Indian Statutes -Monday-June-2009-06-30
06/30/2009

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Online PR News – 30-June-2009 – – Direct Tax Laws

Section 90 of the Income-tax Act, 1961 - Double Taxation Agreement - Agreement for Avoidance of Double Taxation and Prevention of Fiscal Evasion with Foreign Countries - With the Union of Myanmar - Notification No. 49/2009-FT & TR-II [F. No. 504/10/2004-FT & TR-II], dated 18-6-2009

Securities Laws

Securities and Exchange Board of India (Facilitation of Issuance of Indian Depository Receipts) (Amendment) Regulations, 2009 - Amendment in regulation 2, 28 and 15 - Notification No. LAD-NRO/GN/2009-2010/10/166936, dated 19-6-2009

Service Tax

Issuance of SCNs for levy of penalty in the cases where service tax is paid suo motu by the assessee - Letter F.No. 137/167/2006-CX.4, dated 3-10-2007

Case Laws-Direct Tax Laws -From Aar

AAR on taxability of an applicant-Mauritian company for laying pipelines under sea for an Indian company - The applicant cannot be said to have permanent establishment within the meaning of Para 1 of Article 5 read with clause (i) of Article 5.2 of the DTAA between India and Mauritius; when there is no permanent establishment, the question of taxing any part of the business profits in India does not arise in view of the clear provision of Article 7.1 of the DTAA - Cal Dive Marine Construction (Mauritius) Ltd., In re [AAR No. 789 of 2008]

From Itat

Imposition of penalty under section 271(1)(c) of IT Act, 1961 on account of disallowances - The issue about difference of interpretation cannot become subject matter of penalty when assessee has furnished all the details along with return and disallowance of a claim/proposition in the given facts and circumstances is not exigible under section 271(1)(c) - DCIT v Indian Petrochemicals Corp. Ltd. [ITA No. 3936/Ahd./2002]

A Special Bench of Five Members of ITAT Delhi on computation of deduction under Heading ‘C’ of Chapter VI-A of IT Act, 1961 - Deduction to be allowed under any other provision of Chapter VI-A with the heading ‘C’ is to be reduced by amount of deduction allowed under section 80-IB/80-IA - ACIT v. Hindustan Mint & Agro Products Pvt. Ltd. [ITA No. 1537/Del/07]

Warrant of authorization is decisive document for determining as to whether a person has been subjected to search or not - A person whose name is included in the warrant of authorization is one with respect to whom search is made under section 132 of the Income-tax Act, 1961; such persons are covered under section 158BC and the time limit for completion of their block assessment applies as provided under section 158BE(1) - Asha Maritime (India) Pvt. Ltd. v. DCIT [IT (SS) A. No. 441/Mum/2003]

Income deemed to accrue or arise in India - Fees for technical services under section 9(1)(vii), read with Explanation 2, covers management commission and selling commission allowed to non-resident in respect of GDR issue - Mahindra & Mahindra Ltd. v. Deputy Commissioner of Income-tax - [2009] 30 SOT 374 (MUM.)(SB) [IT APPEAL NOS. 2606, 2607, 2613 AND 2614 (MUM.) OF 2000]

From Sc/Hc

Mere trade and commerce in education cannot be said to be a charitable purpose - Mere imparting education for primary purpose of earning profits cannot be said to be charitable activity as interpreted by the Supreme Court in MCD v. Children Book Trust [(1992) 3 SCC 390] - CIT v. National Institute of Aeronuautical Engg. Education Society [ITA No. 40 of 2006]

Conditions precedent for availing deduction under section 80P(2)(a)(i) of the IT Act, 1961 qua interest income earned by a Co-operative Bank from investment made in KVP/IVP - Investment in KVP/IVP by a co-operative bank is a permissible banking business and for availing deduction under section 80P(2)(a)(i), the bank has only to show that the investment in KVP/IVP have been made from the funds generated from the banking business; whether the investment in KVP/IVP have been made out of statutory reserves or non-statutory reserves is wholly irrelevant, so long as the funds in the statutory or non-statutory reserves are the funds generated from the banking business - CIT v. The Solapur Nagari Audyogic Sahakari Bank Ltd. [ITA No. 46 of 2008]

Service Tax -From Cestat

Management or business consultant’s service - In case of management consultancy, it is to be noted that advice had been given by assessee; how it is given is only a matter of process - RPG Enterprises Ltd. v. Commissioner of Central Excise - [2009] 20 STT 548 (MUM. - CESTAT) [FINAL ORDER NO. A/228/2008-WZB/C-1/[CSTB] IN APPEAL NO. ST/3/2006-MUM.]

From Sc/Hc

U.P. Trade Tax Act, 1948 - Only a movable property would constitute goods and not an immovable property - Oriental Bank of Commerce v. State of U.P. - [2009] 20 STT 529 (ALL.) [CIVIL MISC. WRIT PETITION NOS. 840, 875, 1080, 1283, 1414, 1511, 1565, 1596, 1597 & 1617 OF 2005, 543, 597, 845, 1009, 1010, 1059 TO 1064, 1124, 1125, 1301, 1325 AND 1381 OF 2006]

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