INCOME TAX REPORTS (ITR)
Volume 327 : Part 2 (Issue dated 27-9-2010)
Companies --Minimum alternate tax--Special provision--Where normal tax payable would be less than ten per cent. of book profits--Book profits deemed to be total income--Provision a self-contained code--100 per cent. of export profits eligible for reduction--Income-tax Act, 1961, ss. 80HHC, 115JB-- Ajanta Pharma Ltd. v. CIT . . . 305
Words and phrases --"Eligibility" and "deductibility"--Meanings of-- Ajanta Pharma Ltd. v. CIT . . . 305
Advance tax --Interest--Company--Computation of income under section 115J--Interest cannot be levied under sections 234B and 234C--Income-tax Act, 1961, ss. 115JB, 234B, 234C-- CIT v. Natural Gems Ltd. (Bom) . . . 269
Appeal to Appellate Tribunal --Powers of Tribunal--Power to rectify mistakes in its order--Mistake which goes to root of matter--Tribunal can rehear the appeal--Income-tax Act, 1961, s. 254(2)-- CIT v. S. K. Gupta (All) . . . 267
Audit --Special audit--Remuneration of special auditor--Effect of section 142(2D)--Remuneration to be determined by Chief Commissioner--Income-tax Act, 1961, s. 142(2D)-- Dhanesh Gupta and Co . v. CIT (Delhi) . . . 246
Capital gains --Depreciable assets--Short-term capital gains--Sale of building and purchase of another building--Effect of section 50--Meaning of "block of assets"--Finding that building sold not used as a hotel--Building sold and building purchased belonging to same block of assets--Assessee entitled to set off amount invested in purchase of building--Income-tax Act, 1961, s. 50(2)--Income-tax Rules, 1962, Appx I, Part A, item I-- CIT v. Scindia Investment P. Ltd. (Bom) . . . 282
----Exemption--Sale of agricultural land and investment in purchase of new land--Registration of new land under assessee's son's name as co-owner--New land used for agricultural purpose--Assessee entitled to deduction--Income tax Act, 1961, s. 54B-- CIT v. Gurnam Singh (P&H) . . . 278
Cash credit --Finding that explanation regarding creditors was false--Addition of amount representing cash credits--Justified--Income-tax Act, 1961, s. 68-- Mahavir Prasad v. ITO (P&H) . . . 178
Civil construction --Estimation of income--Gross profit rate--Rejection of accounts--Commissioner (Appeals) directing flat rate of 12 per cent.--Neither assessee nor Revenue challenging the rate applied--Tribunal affirming order of Commissioner (Appeals)--Proper--Income-tax Act, 1961-- CIT v. Surinder Pal Nayar (P&H) . . . 236
Company --Book profits--Interest--Interest on excess refund under section 234D whether leviable--Provision for voluntary separation scheme--Whether to be added--Matter remanded for fresh consideration--Income-tax Act, 1961, ss. 115JA, 234D-- CIT v. Areva T & D India Limited (Mad) . . . 183
Income from undisclosed sources --Promissory note recovered from third person--Third person subsequently retracting statement that amount covered by promissory note was due to assessee--Amount disclosed as income of firm of which third person was partner--Assessee not given opportunity to cross-examine third person--Amount covered by promissory note could not be assessed as income of assessee from undisclosed sources--Income-tax Act, 1961-- Heirs and Legal Representatives of late Laxmanbhai S. Patel v. CIT (Guj) . . . 290
Industrial undertaking --Special deduction under sections 80HHA and 80-I--Assessee entitled to special deduction under both provisions simultaneously--Income-tax Act, 1961, ss. 80HHA, 80-I-- Deputy CIT v. Blue Bell Polymers P. Ltd. (Guj) . . . 259
Exemption --Industrial undertaking--Interest on foreign loan--No proof of argument before Tribunal whether approval taken as required under section 10(15)(iv)(c)--No apparent mistake--Rectification to withdraw exemption not permissible--Income-tax Act, 1961, s. 10(15)(iv)(c)-- CIT v. Virat Shipping Corporation (Guj) . . . 257
Offences and prosecution --Failure to file returns in time--Issue of notice under section 148 and filing of returns in response thereto--Will not exonerate assessee of liability to prosecution--Mens rea--Statutory presumption as to culpable mental state--Assessee entitled at trial to prove absence of mens rea--Income-tax Act, 1961, ss. 139(1), 148, 276CC, 278E-- R. Inbavalli v. ITO (Mad) . . . 226
