Thursday, December 18, 2014

No Capital Gains On Transfer Of TDR/ FSI: Bombay High Court + Other Imp Updates

 

Dear Subscriber,

CIT vs. Sambhaji Nagar Coop. Hsg. Society Ltd (Bombay High Court)

S. 45/ 48: Gains on sale of TDR received as additional FSI as per the D. C. Regulations has no cost of acquisition and is not chargeable to capital gains

Only an asset which is capable of acquisition at a cost would be included within the provisions pertaining to the head "Capital gains" as opposed to assets in the acquisition of which no cost at all can be conceived. In the present case as well, the situation was that the FSI/TDR was generated by the […]


P. C. Joshi vs. UOI (Bombay High Court)

Article 19(1)(g): Levy of service-tax on Advocates is constitutional

A Writ Petition was filed to challenge the levy of service-tax on advocates. It was claimed that an advocate renders services which cannot be said to be commercial or business like. They cannot be equated with the service providers mentioned in the Finance Act 1994. It was also contended that advocacy is not a business […]


CBDT Press Release: Suggestions By SIT On How To Control Black Money

RELEVANT PORTIONS OF THE SECOND REPORT OF THE SPECIAL INVESTIGATION TEAM (SIT) ON BLACK MONEY RELEASED; ON THE DIRECTIONS OF SIT, CBDT DIRECTS VARIOUS ASSESSING OFFICERS TO FINALIZE THE ASSESSMENTS FOR ALL ACTIONABLE CASES (427), WHOSE NAMES ARE APPEARING IN THE HSBC LIST RECEIVED BY THE DEPARTMENT


Companies (Amendment) Bill, 2014 Is Available For Download

The Union Cabinet, chaired by the Prime Minister Shri Narendra Modi, has approved the introduction of the Companies (Amendment) Bill, 2014 in Parliament to make certain amendments in the Companies Act, 2013.


Regards,

 

Editor,

 

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Latest:

Complete Guide To The Law Of Disallowance U/s 14A And Rule 8D

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Monday, December 15, 2014

ITR Volume 369 : Part 3 (Issue dated : 15-12-2014)

 

INCOME TAX REPORTS (ITR)--PRINT AND ONLINE EDITION

PRINT EDITION

ITR Volume 369 : Part 3 (Issue dated : 15-12-2014)

SUBJECT INDEX TO CASES REPORTED IN THIS PART

HIGH COURTS

Appeal to Appellate Tribunal --Rectification of mistakes--Failure to deduct tax at source--Amendment allowing benefit where payee has paid tax on receipts effective from 1-4-2013--Tribunal relying on decision of jurisdictional High Court rejecting application for rectification--Assessee to pursue remedy by filing appeal before High Court--Writ petition not maintainable--Income-tax Act, 1961, ss. 254(2), 260A-- Thomas John Muthoot v. Asst. CIT (Ker) . . . 525

Assessment --Additional tax--Rectification of mistakes--Appeal--Deletion of disallowance on appeal--Assessing Officer can delete additional tax in rectification proceedings--Income-tax Act, 1961, ss. 143, 154, 250, 254-- CIT v. Redico Khaitan Ltd. (All) . . . 424

Business --Income from house property--Business income or income from house property--Rent from letting out buildings with amenities in software technology park--Assessable as business income--Income-tax Act, 1961, ss. 22, 28-- CIT v. Information Technology Park Ltd. (Karn) . . . 460

Capital gains --Long-term capital gains--Full value of consideration--Distress sale--Assessee objecting to value adopted by stamp valuation authority--Assessing Officer instead of referring valuation to Valuation Officer estimating capital gains tax confirmed by Tribunal--Specific claim that Assessing Officer should have referred matter to Valuation Officer for valuation of capital asset in terms of section 50C(2)--Mere assertion by assessee suffice for attraction of section 50C(2)--Assessing Officer directed to work out capital gains by adopting market value under section 50C(2)--Income-tax Act, 1961, s. 50C(1), (2)--Appadurai Vijayaraghavan v. Joint CIT (OSD) (Mad) . . . 486

----Long-term capital gains--Full value of consideration--Distress sale--Specific objection for adopting market value--Authorities instead of referring valuation to District Valuation Officer adopting guideline value relating to property sold--Assessing Officer directed for working out capital gains--Income-tax Act, 1961, s. 50C-- S. Muthuraja v. CIT (Mad) . . . 483

----Sale of agricultural lands--Classification of lands in revenue records as agricultural lands--Adangal and letter of tahsildar satisfying other conditions of section 2(14)--Adjacent lands divided into plots for sale not a reason that lands sold by assessee were for purposes of development of plots--Record showing lands are agricultural lands classified as dry lands for which kist has been paid--Entitled to exemption--Income-tax Act, 1961, s. 2(14)-- Mrs. Sakunthala Vedachalam v. Asst. CIT (Mad) . . . 558

Charitable purposes --Charitable trust--Cricket Association--Registration--First application not traceable--Defective second application not cured despite opportunities--Condonation of delay--Not a matter of right--Failure to provide satisfactory explanation--Tribunal justified in declining plea--Another application with retrospective effect--Commissioner could not grant registration with retrospective effect since rejection of defective application for registration with retrospective effect attaining finality--Income-tax Act, 1961, s. 12A-- Kerala Cricket Association v. Addl. CIT (Ker) . . . 528

----Charitable trust--Education society--Registration--Assessee collecting capitation fee for admission in addition to regular fees--Assessee not carrying on any charitable activities entitling it for registration--Income-tax Act, 1961, s. 12AA-- Travancore Education Society v.CIT (Ker) . . . 534

----Charitable trust--Registration--Employees’ pension fund trust--Pensionary benefit to employees of GCDA from corpus created out of contributions made by employees of GCDA--Activity not general public utility--Not entitled to registration--Income-tax Act, 1961, ss. 2(15), 12AA-- GCDA Employees’ Pension Fund Trust v. CIT (Ker) . . . 532

Deduction of tax at source --Transmission transaction charges to Gas Authority of India for supplying gas--GAIL not only showing transaction as sale in its relevant records but paying due tax thereon--Contract for supply of gas was for sale of goods and not works contract or contract for rendering technical services--Transaction outside purview of sections 194C and 194J--No liability for tax deduction at source--Income-tax Act, 1961, ss. 194C, 194J--CIT (TDS) v. Samtel Glass Ltd. (Raj) . . . 392

Depreciation --Enhanced depreciation--Notification confining benefit of enhanced depreciation for year 2009-10 to only such commercial vehicles as have been purchased and put to use during period 1-4-2009 to 30-9-2009--Assessee, an advocate, purchasing a car outside the period for accelerated depreciation--Accelerated depreciation conferred taking into account the policy decision of Union Government to stimulate country’s economy--Not discriminatory--Not violative of fundamental rights--Constitution of India, art. 14--Income-tax Act, 1961, s. 32-- R. Surendran v. Union of India (Ker) . . . 536

