Daily Tax Update - July 22, 2013 Income Tax: -------------- Curtailing of time to pay recovery amount - section 220 - Mere discussion in a meeting of several high ranking tax officers chalking out certain action plan for timely recoveries would not satisfy such a requirement which must be observed individually - HC Exemption u/s 10(38) - If the share holder chooses to transfer the lands and part with the land to the purchaser of the shares, it would be a valid legal transaction in law and merely because they were able to avoid payment of tax, it cannot be said to be a colourable devise or a sham transaction or an unreal transaction - HC Validity of statement made during survey u/s 133A - When cash was admittedly found in possession of the employee of the assessee, it cannot be stated that additions were made on the basis of bare statement recorded under section 133A - HC Classification of Income - Business income or income from other sources - the purpose of construction of the commercial complex and the sale of shops was done with the sole intention of engaging itself into a commercial activity and the construction and sale of shops was only with a view to earn profit to increase the revenue - taxable as business income - HC Nature of income - Income from house property or business income - The assessee had not rented out property but had allowed its use thereof for the purpose of joint venture business - taxable as business income - HC Payment to contractors and sub-contractors - TDS u/s 194C - vital requirement of relationship of a contractor and sub-contractor between the assessee and the transporters was missing - no TDS - HC Reopening of the assessment u/s 147 – failure to take steps u/s 143(3) will not render the Assessing Officer powerless to initiate reassessment proceedings even when intimation u/s 143(1) had been issued - HC Service Tax: -------------- Interest on refund - Service liability under protest - interest is liable to be paid, wherever any refund is due or ordered and remains unpaid for 3 months from the date of receipt of a refund application, under Section 11B(1) - Tri Nature of service – Market Research Agency Service u/s 65(69) - they were working merely as a commission Agent and their activities fall under Business Auxiliary Service - Tri Wealth-tax : -------------- Valuation of land - It is only if any condition under Rule 8 is satisfied, that the assessing authority could have referred to and determine the value under Rule 20 - Tri Central Excise: ----------------- Clandestine removal – Any suspicion whosoever cannot take the place of evidence regarding clandestine removal of excisable goods. Moreover, after having positive evidences, quantification of duty on clandestinely removed goods also becomes essential. - Demand of an amount of Rs. 1,85,10,861/- set aside - Tri SSI Exemption - Determination of turnover - manufacturing of D. G. Sets - whether Installation and commissioning is a different activity and shall not form part of assessable value - Held No - HC Cenvat Credit - The entire amount of duty paid by the manufacturer, as shown in the invoice would be available as credit irrespective of the fact that subsequent to clearance of the goods, the price is reduced by way of discount or otherwise - Tri Extended period of limitation - where there are decisions in favour of the assessee during the relevant period or there are contrary decisions or the matters are referred subsequently to the Larger Bench, no allegation of suppression can be attributed to the assessee - Tri Refund of service tax - export - Notification No. 41/2007-ST is in the alternative i.e. the exporter can either choose to avail the credit or to seek refund of the same. The notification cannot be adopted as a support to deny the Cenvat credit claimed by the exporter on the ground that the exporter should have followed the system of refund in terms of the said notification. - Tri Read more at: dailytaxupdates.blogspot.in/2013/07/dailytaxupdate22072013.html
Posted on: Mon, 22 Jul 2013 17:50:51 +0000
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