- 05/02/2010 Judgements
1. CIT vs JET AIR PVT LTD: Interest Costs & Penal Expense:
Held : As against that assessee has shown that whatever interest bearing funds were available with the assessee, none of them was utilized to advance interest free funds. It was shown that interest paid on overdraft obtained from bank was not linked and utilized for making any interest free advances. Similarly, in respect of inter-corporate deposits it was shown that there was a surplus of a sum of Rs.7,97,061/- and above all it was shown that assessee possessed sufficient share capital as well as reserves and surplus to cover these interest free advances. None of these grounds of the assessee has been assailed by revenue by placing any evidence on record to controvert the same. If it is so, then there is no ground for interfering with the order of the CIT(A) vide which it has been held that disallowance has been made on wrong footing...15. On the second issue i.e., interest payment made to DDA of Rs.9,64,267/-, the same was contended to be non-penal in nature. It was on account of delayed payment of arrears of ground rent. Unless it is an expenditure made by the assessee in contravention of some law, the same cannot be disallowed.."
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2. CIT vs Jindal Photo Investment Ltd: Share Trading Capital versus business field:
Held: Undisputedly, the shares sold by the assessee in the year under consideration had been held by the assessee for a considerable, long time. Moreover, these shares were shown as investment under the head ? non-current assets? by the assessee in its books of account and balance sheet, right from the date of acquisition thereof in the earlier years also, the situation had remained much the same and had remained unchallenged by the department. From treatment accorded by the assessee to these shares, the evident intention of the assessee was to hold shares for a long period of time and to sell them at an appropriate stage in order to earn income in the nature of dividend and capital appreciation. It is also undisputed that the earnings from the sales of shares were used for payment of loan. In such circumstances, it was erroneous to hold that the assessee kept the shares for trading purposes.."
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3. CIT vs M/s JCL International Ltd. - Delhi High Court : ( Finance Minister Speech)
HELD : "In such circumstances, the speech of the Minister while introducing the proposed amendment which verified the intentions for introducing such an amendment would come to the aid of interpretation..."
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4. Important Order on Service Tax matters by CIC under Right to Information Act:
[Contribution by CA. Ajay Goel, author is available at Mobile : 09810213865 / email-id: ajay@vkgc.com ]
In the matter of Ajay Kr Goel vs. Customs & Excise, Noida, , the Central Information Commission has given the various directions in a recent Order dt 21st January 2010 to Customs & Excise Noida regarding refund claim application. Order though given specific in case of Customs & Excise Noida, can be made applicable to other jurisdictions of the service tax office as the service tax is a central subject. Not only that similar directions can be sought in case of others laws also, viz., income tax refunds, VAT refunds, Duty drawback claims, etc.
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