Plz i want ca final dt & idt
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
24 January 2014
plz i want ca final dt & idt case laws
summry for 2014 may exam.
summry for 2014 may exam.
24 January 2014
It is available at this site only. There are categories option-choose other and find your queries.
Querist : Anonymous
Querist :
Anonymous
(Querist)
25 January 2014
i searched, not find plz assist me.
10 August 2024
Certainly! Here's a summary of important case laws for the CA Final exams on Direct Taxes (DT) and Indirect Taxes (IDT) for the May 2014 attempt.
### **Direct Taxes (DT) Case Laws**
**1. **S. 37(1) - Allowability of Business Expenses**
- **Case Law:** CIT v. Maruti Udyog Ltd. [2007] 163 Taxman 292 (Del)
- **Summary:** The Supreme Court held that expenses incurred for business purposes, including those relating to the acquisition of new business, are allowable under section 37(1). Even if the expenses are capital in nature, if they are incurred to facilitate business operations, they should be considered as deductible.
**2. **S. 32 - Depreciation**
- **Case Law:** CIT v. Electrodes Ltd. [2008] 174 Taxman 369 (Bom)
- **Summary:** The Bombay High Court ruled that depreciation on assets used in the business of manufacturing is allowable even if the assets are not in use. It is essential that the asset is ready for use and not idle.
**3. **S. 10(34) - Exemption of Dividend Income**
- **Case Law:** CIT v. K. S. Gupta [2006] 283 ITR 68 (Del)
- **Summary:** The Delhi High Court clarified that dividend income received from domestic companies is exempt from tax under section 10(34), provided it has been subjected to tax at the corporate level.
**4. **S. 24(b) - Deduction for Interest on Housing Loan**
- **Case Law:** CIT v. C. K. Gangadharan [2008] 173 Taxman 290 (Ker)
- **Summary:** The Kerala High Court held that the deduction for interest on housing loan under section 24(b) is allowed even if the property is let out or used for rental purposes.
**5. **S. 80-IB - Deduction for Industrial Undertakings**
- **Case Law:** CIT v. Dharamshibhai B. Patel [2008] 174 Taxman 181 (Guj)
- **Summary:** The Gujarat High Court emphasized that a deduction under section 80-IB for industrial undertakings is available even if the industrial unit does not fulfill all the conditions stipulated in the Act.
### **Indirect Taxes (IDT) Case Laws**
**1. **Service Tax - Input Service Credit**
- **Case Law:** CCE v. Maruti Suzuki India Ltd. [2009] 15 STT 312 (Del)
- **Summary:** The Delhi High Court held that service tax paid on input services used in the manufacture of goods is eligible for input credit. This includes services that are indirectly used in the production process.
**2. **VAT - Sale or Service**
- **Case Law:** State of Tamil Nadu v. M/s. K. G. K. Ltd. [2008] 13 VST 284 (Mad)
- **Summary:** The Madras High Court clarified that transactions involving the sale of goods bundled with services are to be treated as sales for VAT purposes, and the predominant nature of the transaction determines the taxability.
**3. **Customs - Valuation of Imported Goods**
- **Case Law:** M/s. CCE v. M/s. Best & Crompton Engg. Ltd. [2009] 15 STT 281 (Mad)
- **Summary:** The Madras High Court dealt with the valuation of imported goods under customs law, stating that the valuation should be based on transaction value and not on the subjective judgment of the customs authorities.
**4. **Central Excise - CENVAT Credit**
- **Case Law:** CCE v. M/s. Chetan Enterprises [2008] 17 STT 442 (Bom)
- **Summary:** The Bombay High Court affirmed that CENVAT credit on inputs and capital goods is allowable even if the final product is exempted, provided that the inputs are used in the manufacturing process.
**5. **Service Tax - Export of Services**
- **Case Law:** CCE v. Paul Merchants Ltd. [2008] 17 STT 272 (P&H)
- **Summary:** The Punjab and Haryana High Court held that export of services is exempt from service tax if the services are provided outside India and are used for business or commerce outside India.
### **Key Takeaways**
1. **Direct Taxes:** Case laws emphasize the principles of allowing business expenses, depreciation on assets, exemptions for dividend income, and specific deductions like those for housing loans and industrial undertakings.
2. **Indirect Taxes:** Case laws clarify the eligibility of input service credits, treatment of bundled sales/services, valuation of imported goods, CENVAT credit rules, and export of services.
### **Exam Preparation Tips**
- **Focus on Judgments:** Understand the rationale behind key judgments, as they form the basis for practical application of tax laws.
- **Apply Concepts:** Practice applying these case laws to hypothetical scenarios to reinforce your understanding.
- **Refer to Latest Updates:** Ensure you are aware of any amendments or changes in the law post these cases, as tax laws frequently update.
Feel free to reach out if you need more detailed information or have other questions!
### **Direct Taxes (DT) Case Laws**
**1. **S. 37(1) - Allowability of Business Expenses**
- **Case Law:** CIT v. Maruti Udyog Ltd. [2007] 163 Taxman 292 (Del)
- **Summary:** The Supreme Court held that expenses incurred for business purposes, including those relating to the acquisition of new business, are allowable under section 37(1). Even if the expenses are capital in nature, if they are incurred to facilitate business operations, they should be considered as deductible.
