INCOME TAX REPORTS (ITR)
Volume 322 : Part 4 (Issue dated 19-4-2010)
Business expenditure --Deduction on actual payment--Where excise duty loaded on closing stock of year in question opening stock of succeeding year to be reduced so as to avoid double deduction--Direction to Assessing Officer to verify--Income-tax Act, 1961, s. 43B-- Jay Bharat Maruti Ltd. v. CIT (Delhi) . . . 599
----Deduction only on actual payment--Contribution to gratuity fund after close of previous year but before filing return--Amount could not be disallowed--Income-tax Act, 1961, s. 43B-- CIT v. Kovilpatti Lakshmi Roller Flour Mills Ltd . (Mad) . . . 517
----Deduction only on actual payment--Electricity duty payable to Government--Section 43B applicable--Income-tax Act, 1961, s. 43B-- CIT v. Gujarat Urja Vikas Nigam Ltd. (Guj) . . . 539
----Payments to police personnel and rowdies to ensure security of business premises--Payments not legal--Not deductible--Income-tax Act, 1961, s. 37-- CIT v. Neelavathi (Karn) . . . 643
Capital gains --Sale of land by assessee running brick-klin--Assessing Officer holding profits income from business by treating sale as adventure in the nature of trade--Commissioner (Appeals) as well as Tribunal holding that business of assessee not purchase and sale of land and income covered under capital gains--Findings of fact--Income-tax Act 1961, s. 45-- CIT v. Raj Bricks Industry (P&H) . . . 625
Capital or revenue expenditure --Expenditure on replacement of machinery--Matter remanded to find nature of expenditure--Income-tax Act, 1961-- CIT v. Kovilpatti Lakshmi Roller Flour Mills Ltd . (Mad) . . . 517
----Replacement of assets--Old machine replaced by new machine--Whether constitutes advantage of an enduring nature--No details whether production capacity increased thereby--Matter remanded to Commissioner (Appeals) for consideration in accordance with Supreme Court judgment--Income-tax Act, 1961, s. 37-- CIT v. Madurantakam Co-operative Sugar Mills Ltd. (Mad) . . . 508
----Travelling expenses--Expenditure directly connected with purchase of plant and machinery--Is capital expenditure--Income-tax Act, 1961-- Jay Bharat Maruti Ltd. v. CIT (Delhi) . . . 599
Chief Commissioner --Powers--Refund and interest payable to assessee consequent upon order in appeal--Chief Commissioner has no power to deny interest on ground of delay in filing revised return--Income-tax Act, 1961, s. 119-- S. Thigarajan v. Asst. CIT (Karn) . . . 581
Company --Book profits--Computation--Assessee generating power and using such power in its industrial units--Profits attributable to generation of power--Deductible--Income-tax Act, 1961, ss. 2(13), 115JA-- CIT v. DCM Sriram Consolidated Ltd. (Delhi) . . . 486
Co-operative society --Special deduction--Interest received from members of society--Non-availability of details for availing of exemption--Matter remanded to Tribunal for consideration in accordance with Supreme Court judgment--Income-tax Act, 1961, s. 80P(2)(a)(i)-- CIT v. Madurantakam Co-operative Sugar Mills Ltd . (Mad) . . . 508
Current repairs --Assessing Officer disallowing expenditure on presumption that part of building demolished and new structure erected--Finding by Tribunal that expenditure incurred for repairs and assessee did not bring into existence any new asset over and above existing building--Findings of fact--Income-tax Act, 1961, s. 31(i)-- CIT v. Delhi Press Samachar Patra P. Ltd. (Delhi) . . . 590
Deduction of tax at source --Works contract--Assessee engaging trucks for transportation of goods--Single payment not exceeding Rs. 20,000--No contract between assessee and transporters for carriage of goods--Assessee not liable to deduct tax at source--Income-tax Act, 1961, ss. 194C, 201(1), (1A)-- CIT v. United Rice Land Limited (P&H) . . . 594
Depreciation --Block of assets--Law applicable--Effect of amendment of Rules with effect from assessment year 1988-89--Block of assets entitled to depreciation--Individual items in block cannot be investigated--Income-tax Act, 1961--Income-tax Rules, 1962, Appendix I-- CIT v. Sonal Gum Industries (Guj) . . . 542
Export --Special deduction under section 80-I--Interest on letters of credit, bank guarantee, deposits in Kisan Vikas Patras and intercorporate deposits--Finding that assessee not entitled to deduction--Proper--Income-tax Act, 1961, s. 80-I-- Jay Bharat Maruti Ltd. v. CIT (Delhi) . . . 599