----Exercising of option--Returns filed under section 139(1) and exercised option in form prescribed therein--No separate letter or request or intimation with regard to exercise of option required--Option once exercised will continue to subsequent years--Income-tax Rules, 1962, r. 5(1A)--Income-tax Act, 1961, ss. 32, 139(1)-- CIT v. Kikani Exports P. Ltd. (No. 2 )(Mad) . . . 500

----Higher rate of depreciation--Plant--Neither includes “building†nor includes “road†--†Road†is a “building†and not a “plant†--Toll road is a capital asset and not an implement or a tool used by assessee for his business--Would not qualify as a “plant†--Not entitled to a higher rate of depreciation--Income-tax Rules, 1962, Appex. I--Income-tax Act, 1961, s. 32(1)-- Moradabad Toll Road Co. Ltd. v. Asst. CIT (Delhi) . . . 403

----Investment allowance--Carry forward and set off--Unabsorbed depreciation against capital gains--Allowable but restricted to two-thirds of such allowance--Matter remanded to Assessing Officer to recompute unabsorbed depreciation--Income-tax Act, 1961, s. 34A--CIT v. Madras Forging and Allied Industries (CBE) Ltd. (In liquidation) (Mad) . . . 552

Double taxation avoidance --Non-resident--Income deemed to accrue or arise in India--Royalty--Danish company supplying equipment and information regarding installation of such equipment--Consideration received not royalty--Not assessable in India--Income-tax Act, 1961, s. 9(1)(vi)--Double Taxation Avoidance Agreement between India and Denmark--Director of Income-tax (International Taxation) v. Haldor Topsoe (Bom) . . . 453

Exemption --Development of computer software--Conditions precedent--Customs bonding not a condition precedent--Assessee fulfilling conditions laid down in section 10A--Entitled to exemption--Income-tax Act, 1961, s. 10A-- CIT v. Caritor (India) P. Ltd. (Karn) . . . 463

Export --Special deduction under section 80HHC--Computation of turnover for purposes of section 80HHC--Service charges must be included--Income-tax Act, 1961, s. 80HHC-- CIT v.Nahar Spinning Mills Ltd. (P&H) . . . 467

Housing projects --Special deduction under section 80-IB(10)--Conditions precedent--Not necessary that developer should own the land--Income-tax Act, 1961, s. 80-IB -- CIT v.Shital Corporation (Guj) . . . 476

Income from undisclosed sources --Amounts claimed to be gifts from foreign residents--No relationship between assessee and donors--No occasion for gift--Addition of amounts as undisclosed income of assessee--Justified--Income-tax Act, 1961-- CIT v. Sandeep Goyal(P&H) . . . 471

Interest-tax --Interest on debentures--Notional interest--Not chargeable interest--Interest-tax Act, 1974, s. 2(7)-- CIT v. Golden Investments Ltd. (Mad) . . . 544

International transactions --Transfer pricing--Arm’s length price--Assessee issuing equity shares to its non-resident associated enterprises--Income of assessee would not include income on account of adjustment for short receipt of price for issued additional share capital--Transfer pricing provisions not applicable--Income-tax Act, 1961, s. 92CA(3)-- Shell India Markets P. Ltd. v. Asst. CIT (LTU) (Bom) . . . 516

----Transfer pricing--Arm’s length price--Issue of shares at premium by assessee to its non-resident holding company--Does not give rise to income in an international transaction--Capital receipts arising out of capital account transaction--Transfer pricing provisions not applicable--Income-tax Act, 1961, s. 92CA(3)-- Vodafone India Services P. Ltd. v. Union of India (Bom) . . . 511

Interpretation of taxing statutes --Literal interpretation-- CIT v. Shital Corporation (Guj) . . . 476

Reassessment --Limitation--Exclusion from limitation--Finding or direction by appellate or revisional authority, etc.--Appellate order that an amount was not assessable in a particular assessment year but was assessable in an earlier year--Order constitutes finding or direction--Consequent order not barred by limitation--Income-tax Act, 1961, ss. 150, 153--CIT v. PP Engineering Work (Delhi) . . . 433

----Notice after four years--Condition precedent--Satisfaction of Commissioner or Chief Commissioner--No sanction or permission of Commissioner obtained--Reassessment not valid--Income-tax Act, 1961, ss. 148, 151(1)-- Reliable Finhold Ltd. v. Union of India (All) . . . 419

----Validity--Reassessment based on retrospective amendment of provision--Reassessment accepted by assessee--Subsequently retrospective amendment held invalid in an appeal filed by another assessee--Consequent appeal against reassessment after five years--Reassessment not rendered invalid--Income-tax Act, 1961, ss. 80HHC, 147, 148-- CIT v.Kultar Exports (Delhi) . . . 440

Rectification of mistakes --Mistake apparent from record--Export--Special deduction--Intimation to assessee--Claim debatable or doubtful--Disallowance part of claim not on basis of settled principles--No notice issued under sub-section (2) of section 143--Rectification pursuant to direction by Commissioner (Appeals)--Appellate authorities right in deleting disallowance--Income-tax Act, 1961, ss. 80HHC, 139, 154-- CIT v. Mekins Agro-Products Ltd. (T & AP) . . . 495

Search and seizure --Block assessment--Undisclosed income--Assessment of third person--Condition precedent--Recording of satisfaction that undisclosed income belonged to third person--Limitation--Satisfaction must be recorded within two year time period stipulated in section 158BE(1)--Income-tax Act, 1961, ss. 158BD, 158BE-- Raghav Bahl v. CIT (Delhi) . . . 447

Sikkim --Charge of tax--Application of Act--Extension of Income-tax Act, 1961, to State of Sikkim with effect from 1-4-1990--Effect--Repeal of Sikkim State Tax Manual by necessary implication--Assessments made under Sikkim Tax Manual for assessment years 1997-98 to 2005-06 not valid--State directed to refund amount--Constitution of India, art. 371F(n)--Sikkim State Income-tax Manual, 1948, cl. 4(i)--Income-tax Act, 1961-- Sikkim Manipal University v.State of Sikkim (Sikkim) . . . 567

Unexplained investment --No evidence regarding investment--Addition of amounts--Not justified--Income-tax Act, 1961-- CIT v. Gian Gupta (Delhi) . . . 428

 

SECTIONWISE INDEX TO CASES REPORTED IN THIS PART

Constitution of India :

Art. 14 --Depreciation--Enhanced depreciation--Notification confining benefit of enhanced depreciation for year 2009-10 to only such commercial vehicles as have been purchased and put to use during period 1-4-2009 to 30-9-2009--Assessee, an advocate, purchasing a car outside the period for accelerated depreciation--Accelerated depreciation conferred taking into account the policy decision of Union Government to stimulate country’s economy--Not discriminatory--Not violative of fundamental rights-- R. Surendran v. Union of India (Ker) . . . 536