----Wilful attempt to evade tax--Fabricating false evidence--Assessee found in possession of two agreements showing different values in respect of same transaction--No proceedings pending at time of search--Not a case of fabrication of false evidence for use in judicial proceedings--Possession of document containing false entry--Prima facie material for framing charge of wilful attempt to evade tax--Income-tax Act, 1961, s. 276C(1)--Indian Penal Code, 1860, s. 193-- Vijayalalitha v. Sta(Mad) . . . 261
Penalty --Concealment of income--Assessee failed to disclose income from capital gains--Assessee not filing revised return in spite of notice under section 148--Assessee convicted for concealment in criminal proceedings--Disclosure in Form 34A does not amount to disclosure in income-tax return--Finding that concealment of income deliberate--Imposition of penalty--Justified--Income-tax Act, 1961, s. 271(1)(c)-- Smt. Ram Piari v. CIT (P&H) . . . 318
----Concealment of income--Effect of Explanation 1 to section 271(1)(c)--Penalty when imposed--Claim for deduction rejected and penalty imposed--Tribunal not justified in cancelling penalty without considering explanation of assessee--Matter remanded--Income-tax Act, 1961, s. 271(1)(c)-- CIT v. Sandur Manganese and Iron Ores Ltd. (Karn) . . . 242
----Concealment of income--Explanation that addition to income had been accepted to buy peace and avoid litigation--Explanation found reasonable by appellate authorities--Cancellation of penalty--Valid--Income-tax Act, 1961, s. 271(1)(c)-- CIT v. Vasant K. Handigund (Karn) . . . 233
----Waiver of penalty and interest--Conditions precedent--Disclosure of income must be voluntary--Genuine financial hardship if penalty were imposed--Disclosure of income after search and discovery of incriminating material--No evidence of financial hardship if penalty were imposed--Rejection of application for waiver--Justified--Income-tax Act, 1961, s. 273A-- Shardadevi P. Jhunjhunwala v. CIT (Bom) . . . 211
Precedent --Effect of decision of Supreme Court in Benara Valves Ltd. v. CCE [2006] 204 ELT 513 ; [2007] 8 RC 6-- Shardadevi P. Jhunjhunwala v. CIT (Bom) . . . 211
----Supreme Court granting leave to appeal and then dismissing appeal--Effect--Decision of High Court affirmed by Supreme Court-- CIT v. Natural Gems Ltd . (Bom) . . . 269
Purchase of immovable property by Central Government --Agreement of sale of trust property after obtaining sanction under Bombay Public Trusts Act--Sale instance in a subsequent year in a different locality relied on--Details of such sale not furnished--No evidence of attempt to evade tax--Order of pre-emptive purchase not valid--Income-tax Act, 1961, s. 269UD-- Virendra v. Appropriate Authority (Bom) . . . 185
Reassessment --Income escaping assessment--Block assessment set aside by Tribunal on finding that sums added not undisclosed income--Finding of Tribunal binding on Assessing Officer--Reassessment for years comprised in block period to tax same sums not permissible--Income-tax Act, 1961, ss. 147, 148, 158BC-- Vishwanath Prasad Ashok Kumar Sarraf v. CIT (All) . . . 190
----Notice after four years--No finding that assessee failed to disclose fully and truly material facts for assessment--Notice not valid--Income-tax Act, 1961, ss. 147, 148-- Vishwanath Prasad Ashok Kumar Sarraf v. CIT (All) . . . 190
----Reassessment after four years--Condition precedent--Failure to disclose material facts for assessment--Claim for exemption in respect of dividends--Claim allowed after considering facts--Reassessment after four years to disallow deduction--Not valid--Income-tax Act, 1961, ss. 10(33), 14A, 147-- Indian Oil Corporation Ltd. v. Deputy CIT (Bom) . . . 272
Reference --Finding of fact--Finding based on relevant material--Finding cannot be set aside--Income-tax Act, 1961, s. 256-- CIT v. Scindia Investment P. Ltd . (Bom) . . . 282
----Question of fact or law--Legal effect of finding of fact is a question of law--Income-tax Act, 1961, s. 256-- Heirs and Legal Representatives of late Laxmanbhai S. Patel v. CIT (Guj) . . . 290
Search and seizure --Unaccounted income--Unaccounted sales--Tribunal holding that once income is estimated for entire period, expenditure has to be correspondingly estimated--Findings of fact--Income-tax Act, 1961-- CIT v. Hindustan Marble P. Ltd . (Guj) . . . 312
S. 10(15)(iv)(c) --Exemption--Industrial undertaking--Interest on foreign loan--No proof of argument before Tribunal whether approval taken as required under section 10(15)(iv)(c)--No apparent mistake--Rectification to withdraw exemption not permissible-- CIT v. Virat Shipping Corporation (Guj) . . . 257