Film production --Books of account--Deduction not to be allowed unless amount realised credited in books of account maintained by film producer--Claim for deduction of expenditure on basis of pass book of bank account--Pass book maintained by bank not books of account--Assessee not entitled to claim deduction--Income-tax Rules, 1962, r. 9A-- L. N. Poddar v. ITAT (Patna) . . . 513
----Deduction--Effect of rule 9A(5)--Maintenance of books of account mandatory for seeking deduction--Income-tax Rules, 1962, r. 9A(5)-- L. N. Poddar v. ITAT (Patna) . . . 513
Income or capital --Amounts received as compensation for infringement of copyright--Amount received not towards loss of capital but as compensation towards loss of income--Amounts credited in profit and loss account--Amount received revenue receipt--Income-tax Act, 1961-- CIT v. Eastern Book Company (All) . . . 605
Investment allowance --Allowance on photo-composing machine--Firm engaged in production/manufacturing activity within purview of section 32A--Income-tax Act, 1961, s. 32A-- CIT v. Eastern Book Company (All) . . . 605
New industrial undertaking --Special deduction--Commencement of trial production does not amount to commercial production--Period of exemption starts from year of commencement of commercial production--Income-tax Act, 1961, ss. 80-IA, 80-IB-- CIT v. Nestor Pharmaceuticals Limited (Delhi) . . . 631
----Special deduction--Sale of one water cooler and air-conditioner for purposes of obtaining registration under Excise and Sales tax Act--Quantum of commercial sale immaterial--Amounts to regular production not trial production--Period of exemption starts in year of sale--Income-tax Act, 1961, ss. 80-IA, 80-IB-- CIT v. Nestor Pharmaceuticals Limited (Delhi) . . . 631
Penalty --Concealment of income--Penalty on basis of additions to returned income--Additions deleted in quantum proceedings--Penalty could not be imposed--Income-tax Act, 1961, s. 271(1)(c)-- CIT v. Parkash Industries Limited (P&H) . . . 622
Reassessment --Capital gains--Compulsory acquisition of land when gains taxable--Amendment providing for levy of tax on receipt of initial compensation--Prior to amendment taxable in assessment year relevant to previous year in which transfer took place--Income on capital gain not disclosed either in accordance with unamended provisions or with amended provision--Reassessment valid--Assessing Officer to follow law in force as on date of initiation of proceedings--Income-tax Act, 1961, s. 147-- CIT v. C. V. Jayachandran (Ker) . . . 520
----Conditions precedent--Reason to believe that income had escaped assessment--Search and seizure--Retraction of statements made by assessee during search--Notice under section 148--No sufficient reasons for reopening of assessments--Income-tax Act, 1961, ss. 132(4), 147, 148-- CIT v. Dr. N. Thippa Setty (Karn) . . . 525
----Notice--Assessee an anaesthetist doctor--Assessee not maintaining any books of account--Reassessment based on information collected from hospitals--Reopening of assessment valid--Income-tax Act, 1961, s. 147-- CIT v. Dr. Sadique Ummer (Ker) . . . 602
Rectification of mistake --Business expenditure--Deduction only on actual payment--Amount actually paid wrongly disallowed under section 43B--Assessment order to be rectified and deduction given--Income-tax Act, 1961, ss. 43B, 143(1)(a), (1A), 154-- CIT v. Mayflower Hotels P. Ltd . (Ker) . . . 523
Refund --Appeal--Refund payable consequent on appeal--Application not necessary for obtaining refund--Assessee entitled to interest on refund--Income-tax Act, 1961, ss. 240, 244A-- S. Thigarajan v. Asst. CIT (Karn) . . . 581
----Perquisites--Employees stock option--Deduction of tax at source--Employer paying tax with interest and recovering from employees--Perquisite value of stock option held not taxable in appeal--Employee entitled to refund with interest--Income-tax Act, 1961-- Smt. Ramaa Sivaram v. Chief CIT (Mad) . . . 586
Salary --Perquisites--Valuation of accommodation provided by employer--Rule prescribing different rates where employer is Government and other employers--Government employee on deputation to BSNL controlled by Government--Accommodation provided by BSNL--Valuation of accommodation not as government employee--Income-tax Act, 1961, s. 17--Income-tax Rules 1962, r. 3-- S. Sthanukumaran Thampi v. CBDT (Ker) . . . 503
