Updates

Recent compilation of updates you should know - 13/07/2013
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Income Tax : 
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>Merely because the claim was not processed during the scrutiny assessment or that such claim was perhaps legally not sustainable, would not vest the jurisdiction in AO to reopen the assessment - HC

>Power to transfer a case u/s 127 - transferring the case by furnishing to the petitioner imperfect knowledge - The extreme impropriety of such a course could not be made too plain. - HC

>Exemption u/s 10(23C)(vi) - educational society - collection of donations from pupils - exemption not allowed - HC

>Mark-to-market loss claim on revaluation of the pending forward contract on the closing day - a liability is said to have crystallized when a pending obligation on the balance sheet date is determinable with reasonable certainty. - Tri

>Income From House Property - enhancement of annual let out value - notional interest on deposits - municipal valuation is less than the actual rent received - No addition - Tri

>TDS - disallowance of payment on account of share of profit paid to M/s. JSMS for managing the Lokhandawala Branch - the arrangement was not a case of joint venture - deduction allowed - Tri

>Jurisdiction of Transfer Pricing Officer - Suo motu, TPO cannot take cognizance of any international transaction for suggesting adjustment in the arm’ s length price, which was not referred to him - Tri

Central Excise : 
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>Merely because the statements were recorded without threat, duress or coercion or that the witnesses at no stage retracted their statements, cannot be a ground for rejecting the request for cross-examination. - HC

> Benefit of Notification No.108/95 C.E. - projected funded by the UN - Machines were utilized by the job worker in respect of the project - exemption allowed - HC

Customs : 
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>If the goods are found to be different from those what has been declared in the bill of entry, the department can proceed against the importer and not against the CHA who acts based on the documentary evidence submitted by the importer - Tri

Service Tax : 
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>Construction of diaphragm wall and anchor slab with special fill from Dudheswar to Gandhi Bridge (eastern bank of river Sabarmati) - prima facie not taxable - stay granted. - Tri

> Authorized service station - valuation – the cost of the spare parts and cost of handling of spare parts are not to be included in the value of the services rendered - Tri