Daily Archives: October 5, 2015

Book entry of lease equalization fund made to comply with ICAIs guidance note is not includible in taxable income

Where lease equalisation fund was a mere book entry made to comply with Guidance Note issued by ICAI so as to meet Accounting Standards, assessee was justified in reducing amount credited in profit & loss account for purposes of determining income chargeable to tax HIGH COURT OF BOMBAY Commissioner of Income-tax -3 v. Reliance Industrial… Read More »

Interest received before commencement of business is capital receipt has to be set-off against pre operative expenses

Interest before commencement of business Where assessee, engaged in business of developing, operating and maintenance of power projects, received certain interest on surplus funds, that were deposited in Government securities, prior to implementation of its projects, amount so received was to be treated as capital receipt IN THE ITAT AHMEDABAD BENCH ‘B’ Adani Power Ltd.… Read More »

Embroidery work on Sari is manufacturing; machinery used for it eligible for additional depreciation

Embroidery work performed on grey synthetic cloth i.e. sari amounted to manufacturing activity and, thus, machinary used in said activity was entitled to receive additional depreciation IN THE ITAT AHMEDABAD BENCH ‘C’ Income-tax Officer, Ward – 6 (4), Surat v. Yash Creation RAJPAL YADAV, JUDICIAL MEMBER AND ANIL CHATURVEDI, ACCOUNTANT MEMBER IT APPEAL NO. 1107… Read More »

Sale proceeds of auctioned Airplane to be deposited in Court for recovery of service tax dues of Kingfisher

With a view to recover service tax dues pertaining to Kingfisher, Bombay High Court allowed auction of aircraft taken on ‘finance lease’ by Kingfisher but, in view of lessor’s contention that aircraft is lessor’s property, sale proceeds were directed to be deposited into Court HIGH COURT OF BOMBAY Mumbai International Airport (P.) Ltd. v. Commissioner… Read More »

Haryana Govt amends composition scheme for developers

HARYANA VALUE ADDED TAX (THIRD AMENDMENT) RULES, 2015 – SUBSTITUTION OF RULE 49A & INSERTION OF FORM VAT-CD1 AND FORM VAT-R13 NOTIFICATION NO.23/H.A.6/2003/S.60/2015, DATED 24-9-2015 Whereas the State Government is satisfied that circumstances exist which render it necessary to take immediate action in public interest; Now, therefore, in exercise of the powers conferred by sub-section… Read More »

Tax authorities can not take a stand different from Govt so as to deny benefit to assessee

Once Cabinet took a policy decision to extend its 2004 Industrial policy in matter of central sales tax concession to eligible units beyond 31-3-2009 upto 31-3-2013 and notification dated 29-5-2009, accordingly, having been issued by Department of Industries, thereafter Excise and Taxation department could not take a different stand subject  ;Section 8 of the Central… Read More »

IMPLEMENTATION OF PROVISIONS OF CIGARETTES BY CBEC

IMPLEMENTATION OF PROVISIONS OF CIGARETTES AND OTHER TOBACCO PRODUCTS (PROHIBITION OF ADVERTISEMENT AND REGULATION OF TRADE AND COMMERCE, PRODUCTION, SUPPLY AND DISTRIBUTION) ACT, 2003 (COTPA) AND CIGARETTES AND OTHER TOBACCO PRODUCTS (PACKAGING AND LABELLING) RULES, 2008   LETTER F.NO.221/09/2015-CX.6, DATED 1-9-2015 Kind attention is invited to rule 3(l)(a) of the Cigarettes and Other Tobacco Products… Read More »

Cenvat Credit on Tower erection and installation

Prima facie, telecom service providers : (a) cannot take input or capital goods credit of credit of tower parts and shelters; however (b) may take credit of ‘Erection, Installation and Commissioning’ and ‘Commercial or Industrial Construction’ services used for erection and installation of towers and shelters HIGH COURT OF MADRAS Aircel Ltd. v. Commissioner of… Read More »