Search and seizure --Block assessment--Undisclosed income--Return filed after search showing income after deduction of tax at source, advance tax and self-assessment tax--Amounts already disclosed cannot be treated as undisclosed income--Income-tax Act, 1961, s. 158BB-- CIT v. Kerala Roadways Ltd. (Mad) . . . 609
----Block assessment--Undisclosed income--Section 147/148 applicable to assessment for block period made under Chapter XIV-B of Act--Failure to issue notice under section 148--Tribunal deleting addition--Proper--Income-tax Act, 1961, ss. 147, 148, 153, Chap. XIV-B-- CIT v. Peerchand Ratanlal Baid (HUF) (Gauhati) . . . 544
Settlement of cases --Powers of Settlement Commission--Settlement Commission bound by statutory provisions--Capital gains--Computation of long-term capital gains--Settlement Commission cannot allow set-off of carried forward loss--Interest on borrowals could be deducted--Income-tax Act, 1961, s. 158BB(4) -- CIT v. Settlement Commission (IT & WT) (Ker) . . . 578
Words and phrases --"Business"-- CIT v. DCM Sriram Consolidated Ltd. (Delhi) . . . 486
Deduction of tax at source --Co-ordination fees covered by a single invoice--Applicant bound to deduct at source--Income-tax Act, 1961, s. 195-- ABB Ltd. , In re . . . 564
Non-resident --Basic research and development--Indian company part of ABB group operating in 100 countries--All policy of ABB group co-ordinated through non-resident--Participating parties entering into cost contribution agreement--Participating ABB entities allowed royalty-free access to research results including intellectual property rights--Co-ordination fee payable to non-resident--Not "fees for technical services"--Non-resident using contribution to reduce overall cost--Non-resident not liable to tax in India--Agreement Between India and the Swiss Federation for Avoidance of Double Taxation, arts. 5, 7, 12(4)--Income-tax Act, 1961, s. 2(24)-- ABB Ltd. , In re . . . 564
----Manufacture and sale of hard disk drives--Stocking disks in India with independent service providers to deliver on just-in-time basis--Independent service providers to clear goods from customs and store in bonded warehouses--When demand made independent service providers to deliver to original equipment manufacturers when required--Permanent establishment established--Agreement for the Avoidance of Double Taxation Between India and Singapore, arts. 5(1), (8), 7-- Seagate Singapore International Headquarters P. Ltd. , In re . . . 650
----Marine geophysical company--Conducting seismic survey and providing off shore data--Income how computed--Only under section 44BB--Not in the nature of "royalty" or "fees for technical services"--Income-tax Act, 1961, ss. 9(1)(vii), 44BB--Agreement for the Avoidance of Double Taxation Between India and Norway, art. 13-- Wavefield Inseis ASA , In re . . . 645
----Purchase for purpose of export--Subsidiary company--Procurement support activities to parent company--Subsidiary company to establish office in India--Indian office not to undertake other business and funded entirely by reimbursements from head office outside India--Liable to tax in India in respect of support services rendered in India--Support services do not amount to export--Income-tax Act, 1961, ss. 5(2), 9(1)(i), Expln. (1)(b)-- Aramco Overseas Company BV, In re . . . 612
----UK company--Providing information regarding recruitment of India based candidates--Referring potential Indian clients to third party based in India--No permanent establishment in India--Income received from Indian clients--Not fees for "technical services"--Not taxable business profits--Agreement for the Avoidance of Double Taxation Between India and the UK, arts. 7, 13(4)(a)--Income-tax Act, 1961, s. 195-- Real Resourcing Ltd. , In re . . . 558
Agreement for the Avoidance of Double Taxation Between India and Norway :
Art. 13 --Non-resident--Marine geophysical company--Conducting seismic survey and providing off shore data--Income how computed--Only under section 44BB--Not in the nature of "royalty" or "fees for technical services"-- Wavefield Inseis ASA , In re (AAR) . . . 645