S. 10(33) --Reassessment--Reassessment after four years--Condition precedent--Failure to disclose material facts for assessment--Claim for exemption in respect of dividends--Claim allowed after considering facts--Reassessment after four years to disallow deduction--Not valid-- Indian Oil Corporation Ltd. v. Deputy CIT (Bom) . . . 272
S. 14A --Reassessment--Reassessment after four years--Condition precedent--Failure to disclose material facts for assessment--Claim for exemption in respect of dividends--Claim allowed after considering facts--Reassessment after four years to disallow deduction--Not valid-- Indian Oil Corporation Ltd. v. Deputy CIT (Bom) . . . 272
S. 50(2) --Capital gains--Depreciable assets--Short-term capital gains--Sale of building and purchase of another building--Effect of section 50--Meaning of "block of assets"--Finding that building sold not used as a hotel--Building sold and building purchased belonging to same block of assets--Assessee entitled to set off amount invested in purchase of building-- CIT v. Scindia Investment P. Ltd. (Bom) . . . 282
S. 54B --Capital gains--Exemption--Sale of agricultural land and investment in purchase of new land--Registration of new land under assessee's son's name as co-owner--New land used for agricultural purpose--Assessee entitled to deduction-- CIT v. Gurnam Singh (P&H) . . . 278
S. 68 --Cash credit--Finding that explanation regarding creditors was false--Addition of amount representing cash credits--Justified-- Mahavir Prasad v. ITO (P&H) . . . 178
S. 80HHA --Industrial undertaking--Special deduction under sections 80HHA and 80-I--Assessee entitled to special deduction under both provisions simultaneously-- Deputy CIT v. Blue Bell Polymers P. Ltd. (Guj) . . . 259
S. 80HHC --Companies--Minimum alternate tax--Special provision--Where normal tax payable would be less than ten per cent. of book profits--Book profits deemed to be total income--Provision a self-contained code--100 per cent. of export profits eligible for reduction-- Ajanta Pharma Ltd. v. CIT (SC) . . . 305
S. 80-I --Industrial undertaking--Special deduction under sections 80HHA and 80-I --Assessee entitled to special deduction under both provisions simultaneously-- Deputy CIT v. Blue Bell Polymers P. Ltd. (Guj) . . . 259
S. 115JA --Company--Book profits--Interest--Interest on excess refund under section 234D whether leviable--Provision for voluntary separation scheme--Whether to be added--Matter remanded for fresh consideration-- CIT v. Areva T & D India Limited (Mad) . . . 183
S. 115JB --Advance tax--Interest--Company--Computation of income under section 115J--Interest cannot be levied under sections 234B and 234C-- CIT v. Natural Gems Ltd. (Bom) . . . 269
----Companies--Minimum alternate tax--Special provision--Where normal tax payable would be less than ten per cent. of book profits--Book profits deemed to be total income--Provision a self-contained code--100 per cent. of export profits eligible for reduction-- Ajanta Pharma Ltd. v. CIT (SC) . . . 305
S. 139(1) --Offences and prosecution--Failure to file returns in time--Issue of notice under section 148 and filing of returns in response thereto--Will not exonerate assessee of liability to prosecution--Mens rea--Statutory presumption as to culpable mental state--Assessee entitled at trial to prove absence of mens rea-- R. Inbavalli v. ITO (Mad) . . . 226
S. 142(2D) --Audit--Special audit--Remuneration of special auditor--Effect of section 142(2D)--Remuneration to be determined by Chief Commissioner-- Dhanesh Gupta and Co . v. CIT (Delhi) . . . 246
S. 147 --Reassessment--Income escaping assessment--Block assessment set aside by Tribunal on finding that sums added not undisclosed income--Finding of Tribunal binding on Assessing Officer--Reassessment for years comprised in block period to tax same sums not permissible-- Vishwanath Prasad Ashok Kumar Sarraf v. CIT (All) . . . 190
----Reassessment--Notice after four years--No finding that assessee failed to disclose fully and truly material facts for assessment--Notice not valid-- Vishwanath Prasad Ashok Kumar Sarraf v. CIT (All) . . . 190
----Reassessment--Reassessment after four years--Condition precedent--Failure to disclose material facts for assessment--Claim for exemption in respect of dividends--Claim allowed after considering facts--Reassessment after four years to disallow deduction--Not valid-- Indian Oil Corporation Ltd. v. Deputy CIT (Bom) . . . 272
