INCOME TAX REPORTS (ITR)
Volume 330 : Part 1 (Issue dated 3-1-2011)
Cash credits --Books of account--Failure to produce--Presumption--Income-tax Act, 1961, s. 68-- Vijay Kumar Talwar v. CIT . . . 1
High Court --Appeal--Only when substantial question of law involved--When finding of fact would give rise to question of law--Income-tax Act, 1961, s. 260A-- Vijay Kumar Talwar v. CIT . . . 1
Purchase of immovable property by Central Government --Transfer--Definition--Lease for 9 years renewable at option of lessee for a further period of 9 years--Amounts to lease for more than 12 years--Parties obliged to submit Form 37-I within 15 days of draft agreement--Income-tax Act, 1961, s. 269UA(f)(i)-- Govind Impex P. Ltd. v. Appropriate Authority, Income-tax Department . . . 10
Question of law --When finding of fact gives rise to question of law-- Vijay Kumar Talwar v. CIT . . . 1
Advance tax --Interest--Interest leviable with respect to tax on assessed income and not income declared--Disallowance of claim under sections 80HHC and 80-IB--Bona fide belief that income not taxable in view of sections 80HHC and 80-IB--Not a valid ground--Interest chargeable--Income-tax Act, 1961, s. 234B-- Jacob Export House v. CIT (P&H) . . . 53
Assessment --Notice under section 143(2)--Mandatory--No proof of sending notice--Assessment null and void--Income-tax Act, 1961, s. 143(2)-- CIT v. CPR Capital Services Ltd . (Delhi) . . . 43
Business expenditure --Assessee sole selling agent of manufacturing companies--Exhibition of products manufactured by its principals--Assessee incurring part of expenditure of exhibition under agreement with principals--Expenditure for purposes of business--Deductible--Income-tax Act, 1961, s. 37-- CIT v. Micromatic Machine Tools P. Ltd. (Delhi) . . . 47
----Retrenchment benefit paid to workers on closure of one unit--Finding that units interdependent--Expenses to be allowed--Income-tax Act, 1961, s. 37-- CIT v. Pfizer Ltd. (Bom) . . . 62
Charitable purpose --Application of income to charitable objects--Depreciation--Claim to depreciation for determining percentage of funds to be applied for purposes of trust--Allowable--Not a case of double benefit--Income-tax Act, 1961, s. 11-- CIT v. Market Committee, Pipli (P&H) . . . 16
----Exemption--Assessee-trust engaged in renting building owned--Business income if utilized towards achievement of object of assessee-trust it would be incidental to achievement of object--Assessing Officer to decide as to whether such business income used for attainment of object--Matter remanded--Income-tax Act, 1961, s. 11-- Director of Income-tax (Exemptions) v. Willington Charitable Trust (Mad) . . . 24
----Application of income to charitable objects--Depreciation--Assessee claiming depreciation be reduced from income for determining percentage of funds to be applied for purposes of trust--Permissible--Not a case of double benefit--Income-tax Act, 1961, s. 11-- CIT v. Tiny Tots Education Society (P&H) . . . 21
Export --Special deduction under section 80HHC--Computation of special deduction--Conversion charges not includible in turnover--Income-tax Act, 1961, s. 80HHC-- CIT v. Coimbatore Twisters Pvt. Ltd. (Mad) . . . 45
----Special deduction--Export turnover--Definition--Fluctuation in foreign exchange rates--Surplus owing to difference between Indian currency equivalent at time of raising invoices and Indian currency equivalent at time of realization--Part and parcel of export turnover and total turnover--Income-tax Act, 1961, s. 80HHC-- Raghunath Exports (P) Ltd . v. CIT (Cal) . . . 57
----Special deduction--Insurance claim on stock-in-trade--Not independent income nor receipt of a nature similar to brokerage, commission, interest, rent or charges--Insurance claim part of business income--Not liable to be reduced to the extent of ninety per cent. while calculating eligible profits--Income-tax Act, 1961, s. 80HHC, Expln. (baa)-- CIT v. Pfizer Ltd . (Bom) . . . 62
