<DIRECT TAX LAWS>

n  Value of Any Benefit or Perquisite, Arising from Business or Exercise of Profession - Notional interest on interest-free deposit cannot 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  Collection and Recovery of Tax - Assessee having failed to comply with provisions of tds would be liable to penalty under section 221, notwithstanding fact that tds and interest, if any accrued thereon, have been paid prior to initiation of penalty proceeding - Commissioner of Income-tax v. Bareilly Development Authority -  [IT Reference No. 157 of 1989]

n  Settlement Commission - Settlement commission can treat an application for settlement as invalid meaning thereby non est, if applicant has not made a true and full disclosure - Hassan Ali Khan v. Settlement Commission - [Writ Petition Nos. 2421 to 2423 of 2007]

 - Once decision is taken by settlement commission which acts in a quasi-judicial capacity, it is for applicants to point out that there has been either a failure to exercise jurisdiction or that exercise of jurisdiction is based on an assumption not warranted or that order suffers from an error of law apparent on face of record when it holds application to be invalid and it is only in those cases, that high court will exercise its extraordinary jurisdiction subject of course to discretion it has - Hassan Ali Khan v. Settlement Commission -  [Writ Petition Nos. 2421 to 2423 of 2007]

n  Depreciation - User criteria is to be fulfilled at time when asset is to form part of block of assets and once assets are part of block of assets, it looses its individual cost or written down value and thereafter depreciation is allowable on entire block of assets - Asstt. Commissioner of Income-tax v.SRF Ltd.[IT Appeal No. 2204 (Del) of 2006]

n Residential status - Where assessee was in India only for 420 days out of seven years, assessee fulfilled condition prescribed in second part of section 6(6)(a) for purpose of claiming status as 'resident but not ordinarily resident'  - Makarand Gadre v.Assistant Commission of Income-tax [I.T. APPEAL NOS. 1278 (HYD) OF 2003 AND 940 (HYD) OF 2005]

n Deductions - Gutkha containing tobacco would be 'tobacco preparations' and 'chewing tobacco' within meaning of Item No. 2 of Eleventh Schedule and, hence, assessee engaged in manufacturing of Gutkha was not entitled to claim deduction under section 80-I/80-IA - Dhariwal Industries Ltd. v. Assistant Commissioner of Income-tax [IT Appeal Nos. 203 (PN) of 1996, 1182 (Pune) of 1997, 169 (Pune) of 1998, 864 and 865 (Pune) of 2002, 960 and 961 (Pune) of 2003 and 1612 (PN) of 2004]

n  Mesne Profits - Mesne profits received by assessee for wrongful deprivation of use and occupation of property constitutes capital receipt not chargeable to tax - Narang Overseas (P.) Ltd. v. Assistant Commissioner of Income-tax - [IT APPEAL NO. 4623 (MUM.) OF 2005]

 - Since in P. Mariappa Gounder v. CIT [1998] 232 ITR 2, Supreme Court was not concerned with issue whether mesne profit received against wrongful possession of property was in nature of revenue receipt or capital receipt, and only issue before Court related to year of taxability of mesne profits, said judgment could not be said to be an authority for proposition that nature of mesne profits was revenue receipt chargeable to tax - Narang Overseas (P.) Ltd. v. Assistant Commissioner of Income-tax -  [IT APPEAL NO. 4623 (MUM.) OF 2005]

n  Business Income - A receipt can be said to be capital receipt when it is relatable to transfer of capital asset other than stock-in-trade and that parting of capital asset must be in a sense that transferor cannot make any gain out of same either for ever or for an enduring period - Deputy Commissioner of Income-tax v. Lyka Labs Ltd. -  [IT APPEAL NOS. 8172 (MUM.) OF 2003 AND 40 (MUM.) OF 2004]

<DAILY CASE LAW REPORTER>

n  Gauhati High Court on section 43(5) of Income-tax Act, 1961 - Bhikamchand Betala & Sons v. Income-tax Officer [IT APPEAL NO. 41 OF 2003]

n Madras High Court on section 40A(3) of Income-tax Act, 1961 - Commissioner of Income-tax v. K. K. S. K. Leather Processor (P). Ltd. [TAX CASE (APPEALS) NOS. 18 AND 19 OF 2007]

n  Pune ITAT on section 4 of Income-tax Act, 1961 - Konkani Bharat Dairy Farm (AOP) v. Assistant Commissioner of Income-tax [IT Appeal Nos. 1173 to 1180 (PN) of 2004]

n  Mumbai ITAT on section 2(ea) of Wealth - tax Act, 1957 - MTR (P.) Ltd. v. Wealth-tax Officer [WT Appeal Nos. 282 and 283 (Mum.) of 2004]

n  Pune ITAT on section 271B of Income-tax Act, 1961 - S. J. Agarwal & Co. v. Income-tax Officer [IT APPEAL NOS. 1429 & 1430 (PN) OF 2004]

