<DIRECT TAX LAWS>

n  High Court - Reference to - Decision of Tribunal on facts can be gone into by High Court in reference jurisdiction only if a question has been referred to it which says that finding arrived at by Tribunal on facts is perverse, in sense that no reasonable person could have taken such a view (SC) - Sudarshan Silks & Sarees v. Commissioner of Income tax [CIVIL APPEAL NOS. 5204-5207 OF 2002]

n  Business income - Where compensation is received partly for transfer of capital assets, incidental to carrying on business and partly for undertaking restrictive covenant of not competing with business of assessees, compensation relatable to such activity would be a capital receipt - Saurabh Srivastava v. Deputy Commissioner of Income-tax - [2008] 111 itd 287 (DELHI)(SB)[IT Appeal No. 3104 (Delhi) of 2004]

 - Assessee-company was formed with its main object to trade in various goods - Besides, assessee's ancillary objects were to lend and advance money and to invest in shares and securities, etc. - During previous year relevant to assessment year 1994-95, assessee passed a resolution to treat said ancillary object as its main object - Assessee invested funds in various stocks, bonds, etc., and earned interest thereon - In its return of income, assessee showed interest income as its income from business - However, Assessing Officer, taking view that assessee had not commenced business as per its main object, disallowed claim of assessee and treated interest income as its income from other sources - Sujay Trading (P.) Ltd. v. Joint Commissioner of Income-tax - [2008] 111 ITD 249 (MUM.)(tm)[IT Appeal No. 4348 (Mum.) of 2001]

n  Interest, chargeable as - As per Explanation 2 to sub-section (1) of section 234B, assessment done for first time under section 147 is regular assessment for purposes of section 234B and not re-assessment/recomputation under section 147 -  Megji Mathradas v. Assistant Commissioner of Income-tax - [2008] 21 SOT 211 (MUM.)[IT Appeal No. 5425 (Mum.) of 2004]

n  Losses - Business loss being negative profit cannot be ignored in determining applicability of exception clause of Explanation to section 73 - Mafatlal Securities Ltd. v. Joint Commissioner of Income-tax - [2008] 21 SOT 245 (MUM.)[IT Appeal No. 1127 (Mum.) of 2001]

n  Perquisites - As per amended provisions of rule 3 effective from 1-4-2001 actual amount of lease rent paid or payable by employer or 10 per cent of salary, whichever is lower, as reduced by rent, if any, actually paid by employee, is value of perquisites for rent free residential accommodation provided by employer and fair rental value has no role to play in ascertaining value of perquisite for rent free accommodation - Sankar Krishnan v. Assistant Commissioner of Income-tax - [2008] 21 SOT 180 (MUM.)[IT APPEAL NO. 1715 (MUM.) OF 2005]

n  Appellate Tribunal - Though Tribunal is not akin to a Court but functions discharged by it are similar to a Court, and, hence, in addition to its expressed statutory powers it has got inherent power to pass such orders as may be necessary for ends of justice - Mafatlal Securities Ltd. v. Joint Commissioner of Income-tax - [2008] 21 SOT 245 (MUM.)[IT Appeal No. 1127 (Mum.) of 2001]

<SERVICE TAX>

n  Banking and other financial services - Where assessee was not engaged in rendering service of hire purchase and it was only lending money to borrowers for purchase of automobiles, it could not be brought under category 'banking and other financial services' (Bang. - CESTAT) - Praveen Autofin (P.) Ltd. v. Commissioner of Central Excise [APPEAL NO. ST/22 OF 2007]