----Special deduction--Sundry receipts--Matter remanded --Income-tax Act, 1961-- CIT v. Pfizer Ltd. (Bom) . . . 62
Income from house property --Rental income--Tribunal in earlier year finding that income received from sub-letting is income from house property--Finding of fact--Income-tax Act, 1961-- CIT v. Pfizer Ltd. (Bom) . . . 62
Income from undisclosed source s--Burden of proof--Sale of assets of assessee--On basis of letters recovered in search of third party, inference of enhanced consideration drawn--No corroborative evidence to show assessee received additional sum--Assessee's contention that letters forged--Failure to summon persons concerned for cross-examination by assessee--Addition not proper--Income-tax Act, 1961-- Bangodaya Cotton Mills Ltd . v. CIT (Cal) . . . 104
Industrial undertaking --Special deduction under section 80-IB--Condition precedent--Profits should be derived from industrial undertaking--Meaning of "derived from"--Interest subsidy received from State Government--Not derived from industrial undertaking--Assessee not entitled to special deduction in respect of such subsidy--Income-tax Act, 1961, s. 80-IB-- CIT v. Gheria Oil Gramudyog Workers Welfare Association (HP) . . . 117
Penalty --Concealment of income--Revised returns after survey operations showed concealment of income--Imposition of penalty--Valid--Income-tax Act, 1961, s. 271(1)(c)-- LMP Precision Engg. Co. Ltd. v. Deputy CIT (Asstt.) (Guj) . . . 93
----Concealment of income--Tribunal holding that addition result of disallowance and not concealment of particulars of income--Finding of Tribunal that addition based on disallowance without any material on record--Matter remanded--Income-tax Act, 1961, s. 271(1)(c)-- CIT v. N. S. Ichoponani (P&H) . . . 125
Precedent --Effect of Supreme Court decisions in Liberty India v. CIT [2009] 317 ITR 218 and CIT v. Sterling Foods [1999] 237 ITR 579-- CIT v. Gheria Oil Gramudyog Workers Welfare Association (HP) . . . 117
Reassessment --Notice--Limitation--Effect of sections 147 and 149--Income escaping assessment exceeding Rs. 1 lakh--No failure to disclose material facts necessary for assessment--Notice for assessment year 1995-96 in March 2002--Notice barred by limitation--Income-tax Act, 1961, ss. 147, 148, 149-- Dhampur Sugar Mills Ltd . v. Asst. CIT (All) . . . 72
Refund --Interest on refund--Assessee voluntarily paying tax on transport subsidy--Claim before Commissioner (Appeals) that transport subsidy was not assessable--Claim allowed by Commissioner (Appeals)--Refund consequent on order of Commissioner (Appeals)--Assessee responsible for delay in refund--Interest payable from date of appellate order--Income-tax Act, 1961, s. 244A-- CIT v. Assam Roofing Ltd. (Gauhati) . . . 87
S. 11 --Charitable purpose--Application of income to charitable objects--Depreciation--Assessee claiming depreciation be reduced from income for determining percentage of funds to be applied for purposes of trust--Permissible--Not a case of double benefit-- CIT v. Tiny Tots Education Society (P&H) . . . 21
----Charitable purpose--Application of income to charitable objects--Depreciation--Claim to depreciation for determining percentage of funds to be applied for purposes of trust--Allowable--Not a case of double benefit-- CIT v. Market Committee, Pipli (P&H) . . . 16
----Charitable purpose--Exemption--Assessee-trust engaged in renting building owned--Business income if utilized towards achievement of object of assessee-trust it would be incidental to achievement of object--Assessing Officer to decide as to whether such business income used for attainment of object--Matter remanded-- Director of Income-tax (Exemptions) v. Willington Charitable Trust (Mad) . . . 24
S. 37 --Business expenditure--Assessee sole selling agent of manufacturing companies--Exhibition of products manufactured by its principals--Assessee incurring part of expenditure of exhibition under agreement with principals--Expenditure for purposes of business--Deductible-- CIT v. Micromatic Machine Tools P. Ltd. (Delhi) . . . 47
