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14.02.2011 - Recent Updates as on 14.02.2011
Monday, February 14, 2011

1.    ST. LAWRENCE EDUCATIONAL SOCIEITY (REGD.) & ANOTHER Vs. COMMISSIONER OF INCOME TAX DELHI (CENTRAL) & ANOTHER, W.P.(C) 1254/2010, Date of Order : 04.02.2011  HIGH COURT OF DELHI

Facts of the case

The assessee-petitioner, a society registered under the Societies Registration Act, 1860 filed an application in Form No.56D for grant of approval for exemption under Section 10(23C)(vi) of the Income Tax Act, 1961 (for brevity, the Act) on 30th September, 2008 for the financial year 2008-09 before the Chief Commissioner of Income Tax, Delhi (Central). The authorized representative on behalf of the assessee-petitioner appeared and a query was made by the authority why the application should not be rejected in view of the decision rendered by the Uttarakhand High Court in CIT Vs. Queens’ Educational Society & Another (2009) 319 ITR 160.

Judgement

The opinion expressed by the respondent that the educational institutions seeking exemption should not generate any quantitative surplus is legally untenable and incorrect. The Chief Commissioner has erred in assuming that for exemption there should not be any surplus, otherwise the institution society exists for profit and not charity i.e. education in the present case. In view of the aforesaid judgments of the Supreme Court, Bombay High Court and Punjab and Haryana High Court, reasoning inscribed by the competent authority solely on the foundation that there has been some surplus profit is unjustified. In the result, we allow the writ petition and set aside the order passed by the competent authority and remit the matter to the said authority for fresh adjudication in accordance with law in the light of the aforesaid decisions.

(Please click here for judgment)

    

2.   M/S MAGTRON EARTH MOVERS, MRUTYUNJAYA NAGAR, RANEBENNUR, HAVERI DIST Vs. INCOME TAX OFFICER, WARD-1, HAVERI, ITA NO.818/BANG/2010, ASSESSMENT YEAR: 2006-2007, BENCH 'B' BANGALORE, INCOME TAX APPELLATE TRIBUNAL

ITAT-IT - Sec 32 - Whether, for depreciation purpose, JCB earth-moving machines can be equated with motor lorry or plant and machinery - It is plant and machinery, entitled to only 15% rate

That the functioning and operation of a JCB machine, as described supra, cannot be equated either with a motor lorry or a motor truck which will be registered as a heavy motor vehicle as they will be assigned to carry/transport materials from one place to another place on the roads whereas JCB machine will be put into operation for a specific purpose - dig out soil/quarry in a factory premises or in any other enclosed premises. The JCB machine invariably falls within the scope of a particular type of a machinery for the sole purpose of excavation of soil/earth which comes under the purview of ‘plant and machinery' and so the applicable rate of depreciation in respect of JCB machines being ‘plant and machinery' is only at 15% and not 30% as claimed by the assessee.

(Please click here for judgment)

   

What's New
  • Instruction No. 3/2011 - ITax dept will not file appeal in SC if amount involved is below Rs 25 Lakh  (Click for detail)

  • CBDT Press Release in No. 402/92/2006-MC (03 of 2011)  (Click for detail)

  • Draft Simplified Schedule VI To The Company Act, 1956  (Click for detail)

  • Amendments in Schedule XIII - Section 641 of the Companies Act, 1956 – Schedules, forms and rules – Power to alter schedules  (Click for detail)

  • Policy Circular No.18 - Export of Onion in cut, sliced or broken in powder form  (Click for detail)

  • Notification No.5 - Antidumping duty on imports of Cellophane Transparent Film from China  (Click for detail)

  • Notification No.6 - Anti dumping duty imposed on imports of Barium Carbonate , falling under sub heading 28366000, originating in, or exported from China  (Click for detail)

  • Notification No.9 - Customs, Central Excise Duties and Service Tax Drawback (Amendment) Rules, 2011  (Click for detail)

  • Notification No.10 - Drawback Rates for Chapter 4, for tariff item 04 and the entries relating thereto  (Click for detail)

  • RBI/2010-11/ 402 - Deferred Payment Protocols dated April 30, 1981 and December 23, 1985 between Government of India and erstwhile USSR  (Click for detail)

  • RBI/2010-11/401 - Investment in non-Government Securities- Non-Convertible Debentures (NCDs) of maturity up to one year by standalone Primary Dealers (PDs)  (Click for detail)

  • RBI/2010-11/400 - Re-opening of pension option to employees of Public Sector Banks and enhancement in gratuity limits - Prudential Regulatory Treatment  (Click for detail)

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