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Refined or white sugar, imported upto 31st December 2010 exempted from Customs duty-Customs Tariff Notification No.8 excise exemption notification for Jammu & Kashmir modified-Central Excise Tariff Notification No.1 Air India may lower retirement age to 55 to cut cost Board of Approval to decide fate of denotification of Essar's Hazira SEZ on 11th February Revenue's comments on 1st Discussion Paper on GST-click on the link below for details SC rules service of notice on the assessee under Section 143(2) within the prescribed period of time is a pre-requisite for framing the block assessment under Chapter XIV-B of the Income Tax Act, 1961-AIT-2010-43-SC HC rules assessee is entitled to benefit under Income Tax on delayed payment of PF if the payment is made before the return is filed-AIT-2010-42-HC Authority for Advance Ruling rules the amount received by the foreign company from the Government of Tamil Nadu under the contract is essentially in the nature of “fees for technical services” within the meaning of Explanation 2 to Section 9(1)(vii) of the Income-tax Act, 1961 read with Article 12.4 of DTAA and cannot be regarded as consideration for the sale of designs and drawings-AIT-2010-38-AAR Authority for Advance Ruling rules payment received by the applicant from VARs (“third party re-sellers”) on account of supplies of software products to the end-customers (from whom the licence fee is collected and appropriated by VAR) does not result in income in the nature of royalty to the applicant and moreover payments received by the applicant cannot be taxed as business profits in India in the absence of permanent establishment as envisaged by Article 7 of the India-Japan Tax Treaty-AIT-2010- 36-AAR lending or borrowing money between two associated enterprises comes within the ambit of international transaction and whether the same is at arms length price has to be considered-The question of rate of interest on the borrowing loan is an integral part of arms length price redetermination in this context-AIT-2010-37-ITAT Export and Import of Currency-RBI Circular No.30 HC rules a petition under Article 226 of the Constitution would be maintainable for questioning reopening of the assessment in a case such as this where the preconditions for the exercise of the power have not been fulfilled-recourse to the power under Section 147 cannot be sustained on a mere change of opinion, there being no failure of the assessee to disclose fully and truly, all material facts necessary for assessment-AIT-2010-35-HC Definitive Anti dumping duty imposed on import of Carbon Black used in rubber applications falling under sub heading 2803 00 10, originating in, or exported from, Australia, China PR, Russia and Thailand-Customs Tariff Notification No.6 Tariff Value for import of Brass scrap is 3597 and for poppy seeds 4392-Customs Non-Tariff Notification No. 10 Adjustment of “Advance Tax in respect of Fringe Benefits” for Assessment Year 2010-11 against “Advance Tax”-Income Tax Circular No.2 CBDT clarifies it is the choice of the assessee whether to file an objection before the Dispute Resolution panel against the draft assessment order or not to exercise this option and file an appeal later before CIT (Appeals) against the assessment order passed by the AO

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Admission fee & infra dev paid to exchange is Revenue Expenditure: HC

AIT News Network

MUMBAI. Deciding a contentious issue in favour of share brokers it has been ruled by High Court that admission fee as well as contribution to infrastructure development paid by the assessee to become a member of the stock exchange is revenue expenditure.

HC ruled as under:

The test of enduring benefit is not a certain or conclusive test and it cannot be applied blindly and mechanically without regard to the particular facts and circumstances of a given case.
In the present case, no new assets had been created and there is no addition to or expansion of the profit-making apparatus of the assessee. Payment of admission fee as well as contribution to infrastructure development is like nature of license fee and it is paid only for carrying on the business.
If any payment is made for the purpose of running the business effectively and efficiently, it is only a revenue expenditure.
By becoming a member, the assessee is permitted to make use of the facility provided in the Stock Exchange and hence it is only revenue expenditure.

( Click here for full text of ruling AIT-2006-181-HC )