**2. **S. 32 - Depreciation**
- **Case Law:** CIT v. Electrodes Ltd. [2008] 174 Taxman 369 (Bom)
- **Summary:** The Bombay High Court ruled that depreciation on assets used in the business of manufacturing is allowable even if the assets are not in use. It is essential that the asset is ready for use and not idle.
**3. **S. 10(34) - Exemption of Dividend Income**
- **Case Law:** CIT v. K. S. Gupta [2006] 283 ITR 68 (Del)
- **Summary:** The Delhi High Court clarified that dividend income received from domestic companies is exempt from tax under section 10(34), provided it has been subjected to tax at the corporate level.
**4. **S. 24(b) - Deduction for Interest on Housing Loan**
- **Case Law:** CIT v. C. K. Gangadharan [2008] 173 Taxman 290 (Ker)
- **Summary:** The Kerala High Court held that the deduction for interest on housing loan under section 24(b) is allowed even if the property is let out or used for rental purposes.
**5. **S. 80-IB - Deduction for Industrial Undertakings**
- **Case Law:** CIT v. Dharamshibhai B. Patel [2008] 174 Taxman 181 (Guj)
- **Summary:** The Gujarat High Court emphasized that a deduction under section 80-IB for industrial undertakings is available even if the industrial unit does not fulfill all the conditions stipulated in the Act.
### **Indirect Taxes (IDT) Case Laws**
**1. **Service Tax - Input Service Credit**
- **Case Law:** CCE v. Maruti Suzuki India Ltd. [2009] 15 STT 312 (Del)
- **Summary:** The Delhi High Court held that service tax paid on input services used in the manufacture of goods is eligible for input credit. This includes services that are indirectly used in the production process.
**2. **VAT - Sale or Service**
- **Case Law:** State of Tamil Nadu v. M/s. K. G. K. Ltd. [2008] 13 VST 284 (Mad)
- **Summary:** The Madras High Court clarified that transactions involving the sale of goods bundled with services are to be treated as sales for VAT purposes, and the predominant nature of the transaction determines the taxability.
**3. **Customs - Valuation of Imported Goods**
- **Case Law:** M/s. CCE v. M/s. Best & Crompton Engg. Ltd. [2009] 15 STT 281 (Mad)
- **Summary:** The Madras High Court dealt with the valuation of imported goods under customs law, stating that the valuation should be based on transaction value and not on the subjective judgment of the customs authorities.
**4. **Central Excise - CENVAT Credit**
- **Case Law:** CCE v. M/s. Chetan Enterprises [2008] 17 STT 442 (Bom)
- **Summary:** The Bombay High Court affirmed that CENVAT credit on inputs and capital goods is allowable even if the final product is exempted, provided that the inputs are used in the manufacturing process.
**5. **Service Tax - Export of Services**
- **Case Law:** CCE v. Paul Merchants Ltd. [2008] 17 STT 272 (P&H)
- **Summary:** The Punjab and Haryana High Court held that export of services is exempt from service tax if the services are provided outside India and are used for business or commerce outside India.
### **Key Takeaways**
1. **Direct Taxes:** Case laws emphasize the principles of allowing business expenses, depreciation on assets, exemptions for dividend income, and specific deductions like those for housing loans and industrial undertakings.
2. **Indirect Taxes:** Case laws clarify the eligibility of input service credits, treatment of bundled sales/services, valuation of imported goods, CENVAT credit rules, and export of services.
### **Exam Preparation Tips**
- **Focus on Judgments:** Understand the rationale behind key judgments, as they form the basis for practical application of tax laws.
- **Apply Concepts:** Practice applying these case laws to hypothetical scenarios to reinforce your understanding.
- **Refer to Latest Updates:** Ensure you are aware of any amendments or changes in the law post these cases, as tax laws frequently update.
Feel free to reach out if you need more detailed information or have other questions!
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Is this income indian or foreign income?
- RCM applicability on Rent Paid by Registered Person to Unregistered Landlord for Residental Building
- ITC temporary reversal and reclaim
- GST on export of services and Input Credit
- Inventory of finished goods
- Applicable TDS rate for sale of property in Nov 2024
- Tds on building rent monthly
- REGARDING 25 AS DATE OF PAYMENT AND DATE OF BOOKING
- Quiery in relation to GST liability in case of an advocate who has obtained GST registration.
- Can we claim ITC of Feb-2024 in the month of November-2024 which was not claimed by oversight
- Disallowance of Section 43B(h) to sez units
- Regarding Waiver of Interest levied u/s 50 of PGST/CGST Act
- LAST YEAR 2022-23 ITC IN NEXT YEAR 2023-24 REPORITNG IN GSTR-9
- MIS MATCH OF INVOICE NUMBER
- IGST Credit-Show cause notice issued-confusion
- Issue of gst e invoice
- How to adjusted advances given or receipt
- Foreign vendor without PAN unable to to register due to non receipt of OTP on foreign number ?
- 133(6) DIN INVALID format error - ->WHERE TO REPLY 133(6) notice?
- Query for dubts
Trending Online Classes
CAclubindia