------Business expenditure--Retrenchment benefit paid to workers on closure of one unit--Finding that units interdependent--Expenses to be allowed-- CIT v. Pfizer Ltd. (Bom) . . . 62
S. 68 --Cash credits--Books of account--Failure to produce--Presumption-- Vijay Kumar Talwar v. CIT (SC) . . . 1
S. 80HHC --Export--Special deduction under section 80HHC--Computation of special deduction--Conversion charges not includible in turnover-- CIT v. Coimbatore Twisters Pvt. Ltd. (Mad) . . . 45
----Export--Special deduction--Export turnover--Definition--Fluctuation in foreign exchange rates--Surplus owing to difference between Indian currency equivalent at time of raising invoices and Indian currency equivalent at time of realization--Part and parcel of export turnover and total turnover-- Raghunath Exports (P) Ltd . v. CIT (Cal) . . . 57
S. 80HHC, Expln. (baa) --Export--Special deduction--Insurance claim on stock-in-trade--Not independent income nor receipt of a nature similar to brokerage, commission, interest, rent or charges--Insurance claim part of business income--Not liable to be reduced to the extent of ninety per cent. while calculating eligible profits-- CIT v. Pfizer Ltd . (Bom) . . . 62
S. 80-IB --Industrial undertaking--Special deduction under section 80-IB--Condition precedent--Profits should be derived from industrial undertaking--Meaning of "derived from"--Interest subsidy received from State Government--Not derived from industrial undertaking--Assessee not entitled to special deduction in respect of such subsidy-- CIT v. Gheria Oil Gramudyog Workers Welfare Association (HP) . . . 117
S. 143(2) --Assessment--Notice under section 143(2)--Mandatory--No proof of sending notice--Assessment null and void-- CIT v. CPR Capital Services Ltd .(Delhi) . . . 43
S. 147 --Reassessment--Notice--Limitation--Effect of sections 147 and 149--Income escaping assessment exceeding Rs. 1 lakh--No failure to disclose material facts necessary for assessment--Notice for assessment year 1995-96 in March 2002--Notice barred by limitation-- Dhampur Sugar Mills Ltd . v. Asst. CIT (All) . . . 72
S. 148 --Reassessment--Notice--Limitation--Effect of sections 147 and 149--Income escaping assessment exceeding Rs. 1 lakh--No failure to disclose material facts necessary for assessment--Notice for assessment year 1995-96 in March 2002--Notice barred by limitation-- Dhampur Sugar Mills Ltd . v. Asst. CIT (All) . . . 72
S. 149 --Reassessment--Notice--Limitation--Effect of sections 147 and 149--Income escaping assessment exceeding Rs. 1 lakh--No failure to disclose material facts necessary for assessment--Notice for assessment year 1995-96 in March 2002--Notice barred by limitation-- Dhampur Sugar Mills Ltd . v. Asst. CIT (All) . . . 72
S. 234B --Advance tax--Interest--Interest leviable with respect to tax on assessed income and not income declared--Disallowance of claim under sections 80HHC and 80-IB --Bona fide belief that income not taxable in view of sections 80HHC and 80-IB--Not a valid ground--Interest chargeable-- Jacob Export House v. CIT (P&H) . . . 53
S. 244A --Refund--Interest on refund--Assessee voluntarily paying tax on transport subsidy--Claim before Commissioner (Appeals) that transport subsidy was not assessable--Claim allowed by Commissioner (Appeals)--Refund consequent on order of Commissioner (Appeals)--Assessee responsible for delay in refund--Interest payable from date of appellate order-- CIT v. Assam Roofing Ltd. (Gauhati) . . . 87
S. 260A --High Court--Appeal--Only when substantial question of law involved--When finding of fact would give rise to question of law-- Vijay Kumar Talwar v. CIT (SC) . . . 1
S. 269UA(f)(i) --Purchase of immovable property by Central Government--Transfer--Definition--Lease for 9 years renewable at option of lessee for a further period of 9 years--Amounts to lease for more than 12 years--Parties obliged to submit Form 37-I within 15 days of draft agreement-- Govind Impex P. Ltd. v. Appropriate Authority, Income-tax Department (SC) . . . 10
