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23.12.2010 - Recent Updates as on 23.12.2010
Thursday, December 23, 2010

1.   THE COMMISSIONER OF INCOME TAX Vs M/S.C.C.VARGHESE & CO, ITA.No. 202 of 2009, Date of Order : 12/11/2010, HIGH COURT OF KERALA AT ERNAKULAM

Without making regular assessment under Section 143(3), the Department reopened the assessment under Section 148 merely because income returned by the assessee is less than the income asssessable under Section 44AE of the Income Tax Act. The first appellate authority held that Section 44AE has no application unless the Department proves that the assessee's accounts are not correct and complete. 

(Please click here for judgment) 

  

2.   THE COMMISSIONER OF INCOME TAX, TRICHUR Vs M/S.BUS OPERATORS ASSOCIATION, ITA.No. 561 of 2009, Date of Order :01/11/2010, IN THE HIGH COURT OF KERALA AT ERNAKULAM 

The "specific services" performed by the Association to the members will not cover the regular services rendered by the Association to all the members i.e. sale of tyres, automobile spare parts etc., purchased for distribution among the members at moderate cost. A specific service obviously will mean a service which is not available to members generally but specifically extended to a particular member or members against specific charges received. In our view, the department has no case that besides the purchase and distribution of automobile tyres, spares etc. by the Association to it's members, the respondent-Association is not involved in rendering any specific service to any particular member or members and they have also not charged any amount for any specific service from any member or members.

So much so, in our view, the above provision does not apply to the facts of this case. The only other exception for assessment of mutual benefit concerns is only the income falling under Section 2(24)(vii) which provides for assessment of profits and gains of any business of insurance carried on by a mutual insurance company or by a Co-operative Society, computed in accordance with Section 44 or any surplus taken to be such profits and gains by virtue of provisions contained in the First Schedule to the Act. This provision has no application so far as respondent-Association is concerned. Tribunal rightly upheld the respondent's entitlement for exemption from payment of income tax by applying the principle of mutuality. 

(Please click here for judgment)

     

What's New 

  • Notification No. 51/2010- Service Tax - Section 65(105)(zzzze) of the Finance Act, 1994 - Information Technology Software Service - Notification No. 2/2010-ST, dated 27-2-2010, rescinded  (Click for detail) 

  • Notification No. 52/2010- Service Tax - Section 65(105)(zzzze) of the Finance Act, 1994 - Information Technology Software Service - Notification No. 17/2010-ST, dated 27-2-2010 rescinded  (Click for detail) 

  • Notification No. 53/2010- Service Tax - Section 65(105)(zzzze) of the Finance Act, 1994 - Information Technology Software Service - Exemption to packaged or canned software(Click for detail) 

  • Notification No. 54/2010- Service Tax - Section 65(64) of the Finance Act, 1994 - Management, maintenance or repair service - Amendment to Notification No. 24/2009-ST, dated 27-7-2009 - Exemption extended to bridges, tunnels, dams, airports, railways and transport terminals  (Click for detail) 

  • Notification No. 55/2010- Service Tax - Section 65(105)(zzzp) of the Finance Act, 1994 - Transport of goods by rail service - Amendment to Notification No. 7/2010-ST, dated 27-2-2010 - Exemption extended till April 2011  (Click for detail) 

  • Notification No. 56/2010- Service Tax - Section 65(105)(zzzp) of the Finance Act, 1994 - Transport of goods by rail service - Amendment to Notification No. 8/2010-ST, dated 27-2-2010 - Exemption extended till April 2011  (Click for detail) 

  • Notification No. 57/2010- Service Tax - Section 65(105)(zzzp) of the Finance Act, 1994 - Transport of goods by rail service - Amendment to Notification No. 09/2010 - ST, dated 27-2-2010 - Exemption extended till April 2011  (Click for detail)

  • Notification No. 58/2010- Service Tax - Section 65(49) of the Finance Act, 1994 - General Insurance business - Exemption to weather based crop Insurance scheme or modified National Agricultural Insurance scheme  (Click for detail)

  • Notification No. 30/ 2010-Central Excise (N.T.) - Packaged software or canned software subject to MRP based Excise duty  (Click for detail) 

  • Notification No. 35/2010-Central Excise - Rescinds Notification No.17/2010 which exempted packaged & canned soft ware from excise duties  (Click for detail) 

  • Notification No 13(RE – 2010)/2009-2014 - Prohibition on export of all varieties of Onions till further orders  (Click for detail) 

  • Notification No. 14(RE–2010)/2009-2014 - Restriction on export of cotton yarn – DGFT  (Click for detail)

  • SEZ Notification No. (F.5/15/2010-SEZ) - Rescinds all previous notifications appointing Director, STPI as Development Commissioner of IT and IT Enabled Services  (Click for detail)

  • Policy Circular No. 07 (RE-2010)/2009-14 - Conditions and modalities for applications for grant of export licence for export of Cotton Yarn – DGFT  (Click for detail)

  • Notification No. 127/2010 – Customs - Customs duty and CVD on import of Onion exempted  (Click for detail) 

  • Notification No. 123 /2010-Customs - anti-dumping duty on imports of nylon filament yarn of specification ‘synthetic filament yarn including synthetic monofilament originating in, or exported from, People’s Republic of China, Chinese Taipei, Malaysia, Indonesia, Thailand and People’s Republic of Korea extended till 26th August, 2011  (Click for detail) 

  • Notification No. 126 / 2010- Customs - Rescinds notification No. 31/2010  (Click for detail)

  • CENTRE APPROVAL - Changes in Building Bylaws Okayed  (Click for detail)

                

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Thanks for your valuable time 

"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  
    
   
CA. Sidharth Jain, Co-Moderator
sidhjasso@yahoo.com 
  
CA. Mukesh K Bansal, Co-Moderator-FEMA
Mob:9540022533,
mukbansal80@gmail.com 

  

 

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