No proposal from CJI to set up SC Bench in South India: Law Minister (See 'Mixed Buzz')
Economic Survey expresses concern over proliferation of SEZs (See 'Mixed Buzz')
I-T - Sec 57(iii) - deduction for interest on deposits with banks and on rent received from employees and oustees of dam - Revenue disallows - held, since construction had not commenced, interest income to be treated as capital receipt and deductons allowed: HC (See '2009-TIOL-316-HC-Uttranchal-IT')
Multi-barrel attack on drugs syndicates: DRI makes a series of seizures across India (See 'Mixed Buzz')
CBDT to issue CITs' Annual General Transfer order post-Budget
CESTAT - ROM is permissible even while matter is pending with Third Member - Tribunal has to frame points for determination and each point has to be answered: Bombay HC (See 'Breaking News' + '2009-TIOL-327-HC-MUM-ST ')
Does GST mean 'Go Slow Tax' reform for States in India? - A case for Single GST (See 'The Cob(Web) Column')
I-T - Transfer Pricing - determination of ALP - TPO can invoke proviso to Rule 10B(4) for using prior years' data provided such data influences determination of transfer price - otherwise, it is mandatory for TPO not to ignore data relating to pertinent financial year: ITAT (See 'Breaking News' + '2009-TIOL-424-ITAT-MUM')
Income Tax - TDS - Remittances to non-residents under section 195 - Procedure for furnishing information (See 'DDT' Column)
No penalty can be imposed under section 11AC of Central Excise Act, 1944 in respect of non-payment of amount due under Rule 6(3)(b) of Cenvat Credit Rules, 2004: CESTAT (See 'Breaking News' + '2009-TIOL-1002-Cestat-Del')
Dear FM, is power not an infrastructure? (See 'Budget Run-Up')
Income tax - Sec 92C ( 2) - Can TP provisions be invoked in a case where Sec 10A benefits being availed by taxpayer? - Stay granted in Philips Software case modified - No recovery for any AY: HC (See '2009-TIOL-324-HC-KAR-IT')
Will Budget propel REIT's chapter in Real Estate growth story? (See 'Budget Run-Up')
ST - construction of complex service - abatement of 67% - Assessee first avails credit on input services and also capital goods - then reverses same to avail abatement - Revenue denies it - held, once credit is reversed, assessee can avail other benefits (See '2009-TIOL-1000-Cestat-AHM')
Criminals pumping illegal money in football: FATF Report (See 'Mixed Buzz')
Govt hikes petrol price by Rs 4 per litre and diesel price by Rs 2 per litre from midnight (See 'Mixed Buzz')
Govt reviews ECB Policy; disallows automatic route to violators (See 'Mixed Buzz')
Income Tax Ombudsmen appointed - Pramod Kumar gets Banglore; Mumbai goes to A K Handa; Usha Gupta gets Kanpur; A K Jain (Delhi) and M C Katheriya (Ahmedabad)
I-T - xeroxed copy of audit report certified by Director in absence of CA - AO objects - penalty - held, since there was bona fide cause for failure and there is no difference between photocopy and original, AO should have issued defect memo rather than initiating penalty : ITAT (See '2009-TIOL-421-ITAT-BANG')
FM approves FDI worth Rs 85 Crore (See details in 'What's New')
Income tax - Microsoft subsidiary files return - claims business profits but no PE in India - Intimation u/s 143(1) - AO treats it as royalty and raises demand - Revenue cannot change character of income while acting u/s 143(1) - it can be done only during course of regular assessment: ITAT (See 'Breaking News' + '2009-TIOL-422-ITAT-DEL')
New TDS Regime - CBDT gives up - postpones indefinitely (See 'DDT' Column)
Cenvat Credit not available on Security services, Rent-a-cab services, Mobile Telephony services as appellants have not adduced evidence to establish nexus, if any, between the 'services' and the manufacture of final products: CESTAT (See 'Breaking News' + '2009-TIOL-997-Cestat-Mum')
The Central Excise Baby DOSO (See 'Special Column' by Mr D D Rishi, IRS)
Base Paint sold to customers after mixing with colourant at dealers' premises is assessable under Section 4A of Central Excise Act: CESTAT (See 'Breaking News' + '2009-TIOL-996-Cestat-Mad')
Amend Income Tax law on charity (See 'Budget Run-Up')
Customs - confiscation of truck trailers - trailers given on rent - no mention in order as to how and which provision of law was contravened - no finding that containers contained smuggled goods - appellant not covered u/s 115(2) of Customs (See '2009-TIOL-993-Cestat-Mum')