Agreement for the Avoidance of Double Taxation Between India and Singapore :
Arts. 5(1), (8), 7 --Non-resident--Manufacture and sale of hard disk drives--Stocking disks in India with independent service providers to deliver on just-in-time basis--Independent service providers to clear goods from customs and store in bonded warehouses--When demand made independent service providers to deliver to original equipment manufacturers when required--Permanent establishment established-- Seagate Singapore International Headquarters P. Ltd. , In re (AAR) . . . 650
Agreement Between India and the Swiss Federation for Avoidance of Double Taxation :
Art. 5, 7, 12(4) --Non-resident--Basic research and development--Indian company part of ABB group operating in 100 countries--All policy of ABB group co-ordinated through non-resident--Participating parties entering into cost contribution agreement--Participating ABB entities allowed royalty-free access to research results including intellectual property rights--Co-ordination fee payable to non-resident--Not "fees for technical services"--Non-resident using contribution to reduce overall cost--Non-resident not liable to tax in India-- ABB Ltd. , In re (AAR) . . . 564
Agreement for the Avoidance of Double Taxation Between India and the UK :
Arts. 7, 13(4)(a) --Non-resident--UK company--Providing information regarding recruitment of India based candidates--Referring potential Indian clients to third party based in India--No permanent establishment in India--Income received from Indian clients--Not fees for "technical services"--Not taxable business profits-- Real Resourcing Ltd. , In re (AAR) . . . 558
Income-tax Act, 1961 :
S. 2(13) --Company--Book profits--Computation--Assessee generating power and using such power in its industrial units--Profits attributable to generation of power--Deductible-- CIT v. DCM Sriram Consolidated Ltd.
(Delhi) . . . 486
S. 2(24) --Non-resident--Basic research and development--Indian company part of ABB group operating in 100 countries--All policy of ABB group co-ordinated through non-resident--Participating parties entering into cost contribution agreement--Participating ABB entities allowed royalty-free access to research results including intellectual property rights--Co-ordination fee payable to non-resident--Not "fees for technical services"--Non-resident using contribution to reduce overall cost--Non-resident not liable to tax in India-- ABB Ltd. , In re
(AAR) . . . 564
S. 5(2) --Non-resident--Purchase for purpose of export--Subsidiary company--Procurement support activities to parent company--Subsidiary company to establish office in India--Indian office not to undertake other business and funded entirely by reimbursements from head office outside India--Liable to tax in India in respect of support services rendered in India--Support services do not amount to export-- Aramco Overseas Company BV, In re (AAR) . . . 612
S. 9(1)(i), Expln. (1)(b) --Non-resident--Purchase for purpose of export--Subsidiary company--Procurement support activities to parent company--Subsidiary company to establish office in India--Indian office not to undertake other business and funded entirely by reimbursements from head office outside India--Liable to tax in India in respect of support services rendered in India--Support services do not amount to export-- Aramco Overseas Company BV, In re
(AAR) . . . 612
S. 9(1)(vii) --Non-resident--Marine geophysical company--Conducting seismic survey and providing off shore data--Income how computed--Only under section 44BB--Not in the nature of "royalty" or "fees for technical services"-- Wavefield Inseis ASA , In re (AAR) . . . 645
S. 15 --Salary--Deduction--Overriding charge--Foreign company--Expatriate employees in India--Emoluments subject to deduction of tax under Japanese law and tax liability borne by employer--Citizen tax under Japanese law--Whether ought to be included in salary for purposes of Indian tax--To be decided only after ascertaining whether in Japanese law citizen tax constituted an overriding charge-- CIT v. NHK Japan Broadcasting Corporation (SC) . . . 628