Art. 371F(n) --Sikkim--Charge of tax--Application of Act--Extension of Income-tax Act, 1961, to State of Sikkim with effect from 1-4-1990--Effect--Repeal of Sikkim State Tax Manual by necessary implication--Assessments made under Sikkim Tax Manual for assessment years 1997-98 to 2005-06 not valid--State directed to refund amount-- Sikkim Manipal University v.State of Sikkim (Sikkim) . . . 567

Income-tax Act, 1961 :

S. 2(14) --Capital gains--Sale of agricultural lands--Classification of lands in revenue records as agricultural lands--Adangal and letter of tahsildar satisfying other conditions of section 2(14)--Adjacent lands divided into plots for sale not a reason that lands sold by assessee were for purposes of development of plots--Record showing lands are agricultural lands classified as dry lands for which kist has been paid--Entitled to exemption-- Mrs. Sakunthala Vedachalam v. Asst. CIT (Mad) . . . 558

S. 2(15) --Charitable purposes--Charitable trust--Registration--Employees’ pension fund trust--Pensionary benefit to employees of GCDA from corpus created out of contributions made by employees of GCDA--Activity not general public utility--Not entitled to registration--GCDA Employees’ Pension Fund Trust v. CIT (Ker) . . . 532

S. 9(1)(vi) --Double taxation avoidance--Non-resident--Income deemed to accrue or arise in India--Royalty--Danish company supplying equipment and information regarding installation of such equipment--Consideration received not royalty--Not assessable in India-- Director of Income-tax (International Taxation) v. Haldor Topsoe (Bom) . . . 453

S. 10A --Exemption--Development of computer software--Conditions precedent--Customs bonding not a condition precedent--Assessee fulfilling conditions laid down in section 10A--Entitled to exemption-- CIT v. Caritor (India) P. Ltd. (Karn) . . . 463

S. 12A --Charitable purposes--Charitable trust--Cricket Association--Registration--First application not traceable--Defective second application not cured despite opportunities--Condonation of delay--Not a matter of right--Failure to provide satisfactory explanation--Tribunal justified in declining plea--Another application with retrospective effect--Commissioner could not grant registration with retrospective effect since rejection of defective application for registration with retrospective effect attaining finality-- Kerala Cricket Association v. Addl. CIT (Ker) . . . 528

S. 12AA --Charitable purposes--Charitable trust--Education society--Registration--Assessee collecting capitation fee for admission in addition to regular fees--Assessee not carrying on any charitable activities entitling it for registration-- Travancore Education Society v. CIT(Ker) . . . 534

----Charitable purposes--Charitable trust--Registration--Employees’ pension fund trust--Pensionary benefit to employees of GCDA from corpus created out of contributions made by employees of GCDA--Activity not general public utility--Not entitled to registration-- GCDA Employees’ Pension Fund Trust v. CIT (Ker) . . . 532

S. 22 --Business--Income from house property--Business income or income from house property--Rent from letting out buildings with amenities in software technology park--Assessable as business income-- CIT v. Information Technology Park Ltd. (Karn) . . . 460

S. 28 --Business--Income from house property--Business income or income from house property--Rent from letting out buildings with amenities in software technology park--Assessable as business income-- CIT v. Information Technology Park Ltd. (Karn) . . . 460

S. 32 --Depreciation--Enhanced depreciation--Notification confining benefit of enhanced depreciation for year 2009-10 to only such commercial vehicles as have been purchased and put to use during period 1-4-2009 to 30-9-2009--Assessee, an advocate, purchasing a car outside the period for accelerated depreciation--Accelerated depreciation conferred taking into account the policy decision of Union Government to stimulate country’s economy--Not discriminatory--Not violative of fundamental rights-- R. Surendran v. Union of India (Ker) . . . 536

----Depreciation--Exercising of option--Returns filed under section 139(1) and exercised option in form prescribed therein--No separate letter or request or intimation with regard to exercise of option required--Option once exercised will continue to subsequent years-- CITv. Kikani Exports P. Ltd. (No. 2 ) (Mad) . . . 500

S. 32(1) --Depreciation--Higher rate of depreciation--Plant--Neither includes “building†nor includes “road†--†Road†is a “building†and not a “plant†--Toll road is a capital asset and not an implement or a tool used by assessee for his business--Would not qualify as a “plant†--Not entitled to a higher rate of depreciation-- Moradabad Toll Road Co. Ltd. v. Asst. CIT (Delhi) . . . 403

S. 34A --Depreciation--Investment allowance--Carry forward and set off--Unabsorbed depreciation against capital gains--Allowable but restricted to two-thirds of such allowance--Matter remanded to Assessing Officer to recompute unabsorbed depreciation-- CIT v.Madras Forging and Allied Industries (CBE) Ltd. (In liquidation) (Mad) . . . 552

S. 50C --Capital gains--Long-term capital gains--Full value of consideration--Distress sale--Specific objection for adopting market value--Authorities instead of referring valuation to District Valuation Officer adopting guideline value relating to property sold--Assessing Officer directed for working out capital gains-- S. Muthuraja v. CIT (Mad) . . . 483

S. 50C(1), (2) --Capital gains--Long-term capital gains--Full value of consideration--Distress sale--Assessee objecting to value adopted by stamp valuation authority--Assessing Officer instead of referring valuation to Valuation Officer estimating capital gains tax confirmed by Tribunal--Specific claim that Assessing Officer should have referred matter to Valuation Officer for valuation of capital asset in terms of section 50C(2)--Mere assertion by assessee suffice for attraction of section 50C(2)--Assessing Officer directed to work out capital gains by adopting market value under section 50C(2)-- Appadurai Vijayaraghavan v. Joint CIT (OSD) (Mad) . . . 486

S. 80HHC --Export--Special deduction under section 80HHC--Computation of turnover for purposes of section 80HHC--Service charges must be included-- CIT v. Nahar Spinning Mills Ltd. (P&H) . . . 467

----Reassessment--Validity--Reassessment based on retrospective amendment of provision--Reassessment accepted by assessee--Subsequently retrospective amendment held invalid in an appeal filed by another assessee--Consequent appeal against reassessment after five years--Reassessment not rendered invalid-- CIT v. Kultar Exports (Delhi) . . . 440

----Rectification of mistakes--Mistake apparent from record--Export--Special deduction--Intimation to assessee--Claim debatable or doubtful--Disallowance part of claim not on basis of settled principles--No notice issued under sub-section (2) of section 143--Rectification pursuant to direction by Commissioner (Appeals)--Appellate authorities right in deleting disallowance-- CIT v. Mekins Agro-Products Ltd. (T & AP) . . . 495

