Date of setup of business is different fom date of commencement of business

It is held in recent case of Reliance Jewels & Gems Ltd Vs DCIT (Mumbai ITAT) that even though business has not commenced, still it can be considered to be 'set-up' i.e. ready to commence its business operations. It is not a pre-condition that the business should actually be running. 
The Department had contended that mere hiring of employees does not amount to business being set-up. The ITAT held otherwise.

Gist of recent important tax judgements

Below are the recent important tax caselaws related to Income tax, Service tax, Excise in brief. The citation is made available for your benefit :

INCOME TAX

 Date of SetUp

SECTION 28(i)

BUSINESS - COMMENCEMENT OF /CARRYING ON OF

Setting up of business : Where assessee-company was incorporated on 4-8-2005 to carry on real estate business and it had taken loan for business on 16-5-2006 and later on 31-5-2006 it had entered into a memorandum of understanding with third parties in respect of a project and subsequently joint venture agreement was executed between assessee and third parties on 5-7-2006, Assessing Officer was wrong in concluding that business of assessee was set up on 5-7-2006 - Commissioner of Income-tax , Delhi –I v. Arcane Developers (P.) Ltd. (2014) 42 taxmann.com 10 (Delhi)     SECTION 271(1)(C) PENALTY - FOR CONCEALMENT OF INCOME Revise return, effect of filing of : Where assessee offered additional income after search operation unearthing substantial undisclosed income for earlier years, concealment penalty was to be imposed upon assessee and waiver of penalty could not be granted - Commissioner of Income-tax (Central), Ludhiana v. Bansal Abushan Bhandar (2014) 42 taxmann.com 9 (Punjab & Haryana)       SERVICE TAX SECTION 65(102) STORAGE AND WAREHOUSING OF GOODS SERVICES Supply of vessels on charter hire basis for offshore operations involving transport of crude oil and incidental storage thereof is prima facie 'Supply of Tangible Goods for Use Service'; and not Storage and Warehousing of Goods Service - Shipping Corporation of India Ltd. v. Commissioner of Central Excise & Service Tax (LTU), Mumbai (2014) 42 taxmann.com 91 (Mumbai - CESTAT)