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04.02.2011 - Recent Updates as on 04.02.2011
Friday, February 4, 2011

1   [Contribution by  CA. Amarpal and contributor is available at email-id : amar.p.ca1@gmail.com ]

CCE  Vs. Ace Auto Comp. Ltd. Civil Appeal No. 3051 of 2003

Subject:  SSI exemption under not. No. 1/93-CE and 16/97-CE.

Fact:

Ace Auto Comp. was using the ‘TATA’ brand along with its own brand ‘ACE’ and was claiming SSI exemption under Central Excise Act. 

Judgement (Conclusion):‘The brand of ‘TATA ACE’ creates a connection between ‘TATA Company’ and the assessee. Hence, the assessee shall not be allowed to avail the benefit of the SSI exemption.

Ratio of the Decision:

….In order to avail of the benefit of the exemption notification, the assessee must establish that his product is not associated with some other person. To put it differently, if it is shown that the assessee has affixed the brand name of another person on his goods with the intention of indicating a connection between the assessee's goods and the goods of another person, using such name or mark, then the assessee would not be entitled to the benefit of exemption notification. We may hasten to clarify that if the assessee is able to satisfy the Adjudicating Authority that there was no such intention, or that the user of the brand name was entirely fortuitous, it would be entitled to the benefit of the exemption.”

(Please Click here for judgment)

  

2.   COMMISSIONER OF INCOME TAX, Vs. INTERRA SOFTWARE INDIA PVT. LTD. , INCOME TAX APPEAL NO. 507 OF 2008, DATE OF ORDER : 24.12.2010, HIGH COURT OF DELHI 

The provisions of Section 10A are only applicable in case of an industrial undertaking manufacturing or producing articles as approved in the sub Section set up in a free trade zone/electronic hardware technology park/software technology park after certain due dates. The export from Japan branch of the assessee is clearly not covered u/s 10A (2) of the Act. there is no doubt as per Explanation 3 to Section 10A as noted above the profits and gains derived from outside development of computer software including services of development of software outside India is deemed to be profit and gains derived from the export of computers software outside India w.e.f. 1-4-2001. There is no doubt the Japan Branch has been opened by the appellant as per the agreement with the Japanese company to also provide onside development service with approval of RBI and also noted by Noida Special Economic Zone that the appellant unit located at NSEZ has opened a new trading branch at Tokyo. Therefore that profit derived by the appellant company from its Japan Branch in reference to the onsite service provided quality for exemption u/s 10A of the IT act and the AO is directed to consider the same as exempt u/s 10A of the Act.” 

(Please Click here for judgment)

   

3.    COMMISSIONER OF INCOME TAX, Vs. CHILD EDUCATION SOCIETY , INCOME TAX APPEAL NO. 1966 OF 2010, DATE OF ORDER : 24.12.2010, HIGH COURT OF DELHI 

The Tribunal while allowing the appeal, returned the finding that there was no violation or irregularities committed by the assessee and, therefore,  the assessee was entitled to exemption under Section 11 of the Act. 

The precise submission is that even when certain persons had supplied the goods or rendered services, the same was treated as donation and certificate under Section 80G were issued which would clearly demonstrate that School was issuing these Certificates indiscriminately.

(Please Click here for judgment)

 

   

What's New
  • Income Tax Notification No.6 - Arogyadham Global Aids Research Foundation, Muzaffarnagar approved for the purpose of clause (ii) of sub-section (1) of section 35 of Income-tax Act in the category of 'Other Institution'  (Click for detail) 

  • Income Tax Notification No.5 - Agreement between the Government of India and Bermuda as authorised by the Government of the UK for the Exchange of Information with respect to taxes  (Click for detail)

  • Income Tax Instruction No. 01/2011 - Income limits for assigning cases of Deputy Commissioners/Assistant Commissioners/ITO's Instruction  (Click for detail)

  • Notification No.8 - [Determination of Origin of Goods under the Preferential Trade Agreement between the Governments of Member States of the ASEAN and the Republic of India] First Amendment Rules, 2011-Customs  (Click for detail)

  • Circular No.15 - Conditions and modalities for applications for grant of quota for export of cotton yarn  (Click for detail)

  • Policy Circular No.14 - Guidelines for import and supply of precious metal by the Nominated Agencies  (Click for detail)

  • RBI/2010-11/397 – Classification of loans against gold jewellery  (Click for detail)

  • EES Likely to Get Fresh Extension  (Click for detail)

  • PMO Writes to Finmin on Indirect Tax Reforms  (Click for detail)

  • Land Record Digitization Possible if NSDL has Its Way  (Click for detail)

         

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Member  Central Council - ICAI
Former Chairman - NIRC
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