n  Supreme Court on section 260A of Income-tax Act, 1961 - Union of India v. Income-tax Bar Asscn [Civil Appeal No. 5941 of 2007]

n  Mumbai ITAT on section 147 of Income-tax Act, 1961 - Aipita Marketing (P.) Ltd. v. Income-tax Officer [IT APPEAL NOS. 672 AND 673 (MUM.) OF 2004]

n  Delhi ITAT on section 36(1)(vii) of Income-tax Act, 1961 - Dy. Commissioner of Income-tax v. Kanchanjunga Advertising (P.) Ltd. [It appeal no. 3938 (Delhi) of 2003]

n  Bombay High Court on section 245C of Income-tax Act, 1961 - Haji N. Abdulla v. Income-tax Settlement Commission [WRIT PETITION NO. 1427 OF 2007]

n  Mumbai ITAT on section of Income-tax Act, 1961 - Megji Mathradas v. Assistant Commissioner of Income-tax [I.T. APPEAL NO. 5425 (MUM) OF 2004]

n  Kolkata High Court on section 253 of Income-tax Act, 1961 - Peerless Gen Fin & Inv. Co. Ltd. v. Assistant Commissioner of Income-tax [IT APPEAL  NOS. 1918 & 2128 (KOL.) OF 2007]

n  Chandigarh ITAT on section 154 of Income-tax Act, 1961 - Rajiv Gupta v. Income-tax Officer [IT APPEAL NOS. 442 & 443 (CHD) OF 2005]

n Andhra Pradesh High Court on section 235 of Companies Act, 1956 - S. Ravi Kiran v. Secretary, Minister of Company Affairs [WRIT PETITION NO. 14788 OF 2007]

n Calcutta High Court on section 211 of Companies Act, 1956 - Chandra Kumar Dhanuka v. Registrar of Companies [AND C. A. NO. 651 OF 2006]

n Allahabad High Court on section 433 of Companies Act, 1956 - Helen Brothers v. Modi Threads Ltd. [COMPANY PETITION NO. 102 OF 1997]

n  Madhya Pradesh High Court on section 529A of Companies Act, 1956 - Official Liquidator, Jiyajeerao Cotton Mills Ltd. v. BIFR (MP) [MISC. COMPANY APPEAL NO. 5 OF 2007]

n  Allahabad High Court on section 433 of Companies Act, 1956 - Modi Threads Ltd. v. Helam Bros. [SPECIAL APPEAL NO. 188 OF 2006]

n New Delhi CESTAT on section 11BB of Central Excise Act, 1944 - Afcons Infrastructure Ltd. v. Commissioner of Central Excise [Appeal No. E/5401/2004-SM(BR) in Final Order No. 1374/2006 -SM(BR)(PB)]

n Mumbai CESTAT on section 80 of Finance Act, 1994 - Commissioner of Central Excise v. Bapu Transport [ APPEAL NO. ST/210 of 2006]

n New Delhi CESTAT on section 65 of the Finance Act, 1994 - Kataria Transport Corpn. v. Commissioner of Central Excise [ST/S/1760 ST/A NO. 402 OF 2007]

n Chennai CESTAT on section 11B of Central Excise Act, 1944 - Pasla Air Travels & Cargo (P) Ltd. v. Commissioner of Customs & Central Excise [FINAL ORDER NO. 968 OF 2007]

n Mumbai CESTAT on section 65 of Finance Act, 1994 - The Commander Security Services v. Commissioner of Central Excise [IN APPEAL NO. ST/101/07]

n Bangalore CESTAT on section 80 of Finance Act, 1994 - R. S. Balaji v. Commissioner of Service Tax [APPEAL NO. ST/ST/130 OF 2007 IN ST/162 OF 2007]

<COMPLIANCE CALENDAR UNDER DIRECT TAX LAWS>

Due Date

31-3-2008

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

February

16A

31-3-2008

Issue of TCS Certificate

February

27D

31-3-2008

Filing of Return of Income/Wealth (Last date to avoid penalty u/s 271F)

Previous Year

ITR 1 to 8, V as 

applicable

31-3-2008

Payment of Advance Tax (Last opportunity)

Previous Year

-

<COMPLIANCE CALENDAR UNDER INDIRECT/CORPORATE & LABOUR LAWS>

Due Date

31-3-2008

Declaration of interest by directors in Form 24AA as per section 299 of Companies Act

-

-

31-3-2008

Payment of monthly central excise duty by large assessees and quarterly central excise duty by SSI units

-

-

31-3-2008

Payment of monthly service tax by large assessees and quarterly service tax by individuals, proprietary firms and partnership firms

-

-

<NEWS>

n  May impact corporates

n  India to adopt global accounting standards by 2011: ICAI

n  Allahabad Bank cuts home loan, prime lending rates

n  RBI issues fresh guidelines on Basel II

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