Deduction under section 80IB (10) in respect of undertakings developing building and housing projects - CBDT Clarifies (See 'DDT' Column)
Income tax - Profit on sale of depreciable assets - To be assessed as Short-term Capital Gains u/s 50 and not as Business income u/s 41(2) (See '2009-TIOL-420-Mad')
Service Tax - Construction of Dam, Roads and tunnel as part of a Power Project - No Tax : Commissioner (See 'DDT')
I-T - Sec 263 - Assessment order without enquiry on allowability of deduction u/s 80IB on duty drawback - held, AO cannot remain passive in face of a return which is apparently in order but calls for further enquiry (See '2009-TIOL-419-ITAT-MAD')
CBDT posts 7 OSDs in Board - FT & TR, FTD, Inv and V & L (See 'Service News' in Pitara)
As expected, CBDT again postpones implementation of UTN-based TDS system notified vide Notification No 31; Taxpayers advised to file returns without UTN (See 'Press Release' in 'What's New')
Govt appoints Ms Nirupama Rao as next Foreign Secretary + Mr M N Prasad, IAS of 1972 batch in PMO on contract basis
TRAI looking for Legal Advisors on deputation (See 'Deputation' in Pitara)
Core Sector looking up; registers 2.8% growth rate in May
I-T - Sec 80P(2)(a)(i) - cooperative banks - interest income from investments in Kisan Vikas Patra & Indira Vikas Patra out of voluntary reserves - AO disallows - held, as long as investments are made out of funds from banking business, it is exempt income: Bombay HC (See '2009-TIOL-322-HC-MUM-IT')
CBEC promotes, on ad hoc basis, 510 ACs ad Dy Commissioner (See 'Promotion' in Pitara)
OECD urges all Members to keep doors open for migrant workers to meet future labour needs
I-T - non-resident - contract - percentage of completion method - No income to be offered for taxation if work not completed upto 25% of project; If there is no income, law does not cast duty to file return of income; HO expenses prior to setting up project office allowable: ITAT (See 'Breaking News' + '2009-TIOL-417-ITAT-MUM')
'POWER' for Powerless - Can our FM empower? (See 'Budget Run-Up')
Customs - benefit of exemption notifications not allowed - Refund without challenging assessment - writ maintainable - assessment ordered to be modified: Bombay HC (See 'Breaking News' + '2009-TIOL-317-HC-MUM-CUS')
Income Tax - Remittances to non-residents - Deductions - CBDT Instructions (See 'DDT')
Indo-Mauritius DTAA - 'fixed place of business' should be in existence for a fairly long time - Applicant was in India for less than 9 months - NO PE - Not liable to pay tax in India: Advance Ruling (See 'Breaking News' + '2009-TIOL-16-ARA-IT')
Service Tax - Value of SIM cards to be included in value of taxable services; since SIM cards are not goods, not liable to sales tax: High Court (See 'ST se GST tak' Column)
Goods falling under Tariff Heading 55.06 manufactured from duty paid inputs falling under Heading 55.01, entitled for exemption under Notification 30/2004-C.E: Bombay HC (See 'Breaking News' + '2009-TIOL-319-HC-MUM-CX')
Reddy's 100-day agenda: Excise exemption to public buses; Real Estate Regulator and more houses in Delhi (See 'Mixed Buzz')
ST - Refund - construction of residential flats - refund claim on basis of Board's letter that no tax is leviable - unjust enrichment - held, since assessee's activities and unjust enrichment are to be examined in view of Board's letter, matter is remanded (See '2009-TIOL-991-Cestat-Del')
CII for higher depreciation on IT products for SMEs (See 'Mixed Buzz')
CBEC notifies Customs exchange rates for import / export for July month (See NT in 'What's New')
Income tax - Remittances to non-residents u/s 195: CBDT notifies implementation of new procedure (electronic filing in Form 15CA) from July 1, 2009 (See Circular 4 in 'What's New')
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TIOL BUDGET
RUN-UP
THE countdown for Budget 2009 has begun. Although
a lot has been written about what the Finance Minister
should do, and what he should not do at all but the fact
remains that it is going to be a tightrope walk for him.
He will have to strike a balance between the
expectations of the taxpayers and the 'diminished health'
of the exchequer.TIOL
and its erudite netizens are committed to provide
some valuable insight to our ...