S. 17 --Salary--Perquisites--Valuation of accommodation provided by employer--Rule prescribing different rates where employer is Government and other employers--Government employee on deputation to BSNL controlled by Government--Accommodation provided by BSNL--Valuation of accommodation not as government employee-- S. Sthanukumaran Thampi v. CBDT (Ker) . . . 503
S. 31(i) --Current repairs--Assessing Officer disallowing expenditure on presumption that part of building demolished and new structure erected--Finding by Tribunal that expenditure incurred for repairs and assessee did not bring into existence any new asset over and above existing building--Findings of fact-- CIT v. Delhi Press Samachar Patra P. Ltd. (Delhi) . . . 590
S. 32A --Investment allowance--Allowance on photo-composing machine--Firm engaged in production/manufacturing activity within purview of section 32A-- CIT v. Eastern Book Company (All) . . . 605
S. 37 --Business expenditure--Payments to police personnel and rowdies to ensure security of business premises--Payments not legal--Not deductible-- CIT v. Neelavathi (Karn) . . . 643
----Capital or revenue expenditure--Replacement of assets--Old machine replaced by new machine--Whether constitutes advantage of an enduring nature--No details whether production capacity increased thereby--Matter remanded to Commissioner (Appeals) for consideration in accordance with Supreme Court judgment-- CIT v. Madurantakam Co-operative Sugar Mills Ltd. (Mad) . . . 508
S. 43B --Business expenditure--Deduction on actual payment--Where excise duty loaded on closing stock of year in question opening stock of succeeding year to be reduced so as to avoid double deduction--Direction to Assessing Officer to verify-- Jay Bharat Maruti Ltd. v. CIT (Delhi) . . . 599
----Business expenditure--Deduction only on actual payment--Contribution to gratuity fund after close of previous year but before filing return--Amount could not be disallowed-- CIT v. Kovilpatti Lakshmi Roller Flour Mills Ltd .(Mad) . . . 517
----Business expenditure--Deduction only on actual payment--Electricity duty payable to Government--Section 43B applicable-- CIT v. Gujarat Urja Vikas Nigam Ltd. (Guj) . . . 539
----Rectification of mistake--Business expenditure--Deduction only on actual payment--Amount actually paid wrongly disallowed under section 43B--Assessment order to be rectified and deduction given-- CIT v. Mayflower Hotels P. Ltd . (Ker) . . . 523
S. 44BB --Non-resident--Marine geophysical company--Conducting seismic survey and providing off shore data--Income how computed--Only under section 44BB--Not in the nature of "royalty" or "fees for technical services"-- Wavefield Inseis ASA , In re (AAR) . . . 645
S. 45 --Capital gains--Sale of land by assessee running brick kiln--Assessing Officer holding profits income from business by treating sale as adventure in the nature of trade--Commissioner (Appeals) as well as Tribunal holding that business of assessee not purchase and sale of land and income covered under capital gains--Findings of fact-- CIT v. Raj Bricks Industry (P&H) . . . 625
S. 80-I --Export--Special deduction under section 80-I--Interest on letters of credit, bank guarantee, deposits in Kisan Vikas Patras and intercorporate deposits--Finding that assessee not entitled to deduction--Proper-- Jay Bharat Maruti Ltd. v. CIT (Delhi) . . . 599
S. 80-IA --New industrial undertaking--Special deduction--Commencement of trial production does not amount to commercial production--Period of exemption starts from year of commencement of commercial production-- CIT v. Nestor Pharmaceuticals Limited (Delhi) . . . 631
----New industrial undertaking--Special deduction--Sale of one water cooler and air-conditioner for purposes of obtaining registration under Excise and Sales Tax Act--Quantum of commercial sale immaterial--Amounts to regular production not trial production--Period of exemption starts in year of sale-- CIT v. Nestor Pharmaceuticals Limited (Delhi) . . . 631
S. 80-IB --New industrial undertaking--Special deduction--Commencement of trial production does not amount to commercial production--Period of exemption starts from year of commencement of commercial production-- CIT v. Nestor Pharmaceuticals Limited (Delhi) . . . 631
