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the Appellate Tribunal was right in holding that the second reassessment proceedings were not validly initiated and thereby quashing the reassessment proceedings-the proceedings initiated by the AO for the second time under Section 147 is barred by limitation-even the proviso to Section 147 does not come into play on the facts of the case-AIT-2010-373-HC Even if the goods belong to same entry, manufacture does take place if new identifiable/marketable goods known in market emerge due to operation conducted-the process of ironing applied to the stiched brassieres prior to their packing was a process incidental to the completion of the brassieres as a manufactured product-process of purification and filtration being incidental or ancillary to the manufacture of a marketable product, the Respondent was entitled to Modvat credit on the inputs involved-AIT-2010-370-HC Larger Bench of CESTAT rules the Tribunal has ample power to condone the delay in filing the appeal including the one filed under section 35 E (4)-AIT-2010-372-CESTAT Corruption in IRS takes its toll-Deputy Commissioner of Income Tax Dhananjay Kumar arrested by CBI in Mumbai-Joint Commissioner of Customs & Excise Hemant Kothikar also arrested by CBI FM directs expediting of Cadre Restructuring in CBDT & CBEC Tariff Value for import of Brass Scrap is 3924-Customs Non-Tariff Notification No. 78 Chief Justice of Gauhati High Court Justice Ranjan Gogoi to be Chief Justice of Punjab & Haryana High Court Anti-dumping duty on imports of Acrylic Fibre originating in, or exported from Japan and Belarus-Customs Tariff Notification No.85 Prescribing SION for new product “Propylene” under Chemical & Allied Products Group-DGFT PN 7 Inclusion of Finished Leather in the Focus Product Scheme of FTP-DGFT PN 6 Exchange Rate for imported goods is Rs 47.25 per US Dollar and Rs 60.35 per EURO-Exchange Rate for export goods is Rs 46.30 per US Dollar and Rs 58.70 per EURO-Customs Non-Tariff Notification No. 77-Click on Exchange Rate for details Anti Dumping Duty under the Notification No.15/2007 is not applicable to Spandex Yarn (Elastomeric yarn)-Customs Circular No.30 Import of goods under Notification No.13/2010 for Commonwealth Games, 2010-Customs Circular No.31 Larger Bench of CESTAT rules charges towards pre-delivery inspection and after-sale-service by dealers from buyers of the cars to be included in the assessable value of cars for payment of excise duty-AIT-2010-366-CESTAT merely because there was non accounting of goods, penalty was technical and inference of clandestine removal was not called for-AIT-2010-365-HC ITAT rules provision for doubtful debts and provision for standard debts are to be taken into consideration for computation of book profit u/s. 115JB of the IT Act-AIT-2010-361-ITAT HC rules slitting of aluminum foils into customized width, mounting the same on the printing machine and thereafter printing the necessary text thereon is covered for 80IB benefit as it falls within the ambit of the term “produce”-AIT-2010-363-HC Definitive Anti-dumping duty imposed on imports of Coumarin, originating in, or exported from China-Customs Tariff Notification No. 82 Special Bench of ITAT Ruling-where a forward contract is entered into by the assessee to sell the foreign currency at an agreed price at a future date falling beyond the last date of accounting period, the loss is incurred to the assessee on account of evaluation of the contract on the last date of the accounting period i.e. before the date of maturity of the forward contract-AIT-2010-355-ITAT-SB

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No Surcharge in Block Assessment cases: Special Bench

AIT News Network

MUMBAI. Special Bench of ITAT vide a recent landmark ruling AIT-2006- 57 -ITAT-SB has ruled that the levy of surcharge prior to insertion of proviso to Section 113 vide the Finance Act, 2002, is not valid in a block assessment made under Section158BC of the Income Tax Act. Block Assessment is done for undisclosed income found consequent to search by Income tax department.

The following proviso to S.113 was inserted by the Finance Act, 2002, with effect from 1-6-2002:

“Provided that the tax chargeable under this section shall be increased by a surcharge, if any, levied by any Central Act and applicable in the assessment year relevant to the previous year in which the search is initiated under section 132 or the requisition is made under section 132A.”

Special Bench has ruled as under:

It would be ridiculous to take a view that a person would pay advance tax and surcharge thereon, in anticipation of a search taking place at his residence and that such income which suffered tax would be treated as undisclosed income, and it would not be proper to assume that the legislature wanted the assessees to pay advance tax on undisclosed income.
Chapter XIVB is a self-contained code and undisclosed income of a block period is distinct from total income computed with reference to a previous year.
Neither sec. 2(1) nor sec. 2(8) of the Finance Acts brings to tax, by way of a distinct and separate charge, the undisclosed income of a block period computed as per Chapter XIVB and as levy of surcharge in block assessments cannot be brought within the ambit of these charging sections, the levy has to fail.
The plain intention of the legislature was never to levy surcharge on undisclosed income of a block period prior to 1-6-2002, when the statute is read as a whole.
The levy of surcharge, prior to introduction of proviso to sec. 113 with effect from 1-6-2002, is riddled with complexity to the extent of making it unworkable and impossible to harmonise and, therefore, the levy fails.

( Click here to Download full text of 103 Page ruling AIT-2006-57 -ITAT-SB )