S. 148 --Offences and prosecution--Failure to file returns in time--Issue of notice under section 148 and filing of returns in response thereto--Will not exonerate assessee of liability to prosecution--Mens rea--Statutory presumption as to culpable mental state--Assessee entitled at trial to prove absence of mens rea-- R. Inbavalli v. ITO (Mad) . . . 226
----Reassessment--Income escaping assessment--Block assessment set aside by Tribunal on finding that sums added not undisclosed income--Finding of Tribunal binding on Assessing Officer--Reassessment for years comprised in block period to tax same sums not permissible-- Vishwanath Prasad Ashok Kumar Sarraf v. CIT (All) . . . 190
----Reassessment--Notice after four years--No finding that assessee failed to disclose fully and truly material facts for assessment--Notice not valid-- Vishwanath Prasad Ashok Kumar Sarraf v. CIT (All) . . . 190
S. 158BC --Reassessment--Income escaping assessment--Block assessment set aside by Tribunal on finding that sums added not undisclosed income--Finding of Tribunal binding on Assessing Officer--Reassessment for years comprised in block period to tax same sums not permissible-- Vishwanath Prasad Ashok Kumar Sarraf v. CIT (All) . . . 190
S. 234B --Advance tax--Interest--Company--Computation of income under section 115J--Interest cannot be levied under sections 234B and 234C-- CIT v. Natural Gems Ltd. (Bom) . . . 269
S. 234C --Advance tax--Interest--Company--Computation of income under section 115J--Interest cannot be levied under sections 234B and 234C-- CIT v. Natural Gems Ltd. (Bom) . . . 269
S. 234D --Company--Book profits--Interest--Interest on excess refund under section 234D whether leviable--Provision for voluntary separation scheme--Whether to be added--Matter remanded for fresh consideration-- CIT v. Areva T & D India Limited (Mad) . . . 183
S. 254(2) --Appeal to Appellate Tribunal--Powers of Tribunal--Power to rectify mistakes in its order--Mistake which goes to root of matter--Tribunal can rehear the appeal-- CIT v. S. K. Gupta (All) . . . 267
S. 256 --Reference--Finding of fact--Finding based on relevant material--Finding cannot be set aside-- CIT v. Scindia Investment P. Ltd . (Bom) . . . 282
----Reference--Question of fact or law--Legal effect of finding of fact is a question of law-- Heirs and Legal Representatives of late Laxmanbhai S. Patel v. CIT (Guj) . . . 290
S. 269UD --Purchase of immovable property by Central Government--Agreement of sale of trust property after obtaining sanction under Bombay Public Trusts Act--Sale instance in a subsequent year in a different locality relied on--Details of such sale not furnished--No evidence of attempt to evade tax--Order of pre-emptive purchase not valid-- Virendra v. Appropriate Authority (Bom) . . . 185
S. 271(1)(c) --Penalty--Concealment of income--Assessee failed to disclose income from capital gains--Assessee not filing revised return in spite of notice under section 148--Assessee convicted for concealment in criminal proceedings--Disclosure in Form 34A does not amount to disclosure in income-tax return--Finding that concealment of income deliberate--Imposition of penalty--Justified-- Smt. Ram Piari v. CIT (P&H) . . . 318
----Penalty--Concealment of income--Effect of Explanation 1 to section 271(1)(c)--Penalty when imposed--Claim for deduction rejected and penalty imposed--Tribunal not justified in cancelling penalty without considering explanation of assessee--Matter remanded-- CIT v. Sandur Manganese and Iron Ores Ltd. (Karn) . . . 242
----Penalty--Concealment of income--Explanation that addition to income had been accepted to buy peace and avoid litigation--Explanation found reasonable by appellate authorities--Cancellation of penalty--Valid-- CIT v. Vasant K. Handigund (Karn) . . . 233
S. 273A --Penalty--Waiver of penalty and interest--Conditions precedent--Disclosure of income must be voluntary--Genuine financial hardship if penalty were imposed--Disclosure of income after search and discovery of incriminating material--No evidence of financial hardship if penalty were imposed--Rejection of application for waiver--Justified-- Shardadevi P. Jhunjhunwala v. CIT (Bom) . . . 211
