Statutes -Monday-June-2009-06-08

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Delays in Cheque Clearing - Case before National Consumer Disputes Redressal Commission - Notifications No. DPSS.Co. (CHD) No. 873 / 03.09.01/ 2008-09, dated 24-11-2008


New Changes for efiling of Income-tax Return for AY 2009-10 - Press Release

Section 35AC, sub-section (1) read with Explanation (b) thereto, of the Income-tax Act, 1961 - Eligible projects or schemes, expenditure on - Notified eligible projects or schemes - Notification No. 58/2009/ S.O. 1250(E), dated 18-5-2009


Health Insurance for Senior Citizens - Circular No. 011/3/IRDA/Health/SN/09-10, dated 25-5-2009


AAR on scope for constitution of a PE by a Korean company for having opened a LO in India - No doubt, the Liaison office is a fixed place and the activities conducted by it are seemingly business activities but these activities are restricted to preparatory or auxiliary activities only; the Liaison office is very much covered within the exclusionary clause (e) and (f) of Article 5(4) of the DTAA between India and Korea and consequently can’t be regarded as a Permanent Establishment. - K.T. Corporation, In re [AAR NO. 791 OF 2008]


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Power of Assessing Officer to change nature and character of income under section 143(1) of IT Act, 1961 - Nature and character of income as disclosed in return of income cannot be changed to, or substituted by, another nature and character while determining tax payable on that income shown in the return, under section 143(1); the Assessing Officer’s jurisdiction under section 143(1) is limited to determining tax payable or refund due on the basis of return of income and not otherwise - Microsoft Regional Sales Corpn. v. ADIT [ITA NO. 991 & 992/DEL/2005]

When concept of reconstruction of business is not applicable for disallowing claim of deduction under section 80-IB of IT Act - The concept of reconstruction of business as contemplated by section 80-1B(2)(i) would not be attracted when a company which is already running one industrial unit sets up another industrial unit; the new industrial unit would not lose its separate and independent identity even though it has been set up by a company which is already running an industrial unit before the setting up of the new unit. - DCIT v. Shamrock [ITA Nos. 4297 & 4298/M/07]

Assessability of term loan when waived by banks under one-time settlement scheme - The waiver amount of term loan availed by the assessee does not partake the character of assessable income either under section 28(iv) or under section 41(1) of the Income-tax Act, 1961 - Accelerated Freez & Drying Co. Ltd. v. DCIT [ITA No. 971/Coch/2008]


When waiver of interest under sections 234A, 234B, 234C of IT Act, 1961 can be considered - Where the assessee, a playback singer, could not file his returns in time due to circumstances beyond his control but, belatedly filed the same voluntarily, the assessee’s claim for waiver of -interest could be considered in terms of the fulfillment of the conditions mentioned as per clause 2(e) of the Notification No. 400/234/95/IT (B) dated 23-5-1996 issued by the CBDT. - S. Nagoor Babu @ Mano v. CCIT [WP Nos.: 379 to 382 of 2005]

Power of Revenue to make use of material stumbled upon by its officers in a search conducted against a third party - If apparently reliable material cannot be directly used against an assessee solely because it was not collected during a search of that assessee, a fortiori, material palpably concerning a third party with no connection with the raided party must be ignored; it is also illogical that the rigours which apply to the search of a particular notified person can be flagrantly ignored so far as an unconnected person is concerned. - S. R. Battiboi & Co. v. Deptt of Income-tax (Investigation) [ WP (c) 9479/2007 & CM 9520/2008]


Eligibility to rebate of service tax paid on input services used for export of services - There cannot be two different yardsticks, one for permitting credit and the other for eligibility for granting rebate; whatever credit has been permitted to be taken, the same are permitted to be utilized and when the same is not possible there is provision for grant of refund or as rebate; without questioning the credit taken, the eligibility to rebate cannot be questioned; input services used in connection with procurement of other input services have to be treated necessarily as input services late filing of the declaration relating to the rebate claim as per notification No. 12/2005-ST dated 19-4-2005 is only a procedural lapse and the non-fulfilment of the same cannot lead to denial of the benefit under the beneficial legislation providing for export benefits - CST v. Convergys India Pvt. Ltd. [Service Tax Appeal No. 432-433 of 2007]