----New industrial undertaking--Special deduction--Sale of one water cooler and air-conditioner for purposes of obtaining registration under Excise and Sales Tax Act--Quantum of commercial sale immaterial--Amounts to regular production not trial production--Period of exemption starts in year of sale-- CIT v. Nestor Pharmaceuticals Limited (Delhi) . . . 631
S. 80P(2)(a)(i) --Co-operative society--Special deduction--Interest received from members of society--Non-availability of details for availing of exemption--Matter remanded to Tribunal for consideration in accordance with Supreme Court judgment-- CIT v. Madurantakam Co-operative Sugar Mills Ltd . (Mad) . . . 508
S. 115JA --Company--Book profits--Computation--Assessee generating power and using such power in its industrial units--Profits attributable to generation of power--Deductible-- CIT v. DCM Sriram Consolidated Ltd. (Delhi) . . . 486
S. 119 --Chief Commissioner--Powers--Refund and interest payable to assessee consequent upon order in appeal--Chief Commissioner has no power to deny interest on ground of delay in filing revised return-- S. Thigarajan v. Asst. CIT (Karn) . . . 581
S. 132(4) --Reassessment--Conditions precedent--Reason to believe that income had escaped assessment--Search and seizure--Retraction of statements made by assessee during search--Notice under section 148--No sufficient reasons for reopening of assessments-- CIT v. Dr. N. Thippa Setty (Karn) . . . 525
S. 143(1)(a) --Rectification of mistake--Business expenditure--Deduction only on actual payment--Amount actually paid wrongly disallowed under section 43B--Assessment order to be rectified and deduction given-- CIT v. Mayflower Hotels P. Ltd . (Ker) . . . 523
S. 143(1A) --Rectification of mistake--Business expenditure--Deduction only on actual payment--Amount actually paid wrongly disallowed under section 43B--Assessment order to be rectified and deduction given-- CIT v. Mayflower Hotels P. Ltd . (Ker) . . . 523
S. 147 --Reassessment--Capital gains--Compulsory acquisition of land when gains taxable--Amendment providing for levy of tax on receipt of initial compensation--Prior to amendment taxable in assessment year relevant to previous year in which transfer took place--Income on capital gain not disclosed either in accordance with unamended provisions or with amended provision--Reassessment valid--Assessing Officer to follow law in force as on date of initiation of proceedings-- CIT v. C. V. Jayachandran (Ker) . . . 520
----Reassessment--Conditions precedent--Reason to believe that income had escaped assessment--Search and seizure--Retraction of statements made by assessee during search--Notice under section 148--No sufficient reasons for reopening of assessments-- CIT v. Dr. N. Thippa Setty (Karn) . . . 525
----Reassessment--Notice--Assessee an anaesthetist doctor--Assessee not maintaining any books of account--Reassessment based on information collected from hospitals--Reopening of assessment valid-- CIT v. Dr. Sadique Ummer (Ker) . . . 602
----Search and seizure--Block assessment--Undisclosed income--Section 147/148 applicable to assessment for block period made under Chapter XIV-B of Act--Failure to issue notice under section 148--Tribunal deleting addition--Proper-- CIT v. Peerchand Ratanlal Baid (HUF) (Gauhati) . . . 544
S. 148 --Reassessment--Conditions precedent--Reason to believe that income had escaped assessment--Search and seizure--Retraction of statements made by assessee during search--Notice under section 148--No sufficient reasons for reopening of assessments-- CIT v. Dr. N. Thippa Setty (Karn) . . . 525
----Search and seizure--Block assessment--Undisclosed income--Section 147/148 applicable to assessment for block period made under Chapter XIV-B of Act--Failure to issue notice under section 148--Tribunal deleting addition--Proper-- CIT v. Peerchand Ratanlal Baid (HUF) (Gauhati) . . . 544
S. 153 --Search and seizure--Block assessment--Undisclosed income--Section 147/148 applicable to assessment for block period made under Chapter XIV-B of Act--Failure to issue notice under section 148--Tribunal deleting addition--Proper-- CIT v. Peerchand Ratanlal Baid (HUF) (Gauhati) . . . 544
S. 154 --Rectification of mistake--Business expenditure--Deduction only on actual payment--Amount actually paid wrongly disallowed under section 43B--Assessment order to be rectified and deduction given-- CIT v. Mayflower Hotels P. Ltd . (Ker) . . . 523
