<DIRECT TAX LAWS>

n Extension of due date for filing of quarterly statements of Tax Deducted at Source (TDS) and Tax Collected at Source (TCS) for the quarter ending 30th September 2007 to 29th February 2008 - Press Release, dated 4-2-2008

n Applicability of section 54 is restricted to capital asset which is building or land appurtenant thereto and which is used for residential purpose; but as far as section 54F is concerned, it is applicable to any capital asset - M. Anil v. Income-tax Officer [IT Appeal No. 905 (Coch.) of 2004] 

n Exception to speculative transaction as contemplated under clause (c) to proviso to section 43(5) is available not only to member of stock exchange, but is also available to a member of forward market and said clause (c) excepts hedges in nature of jobbing and arbitrage entered into by a member of a forward market or stock exchange to guard against loss, which may arise in ordinary course of his business as such member - Komal Exports v. Assistant Commissioner of Income-tax [IT Appeal No. 738 (Delhi) of 2004]

n In case of a company rendering financial services business can be said to have been set up when directors are appointed, staff such as regional and branch managers are appointed and their salaries are paid, computers are acquired and installed and company is ready to commence business - Whirlpool of India Ltd. v. Joint Commissioner of Income-tax [IT Appeal Nos. 2840 (Delhi) of 1999 and 3272 (Delhi) of 2001]

n Fair market value of a capital asset under Act is to be taken in terms of section 55(2)(b)(ii), read with section 2(22B) and not at some artificial value as per rules framed under Wealth-tax Act, 1957 - Smt. Madhu Tyagi v. Deputy Commissioner of Income-tax [IT Appeal Nos. 2501 to 2506 (Delhi) of 2007]

n Section 50 deals with those cases where profit accrues to assessee on transfer of any block of assets; whereas section 32(1)(iii) deals with those cases where assessee suffers a loss on sale of any building, machinery, plant, furniture, etc. - Mukand Global Finance Ltd. v. Deputy Commissioner of Income-tax [IT Appeal  No. 4078/M/2004]

n When capital assets are sold and purchased between holding company and subsidiary company, transaction would not fall within ambit of sections 47 and 49 - Mukand Global Finance Ltd. v. Deputy Commissioner of Income-tax [IT Appeal  No. 4078/M/2004]

n When capital asset is sold by holding company to its subsidiary company year of indexation in hands of subsidiary company would be year of transfer of capital asset in favour of subsidiary company on its sale - Mukand Global Finance Ltd. v. Deputy Commissioner of Income-tax [IT Appeal  No. 4078/M/2004]

n Disallowance under section 14A of interest paid on borrowed funds can only be made where borrowed funds are invested in shares which are held by assessee as investment or capital asset - Mukand Global Finance Ltd. v. Deputy Commissioner of Income-tax [IT Appeal  No. 4078/M/2004]

n Debt is amount receivable by assessee and not any liability payable by assessee and, therefore, any provision towards recoverability of debt cannot be said to be provision for liability - Mukand Global Finance Ltd. v. Deputy Commissioner of Income-tax [IT Appeal  No. 4078/M/2004]

n Interest paid on capital borrowed for purpose of acquisition of an asset can be allowed as revenue expenditure only when such asset is first put to use and starts yielding income and not for any period prior thereto - Commissioner of Income-tax v. Vardhman Polytex Ltd. [IT Appeal No. 1 of 2003]

<SERVICE TAX>

n  Supreme Court on Article 366 (29A) of the Constitution of India - Imagic Creative (P.) Ltd. v. Commissioner of Commercial Taxes [CIVIL APPEAL NO. 252 OF 2008]

<DAILY CASE LAW REPORTER>

n  Mumbai ITAT on section 36(1)(iii) of Income-tax Act, 1961 - CFL SECURITES LTD. v. Deputy Commissioner of Income-tax [IT APPEAL NO. 4406 (MUM.) OF 2000]

n Kolkata ITAT on section 28(i) of Income-tax Act, 1961 - Dropadi Properties (P.) Ltd. v. Income-tax Officer [IT Appeal Nos. 302 and 303 (Kol.) of 2006]

n Delhi ITAT on section 37(1) of Income-tax Act, 1961 - Mahesh Chand Jain v. Assistant Commissioner of Income-tax [IT Appeal No. 5070 (Delhi) of 2004]

n Gauhati High Court on section 73 of Income-tax Act, 1961 - Commissioner of Income-tax v. Micro India Ltd. [IT APPEAL NO. 21 OF 2003]

n Madras High Court on section 394 of Companies Act, 1956 - RBR Knit Process (P.) Ltd., In re [C.P. NOS. 171 OF 2006]

n  Mumbai CESTAT on section 76 of the Finance Act, 1994 - Agarwal Trading Co. v. Commissioner of Central Excise [APPEAL NO. ST/73/2006]

n  Bangalore CESTAT on section 65 of Finance Act, 1994 - Cochin International Airport Ltd. v. Commissioner of Customs & Central Excise [Appeal No. ST/31/2007]

n  Bangalore CESTAT on section 65(105) of Finance Act, 1994 - Excel Fin Cap Ltd. v. Commissioner of Central Excise [SERVICE TAX APPEAL NO. 77 OF 2007]

n  Bangalore CESTAT on section 65 of Finance Act, 1994 - Narang Plastics (P.) Ltd. v. Commissioner of Central Excise [Appeal No. ST/97 of 2007]

n  Chennai CESTAT on section 65 of Finance Act, 1994 - Srilankan Airlines Ltd. v. Commissioner of Service Tax [Appeal No. S/107 of 2007]

<NEWS>

n  Global computer reservation cos get tax breather here

n  Govt may advance date for I-T returns

n  Core thrust does it, but industry wants more

n  Money market faces crunch

n  'SBI can go for follow-on public offer'

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