S. 80-IB --Housing projects--Special deduction under section 80-IB(10)--Conditions precedent--Not necessary that developer should own the land-- CIT v. Shital Corporation(Guj) . . . 476

S. 92CA(3) --International transactions--Transfer pricing--Arm’s length price--Assessee issuing equity shares to its non-resident associated enterprises--Income of assessee would not include income on account of adjustment for short receipt of price for issued additional share capital--Transfer pricing provisions not applicable-- Shell India Markets P. Ltd. v. Asst. CIT (LTU) (Bom) . . . 516

----International transactions--Transfer pricing--Arm’s length price--Issue of shares at premium by assessee to its non-resident holding company--Does not give rise to income in an international transaction--Capital receipts arising out of capital account transaction--Transfer pricing provisions not applicable-- Vodafone India Services P. Ltd. v. Union of India (Bom) . . . 511

S. 139 --Rectification of mistakes--Mistake apparent from record--Export--Special deduction--Intimation to assessee--Claim debatable or doubtful--Disallowance part of claim not on basis of settled principles--No notice issued under sub-section (2) of section 143--Rectification pursuant to direction by Commissioner (Appeals)--Appellate authorities right in deleting disallowance-- CIT v. Mekins Agro-Products Ltd. (T & AP) . . . 495

S. 139(1) --Depreciation--Exercising of option--Returns filed under section 139(1) and exercised option in form prescribed therein--No separate letter or request or intimation with regard to exercise of option required--Option once exercised will continue to subsequent years-- CIT v. Kikani Exports P. Ltd. (No. 2 ) (Mad) . . . 500

S. 143 --Assessment--Additional tax--Rectification of mistakes--Appeal--Deletion of disallowance on appeal--Assessing Officer can delete additional tax in rectification proceedings-- CIT v. Redico Khaitan Ltd. (All) . . . 424

S. 147 --Reassessment--Validity--Reassessment based on retrospective amendment of provision--Reassessment accepted by assessee--Subsequently retrospective amendment held invalid in an appeal filed by another assessee--Consequent appeal against reassessment after five years--Reassessment not rendered invalid-- CIT v. Kultar Exports(Delhi) . . . 440

S. 148 --Reassessment--Notice after four years--Condition precedent--Satisfaction of Commissioner or Chief Commissioner--No sanction or permission of Commissioner obtained--Reassessment not valid-- Reliable Finhold Ltd. v. Union of India (All) . . . 419

----Reassessment--Validity--Reassessment based on retrospective amendment of provision--Reassessment accepted by assessee--Subsequently retrospective amendment held invalid in an appeal filed by another assessee--Consequent appeal against reassessment after five years--Reassessment not rendered invalid-- CIT v. Kultar Exports (Delhi) . . . 440

S. 150 --Reassessment--Limitation--Exclusion from limitation--Finding or direction by appellate or revisional authority, etc.--Appellate order that an amount was not assessable in a particular assessment year but was assessable in an earlier year--Order constitutes finding or direction--Consequent order not barred by limitation-- CIT v. PP Engineering Work (Delhi) . . . 433

S. 151(1) --Reassessment--Notice after four years--Condition precedent--Satisfaction of Commissioner or Chief Commissioner--No sanction or permission of Commissioner obtained--Reassessment not valid-- Reliable Finhold Ltd. v. Union of India (All) . . . 419

S. 153 --Reassessment--Limitation--Exclusion from limitation--Finding or direction by appellate or revisional authority, etc.--Appellate order that an amount was not assessable in a particular assessment year but was assessable in an earlier year--Order constitutes finding or direction--Consequent order not barred by limitation-- CIT v. PP Engineering Work (Delhi) . . . 433

S. 154 --Assessment--Additional tax--Rectification of mistakes--Appeal--Deletion of disallowance on appeal--Assessing Officer can delete additional tax in rectification proceedings-- CIT v. Redico Khaitan Ltd. (All) . . . 424

----Rectification of mistakes--Mistake apparent from record--Export--Special deduction--Intimation to assessee--Claim debatable or doubtful--Disallowance part of claim not on basis of settled principles--No notice issued under sub-section (2) of section 143--Rectification pursuant to direction by Commissioner (Appeals)--Appellate authorities right in deleting disallowance-- CIT v. Mekins Agro-Products Ltd. (T & AP) . . . 495

S. 158BD --Search and seizure--Block assessment--Undisclosed income--Assessment of third person--Condition precedent--Recording of satisfaction that undisclosed income belonged to third person--Limitation--Satisfaction must be recorded within two year time period stipulated in section 158BE(1)-- Raghav Bahl v. CIT (Delhi) . . . 447

S. 158BE --Search and seizure--Block assessment--Undisclosed income--Assessment of third person--Condition precedent--Recording of satisfaction that undisclosed income belonged to third person--Limitation--Satisfaction must be recorded within two year time period stipulated in section 158BE(1)-- Raghav Bahl v. CIT (Delhi) . . . 447

S. 194C --Deduction of tax at source--Transmission transaction charges to Gas Authority of India for supplying gas--GAIL not only showing transaction as sale in its relevant records but paying due tax thereon--Contract for supply of gas was for sale of goods and not works contract or contract for rendering technical services--Transaction outside purview of sections 194C and 194J--No liability for tax deduction at source-- CIT (TDS) v. Samtel Glass Ltd. (Raj) . . . 392

S. 194J --Deduction of tax at source--Transmission transaction charges to Gas Authority of India for supplying gas--GAIL not only showing transaction as sale in its relevant records but paying due tax thereon--Contract for supply of gas was for sale of goods and not works contract or contract for rendering technical services--Transaction outside purview of sections 194C and 194J--No liability for tax deduction at source-- CIT (TDS) v. Samtel Glass Ltd. (Raj) . . . 392

S. 250 --Assessment--Additional tax--Rectification of mistakes--Appeal--Deletion of disallowance on appeal--Assessing Officer can delete additional tax in rectification proceedings-- CIT v. Redico Khaitan Ltd. (All) . . . 424

S. 254 --Assessment--Additional tax--Rectification of mistakes--Appeal--Deletion of disallowance on appeal--Assessing Officer can delete additional tax in rectification proceedings-- CIT v. Redico Khaitan Ltd. (All) . . . 424

S. 254(2) --Appeal to Appellate Tribunal--Rectification of mistakes--Failure to deduct tax at source--Amendment allowing benefit where payee has paid tax on receipts effective from 1-4-2013--Tribunal relying on decision of jurisdictional High Court rejecting application for rectification--Assessee to pursue remedy by filing appeal before High Court--Writ petition not maintainable-- Thomas John Muthoot v. Asst. CIT (Ker) . . . 525

