<DIRECT TAX LAWS>

n  Income-tax (Fourth Amendment) Rules, 2008 - Notification No. 34/2008, dated 13-3-2008

n  Clarification on Amendment to section 271 of Income-tax Act - Press Release dated 14-3-2008

n  Interest free deposits - Notional interest on interest-free deposit can be added to income of assessee under section 28(iv) on basis that it may have been earned by assessee if placed as a fixed deposit - Commissioner of Income-tax v. Asian Hotels Ltd. [IT APPEAL NOS. 794 AND 998 OF 2007]

n  Interest on borrowed capital - In case of a firm to claim deduction in respect of interest paid on capital borrowed from third parties (apparently partners), firm is required to establish, in first instance, that it is entitled to claim deduction under section 36(1)(iii), and secondly that it is not disentitled to claim such deduction on account of applicability of section 40(b)(iv) - Munjal Sales Corpn. v. Commissioner of Income-tax -[2008] 168 TAXMAN 43 (SC) [Civil Appeal Nos. 1378 to 1382 of 2008]

n  Business disallowance - In case where assessee paid rentals through credit card to four non-resident foreign companies for launching of different websites on their servers located in USA - Millennium Infocom Technologies Ltd.  v.  Assistant Commissioner of Income-tax [I.T. APPEAL NO. 4465 (DELHI) OF 2004]  

<CORPORATE LAWS>

n  Winding up - High Court is bound to entertain appeal against order of Single Judge who has disposed of it on merit and not summarily or in limine - Vijay Kumar Karwa v. Official Liquidator, Rohtas Inds. Ltd. [CIVIL APPEAL NO. 1661 OF 2008]

 - If a person intends to present a petition for winding up of a company as a contributory, he/it has to satisfy Company Court that his/its case is covered by one of eventualities contemplated by clause (b) of section 439(4) - Severn Trent Water Purification, Inc. v. Chloro Controls (India) (P.) Ltd. [Civil Appeal Nos. 1351 and 1353 of 2008]

 - Phrase 'or have devolved on him through death of former holder' would apply to natural persons, who are holding shares in their individual capacity and not to juristic entities - Severn Trent Water Purification, Inc. v. Chloro Controls (India) (P.) Ltd. [Civil Appeal Nos. 1351 and 1353 of 2008]

n  SEBI Act - Amendment in section 24 of SEBI Act brought into force with effect from 29-10-2002 is a substantial amendment and amendment in section 26 is only consequential in view of enlargement of sentence period under section 24 - Videocon International v.  Securities and Exchange Board of India  [CRIMINAL APPLICATION NOS. 2238 TO 2239 OF 2007]

 - When forum of trial has been changed in consequence of substantial amendment, it has to be read with main section providing for sentence and it cannot be read in isolation - Videocon International v. Securities and Exchange Board of India  [CRIMINAL APPLICATION NOS. 2238 TO 2239 OF 2007]

<SECURITIES LAWS>

n  Amendments to SEBI (Disclosure and Investor Protection) Guidelines, 2000 - Circular No. SEBI/CFD/DIL/DIP/30/2008/17/03, dated 17-3-2008

n  Load on Bonus Units and units allotted on Reinvestment of Dividend - Circular No. SEBI/IMD/CIR NO. 14/120784/08, dated 18-3-2008

<SERVICE TAX>

<DAILY CASE LAW REPORTER>

n  New Delhi AAR on sections 90, 245N and 245R of Income-tax Act, 1961 - Airports Authority of India, In re [A.A.R. No. 753-754 of 2007]

n  Mumbai ITAT on section 80HHC of Income tax Act, 1961 - Assistant Commissioner of Income tax v. Ajanta Pharma Ltd. [IT Appeal No. 7202 (Mum.) of 2004]

n  Punjab & Haryana High Court on section 115J of Income-tax Act, 1961 - Lakshmi Precision Screws Ltd. v. Commissioner of Income-tax [IT REFERENCE NO. 58 OF 1997]

n  New Delhi AAR on section 112 and 245N(b) of Income-tax Act, 1961 - McLeod Russel Kolkata Ltd., In re [AAR No. 763 of 2007]

n  Delhi High Court on section 271(1)(c) of Income-tax Act, 1961 - Commissioner of Income-tax v. National Marble & Sanitary [IT APPEAL NO. 1095 OF 2006]

n  Delhi High Court on section 143 of Income-tax Act, 1961 - Commissioner of Income-tax v. Silver Streak Trading (P) Ltd. [IT APPEAL NO. 1237 OF 2007]

n  Supreme Court on section 260A of Income-tax Act, 1961 - Commissioner of Income-tax v. Xpro India Ltd. [CIVIL APPEAL NO. 1765 OF 2008]

n Mumbai SAT on regulation 26 of SEBI (Stock Brokers & Sub-brokers) Regulations, 1992 - Active Finstock Private Ltd. v. Securities and Exchange Board of India [APPEAL NO. 122 OF 2007]

n Mumbai SAT on regulation 11 of Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers), Regulations, 1997 - Phiroze Sethna (P) Ltd. v. Adjudicating Officer, Securities and Exchange Board of India [APPEAL NO. 64 OF 2006]

n  Supreme Court on section 172 of Companies Act, 1956 - V. S. Krishnan v. Westfort Hi-Tech Hospital Ltd.[Civil Appeals Nos.1473 TO 1476 of 2008]

n  Bangalore CESTAT on section 80 of Finance Act, 1994 - Sai Motors v. Commissioner of Service Tax [APPEAL NO: ST/ST/155/2007 IN ST/215/2007, ST/ST/156/2007 IN ST/216/2007, ST/ST/157/2007, ST/ST/217/2007 AND ST/ST/158/2007 IN ST/218/2007]

<NEWS>

n  Income tax tribunal's order likely to enthuse trusts

n  ITAT makes trusts' registration with I-T Dept easier

n  HNIs likely to stay away from ULIPs

n  Tax targets go up only to face low collection level

<A PREVIEW OF LATEST ISSUES OF TAXMANN'S JOURNALS>