<DAILY CASE LAW REPORTER>

n  Allahabad High Court section 250 of Income-tax Act, 1961 - Ajeet Kumar Seth v. Commissioner of Income-tax [IT APPEAL NO. 175 OF 2000]

n  Madras High Court on section 68 of Income-tax Act, 1961 - Commissioner of Income-tax v. Gobi Textiles Ltd. [TAX CASE (APPEALS) NOS. 439 AND 440 OF 2004]

n  Delhi High Court on section 41 of Income-tax Act, 1961 - National Small Industries Corporation Ltd. v. Commissioner of Income-tax [IT REFERENCE NO. 57 OF 1988]

n  Bangalore ITAT on section 194J of Income-tax Act, 1961 - Spice Telecom v. Income-tax Officer [IT APPEAL NO. 932 (BANG.) OF 2002]

n  New Delhi ATFFE on section 18 of Foreign Exchange Regulation Act, 1973 - Uma Joshi v. Enforcement Directorate [APPEAL NO. 183 OF 2006]

n  Mumbai CESTAT on section 76 of Finance Act, 1994 - Kamander Security Services v. Commissioner of Central Excise [APPEAL NO. ST/51/07]

n  New Delhi CESTAT on section 67 of Finance Act, 1994 - Magnum International v. Commissioner of Central Excise [IN SERVICE TAX APPEAL NOS. 83-84 OF 2006]

n  Bangalore CESTAT on section 11BB of Central Excise Act, 1944 - OIKOS v. Commissioner of Central Excise [SERVICE TAX APPEAL NO. 11 OF 2004]

n  Chennai CESTAT on section 11B of Central Excise Act, 1944 - Pasla Air Travels & Cargo (P) Ltd. v. Commissioner of Customs & Central Excise  [STAY ORDER NO. 819 OF 2007]

n  Bangalore CESTAT on section 65 of Finance Act, 1994 - P.C. Poulose v. Commissioner of Customs & Central Excise  [APPEAL NO. ST/MISC./328/2006 IN]

n  New Delhi CESTAT on section 65 of Finance Act,  1994 - Pneumatic Power Tools & Co. v. Commissioner of Central Excise [IN ST APPEAL NO. 562 AND 566 OF 2007]

<COMPLIANCE CALENDAR UNDER DIRECT TAX LAWS>

Due Date

30-4-2008

Issuing Certificate of TDS from -

l Salaries

l Insurance Commission

April - Mar.

April - Mar.

16

16A

30-4-2008

Issue of TDS Certificate (except for Salaries and Insurance Commission)

March

16A

30-4-2008

Quarterly Statement of TCS

Jan. - Mar.

27B + 27EQ

30-4-2008

Issue of TCS Certificate

March

27D

30-4-2008

Issue of TCS Certificate (Consolidated)

Oct. - Mar.

27D

30-4-2008

Submitting copy of PAN declaration in Forms 60 and 61 to CIT (CIB)

Oct. - Mar.

Copy of 60, 61

<COMPLIANCE CALENDAR UNDER INDIRECT/CORPORATE & LABOUR LAWS>

Due Date

Quarterly central excise return by SSI units

-

-

Quarterly return of shareholding pattern to stock exchange as per clause 35 of Listing Agreement

-

-

Payment of ESIC contribution

-

-

Monthly contribution statement (abstract) in Form 12A, along with copy of receipted challans regarding payment of contribution.

-

-

Half yearly service tax return in Form ST-3 along with GAR-7 challan

-

-

Unaudited quarterly financial results to stock exchange as per clause 41 of Listing Agreement

-

-

Audit report to stock exchange of reconciliation of total admitted capital with depositories and total issued and listed capital for previous quarter

-

-

Disclosure to stock exchange of shareholding pattern of promoters and persons holding more than 15% shares as on 31st March

-

-

Payment of annual listing fees to stock exchange

-

-

Consolidated Annual Contribution Statement of PF in Form 6A for March paid in April to February paid in March of current year, along with contribution card of each employee for same period in Form 3A

-

-

Half yearly return in Form ST-3 by Input Service Distributor

-

-

Information in respect of Principal Inputs in Form ER-5 by specified manufacturers of excisable goods by other than SSI

-

-

<NEWS>

n  Apportionment of expenses to exempt income

n  Tax holiday in standby mode for small IT cos

n   GE's tie-up with LIC for cards irks SBI

n   MNC tax kitty exceeds target by Rs 4,000 cr

n   Punjab, Haryana project Rs 650 cr loss due to CST cut

n   Relief in Fera cases likely

n   SBI wants to move to global IFRS a/c standards, invites bids

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