S. 260A --Appeal to Appellate Tribunal--Rectification of mistakes--Failure to deduct tax at source--Amendment allowing benefit where payee has paid tax on receipts effective from 1-4-2013--Tribunal relying on decision of jurisdictional High Court rejecting application for rectification--Assessee to pursue remedy by filing appeal before High Court--Writ petition not maintainable-- Thomas John Muthoot v. Asst. CIT (Ker) . . . 525

Interest-tax Act, 1974 :

S. 2(7) --Interest-tax--Interest on debentures--Notional interest--Not chargeable interest-- CITv. Golden Investments Ltd. (Mad) . . . 544

Income-tax Rules, 1962 :

R. 5(1A) --Depreciation--Exercising of option--Returns filed under section 139(1) and exercised option in form prescribed therein--No separate letter or request or intimation with regard to exercise of option required--Option once exercised will continue to subsequent years-- CIT v. Kikani Exports P. Ltd. (No. 2 ) (Mad) . . . 500

Appex. I --Depreciation--Higher rate of depreciation--Plant--Neither includes “building†nor includes “road†--†Road†is a “building†and not a “plant†--Toll road is a capital asset and not an implement or a tool used by assessee for his business--Would not qualify as a “plant†--Not entitled to a higher rate of depreciation-- Moradabad Toll Road Co. Ltd. v. Asst. CIT (Delhi) . . . 403

Sikkim State Income-tax Manual, 1948 :

Cl. 4(i) --Sikkim--Charge of tax--Application of Act--Extension of Income-tax Act, 1961, to State of Sikkim with effect from 1-4-1990--Effect--Repeal of Sikkim State Tax Manual by necessary implication--Assessments made under Sikkim Tax Manual for assessment years 1997-98 to 2005-06 not valid--State directed to refund amount-- Sikkim Manipal University v.State of Sikkim (Sikkim) . . . 567

 

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ITR (TRIB) Volume 36 : Part 4 (Issue dated : 15-12-2014)

 

 

ITR'S TRIBUNAL TAX REPORTS (ITR (TRIB))--PRINT AND ONLINE EDITION

 

ONLINE EDITION

SUBJECT INDEX TO CASES REPORTED

Business expenditure --Accrual of liability--Assessee receiver of services--Assessee liable to bear service tax--Disallowance not justified--Income-tax Act, 1961-- Johnson and Johnson Ltd. v. CIT-LTU (Mumbai) . . . 719

----Accrual of liability--Research and development cess--Payment in accordance with agreement and guidelines of Reserve Bank of India--Payment cannot be treated as international transaction--Disallowance not proper--Income-tax Act, 1961-- Johnson and Johnson Ltd. v. CIT-LTU (Mumbai) . . . 719

----Disallowance--Excessive and unreasonable payments--Payments to legal counsel--Failure by Assessing Officer to establish excessiveness of payment--Disallowance not justified--Income-tax Act, 1961, s. 40A(2)(b)-- Johnson and Johnson Ltd. v. CIT-LTU(Mumbai) . . . 719

----Expenditure incurred on distribution of free samples to promote business--Failure by assessee to prove genuineness of claim--Payment of fringe benefits tax will not establish business purpose--Disallowance restricted to 2 per cent.--Income-tax Act, 1961-- Johnson and Johnson Ltd. v. CIT-LTU (Mumbai) . . . 719

----Expenditure on professional sponsorship--Failure by assessee to show that entire expenditure incurred for purpose of business--Commercial expediency to be considered--Disallowance of 2 per cent. reasonable--Income-tax Act, 1961-- Johnson and Johnson Ltd. v. CIT-LTU (Mumbai) . . . 719

----Publicity and sales promotion expenses--Disallowance on assumption of excessive payment not permissible--Failure by Transfer Pricing Officer to follow procedure for determining arm's length price--Disallowance not justified--Income-tax Act, 1961--Income-tax Rules, 1962, r. 10B-- Johnson and Johnson Ltd. v. CIT-LTU (Mumbai) . . . 719

----Travelling expenses--Failure by Dispute Resolution Panel to point out expenses not in connection with business activity of assessee--Disallowance not justified--Income-tax Act, 1961-- Johnson and Johnson Ltd. v. CIT-LTU (Mumbai) . . . 719

Capital or revenue expenditure --Expenditure incurred on production of advertisement film in respect of products dealt in by assessee--Revenue expenditure--Income-tax Act, 1961, s. 37-- Johnson and Johnson Ltd. v. CIT-LTU (Mumbai) . . . 719

Deduction of tax at source --Fees for technical services--Provision of link service to transmit issue of debit notes, billing statement and information relating to tickets electronically amongst agents and airlines operating in India--Payment not in nature of fees for technical services--No requirement to deduct tax at source--Income-tax Act, 1961, s. 195(2)--Double Taxation Avoidance Agreement between India and France, art. 13-- Deputy DIT (International Taxation) v. IATA BSP India (Mumbai) . . . 706

Depreciation --Testing equipment--Depreciation allowable on testing equipment provided to laboratory and hospitals--Income-tax Act, 1961, s. 32-- Johnson and Johnson Ltd. v. CIT-LTU (Mumbai) . . . 719

International transactions --Arm’s length price--Determination--Payment of royalty--Payment in accordance with Reserve Bank of India guidelines--Transfer Pricing Officer cannot make disallowance on basis that payment excessive and unnecessary--Income-tax Act, 1961, s. 92C(1)-- Johnson and Johnson Ltd. v. CIT-LTU (Mumbai) . . . 719

Valuation of stock --Change in method of valuation of stock--Assessee not increasing closing stock by value of Modvat credit available at close of accounting year--Assessing Officer adjusting opening stock of purchase and closing stock including duties--Assessing Officer to adjudicate afresh in light of section 145A--Matter remanded--Income-tax Act, 1961, s. 145A-- Johnson and Johnson Ltd. v. CIT-LTU (Mumbai) . . . 719

 

PRINT EDITION

Volume 36 : Part 4 (Issue dated : 15-12-2014)

SUBJECT INDEX TO CASES REPORTED

Advance tax --Interest--Tax deducted at source on entire amount received by assessee--Assessee not liable to pay advance tax--Interest cannot be imposed under section 234B--Income-tax Act, 1961, s. 234B-- ITO (International Taxation) v. Linklaters and Paines(Mumbai) . . . 558

Assessment --Assessing Officer referring matter to Departmental Valuation Officer without rejecting books of account--Reference illegal--Report of Valuation Officer cannot be made on basis for bringing unexplained investment to tax--Income-tax Act, 1961, s. 143(2)-- Deputy CIT v. Satish Cold Storage (Lucknow) . . . 435

Book profit --Computation--Special economic zone unit--Profit of special economic zone unit not required to be included in computing book profit--Income-tax Act, 1961, s. 115JB-- G Jewelcraft Ltd. v. ITO (Mumbai) . . . 521

