation of liability to repay a loan taken to purchase a capital asset does not result in a revenue receipt and it is not taxable under section 28(iv) - Held, yes [Para 8 & 9] [In favour of assessee]

[2012] 26 taxmann.com 333 (Bombay)

HIGH COURT OF BOMBAY

Commissioner of Income-tax-3

v.

Xylon Holdings (P.) Ltd.*

S.J. VAZIFDAR AND M.S. SANKLECHA, JJ.

IT APPEAL NO. 3704 OF 2010†

SEPTEMBER 13, 2012

No addition can be made u/s 69A on th basis of statement recordrd at the back of assessee

Section 69A read with section 132 of the Income-tax Act, 1961 - Unexplained money - Opportunity of hearing - On basis of search conducted against third person and his statements recorded therein, assessment for assessee was reopened and additions were made under section 69A - Tribunal deleted additions on ground that Assessing Officer violated principles of natural justice as assessee was not provided with statements and materials on basis of which additions were made - Whether though Tribunal's reasoning about denial of opportunity to assessee could not be faulted with, but in light of decision of Supreme Court in ITO v. M. Pirai Choodi [2011] 334 ITR 262/20 taxmann.com 733, matter was to be remitted back for fresh consideration by Assessing Officer who would proceed to make available necessary documents adverse to assessee - Held, yes [Para 5] [Matter remanded]

[2012] 27 taxmann.com 9 (Delhi)

HIGH COURT OF DELHI

Commissioner of Income-tax

v.

PC Chemicals*

S. RAVINDRA BHAT AND R.V. EASWAR, JJ.

IT APPEAL NOS. 281, 282, 285 TO 287 & 364 TO 366 OF 2012

SEPTEMBER 13, 2012

Excise duty not to be included in value of stock

Supreme Court [2012] 26 taxmann.com 331 (SC) SEPTEMBER 19, 2012
Section 145 of the Income-tax Act, 1961 - Method of accounting - Valuation of stock - Excise duty - Assessment years 1995-96 and 1997-98 - Whether where assessee is following net method of valuation of closing stock, excise duty is to be excluded from value of closing stock of finished goods at end of accounting period - Held, yes [Para 5] [In favour of assessee]
The judgement of the Bombay High Court in the case of CIT v. Indo Nippon Chemical Co. Ltd. [2000] 245 ITR 384/112 Taxman 555 squarely applies to this case and the same has been affirmed by this Court, which is reported in CIT v. Indo Nippon Chemicals Co. Ltd.[2003] 261 ITR 275/130 Taxman 179 (SC)

Cenvat Credit of duty paid more than liability can be claimed

Learned counsel for the appellant submits that even if the duty has been paid in excess of the amount finally held to be payable, unless the excess duty paid has been refunded, the assessee could claim cenvat credit as the department could not get the duty twice. Reliance has been placed on order of this Court dated 22-7-2010 in CEA No. 42 of 2010 Commissioner Central Excise v. Guwahati Carbons Ltd. (Punj. & Har.) wherein after referring to earlier judgments of this Court in CCE v. Ranbaxy Labs Ltd. 2006 (203) E.L.T. 213 (Punj. & Har.) andCCE v. Swaraj Automotives Ltd. 2002 (139) E.L.T. 504 (Punj. & Har.) and judgment of Madras High Court in CCE v. CEGAT, Chennai 2006 (202) E.L.T. 753 the plea of the assessee was upheld. Learned counsel for the respondent is unable to distinguish the applicability of the judgment relied upon on behalf of the appellant.

Vat on Builders

The Bombay High Court today dismissed a bunch of petitions filed by builders against two circulars of the Maharashtra Sales Tax department which levied VAT on all property transactions between 2006 and 2010.

No reasessment after four years from the expiry from relevant assessment year if income escaping assessment is less than 1 lakh

ITAT Asr 31-10-2012  in I.T.A. Nos.522 & 523 (Asr)/2011 Harniranjan Kaur
Cases relied upon:

1) CIT vs. Atlas Cycle 180 ITR 319 (P&H)
2) Sagar Enterprises vs. CIT 257 ITR 335 (P&H)
3) Prashant S. Joshi vs. ITO 324 ITR 154 (Bombay)
4) P.V. Doshi vs. CIT 113 ITR 22 ( Gujarat)
5) Smt. Meera Ananta Naik  Ors vs. DCIT 221 CTR 149 (Bom.)

Appeal is liable to be dismissed for non presence of counsel

Held by ITAT Asr in ITA 246 & 247/2010 on 30-10-2012:
The law assists those who are vigilant and not those who sleep over their rights. This principle is
embodied in the well known dictum “VIGILANTIBUS, NON DORMENTIBUS, JURA SUBVENIUNT’. Considering the facts and keeping in mind the provisions of Rule 19(2) of the Appellate Tribunal
Rules and by relying on the decision of the ITAT Delhi Bench, in the case of C.I.T. Vs. Multiplan India Ltd; 38-ITD-320 and the judgment of the Hon’ble Madhya Pradesh High Court in the case of Estate of Late Tukoji Rao Holkar Vs. CWT (1997) 223-ITR-480,  the appeals are dismissed for want of prosecution

SLP filed against decision of High Court

SLP filed against decision of High Court even if admitted by SC is of no avail unless order of High Court is stayed by SC
ITA (Asr)/65/2010 dated Vinod Jain c/o VK Metals and ITA 68/2010 Balaji Rosins (SB) 26-10-2012

ITAT Asr on 2(22)(e)

ITA 148/2011 15-10-2012 Satish Kumar Aggarwal
During the year under consideration the company M/s. Satish Agg Private Limited enagged in lending of money lent money to partnership firm M/s Satish Agg & Co in which partners held more that 20% share. Held by ITAT Asr no addition can be made in hands of firm for money advanced by company to firm.
Cases relied upon:
Bhaumic Colour (Spl Bench of ITAT)
Hiltop (Rajasthan HC) 313 ITR 116
ITA No.331(Asr)/2009 dated 26.08.2009

ITAT Asr on road contractor

ITAT Asr allowed the appeal of assessee who is road contractor holding that nature of business of road contractor is such that earth has to be used hence expenses should be allowed although assessee could not produce the proper evidence supporting the expenses in respect of payments made to truck owners. Moreover the assessee had shown better net profits as compared to last year.
ITA 148/2011 15-10-2012 Satish Kumar Aggarwal

No addition can be made for trade creditors u/s 68

Addition u/s 68 with regard to trade creditors i.e., the creditors from whom purchases have been made in regular course of business.
It has been held in the following cases that no addition can be made in the case of persons from whom purchases have been made in the regular course of business:-
• CIT vs. Pancham Dass Jain 205 CTR 444 (All)
• Annamaria Travels & Tours (P) Ltd. 95 TTJ 71 (Del)
• CIT vs. M.K. Brothers 163 ITR 249 (Guj.)

Addition u/s 68 for unexplained creditors not sustainable where trading results are accepted

M/S. Divine International Delhi ITAT ITA 1493/2011 dated 30-9-2011.