Online Statutes Monday -October-12-2009

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Online PR News – 12-October-2009 – – Case Laws-Direct Tax Laws -From Itat

Scope for exclusion of capital gains in computation of book profit under section 115JB of IT Act, 1961 - The long term capital gain included in the net profit prepared under the Companies Act is not deductible from the net profit for the purpose of computing book profit u/s115JB; merely because the long term capital gain is not liable to be taxed under the normal provision of the Act for the reason that the assessee has made investment in specified schemes as contemplated u/s 54EC, it is not correct to say that it is also to be reduced from the net profit for the purpose of computing deduction u/s 115JB when the Explanation to section 115JB does not provide for any deduction in terms of section 54EC meaning thereby that section 54EC has no application in the computation of book profit u/s 115JB - Growth Avenue Securities Pvt. Ltd. v. DCIT [ITA No. 3912/Del/2005]

Income from house property - Since sister concerns are separate legal entities under Act and are assessed separately, exploitation of property by sister concerns cannot be construed as exploitation of property by assessee - holiday company - Margadarsi Housing (P.) Ltd. v. Income-tax Officer - [2009] 120 ITD 418 (HYD.) [IT APPEAL NO. 64 (HYD.) OF 2005]


Applicability of section 194J of IT Act, 1961 in case of Third Party Administrator (TPA) providing health insurance claim services - Having regard to the agreement entered into inter se between the hospital and the TPA for payment of money to the hospital, it cannot be said that the TPA, who is the authority or the person to pay the amount to the hospital, is not required to deduct the tax at source and section 194J is not attracted - The Medi Assist India TPA Pvt. Ltd. v. DCIT (TDS) [Writ Petition No. 11376 of 2009]

Service Tax -From Cestat

Commissioner (Appeals) - Commissioner (Appeals) has no power to condone delay in filing appeal beyond further period of three months, as laid down in terms of proviso to section 85(3) - Security and Escorts Services (P.) Ltd. v. Commissioner of Service Tax - [2009] 22 STT 313 (MUM. - CESTAT) [MISC. ORDER NO. M/216 OF 2009/CSTB/C-II STAY ORDER NO. S/180 OF 2009/CSTB/C-II APPEAL ORDER NO. A/130 OF 2009/CSTB/C-II AND APPLICATION NO. ST/MA(COD) 2324 OF 2008 AND ST/S/1711 OF 2008, APPEAL NO. ST/219 OF 2008]

Leviability of service tax on a distributor of electricity for supply of electricity to consumers - The service rendered by the distributor through its electrical engineers to the consumers of electricity fell within the ambit of “taxable service” under section 65(105)(g) of the Finance Act, 1994 - M.S. Discom Ltd. v. CCE [Application No. ST/S/1332/07 in Appeal No. ST/124/07]

Levy of service tax on appellant for lowering, laying, jointing and testing GRP pipes in premises of GIDC - Prima facie the pipes in question were lowered, laid and jointed, tested etc. at the site of the GIDC primarily for industrial purposes thereby attracting section 65(25b) of the Finance Act, 1994 - Graphite India Ltd. v. CCE & C [Application No. ST/S/414/09 in Appeal No. ST/62/09]

Clearing and Forwarding Agents Services - The activity of mere sale of goods on behalf of the Principal, would not be covered by the definition of C&F Agent’s service - V. S. Distributors v. CCE [Appeal No. St/151/06]


Appellate Tribunal - Where assessee is aggrieved with delay in disposal of appeal by Commissioner (Appeals), it shall be open to assessee to urge said ground also before Tribunal before which appeal is to be filed and Tribunal is expected to examine said aspect also - Atma Ram Sohan Lal Agencies (P.) Ltd. v. Union of India - [2009] 22 STT 293 (PUNJ. & HAR.) [CWP NO. 7357 OF 2009]

Supreme Court - For determination of any question in relation to rate of duty or to value of goods for purpose of assessment and when it is decided by Tribunal, appeal thereagainst is provided to Supreme Court under section 35L(b) of Excise Act and no such appeal is permissible to High Court - Commissioner of Service Tax v. Delhi Gymkhana Club Ltd. - [2009] 22 STT 343 (DELHI) [CEAC NOS. 5 OF 2009 AND 17 OF 2007]

Direct Tax Laws

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Order under section 119 of the Income tax Act, 1961 - Extension of date of filing of the tax audit report under section 44AB as well as filing of returns in the State of Maharashtra - Notification F.No. 225/163/2009-ITA.II, dated 29-9-2009

Securities Laws

Prior approval for re-commencing trading on the Stock Exchange - Circular no. MRD/DSA/SE/Cir- 12/09, dated 07-10-2009

Service Tax

Permission to bring duty-paid packing materials into export warehouse under Rule 20 of Central Excise Rules - Circular No. 900/20/2009-CX, dated 6-10-2009

Allotment of new services effective by the virtue of Financial Budget 2009-2010 - Trade Notice No. 16/ST/2009, dated 30-9-2009

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