Business expenditure --Disallowance--Payment to non-resident--Payment liable to deduction of tax at source--Effect of insertion of Explanation 2 to section 195 by Finance Act, 2012 with retrospective effect from 1.4.1962--Not possible for assessee to foresee obligation to deduct tax at source--Amendment passed subsequently should not be considered for penalising assessee--Income-tax Act, 1961, ss. 40(a)(ia), 195, Expln. 2 -- ITO v. Clear Water Technology Services P. Ltd. (Bangalore) . . . 528

----Disallowance--Payment to non-resident--Payment liable to deduction of tax at source--Payment business income in hands of non-resident not fees for technical services--Non-resident not having permanent establishment in India--Tax not chargeable in hands of non-resident--No obligation on assessee to deduct tax at source--Income-tax Act, 1961, s. 40(a)(ia)-- ITO v. Clear Water Technology Services P. Ltd. (Bangalore) . . . 528

----Expenditure incurred on ISO certification fee--Routine expense on annual basis cannot be disallowed--Income-tax Act, 1961-- Deputy CIT v. Insilco Ltd. (Delhi) . . . 439

----Expenses incurred on renovation and maintenance on monthly basis--Deduction allowable--Income-tax Act, 1961-- Deputy CIT v. Insilco Ltd. (Delhi) . . . 439

Capital gains --Full value of consideration--Sale of property--Valuation of property by stamp duty authorities higher than declared value--Failure by Assessing Officer to analyse issue objectively--Additions deleted--Income-tax Act, 1961, s. 50C-- Smt. Reshma R. Daryanani v. ITO (Mumbai) . . . 496

Capital or revenue expenditure --Subsidy received for electronic and women workmen--Revenue in nature--Income-tax Act, 1961-- Avalon Technologies P. Ltd. v. Asst. CIT(Chennai) . . . 567

Cash credits --Sources of creditor compensation from Government--Creditworthiness and genuineness of transactions proved with sufficient evidence--Additions to be deleted--Income-tax Act, 1961, s. 68-- Vaishnavi Educational Society v. Deputy CIT (Hyd) . . . 446

Double taxation relief --Non-resident--Income deemed to accrue or arise in India--Assessee rendering services to clients in connection with projects in India--Assessee entitled to benefit of DTAA--Assessee having permanent establishment in India--Profits attributable to projects in India taxable in India--Reimbursement of expenses--Evidence that expenses had been incurred--Not assessable as income of assessee--Income-tax Act, 1961, s. 90--Double Taxation Avoidance Agreement between India and the U. K. arts. 5, 7-- ITO (International Taxation) v. Linklaters and Paines (Mumbai) . . . 558

Exemption --Educational institution--Total receipts must be less than one crore to avail of exemption under section 10(23C)--Eligibility of assessee to be determined--Matter remanded--Income-tax Act, 1961, s. 10(23C)(iiiad)-- Vaishnavi Educational Society v. Deputy CIT (Hyd) . . . 446

----Export--Computation of income--Unabsorbed depreciation and unabsorbed business loss--Carry forward and set off--Unabsorbed depreciation to be deducted before allowing deduction under section 10A--Unabsorbed business loss to be deducted only from profit available after allowing deduction under section 10A--Income-tax Act, 1961, s. 10A-- G Jewelcraft Ltd. v. ITO (Mumbai) . . . 521

----New industrial undertaking in free trade zone--Loss--Carry forward of loss and set off--Carry forward of loss of non-eligible unit to be allowed without setting off profits of section 10B unit--Income-tax Act, 1961, s. 10B-- ITO v. Clear Water Technology Services P. Ltd.(Bangalore) . . . 528

Export --Exemption--Failure to bring foreign exchange into India within six months from end of financial year--Failure to establish any extension granted beyond six months--Assessee not eligible for exemption under section 10A--Income-tax Act, 1961, s. 10A(3)-- Avalon Technologies P. Ltd. v. Asst. CIT (Chennai) . . . 567

Export oriented undertaking --Exemption--Freight expenses--Freight charges excluded from export turnover to be excluded from total turnover also--Income-tax Act, 1961, ss. 10A, 10B-- Avalon Technologies P. Ltd. v. Asst. CIT (Chennai) . . . 567

----Exemption--Interest--Interest received on delayed payments from debtors to be treated as business income--Creditors debt no longer payable and written back--Not to be treated as business income--Income-tax Act, 1961, s. 10A-- Avalon Technologies P. Ltd. v. Asst. CIT(Chennai) . . . 567

Income --Disallowance of expenditure relating to exempt income--Rule 8D applicable to assessment year 2008-09--Assessing Officer justified in making disallowance--Income-tax Act, 1961, s. 14A--Income-tax Rules, 1962, r. 8D-- Xander Advisors India P. Ltd. v. Asst. CIT(Delhi) . . . 499

Income from undisclosed sources --Assessee filing documents showing withdrawals of cash--Failure by Assessing Officer to show that amount withdrawn by assessee utilised in manner other than as represented--Onus on Department to show that explanation by assessee should not be accepted--Evidence furnished by assessee not appreciated by Assessing Officer--Matter remanded--Income-tax Act, 1961-- Harjit Singh v. ITO(Chandigarh) . . . 575

Industrial undertaking --Special deduction under section 80-IA--Computation--Losses from assessment year earlier to initial assessment year adjusted against other income--Notional losses not to be adjusted against income of assessee arising in current assessment year--Income-tax Act, 1961, s. 80-IA-- Asst. CIT v. Patankar Wind Farms P. Ltd. (Pune) . . . 510

International transactions --Arm’s length price--Determination--Assessee showing arm’s length price within plus or minus five per cent. range--Assessee no need to make separate claim--Transfer Pricing Officer bound to give benefit of plus or minus five per cent.--Income-tax Act, 1961-- D. E. Shaw India Software P. Ltd. v. Asst. CIT (Hyd) . . . 462

----Arm’s length price--Determination--Operating expenditure--Irrecoverable expenses--Expenditure not recovered to be excluded from operating expenses while arriving at profit level indicator--Matter remanded to Assessing Officer to examine nature and extent of expenditure--Income-tax Act, 1961-- D. E. Shaw India Software P. Ltd. v. Asst. CIT (Hyd) . . . 462

----Arm’s length price--Determination--Risk adjustment--Enhancement of risk adjustment to one per cent. proper--Income-tax Act, 1961-- D. E. Shaw India Software P. Ltd. v. Asst. CIT (Hyd) . . . 462

----Arm’s length price--Determination--Selection of comparables--Company having abnormally high profit margin, involved in manufacturing and research and development service, 3 per cent. employee cost and paying value added tax not comparable to assessee involved in export of computer software--Income-tax Act, 1961-- D. E. Shaw India Software P. Ltd. v. Asst. CIT (Hyd) . . . 462

