Statutes Monday -September-29-2009

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Online PR News – 29-September-2009 – – Case Laws-Corporate Laws -From sc/hc

Winding up - In receiving a winding up petition, not only should factum of indebtedness be affirmatively established, but quantum thereof needs also to be conclusively demonstrated - Juneja Chemical Industries (P.) Ltd. v. Alam Tannery (P.) Ltd. - [2009] 94 SCL 270 (CAL.) [C.P. NO. 180 OF 2006]

Direct Tax Laws -From Itat

Leviability of penalty under section 271D of IT Act, 1961 for violation of section 269SS - When the assessee-company, a builder and developer of lands, resorted to cash borrowing in violation of section 269SS only because of the advantage which the ready cash back-up would give to it in negotiating the purchase of agricultural lands for development, penalty under section 271D would not be leviable on the facts and in the circumstances of the case - Jitu Builders Pvt. Ltd. v. ACIT [ITA No. 1905/Ahd/2006]

Assessment of undisclosed income from business admittedly carried on by a firm - If the business is carried on by the firm, then whether it is disclosed income or undisclosed income, is to be assessed in the hands of the firm and not in the hands of the partners; there is no machinery to assess the income of the firm in the hands of the partner, merely because it is not disclosed in the accounts of the firm; such assessment in the hands of the partner can not be justified merely because the income is pocketed by the partner - ACIT v. Shri K. T. Joseph [IT (S&S) A. No. 58/Coch/2005]

From sc/hc

Allowability of deduction under section 43B of IT Act, 1961 qua interest due and payable to a financial institution - Interest can only be allowed when the same is actually paid and not merely because the same is due as per the method of accounting adopted by the assessee - Triveni Engineering & Industries Ltd. v. CIT [ITA No. 410/2004]

Advance tax - Section 207 does not apply to income assessable under section 115J - Commissioner of Income-tax v. Nilgiri Tea Estate Ltd. - [2009] 183 Taxman 194 (Ker.) [IT Appeal No. 67 of 2002]

Section 80C Deduction - Where amount deposited in PPF Account exceeded Rs. 70,000 prescribed under PPF Scheme, it was held that in view of fact that Act was amended by one lakh in any of specified schemes, concerned authorities were to be directed to amend Paragraph 3 of PPF Scheme, 1968 in terms of section 80C and increase maximum limit of subscription to PPF account as per Finance Act, 2005 - M.S. Padmarajaiah v. Secretary, Department of Finance, Government of Karnataka - [2009] 183 Taxman 209 (KAR. [W.P. NO. 297 OF 2006]

Service Tax -From Cestat

Commercial training or coaching centre - All institutions imparting knowledge and conducting courses at fairly higher level such as post-graduate level for fees, cannot be termed as ‘commercial training or coaching centre’ and be subjected to service tax and it is immaterial whether degrees offered by such institutions are recognized by law or not - Indian School of Business v. Commissioner of Customs & Central Excise - [2009] 22 STT 189 (BANG. - CESTAT) [FINAL ORDER NO. 642/2008 IN APPEAL NO. ST/194/2008]

Export of taxable services - Where In terms of a Market Development Agreement, a company of Singapore, i.e., MO, appointed assessee to provide various technical support services including marketing of products in different territories and to identify services to be provided by MO to assessee and both MO and assessee were wholly owned subsidiaries of a company of USA, since end user of service being located in India and need of such consumers being met by assessee for and on behalf of its foreign principal, such services appeared to have been provided in India and there appeared to be no export of service - Microsoft Corporation (I) (P.) Ltd. v. Commissioner of Service Tax, [2009] 22 STT 201 (NEW DELHI - CESTAT) [STAY ORDER NO. ST/276/2009 APPLICATION NO. ST/STAY/2721/2008 IN APPEAL NO. ST/866/2008]

Direct Tax Laws

For More Information -

New tax may push up cost of non-life cover -

Amendment in Electronic Furnishing of Return of Income Scheme, 2007 - Notification No. 70/2009, dated 22-9-2009


Exim Banks Line of Credit of USD 30 million to the Government of the Republic of Mozambique - A.P. (DIR Series) Circular No. 09, dated 24-9-2009

Service Tax

Leviability of service tax on construction of canals by Government agencies - Circular No. 116/10/2009-S.T., dated 15-9-2009

Section 65(105)(zzb) of the Finance Act, 1994 - Business auxiliary service - Exemption to taxable service specified in section 65(105)(zzb), provided by a person (service provider) to any other person (service receiver) during course of manufacture or processing of alcoholic beverages by service provider - Notification No. 39/2009-Service Tax, dated 23-9-2009

Taxation of Services (Provided from outside India and received in India) Second Amendment Rules, 2009 - Amendment rule 3 - Notification No. 37/2009-Service Tax, dated 23-9-2009

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