S. 271(1)(c) --Penalty--Concealment of income--Revised returns after survey operations showed concealment of income--Imposition of penalty--Valid-- LMP Precision Engg. Co. Ltd. v. Deputy CIT (Asstt.) (Guj) . . . 93
----Penalty--Concealment of income--Tribunal holding that addition result of disallowance and not concealment of particulars of income--Finding of Tribunal that addition based on disallowance without any material on record--Matter remanded-- CIT v. N. S. Ichoponani (P&H) . . . 125
Appeal to Appellate Tribunal --Powers of Tribunal--Rectification of mistake--Tribunal holding that assessee cannot be permitted to claim benefit of closing stock by changing method of valuation in assessment proceedings under section 153A--Not a mistake apparent from record--Application under section 254(2) not maintainable--No power to review its order--Income-tax Act, 1961, ss. 153A, 254(2)-- Charchit Agarwal v. Asst. CIT (Delhi) . . . 35
Best judgment assessment --Estimation of income--Accounting--Rejection of accounts--No estoppel against acceptance of net profit rate by assessee--Assessing Officer applying net profit rate without considering past history where lower net profit rate approved--Direction of Commissioner (Appeals) to apply net profit rate at 8 per cent. considering past history reasonable--Income-tax Act, 1961, ss. 144, 145(3)-- Asst. CIT v. Kanhiya Lal Choudhary (Jaipur) . . . 61
Business expenditure --Disallowance--Payments in cash exceeding prescribed limit --Payments by distributor to service provider--No expenditure incurred since no purchases of goods or services on acceptance of delivery of SIM cards or service products--Transaction of principal to agent--Section 40A(3) not applicable--Income-tax Act, 1961, s. 40A(3)-- S. Rahumathulla v. Asst. CIT (Cochin) . . . 41
----Disallowance--Payments liable to deduction of tax at source--Small fraction of total expenditure representing labour charges--Not a contract for services or labour--Disallowance deleted--Income-tax Act, 1961, ss. 40(a)(ia), 194C-- S. T. Reddiar and Sons v. Deputy CIT (Cochin) . . . 1
----Disallowance--Securities transaction tax--Rebate--Securities transaction tax paid and share trading income assessed under profits and gains of business--Disallowance under section 40(a)(ib)--Not bar to allow rebate under section 88E--Evidence of payment furnished during assessment not rebutted by Department--Sufficient compliance with provision--Direction to allow rebate proper--Income-tax Act, 1961, s. 88E-- ITO v. Chunilal T. Mehta (Kolkata) . . . 50
----Sales commission--Evidence regarding receipt of commission by assessee--Commission retained by assessee offered for taxation--No evidence regarding retention of money involved in payment of commission to sub-agent--Failure on part of Department to prove payments to sub-agents against public policy--Disallowance not justified --Income-tax Act, 1961, s. 37-- Deputy CIT v. Satya Prakash Arora (Delhi) . . . 95
Capital gains --Exemption--Sale of property--Capital Gains Deposit Scheme--Sale consideration deposited in scheme--Purchase of house property by availing of loan against deposit scheme--Sale consideration deposited in specified account before date for furnishing return--House property purchased within time-limit--Assessee entitled to exemption--Income-tax Act, 1961, ss. 54F(4), 139-- P. Thirumoorthy v. ITO (Chennai) . . . 10
Deduction of tax at source --Commission--Payments to concessionaires for sale of milk products--Transaction between assessee and concessionaires principal to principal --Payments not commission--Tax not to be deducted at source--Income-tax Act, 1961, s. 194H-- ITO v. Mother Dairy Food Processing Ltd. (Delhi) . . . 16
----Payment made for purchase of printed packing material to suppliers--No work involving skill or secrecy--Sale--Section 194C not attracted--Income-tax Act, 1961, s. 194C-- ITO v. Mother Dairy Food Processing Ltd. (Delhi) . . . 16
