DIRECT TAX LAWS

n Compulsory scrutiny of returns involving refund of Rs. 5 lakhs or above - problem in selection - Instruction No. 1/2008, dated 9-1-2008

n Income, Chargeable as - If there is a complete disposal of asset with know-how resulting in parting of asset for a lump sum, with no reference to anticipate user, consideration received for disposal of such asset would be a capital receipt - Lipi International v. Commissioner of Income-tax [IT Reference No. 688 of 1987]

n For a place of business to constitute a PE, enterprise using it must be carrying on its business wholly or partly through it, it is not necessary that whole of business should be carried on through such PE or fixed place - Galileo International Inc. v. Deputy Commissioner of Income-tax [IT Appeal Nos. 2473 to 2475 (Delhi) of 2000, 1733 (Delhi) of 2001 and 820 to 823 (Delhi) of 2005]

n A PE will nevertheless exist if business of an enterprise is carried on mainly through automatic equipment and activities of personnel being restricted to setting up and operating such equipment; a PE will still exist if enterprise which sets up machine also operates and maintains them for its own account irrespective of fact as to whether machines are operated by itself or by a dependent agent - Galileo International Inc. v. Deputy Commissioner of Income-tax [IT Appeal Nos. 2473 to 2475 (Delhi) of 2000, 1733 (Delhi) of 2001 and 820 to 823 (Delhi) of 2005]

n In case of license, all ingredients of ownership including right to possession vest in owner-licensor and not in licensee and, therefore, in a leave and license arrangement, legal owner shall continue to be owner of licensed premises and assessable to wealth-tax as such - Voltas Ltd. v. Assistant Commissioner of Wealth-tax [WT Appeal Nos. 100 and 101 (Mum.) of 2005]

CORPORATE LAWS

n Amalgamation - Single-window clearance that sanction of a scheme affords to applicants is as to procedure and so as to avoid several applications being made in respect of several matters and for all of them being combined into one, such abridged or facilitating procedure cannot affect right of revenue, to receive fees that would otherwise be payable in respect of any part of approval or for purpose of giving effect to approval; therefore, transferee-company is liable to pay additional fee for consequential increase of its authorised capital following sanction of a scheme of amalgamation - Areva T and D India Ltd., In re [C.P. No. 95 of 2007]

DAILY CASE LAW REPORTER

n Punjab and Haryana High Court on section 124 of the Income-tax Act, 1961 - Subhash Chander v. Commissioner of Income-tax [IT Appeal No. 129 of 2007]

n Madras High Court on section 271D of the Income-tax Act, 1961 - Commissioner of Income-tax v. Balaji Traders [T. C. No. 49 of 2004]

n Mumbai ITAT on sections 5 and 37(1) of the Income-tax Act 1961 - Deputy Commissioner of Income-tax v. British Bank of Middle East [IT Appeal Nos. 815 and 1453 (Mum) of 96]

n Mumbai ITAT on sections 43(5) and 74 of the Income-tax Act 1961 - Deputy Commissioner of Income-tax v. Rajesh R. Gupta [Income-Tax Appeal No. 7051(Mum.) of 2003]

n Delhi High Court on section 80HHC of the Income-tax Act, 1961 - Commissioner of Income tax v. Fragrance Credits & Securities (P.) Ltd. [IT Appeal No. 896 of 2007]

n Delhi High Court on section 271C of the Income-tax Act, 1961 - Commissioner of Income tax v. Fourways International [IT Appeal 382 of 2007]

n Delhi High Court on section 271(1)(c) of the Income-tax Act, 1961 - Commissioner of Income tax v. Holiday Air Services (P) Ltd. [IT Appeal No. 1069 of 2006]

n Delhi Company Law Board on section 397/398 of the Companies Act, 1956 - Ved Kapoor v. Kalima Plastics (P) Ltd. [CA Nos. 67 139 & 200 of 2006]

n New Delhi CESTAT on section 65 of the Finance Act, 1994 - Pasupati Spg. & Wvg Mills Ltd. v. Commissioner of Central Excise [Appeal No. ST/479 of 2007]

NEWS

n Tax refund cases of over Rs 5 lakh to come under scrutiny

n Re-visiting capital gains tax

n No tax cuts likely in Budget '08

n Rupee seen up on IPO flows; wary of RBI

n Govt may scale down tax sops for renewable energy

n Death of a bank: IIBI to sell its loan portfolio

n Canara Bank to launch online trading portal

A PREVIEW OF LATEST ISSUES OF TAXMANN'S JOURNALS