S. 276C(1) --Offences and prosecution--Wilful attempt to evade tax--Fabricating false evidence--Assessee found in possession of two agreements showing different values in respect of same transaction--No proceedings pending at time of search--Not a case of fabrication of false evidence for use in judicial proceedings--Possession of document containing false entry--Prima facie material for framing charge of wilful attempt to evade tax-- Vijayalalitha v. State (Mad) . . . 261
S. 276CC --Offences and prosecution--Failure to file returns in time--Issue of notice under section 148 and filing of returns in response thereto--Will not exonerate assessee of liability to prosecution--Mens rea--Statutory presumption as to culpable mental state--Assessee entitled at trial to prove absence of mens rea-- R. Inbavalli v. ITO (Mad) . . . 226
S. 278E --Offences and prosecution--Failure to file returns in time--Issue of notice under section 148 and filing of returns in response thereto--Will not exonerate assessee of liability to prosecution--Mens rea--Statutory presumption as to culpable mental state--Assessee entitled at trial to prove absence of mens rea-- R. Inbavalli v. ITO (Mad) . . . 226
S. 193 --Offences and prosecution--Wilful attempt to evade tax--Fabricating false evidence--Assessee found in possession of two agreements showing different values in respect of same transaction--No proceedings pending at time of search--Not a case of fabrication of false evidence for use in judicial proceedings--Possession of document containing false entry--Prima facie material for framing charge of wilful attempt to evade tax-- Vijayalalitha v. State (Mad) . . . 261
Appx I, Part A, item I --Capital gains--Depreciable assets--Short-term capital gains--Sale of building and purchase of another building--Effect of section 50--Meaning of "block of assets"--Finding that building sold not used as a hotel--Building sold and building purchased belonging to same block of assets--Assessee entitled to set off amount invested in purchase of building-- CIT v. Scindia Investment P. Ltd. (Bom) . . . 282
Accounting --Real estate development--Documents seized during survey establishing handing over of possession of flats to purchasers by assessee--Profit from sale of flats handed over to purchasers to be assessed in years in which they were handed over by assessee--Assessing Officer to ascertain developer's liability towards bank, allow deduction and determine net profit--Income-tax Act, 1961, s. 133A-- Growth Techno Projects Ltd. v. CIT (Delhi) . . . 510
Appeal to Appellate Tribunal --Fees--Commissioner (Appeals) dismissing appeal on ground of non-maintainability--Sum of Rs. 500 payable as fee--Income-tax Act, 1961, s. 253(6)(d)-- Dr. A. Naresh Babu v. ITO (Hyderabad) . . . 485
Appeal to Commissioner (Appeals) --Maintainability--Revision--Fresh assessment in pursuance of revision order--Appeal from fresh assessment only on issue not attaining finality--Matter remanded--Income-tax Act, 1961, ss. 143(3), 246A, 264-- Dr. A. Naresh Babu v. ITO (Hyderabad) . . . 485
Deduction of tax at source --Limitation--Delay of four years from end of financial year in issuing notice--Proceedings barred by time--Income-tax Act, 1961, s. 201-- Block Development Officer v. ITO (TDS) (Delhi) . . . 426
----Payments to contractors--Delay in depositing tax deducted at source--Liability to interest--Payment not covered by section 204--Assessee not exempt from interest--Assessee not entitled to claim that payment was for supply of material--Once tax deducted assessee bound to pay it--Income-tax Act, 1961, ss. 194C, 201(1A), 204-- Block Development Officer v. ITO (TDS) (Delhi) . . . 426
Housing project --Special deduction under section 80-IB--Condition precedent--Built-up area of residential units should not exceed 1500 sq. ft.--Restriction applicable to entire project--Project comprising some units of area exceeding 1500 sq. ft.--Not eligible for deduction--Income-tax Act, 1961, s. 80-IB(10)-- Asst. CIT v. Viswas Promoters P. Ltd. (Chennai) . . . 449
Interpretation of statutes --Literal construction-- Asst. CIT v. Viswas Promoters P. Ltd. (Chennai) . . . 449
Non-resident --Agent--Who is--Any person "from or through whom" non-resident is in receipt of income directly or in-directly--Single transaction of purchase of shares by assessee from non-resident--Consideration remitted by assessee after deduction of tax at source--Assessee can be treated as agent of non-resident--That assessee has deducted tax at source will not preclude liability to be treated as agent--Income-tax Act, 1961, ss. 163(1)(c), 195-- Utkal Investments Ltd. v. Asst. Director of Income-tax (International Taxation) (Mumbai) . . . 481