Chap. XIV-B --Search and seizure--Block assessment--Undisclosed income----Section 147/148 applicable to assessment for block period made under Chapter XIV-B of Act--Failure to issue notice under section 148--Tribunal deleting addition--Proper-- CIT v. Peerchand Ratanlal Baid (HUF) (Gauhati) . . . 544
S. 158BB --Search and seizure--Block assessment--Undisclosed income--Return filed after search showing income after deduction of tax at source, advance tax and self-assessment tax--Amounts already disclosed cannot be treated as undisclosed income-- CIT v. Kerala Roadways Ltd. (Mad) . . . 609
S. 158BB(4) --Settlement of cases--Powers of Settlement Commission--Settlement Commission bound by statutory provisions--Capital gains--Computation of long-term capital gains--Settlement Commission cannot allow set-off of carried forward loss--Interest on borrowals could be deducted-- CIT v. Settlement Commission (IT & WT) (Ker) . . . 578
S. 194C --Deduction of tax at source--Works contract--Assessee engaging trucks for transportation of goods--Single payment not exceeding Rs. 20,000--No contract between assessee and transporters for carriage of goods--Assessee not liable to deduct tax at source-- CIT v. United Rice Land Limited (P&H) . . . 594
S. 195 --Deduction of tax at source--Co-ordination fees covered by a single invoice--Applicant bound to deduct at source-- ABB Ltd. , In re (AAR) . . . 564
----Non-resident--UK company--Providing information regarding recruitment of India based candidates--Referring potential Indian clients to third party based in India--No permanent establishment in India--Income received from Indian clients--Not fees for "technical services"--Not taxable business profits-- Real Resourcing Ltd. , In re (AAR) . . . 558
S. 201(1) --Deduction of tax at source--Works contract--Assessee engaging trucks for transportation of goods--Single payment not exceeding Rs. 20,000--No contract between assessee and transporters for carriage of goods--Assessee not liable to deduct tax at source-- CIT v. United Rice Land Limited (P&H) . . . 594
S. 201(1A) --Deduction of tax at source--Works contract--Assessee engaging trucks for transportation of goods--Single payment not exceeding Rs. 20,000--No contract between assessee and transporters for carriage of goods--Assessee not liable to deduct tax at source-- CIT v. United Rice Land Limited (P&H) . . . 594
S. 240 --Refund--Appeal--Refund payable consequent on appeal--Application not necessary for obtaining refund--Assessee entitled to interest on refund-- S. Thigarajan v. Asst. CIT (Karn) . . . 581
S. 244A --Refund--Appeal--Refund payable consequent on appeal--Application not necessary for obtaining refund--Assessee entitled to interest on refund-- S. Thigarajan v. Asst. CIT (Karn) . . . 581
S. 271(1)(c) --Penalty--Concealment of income--Penalty on basis of additions to returned income--Additions deleted in quantum proceedings--Penalty could not be imposed-- CIT v. Parkash Industries Limited (P&H) . . . 622
Income-tax Rules 1962 :
r. 3 --Salary--Perquisites--Valuation of accommodation provided by employer--Rule prescribing different rates where employer is Government and other employers--Government employee on deputation to BSNL controlled by Government--Accommodation provided by BSNL--Valuation of accommodation not as government employee-- S. Sthanukumaran Thampi v. CBDT (Ker) . . . 503
R. 9A --Film production--Books of account--Deduction not to be allowed unless amount realised credited in books of account maintained by film producer--Claim for deduction of expenditure on basis of pass book of bank account--Pass book maintained by bank not books of account--Assessee not entitled to claim deduction-- L. N. Poddar v. ITAT (Patna) . . . 513
R. 9A(5) --Film production--Deduction--Effect of rule 9A(5)--Maintenance of books of account mandatory for seeking deduction-- L. N. Poddar v. ITAT (Patna) . . . 513
Appendix I --Depreciation--Block of assets--Law applicable--Effect of amendment of Rules with effect from assessment year 1988-89--Block of assets entitled to depreciation--Individual items in block cannot be investigated-- CIT v. Sonal Gum Industries (Guj) . . . 542
-CA.RAJU SHAH, AHMEDABAD
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