THE Union Budget 2009 is only three days away. The Finance Minister's speech must be going through the last leg of proof-reading. If we leave aside the Part B which generally focuses on tax proposals, one futuristic statement which the entire nation, or at least the pragmatists in business houses and the academia, appear to be waiting for is going to be relating to the proposed Goods & Services Tax (GST). It has become almost certain that India is going to miss the April 1, 2010 deadline for GST ... Read Column
IT is a universal truth that an idle mind is devil's workshop. And this devil works overtime, creating serious law and order problem in any society, when one gets retrenched from a high-productivity industry like IT, textile and exports, due to economic slowdown. Boom and bust are two sides of the same coin. They are bound to come to complete the cycle of a business. Since no policy nor any Government or a Nation irrespective of its wealth, can wish away the bust-time, creation of an Employment Fund is certainly a welcome proposal. It is learnt that the Chairman of the Prime Minister's Economic Advisory Council, Prof Suresh Tendulkar, has mooted the proposal for an Employment Fund to take care of productive hands falling victim to joblessness syndrome ... Read Column
BY Circular No. 4/2009 dated 29.06.2009, CBDT had issued instructions on the new regime with effect from 1.7.2009. (Please see DDT 1143 - 30.06.2009). In that Circular, Board had informed that Directorate General of Income-tax (Systems) shall specify the procedures, formats and standards for running of the scheme as well as instructions for filling up Forms 15CA and 15CB. Now the procedure has been announced ... Read Column
HERE are details of an interesting case in which the Revenue files an appeal against Cestat order, cancelling the demand of service tax on the value of SIM cards sold by the respondent to their mobile subscribers. The question involved is whether the value of SIM cards sold by the respondent to their mobile subscribers is to be included in taxable service under Section 65(105) zzzx of the Finance Act, 1994 which provides for levy of service tax on telecommunication service or it is taxable as sale of goods under the Sales Tax Act. Different mobile operators took divergent stand in the matter before the departmental authorities. While BPL Mobile Services, a leading mobile operator, took the stand that SIM card has no intrinsic sale value ... Read Column
AN overview of the history from the 16 th century to date shows that the art and craft of fraud are deficient in inventiveness: they repeat the same script of their craft time and again. of course, with seemingly new trappings. Its plagiaristic repetitiveness goes most often unnoticed because human memory is proverbially short. This point was forcefully driven home to us by John Kenneth Galbraith ... Read Column
THE top echelons of the Government are busy unveiling the reforms agenda for the short, medium and the long term. It started with the President Pratibha Devsingh Patil laying the broad contours of a comprehensive reforms agenda for new United Progressive Alliance (UPA) Government In her address to the joint session of Parliament in the first week of June, she mentioned governance reforms and promotion of culture of enterprise and innovation as two major components of the reforms agenda ... Read Column
By S P Srivastava, Former Member, Settlement CommissionDURING the last six months the issue of illegal money stashed away in tax havens has engaged the attention of several countries at international fora such as G20, G8 and OECD. To put pressure for compliance with OECD international standards for exchange of tax information, the G20 went to the extent of putting a few countries like Costa Rica, Malaysia, the Philippines and Uruguay on its black list. It listed another 38 countries that have not fulfilled the internationally agreed tax standards though partially they have implemented such as Belgium, Brunel, Chile, the Dutch Antilles, Gibraltar, Liechtenstein, Luxembourger, Monaco, Singapore, Switzerland and Carribean island nations including the Bahamas ... Read Column
By D D Rishi, Commissioner of Customs AFTER Customs DOSO the author received overwhelming demand for the Central Excise DOSO. And here goes the story: Things were different those days. The bosses not only bestowed all their love and affection on juniors but also taught them well on the professional front too. But for those great souls I would have still been a Senior Superintendent of Central Excise which I was in my first posting. Baby ... Read Column
Economic Survey expresses concern over proliferation of SEZs (See 'Mixed Buzz')
TIOL BUDGET
RUN-UP
THE countdown for Budget 2009 has begun. Although
a lot has been written about what the Finance Minister
should do, and what he should not do at all but the fact
remains that it is going to be a tightrope walk for him.
He will have to strike a balance between the
expectations of the taxpayers and the 'diminished health'
of the exchequer.TIOL
and its erudite netizens are committed to provide
some valuable insight to our ... 
THE COB(WEB) by Shailendra Kumar
THE Union Budget 2009 is only three days away. The Finance Minister's speech must be going through the last leg of proof-reading. If we leave aside the Part B which generally focuses on tax proposals, one futuristic statement which the entire nation, or at least the pragmatists in business houses and the academia, appear to be waiting for is going to be relating to the proposed Goods & Services Tax (GST). It has become almost certain that India is going to miss the April 1, 2010 deadline for GST ... Read Column
