<DIRECT TAX LAWS>

n  Deductions - While working out gross total income of an assessee losses suffered have to be adjusted and if gross total income of assessee is 'Nil', assessee will not be entitled to deduction under Chapter VI-A - Synco Industries v. Assessing Officer, Income Tax [CIVIL APPEAL NOS. 4190-4191 OF 2002 AND 4192-4193 OF 2002]

n  Depreciation - Value determined by DVO could not be construed to be correct value for allowing depreciation - Assistant Commissioner of Income-tax v. Ashok Leyland Finance Ltd. [IT APPEAL NOS. 1104 TO 1106 AND 1218 TO 1220 (MAD) OF 2005]  

n  Block assessment in search cases - Burden to prove that property in question stood in a benami name and assessee was its real owner, was on revenue and it having failed to discharge its said onus, assessment in name of assessee was not justified - Assistant Commissioner of Income-tax v. Peter Thorose [IT Appeal No. 89 (Gauhati) of 2005]

n  Business Income - Where assessee made ancillary object as its main object, income earned by assessee was to be treated as its business income and not otherwise - Sujay Trading (P.) Ltd. v Joint Commissioner of Income-tax [IT APPEAL NO. 4348 (MUM.) OF 2001]

n  Charitable or religious trust - In order to serve a charitable purpose, it is not necessary that object of assessee-trust should be to benefit whole of mankind or all persons living in a Country or State; it will be more than sufficient if its intention is to benefit a section of public as distinguished from specified individuals - Rajkot Visha Shrimali Jain Samaj v. Income-tax Officer [IT Appeal No. 158 (rajkot) of 2006]

n  Income from house property - A lessee can be treated to be owner of property, if lease is for a considerable long time, say for 99 years, and lessee has right to construct property and to sell property constructed by him - Bindals Developers (P.) Ltd. v. Income-tax Officer [IT Appeal No. 468 (Delhi) of 2005]

n  Maintenance of accounts by certain persons carrying on profession or business - For applicability of section 44AA(2), circumstance that Assessing Officer was unable to compute income of assessee due to non-maintenance of accounts must exist and without completing assessment, Assessing Officer cannot come to conclusion that he was unable to compute income of assessee due to non-maintenance of accounts ; therefore, as per section 44AA(2) only after completion of assessment, Assessing Officer may initiate proceedings for levy of penalty under section 271A  - C.H. Aboobacker Haji v.Income-tax Officer [IT APPEAL NO. 293 (COCHin) OF 2006]

n  Annual value - Income from house property cannot be computed on basis of enhanced rent which tenants agreed to pay after close of previous year - Smt. Anita M. Shah v. Deputy Commissioner of Income-tax [IT Appeal Nos. 2967, 2968, 5763 to 5766 (Mum.) of 2005]

n  Assessment in case of search on requisition - Provisions of section 153A are only applicable in case valid search is conducted against assessee under section 132 - J.M. Trading Corpn. v. Assistant Commissioner of Income-tax [IT APPEAL NOS. 1435 TO 1438 AND 2629 (MUM.) OF 2007]

n  Capital gains : Exemption under section 54 - Requirement of section 54 is that assessee should acquire a residential house within period of one year before or two years after date on which transfer took place and source of funds is quite irrelevant inasmuch as it is not necessary that same funds must be utilized for purchase of another residential house - Assistant Commissioner of Income-tax v. Dr. P.S. Pasricha [IT Appeal No. 6808 (Mum.) of 2003]

n  Charitable or religious trust - If Form No. 10 is filed, benefit of accumulation of income for charitable purpose cannot be denied - Additional Director of Income-tax v. Manav Bharati Child Institute & Child Psychology [IT APPEAL NO. 512 (DELHI) OF 2006]

n  Income from other sources - In order to apply provisions of section 59(1) read with section 41(1) to computation of income from other sources, liability in respect of which any cessation or remission takes place during year has to be of nature similar to trading liability in respect of which deduction was allowed in earlier years in computing taxable income under head 'Income from other sources' - Income-tax Officer v. Smt. Kavita Khurana  [IT APPEAL NO. 1474 (DELHI) OF 2004]  

n  80-IB Deductions - Manufacturing process should be construed as comprising of procurement of raw materials, processing thereof and generation of finished products and persons involved in all these three processes have to be treated as employed in manufacturing process - Shree Par Fragrance (P.) Ltd. v. Income-tax Officer  [IT Appeal No. 5549 (Mum.) of 2007]