----Arm’s length price--Determination--Selection of comparables--Substantial variation in computation of margin between transfer pricing study of assessee and that of Transfer Pricing Officer--Matter requiring re-examination--Matter remanded--Income-tax Act, 1961-- D. E. Shaw India Software P. Ltd. v. Asst. CIT (Hyd) . . . 462

----Arm’s length price--Selection of comparables--No segmental data of advisory services by companies available--Company on an entity level cannot be considered as comparable--To be excluded from list of comparables--Income-tax Act, 1961-- Xander Advisors India P. Ltd. v. Asst. CIT (Delhi) . . . 499

----Transfer pricing--Arm’s length price--Determination--Most appropriate method--Change from comparable uncontrolled price method to transactional net margin method--Matter remanded--Income-tax Act, 1961, s. 92CA-- Deputy CIT v. Insilco Ltd. (Delhi) . . . 439

Penalty --Concealment of income or furnishing of inaccurate particulars thereof--Claim to exemption under bona fide impression that gains from sale of agricultural land exempt from tax--Failure by authorities to establish that assessee consciously concealed particulars of income or deliberately furnished inaccurate particulars of income--No scope for levy of penalty--Income-tax Act, 1961, s. 271(1)(c)-- G. K. Properties P. Ltd. v. ITO (Hyd) . . . 544

Search and seizure --Block assessment--Penalty--Document of agreement for sale seized--Return filed under section 158BC--No provision for filing revised return--Assessing Officer assessing income in hands of assessee on protective basis--Department disputing allowance of payment as expenditure in hands of payer--Assessing Officer not able to reach firm conclusion--Penalty cannot be imposed--Income-tax Act, 1961, ss. 158BC, 158BFA(2)-- Mohd. Khasim v. Asst. CIT (Bangalore) . . . 471

----Educational institution--Anonymous donations--Assessee furnishing names and addresses of donors--Identity of donors and capacity to give donation not mandatory--Income-tax Act, 1961, s. 115BBC-- Vaishnavi Educational Society v. Deputy CIT (Hyd) . . . 446

 

SECTIONWISE INDEX TO CASES REPORTED IN THIS PART

Double Taxation Avoidance Agreement between India and the U. K.

Art. 5 --Double taxation relief--Non-resident--Income deemed to accrue or arise in India--Assessee rendering services to clients in connection with projects in India--Assessee entitled to benefit of DTAA--Assessee having permanent establishment in India--Profits attributable to projects in India taxable in India--Reimbursement of expenses--Evidence that expenses had been incurred--Not assessable as income of assessee-- ITO (International Taxation) v. Linklaters and Paines (Mumbai) . . . 558

Art. 7 --Double taxation relief--Non-resident--Income deemed to accrue or arise in India--Assessee rendering services to clients in connection with projects in India--Assessee entitled to benefit of DTAA--Assessee having permanent establishment in India--Profits attributable to projects in India taxable in India--Reimbursement of expenses--Evidence that expenses had been incurred--Not assessable as income of assessee-- ITO (International Taxation) v. Linklaters and Paines (Mumbai) . . . 558

Income-tax Act, 1961

S. 10(23C)(iiiad) --Exemption--Educational institution--Total receipts must be less than one crore to avail of exemption under section 10(23C)--Eligibility of assessee to be determined--Matter remanded-- Vaishnavi Educational Society v. Deputy CIT (Hyd) . . . 446

S. 10A --Exemption--Export--Computation of income--Unabsorbed depreciation and unabsorbed business loss--Carry forward and set off--Unabsorbed depreciation to be deducted before allowing deduction under section 10A--Unabsorbed business loss to be deducted only from profit available after allowing deduction under section 10A-- G Jewelcraft Ltd. v. ITO (Mumbai) . . . 521

----Export oriented undertaking--Exemption--Freight expenses--Freight charges excluded from export turnover to be excluded from total turnover also-- Avalon Technologies P. Ltd. v. Asst. CIT (Chennai) . . . 567

----Export oriented undertaking--Exemption--Interest--Interest received on delayed payments from debtors to be treated as business income--Creditors debt no longer payable and written back--Not to be treated as business income-- Avalon Technologies P. Ltd. v. Asst. CIT(Chennai) . . . 567

S. 10A(3) --Export--Exemption--Failure to bring foreign exchange into India within six months from end of financial year--Failure to establish any extension granted beyond six months--Assessee not eligible for exemption under section 10A-- Avalon Technologies P. Ltd. v. Asst. CIT (Chennai) . . . 567

S. 10B --Exemption--New industrial undertaking in free trade zone--Loss--Carry forward of loss and set off--Carry forward of loss of non-eligible unit to be allowed without setting off profits of section 10B unit-- ITO v. Clear Water Technology Services P. Ltd. (Bangalore) . . . 528

----Export oriented undertaking--Exemption--Freight expenses--Freight charges excluded from export turnover to be excluded from total turnover also-- Avalon Technologies P. Ltd. v. Asst. CIT (Chennai) . . . 567

S. 14A --Income--Disallowance of expenditure relating to exempt income--Rule 8D applicable to assessment year 2008-09--Assessing Officer justified in making disallowance-- Xander Advisors India P. Ltd. v. Asst. CIT (Delhi) . . . 499

S. 40(a)(ia) --Business expenditure--Disallowance--Payment to non-resident--Payment liable to deduction of tax at source--Effect of insertion of Explanation 2 to section 195 by Finance Act, 2012 with retrospective effect from 1.4.1962--Not possible for assessee to foresee obligation to deduct tax at source--Amendment passed subsequently should not be considered for penalising assessee-- ITO v. Clear Water Technology Services P. Ltd.(Bangalore) . . . 528

----Business expenditure--Disallowance--Payment to non-resident--Payment liable to deduction of tax at source--Payment business income in hands of non-resident not fees for technical services--Non-resident not having permanent establishment in India--Tax not chargeable in hands of non-resident--No obligation on assessee to deduct tax at source--ITO v. Clear Water Technology Services P. Ltd. (Bangalore) . . . 528

S. 50C --Capital gains--Full value of consideratio--Sale of property--Valuation of property by stamp duty authorities higher than declared value--Failure by Assessing Officer to analyse issue objectively--Additions deleted-- Smt. Reshma R. Daryanani v. ITO (Mumbai) . . . 496

S. 68 --Cash credits--Sources of creditor compensation from Government--Creditworthiness and genuineness of transactions proved with sufficient evidence--Additions to be deleted--Vaishnavi Educational Society v. Deputy CIT (Hyd) . . . 446

S. 80-IA --AIndustrial undertaking--Special deduction under section 80-IA--Computation--Losses from assessment year earlier to initial assessment year adjusted against other income--Notional losses not to be adjusted against income of assessee arising in current assessment year-- Asst. CIT v. Patankar Wind Farms P. Ltd. (Pune) . . . 510

