Financial Daily
from THE HINDU group of publications

Saturday, August 11, 2001





Perks come with a tag
T. C. A. Ramanujam on the problems likely to be encountered in evaluating perquisites

Going around in circles
T. N. Pandey on the lack of clarity in the taxation of foreign telecasting channels

The legality paradox
ACCORDING to the explanation to Section 37, any expenditure incurred by an assessee for a purpose which is an offence, or prohibited by law, is not allowable while computing the income from business/profession. Now, if the business itself is prohibited b y law, what will be the tax implication? The Supreme Court, in CIT vs Piara Singh (124 ITR 40), held that if the income from smuggling is chargeable to tax, then the business loss is also eligible for deduction.

Gum and stick
POST-It memos demand attention and that is what they did when the Birla 3M case was posted for hearing at the Bangalore CEGAT recently. The confusion was whether the memos were to be classified as articles of stationery as Birla wanted, or as `gummed or adhesive paper or paper board', a classification sought by the Excise authorities.

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