 - A factory manager and his assistant looking after various activities of a unit and being ultimately responsible for production results would be considered as workers employed in manufacturing process for purpose of section 80-IB - Shree Par Fragrance (P.) Ltd. v. Income-tax Officer [IT Appeal No. 5549 (Mum.) of 2007]

<SECURITIES LAWS>

n  Operationalisation of Short Selling and Securities Lending and Borrowing - Circular No. MRD/DOP/SE/Cir-05 /2008, dated 19-3-2008

n  Securities and Exchange Board of India (Depositories and Participants) (Amendment) Regulations, 2008 - Notification No. 11/LC/GN/2008/20494, dated 17-3-2008

<CORPORATE LAWS>

n  Company Law Board (Amendment) Regulations, 2008 - Notification No. G.S.R. 185(E), dated 17-3-2008

<OTHER LAWS>

n  Notified date of commencement of sections 44 and 45 of Disaster Management Act, 2005 - Notification No. S.O. 517(E), dated 17-3-2008

<DAILY CASE LAW REPORTER>

n  Ahmedabad ITAT on section 234D of Income-tax Act, 1961 - Assistant Commissioner of Income- tax v. Alembic Ltd. [IT APPEAL NO. 1823 (AHD.) OF 2006]

n  Supreme Court on section 260A of Income-tax Act, 1961 - Commissioner of Income-tax v. Ambuja Darla Karsog Mangu Transport Co-operative Society Ltd. [CIVIL APPEAL NOS. 820, 821, 823 & 824 OF 2008]

n  Gauhati High Court on section 10(22) of Income-tax Act, 1961 - Commissioner of Income-tax v. Assam State Book Production & Publication Corp. Ltd. [IT APPEAL NOS. 88 OF 2003, 7 TO 10, 12, 15 TO 21, 23 AND 24 OF 2004]

n  Mumbai ITAT on section 36(1)(iii) of Income-tax Act, 1961 - Ecd Electronics & Electrolysis (P.) Ltd. v. Commissioner of Income-tax [IT APPEAL NOS. 4331 (MUM.) OF 2000, 3069 (MUM.) OF 2001 AND 7754 (MUM.) OF 2003]

n  Amritsar ITAT on section 45 of the Income-tax Act, 1961 - Max Telecom Ventures Ltd. v. Assistant Commissioner of Income-tax [INCOME TAX APPEAL NO. 172 (ASR.) OF 2002]

n Mumbai SAT on regulation 4 of SEBI (Prohibition of Fraudulent and unfair Trade Practices Relating of Securities Market) Regulations, 1995 - Alliance Capital Mutual Fund v. Securities and Exchange Board of India [APPEAL NO. 404 OF 2004]

n Bombay High Court on section 11 of Foreign Exchange Management Act, 1999 - Prof. Krishnaraj Goswami v. Reserve Bank of India [WRIT PETITION NO. 45 OF 2007]

n  Delhi CESTAT on section 68 of Finance Act, 1994 - Billu Tech. Video Communications v. Commissioner of Central Excise [SERVICE TAX STAY APPLICATION NO. 271 OF 2007]

n  Chennai CESTAT on section 86 of Finance Act, 1994 - Capital Colour Lab. v. Commissioner of Central Excise [IN APPEAL NO. S/PD/1 AND 2/2007]

n  Mumbai CESTAT on section 68 of Finance Act, 1994 - Central Oil Ltd. v. Commissioner of Central Excise [IN APPEAL NO. ST/13/2007]

n  Kolkata CESTAT on section 76 of Finance Act, 1994 - Commissioner of Service Tax v. Indo Foreign (Agents) (P.) Ltd. [ST APPEAL NO. 16 of 2005]

<NEWS>

n  ICICI Lombard to tie up with United Health Group

n  Advance tax kitty may shrink on low core sector mop-up

n  MNC financiers' arms may lose ratings support

n  Exporters likely to get tax breaks on allied services

n  Advance tax figures bear out slowdown in realty

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