S. 90 --Double taxation relief--Non-resident--Income deemed to accrue or arise in India--Assessee rendering services to clients in connection with projects in India--Assessee entitled to benefit of DTAA--Assessee having permanent establishment in India--Profits attributable to projects in India taxable in India--Reimbursement of expenses--Evidence that expenses had been incurred--Not assessable as income of assessee-- ITO (International Taxation) v. Linklaters and Paines (Mumbai) . . . 558

S. 92CA --International transactions--Transfer pricing--Arm’s length price--Determination--Most appropriate method--Change from comparable uncontrolled price method to transactional net margin method--Matter remanded-- Deputy CIT v. Insilco Ltd. (Delhi) . . . 439

S. 115BBC --Search and seizure--Educational institution--Anonymous donations--Assessee furnishing names and addresses of donors--Identity of donors and capacity to give donation not mandatory-- Vaishnavi Educational Society v. Deputy CIT (Hyd) . . . 446

S. 115JB --Book profit--Computation--Special economic zone unit--Profit of special economic zone unit not required to be included in computing book profit-- G Jewelcraft Ltd. v. ITO(Mumbai) . . . 521

S. 143(2) --Assessment--Assessing Officer referring matter to Departmental Valuation Officer without rejecting books of account--Reference illegal--Report of Valuation Officer cannot be made on basis for bringing unexplained investment to tax-- Deputy CIT v. Satish Cold Storage (Lucknow) . . . 435

S. 158BC --Search and seizure--Block assessment--Penalty--Document of agreement for sale seized--Return filed under section 158BC--No provision for filing revised return--Assessing Officer assessing income in hands of assessee on protective basis--Department disputing allowance of payment as expenditure in hands of payer--Assessing Officer not able to reach firm conclusion--Penalty cannot be imposed-- Mohd. Khasim v. Asst. CIT(Bangalore) . . . 471

S. 158BFA(2) --Search and seizure--Block assessment--Penalty--Document of agreement for sale seized--Return filed under section 158BC--No provision for filing revised return--Assessing Officer assessing income in hands of assessee on protective basis--Department disputing allowance of payment as expenditure in hands of payer--Assessing Officer not able to reach firm conclusion--Penalty cannot be imposed-- Mohd. Khasim v. Asst. CIT(Bangalore) . . . 471

S. 195, Expln. 2 --Business expenditure--Disallowance--Payment to non-resident--Payment liable to deduction of tax at source--Effect of insertion of Explanation 2 to section 195 by Finance Act, 2012 with retrospective effect from 1.4.1962--Not possible for assessee to foresee obligation to deduct tax at source--Amendment passed subsequently should not be considered for penalising assessee-- ITO v. Clear Water Technology Services P. Ltd.(Bangalore) . . . 528

S. 234B --Advance tax--Interest--Tax deducted at source on entire amount received by assessee--Assessee not liable to pay advance tax--Interest cannot be imposed under section 234B-- ITO (International Taxation) v. Linklaters and Paines (Mumbai) . . . 558

S. 271(1)(c) --Penalty--Concealment of income or furnishing of inaccurate particulars thereof--Claim to exemption under bona fide impression that gains from sale of agricultural land exempt from tax--Failure by authorities to establish that assessee consciously concealed particulars of income or deliberately furnished inaccurate particulars of income--No scope for levy of penalty-- G. K. Properties P. Ltd. v. ITO (Hyd) . . . 544

Income-tax Rules, 1962

R. 8D --Income--Disallowance of expenditure relating to exempt income--Rule 8D applicable to assessment year 2008-09--Assessing Officer justified in making disallowance-- Xander Advisors India P. Ltd. v. Asst. CIT (Delhi) . . . 499

 

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Tuesday, December 2, 2014

Fw: [tarunghiadirtaxes] I-T returns and info provided to tax authorities are exempt from disclosure under RTI Act


 

 
CA Deepak Gadgil,
Solapur, Maharashtra
9422068273 / 9960633199


On Friday, 28 November 2014 9:27 PM, "'CA.TarunGhia' tarunghiaca@yahoo.co.in [tarunghiadirtaxes]" <tarunghiadirtaxes@yahoogroups.co.in> wrote:


 

November 27, 2014[2014] 51 taxmann.com 548 (Delhi)

IT : Income-tax retruns and information provided to Income Tax Authorities by assessee are confidental and not required to be placed in pubic domain; given nature of income-tax returns and information necessary to support same, it would be exempt under section 8(1)(j) of Right to Information Act, 2005 in respect of individual and unincorporated assessees
IT : In cases of widely held companies most information relating to their income and expenditure would be in public domain and it is only confidential information that would be exempt from disclosure under section 8(1)(d) of 2005 Act
IT : Information furnished by an assessee in income-tax return can be disclosed only where it is necessary to do in public interest and where such interest outweighs in importance, any possible harm or injury to assessee or any other third party, however, information furnished by corporate assessees that neither relates to another party nor is exempt under section 8(1)(d) of 2005 Act can be disclosed
■■■
[2014] 51 taxmann.com 548 (Delhi)
HIGH COURT OF DELHI
Naresh Trehan
v.
Rakesh Kumar Gupta
Vibhu Bakhru, J.
W.P. (C) Nos. 85, 202, 206, 207 and 214 of 2010
C.M. Nos. 156, 389, 392, 394, 445 and 526 of 2010 and 5560 of 2011
NOVEMBER  24, 2014 
Rajiv Nayar, Sr. Advocate Shyel Trehan, Ms. Manjira Dasgupta, Sandeep Sethi, Sr. Advocate Simran Mehta, Prabhat Kalia and Rohit Puri for the Petitioner.




Interest earned by Co-operative society on surplus funds deposited in FD wasn't eligible for sec. 80P relief


 

November 28, 2014[2014] 50 taxmann.com 278 (Delhi)

IT : Where assessee, a co-operative society, engaged in providing credit facilities to its members, deposited surplus funds in fixed deposits and earned interest thereon, said interest would be assessable as 'income from other sources' and, thus, not eligible for deduction under section 80P(2)(a)(i)
■■■
[2014] 50 taxmann.com 278 (Delhi)
HIGH COURT OF DELHI
Mantola Co-Operative Thrift & Credit Society Ltd.
v.
Commissioner of Income-tax*
SANJIV KHANNA AND V. Kameswar Rao, JJ.
IT Appeal No. 569 of 2013
AUGUST  27, 2014 
Section 56, read with section 80P, of the Income-tax Act, 1961 - Income from other sources - Chargeable as (Credit society) - Assessment year 2008-09 - Whether where assessee, a co-operative society, engaged in providing credit facilities to its members, deposited surplus funds in fixed deposits and earned interest thereon, said interest would be assessable as 'income from other sources' and, thus, not eligible for deduction under section 80P(2)(a)(i) - Held, yes [In favour of revenue]



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Posted by: Deepak Gadgil <gadgildeepak2000@yahoo.com>