Depreciation --Higher depreciation--Computers--Specialised machines manufactured by specialists used in printing activity--Not "computers"--Assessee not entitled to higher depreciation --Income-tax Act, 1961, ss. 32, 36(1)(xi), Expln . -- S. T. Reddiar and Sons v. Deputy CIT (Cochin) . . . 1
Double taxation avoidance --Capital gains--Long-term capital gains on sale of shares in Indian company--Assessee claiming to be Mauritius based company--Whether effective place of management of assessee in Mauritius--Authenticity and relevance of documents relating to board meetings in Mauritius to be examined--Evidence to be brought on record--Matter remanded--Double Taxation Avoidance Agreement between India and Mauritius, arts. 4, 13--Income-tax Act, 1961-- SMR Investments Ltd. v. Deputy Director of Income-tax (Delhi) . . . 23
Industrial undertaking --Special deduction under section 80-IB--Determination of initial assessment year for purposes of section 80-IB--Period of ten years to be reckoned from date of approval by prescribed authority--Income-tax Act, 1961, s. 80-IB(8A), (14)(c)--Circular No. 794, dated August 9, 2000-- Asst. CIT v. S. K. Dynamics Pvt. Ltd. (Delhi) . . . 80
----Special deduction--Assessee engaged in business of scientific research and development--Approved by Government of India for benefit of deduction under section 80-IB(8A)--Conditions under section 80-IB(2) need not be fulfilled--Assessee entitled to deduction of income derived from transfer of technology developed by itself--Income-tax Act, 1961, s. 80-IB(8A)--Income-tax Rules, 1962, r. 18DA(1)(e)-- Asst. CIT v. S. K. Dynamics Pvt. Ltd. (Delhi) . . . 80
----Special deduction--Computation of --Royalty and lease rent to be excluded from profits of business --Only balance net interest income to be excluded from profits of business if nexus between interest income on deposits and interest expenditure on borrowings established--Matter remanded--Income-tax Act, 1961, s. 80-IB-- Videotex International P. Ltd. v. Asst. CIT (Chandigarh) . . . 32
Penalty --Acceptance of loans or deposits in cash exceeding prescribed limit--Assessee facing acute financial difficulties and in exceptional and unavoidable circumstances forced to accept cash deposits--All entries either trade entries or general voucher entry for squaring off accounts of trade and not a loan or deposit--Section 269SS not attracted --Penalty cannot be imposed--Income-tax Act, 1961, ss. 269SS, 271D-- Asst. CIT v. Western India Ceramics P. Ltd. (Ahmedabad) . . . 69
----Cash loans exceeding prescribed limit--Cash loans for purpose of disbursing salary to employees--No material by Department to prove contrary--Deletion of penalty justified--Income-tax Act, 1961, ss. 269SS, 271D-- Deputy CIT v. Rupen Das (Kolkata) . . . 55
Arts. 4, 13 --Double taxation avoidance--Capital gains--Long-term capital gains on sale of shares in Indian company--Assessee claiming to be Mauritius based company--Whether effective place of management of assessee in Mauritius--Authenticity and relevance of documents relating to board meetings in Mauritius to be examined--Evidence to be brought on record--Matter remanded-- SMR Investments Ltd. v. Deputy Director of Income-tax (Delhi) . . . 23
S. 32 --Depreciation--Higher depreciation--Computers--Specialised machines manufactured by specialists used in printing activity--Not "computers"--Assessee not entitled to higher depreciation -- S. T. Reddiar and Sons v. Deputy CIT (Cochin) . . . 1
S. 36(1)(xi), Expln. --Depreciation--Higher depreciation--Computers--Specialised machines manufactured by specialists used in printing activity--Not "computers"--Assessee not entitled to higher depreciation -- S. T. Reddiar and Sons v. Deputy CIT (Cochin) . . . 1
