I.  What's New Today : 

1. Income Tax Notification No. 52/2011 – Section 10(15), Item (h) of Sub-Clause (iv) of the Income-Tax Act, 1961 - Exemptions – Interest on Bonds/Debentures – Notified Bonds or Debentures of Public Sector Companies  (Click for detail)

2. CBEC Instruction - Applicability of service tax on taxable services provided by a non-resident or a person located outside India to a recipient in India  (Click for detail)

3. Customs Notification No. 67 - Public Limited Companies eligible for Advance Ruling on Customs issues  (Click for detail)

4. UBD.BPD.(SCB)Cir No. 1/09 - Internet Banking for Customers of UCBs  (Click for detail)

5. APDIRCIR-29-11-ECB from the foreign equity holders  (Click for detail)

6. APDIRCIR-28-11-ECBPolicy-Structured Obligations for infrastructure sector  (Click for detail)

7. Fin Min move to slim duty on stock trade  (Click for detail)
    

II.  Judicial Pronouncements :

1.    S MUTHURAJAN Vs. DEPUTY COMMISSIONER OF INCOME TAX, TC(A) No.188 of 2005, Dated: 10th August 2011, HIGH COURT OF MADRAS

Whether merely because assessee was once 100& EOU entitled to Sec 10B benefits, it cannot avail benefit otherwise available on block of assets on expiry of tax holiday for working out capital gains u/s 50(2).

The use of the phrase 'business of export undertaking' in Section 10B is meant to identify industry or undertaking which qualifies for tax holiday exemption. Thus going by the above, on the expiry of the period mentioned u/s 10B, the block of assets viz., plant and machineries, of the industry, are available for working out the relief u/s 50(2). So long as the assets are found to fall under the same depreciation, they fit in into the concept of block of assets for the purpose of Section 50(2) of the Act. On the mere score that the assessee was once 100% export undertaking, the assessee could not be denied of the benefit otherwise available to the assessee on the block of assets on the expiry of tax holiday period for the purpose of the working of capital gains u/s 50(2). Thus on facts, contrary to the assertion of the Revenue that even though the export unit has to be treated as an independent unit for the purpose of Section 10B, when the export unit formed part of the business of the assessee, on the expiry of tax holiday period, there is no logic in treating the assets as independent of business of the assessee that they do not form part of block of assets for the purpose of working out the relief on capital gains.

(Please click here for judgment)

  

2.  COMMISSIONER OF INCOME TAX, DELHI Vs. MAHESH KUMAR, ITA NO. 2070/2010, Dated: 20th September 2011, HIGH COURT OF DELHI

Sec 69, Instruction No 288 of 1994 - Whether when excess jewellery found during the search operation is of low value, no addition is called for..

On search some cash and jewellery were seized. The assessee submitted explanation about the jewellery. However, during post-search enquiry he admitted that there was some excess jewellery which was unexplained investment and thus surrendered the amount. AO made additions u/s 69. But, before the CIT(A), the assessee tried to explain the source of the excess jewellery and relied upon the CBDT Instruction No 288 of 1994 and argued that jewellery of such low value was not to be seized. The CIT(A) accepted the plea and deleted the addition which was later confirmed by the Tribunal.

(Please click here for judgment)

 

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