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25.02.2011 - Some Useful Updates as on 25.02.2011
Friday, February 25, 2011

1.   Electronics Corporation of India Ltd vs. Union of India & Ors  (SC – 5 Judge Bench), CIVIL APPEAL NO. 1883 OF 2011, Arising out of S.L.P. (C) No. 2538 of 2009. February 17, 2011 

The idea behind setting up of the … “Committee on Disputes” (CoD) was to ensure that resources of the State are not frittered away in inter se litigations between entities of the State, which could be best resolved, by an empowered CoD … Whilst the principle and the object behind the aforestated Orders is unexceptionable and laudatory, experience has shown that despite best efforts of the CoD, the mechanism has not achieved the results for which it was constituted and has in fact led to delays in litigation …. On same set of facts, clearance is given in one case and refused in the other. 

This has led a PSU to institute a SLP in this Court on the ground of discrimination. We need not multiply such illustrations. The mechanism was set up with a laudatory object. However, the mechanism has led to delay in filing of civil appeals causing loss of revenue. For example, in many cases of exemptions, the Industry Department gives exemption, while the same is denied by the Revenue Department. Similarly, with the enactment of regulatory laws in several cases there could be overlapping of jurisdictions between, let us say, SEBI and insurance regulators. Civil appeals lie to this Court. Stakes in such cases are huge. One cannot possibly expect timely clearance by CoD. In such cases, grant of clearance to one and not to the other may result in generation of more and more litigation. The mechanism has outlived its utility. In the changed scenario indicated above, we are of the view that time has come under the above circumstances to recall the directions of this Court.

(Please click here for judgment)

   

2.     CIT VS. INFO VERGIX TECHNOLOGIES LTD. , HIGH COURT, DELHI , ITA 613/2008, JUDGEMENT DELIVERED ON 12.01.2010

This appeal is against the order of the Income-tax Appellate Tribunal dated 15.05.2007 in ITA No.1436/Del/2004. The assessee had shown expenditure as deferred revenue expenditure in its books. However, it had claimed it as revenue expenditure in its return. The Assessing Officer had disallowed the same and the Commissioner of Income-tax (Appeals) had confirmed the disallowance. The Income-tax Appellate Tribunal has allowed the deduction on the ground that, although the said sum had been shown differently in the books, the same was allowable as per law.

The said sum comprised of two components, expenditure incurred between the period 01.04.2000 to 30.05.2000 (pre-commencement period) it was clearly incurred prior to the date of commencement of any business activity of the assessee and, accordingly, the same was in the nature of pre-operative expenses.

(Please click here for judgment)     

  

3.   [Contribution by  CA. Manoj Gupta, and contributor is available on Mobile No. 9350760606 / email-id: mgupta2803@gmail.com ]

An Article on  "Line of Credit by EXIM Bank"

(Please click here for detail)

 

  

What's New

  • Income Tax Instruction No. 2/2011 - Processing of returns of A.Y. 2010-11 - Section 143 of the Income-tax Act, 1961 - Steps to clear backlog  (Click for detail)

  • FM to start Budget Speech at 11AM on 28th February in Parliament  (Click for detail)
  • Highlight Economic Survey for the year 2011  (Click for detail)

  • Highlights of Railway budget 2011-12  (Click for detail)
  • Notification No. 25 - Transitional arrangements will not be applicable for the export of milk powders (including skimmed milk powder, whole milk powder, dairy whitener and infant milk foods), Casein and Casein products  (Click for detail)

  • Circular No. 11 - Refund of 4% CVD (SAD)-Extension of time upto 30 th June, 2011 for using re-credited 4% CVD (SAD) amount in DEPB  (Click for detail)

  • Circular No.10 - Intellectual Property Rights (Imported Goods) Enforcement Rules, 2007-instructions for implementation  (Click for detail)
  • Govt. Hikes Minimum Wage Rates by 15%  (Click for detail)
  • Co. Law Notification No. G.S.R. 78(E) - Co. (Central Govt’s) General Rules and Form (Amend) Rules, 2011 Substitution of Form No. 2  (Click for detail)


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"Voice of CA"

CA. Sanjay Kumar Agarwal, Founder - Voice of CA
Member  Central Council - ICAI
Former Chairman - NIRC
Mob : 9811080342,
agarwal.s.ca@gmail.com 
   
   
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Mob:9540022533,
mukbansal80@gmail.com    

 

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