S. 37 --Business expenditure--Sales commission--Evidence regarding receipt of commission by assessee--Commission retained by assessee offered for taxation--No evidence regarding retention of money involved in payment of commission to sub-agent--Failure on part of Department to prove payments to sub-agents against public policy--Disallowance not justified-- Deputy CIT v. Satya Prakash Arora (Delhi) . . . 95
S. 40(a)(ia) --Business expenditure--Disallowance--Payments liable to deduction of tax at source--Small fraction of total expenditure representing labour charges--Not a contract for services or labour--Disallowance deleted-- S. T. Reddiar and Sons v. Deputy CIT (Cochin) . . . 1
S. 40A(3) --Business expenditure--Disallowance--Payments in cash exceeding prescribed limit--Payments by distributor to service provider--No expenditure incurred since no purchases of goods or services on acceptance of delivery of SIM cards or service products--Transaction of principal to agent--Section 40A(3) not applicable-- S. Rahumathulla v. Asst. CIT (Cochin) . . . 41
S. 54F(4) --Capital gains--Exemption--Sale of property--Capital Gains Deposit Scheme--Sale consideration deposited in scheme--Purchase of house property by availing of loan against deposit scheme--Sale consideration deposited in specified account before date for furnishing return--House property purchased within time-limit--Assessee entitled to exemption-- P. Thirumoorthy v. ITO (Chennai) . . . 10
S. 80-IB --Industrial undertaking--Special deduction--Computation of--Royalty and lease rent to be excluded from profits of business--Only balance net interest income to be excluded from profits of business if nexus between interest income on deposits and interest expenditure on borrowings established--Matter remanded-- Videotex International P. Ltd. v. Asst. CIT (Chandigarh) . . . 32
S. 80-IB(8A) --Industrial undertaking--Special deduction--Assessee engaged in business of scientific research and development--Approved by Government of India for benefit of deduction under section 80-IB(8A)--Conditions under section 80-IB(2) need not be fulfilled--Assessee entitled to deduction of income derived from transfer of technology developed by itself-- Asst. CIT v. S. K. Dynamics Pvt. Ltd. (Delhi) . . . 80
----Industrial undertaking--Special deduction under section 80-IB--Determination of initial assessment year for purposes of section 80-IB--Period of ten years to be reckoned from date of approval by prescribed authority--Circular No. 794, dated August 9, 2000-- Asst. CIT v. S. K. Dynamics Pvt. Ltd. (Delhi) . . . 80
S. 80-IB(14)(c) --Industrial undertaking--Special deduction under section 80-IB--Determination of initial assessment year for purposes of section 80-IB--Period of ten years to be reckoned from date of approval by prescribed authority--Circular No. 794, dated August 9, 2000-- Asst. CIT v. S. K. Dynamics Pvt. Ltd. (Delhi) . . . 80
S. 88E --Business expenditure--Disallowance--Securities transaction tax--Rebate--Securities transaction tax paid and share trading income assessed under profits and gains of business--Disallowance under section 40(a)(ib)--Not bar to allow rebate under section 88E--Evidence of payment furnished during assessment not rebutted by Department--Sufficient compliance with provision--Direction to allow rebate proper-- ITO v. Chunilal T. Mehta (Kolkata) . . . 50
S. 139 --Capital gains--Exemption--Sale of property--Capital Gains Deposit Scheme --Sale consideration deposited in scheme--Purchase of house property by availing of loan against deposit scheme--Sale consideration deposited in specified account before date for furnishing return--House property purchased within time-limit--Assessee entitled to exemption-- P. Thirumoorthy v. ITO (Chennai) . . . 10
S. 144 --Best judgment assessment--Estimation of income--Accounting--Rejection of accounts--No estoppel against acceptance of net profit rate by assessee--Assessing Officer applying net profit rate without considering past history where lower net profit rate approved--Direction of Commissioner (Appeals) to apply net profit rate at 8 per cent. considering past history reasonable-- Asst. CIT v. Kanhiya Lal Choudhary (Jaipur) . . . 61
S. 145(3) --Best judgment assessment--Estimation of income--Accounting--Rejection of accounts--No estoppel against acceptance of net profit rate by assessee--Assessing Officer applying net profit rate without considering past history where lower net profit rate approved--Direction of Commissioner (Appeals) to apply net profit rate at 8 per cent. considering past history reasonable-- Asst. CIT v. Kanhiya Lal Choudhary (Jaipur) . . . 61
S. 153A --Appeal to Appellate Tribunal--Powers of Tribunal--Rectification of mistake--Tribunal holding that assessee cannot be permitted to claim benefit of closing stock by changing method of valuation in assessment proceedings under section 153A--Not a mistake apparent from record--Application under section 254(2) not maintainable--No power to review its order-- Charchit Agarwal v. Asst. CIT (Delhi) . . . 35
S. 194C --Business expenditure--Disallowance--Payments liable to deduction of tax at source--Small fraction of total expenditure representing labour charges--Not a contract for services or labour--Disallowance deleted-- S. T. Reddiar and Sons v. Deputy CIT (Cochin) . . . 1
----Deduction of tax at source--Payment made for purchase of printed packing material to suppliers--No work involving skill or secrecy--Sale--Section 194C not attracted-- ITO v. Mother Dairy Food Processing Ltd. (Delhi) . . . 16
S. 194H --Deduction of tax at source--Commission--Payments to concessionaires for sale of milk products--Transaction between assessee and concessionaires principal to principal--Payments not commission--Tax not to be deducted at source-- ITO v. Mother Dairy Food Processing Ltd. (Delhi) . . . 16
S. 254(2) --Appeal to Appellate Tribunal--Powers of Tribunal--Rectification of mistake--Tribunal holding that assessee cannot be permitted to claim benefit of closing stock by changing method of valuation in assessment proceedings under section 153A--Not a mistake apparent from record--Application under section 254(2) not maintainable--No power to review its order-- Charchit Agarwal v. Asst. CIT (Delhi) . . . 35
S. 269SS --Penalty--Acceptance of loans or deposits in cash exceeding prescribed limit--Assessee facing acute financial difficulties and in exceptional and unavoidable circumstances forced to accept cash deposits--All entries either trade entries or general voucher entry for squaring off accounts of trade and not a loan or deposit--Section 269SS not attracted--Penalty cannot be imposed-- Asst. CIT v. Western India Ceramics P. Ltd. (Ahmedabad) . . . 69
----Penalty--Cash loans exceeding prescribed limit--Cash loans for purpose of disbursing salary to employees--No material by Department to prove contrary--Deletion of penalty justified-- Deputy CIT v. Rupen Das (Kolkata) . . . 55
S. 271D --Penalty--Acceptance of loans or deposits in cash exceeding prescribed limit--Assessee facing acute financial difficulties and in exceptional and unavoidable circumstances forced to accept cash deposits--All entries either trade entries or general voucher entry for squaring off accounts of trade and not a loan or deposit--Section 269SS not attracted--Penalty cannot be imposed-- Asst. CIT v. Western India Ceramics P. Ltd. (Ahmedabad) . . . 69
----Penalty--Cash loans exceeding prescribed limit--Cash loans for purpose of disbursing salary to employees--No material by Department to prove contrary--Deletion of penalty justified-- Deputy CIT v. Rupen Das (Kolkata) . . . 55
R. 18DA(1)(e) --Industrial undertaking--Special deduction--Assessee engaged in business of scientific research and development--Approved by Government of India for benefit of deduction under section 80-IB(8A)--Conditions under section 80-IB(2) need not be fulfilled--Assessee entitled to deduction of income derived from transfer of technology developed by itself-- Asst. CIT v. S. K. Dynamics Pvt. Ltd. (Delhi) . . . 80
CA RAJU SHAH
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