Precedent --Decision of different High Courts to be followed by Tribunal-- Priyasha Meven Finance Ltd. v. ITO (Mumbai) . . . 441
Reassessment --Penalty--Concealment of income--Assessee providing bona fide explanation in relation to seized cash as accumulated income of assessment years 1975-76 to 1982-83 and furnishing returns of income--No case of concealment of income or furnishing of inaccurate particulars--Penalty cannot be imposed--Income-tax Act, 1961, ss. 148, 271(1)(c)-- Dhanya Kumar Jain v. ITO (Indore) . . . 497
Search and seizure --Assessment under section 132(5)--Reassessment--Notice based on order passed under section 132(5)--No application of mind by Assessing Officer to material on record--No material to prove assessee recorded unexplained cash credits in books of account--Failure to make out case of escapement of income--Reassessment quashed--Income-tax Act, 1961, ss. 132(5), 147, 148-- Shukla Construction Co. v. Asst. CIT (Indore) . . . 432
Speculative business --Assessee having brokerage business and also trading in shares--Loss arising from trading in shares--Speculation loss--Income-tax Act, 1961, s. 73, Expln.--Circular No. 204, dated 24-7-1976-- Priyasha Meven Finance Ltd. v. ITO (Mumbai) . . . 441
Valuation of stock --Closing stock--Assessee not maintaining quality-wise details of polished diamonds--No proof that net realisable value less than cost--Assessing Officer making additions on ground of undervaluation--Proper--Income-tax Act, 1961-- D. Subhashchandra and Co. v. Asst. CIT (Ahmedabad) . . . 452
----Method of valuation consistently followed by assessee--Fact that other similar businesses were making more profit--Not relevant--Rejection of method without proper reasons and addition to income--Not valid--Income-tax Act, 1961-- Pankaj Diamond v. Asst. CIT (Ahmedabad) . . . 469
Words and phrases --"Any part of the business"-- Priyasha Meven Finance Ltd. v. ITO (Mumbai) . . . 441
S. 73, Expln. --Speculative business--Assessee having brokerage business and also trading in shares--Loss arising from trading in shares--Speculation loss--Circular No. 204, dated 24-7-1976-- Priyasha Meven Finance Ltd. v. ITO (Mumbai) . . . 441
S. 80-IB(10) --Housing project--Special deduction under section 80-IB--Condition precedent--Built-up area of residential units should not exceed 1500 sq. ft.--Restriction applicable to entire project--Project comprising some units of area exceeding 1500 sq. ft.--Not eligible for deduction-- Asst. CIT v. Viswas Promoters P. Ltd. (Chennai) . . . 449
S. 132(5) --Search and seizure--Assessment under section 132(5)--Reassessment--Notice based on order passed under section 132(5)--No application of mind by Assessing Officer to material on record--No material to prove assessee recorded unexplained cash credits in books of account--Failure to make out case of escapement of income--Reassessment quashed-- Shukla Construction Co. v. Asst. CIT (Indore) . . . 432
S. 133A --Accounting--Real estate development--Documents seized during survey establishing handing over of possession of flats to purchasers by assessee--Profit from sale of flats handed over to purchasers to be assessed in years in which they were handed over by assessee--Assessing Officer to ascertain developer's liability towards bank, allow deduction and determine net profit-- Growth Techno Projects Ltd. v. CIT (Delhi) . . . 510
S. 143(3) --Appeal to Commissioner (Appeals)--Maintainability--Revision--Fresh assessment in pursuance of revision order--Appeal from fresh assessment only on issue not attaining finality--Matter remanded-- Dr. A. Naresh Babu v. ITO (Hyderabad) . . . 485
S. 147 --Search and seizure--Assessment under section 132(5)--Reassessment--Notice based on order passed under section 132(5)--No application of mind by Assessing Officer to material on record--No material to prove assessee recorded unexplained cash credits in books of account--Failure to make out case of escapement of income--Reassessment quashed-- Shukla Construction Co. v. Asst. CIT (Indore) . . . 432
S. 148 --Reassessment--Penalty--Concealment of income--Assessee providing bona fide explanation in relation to seized cash as accumulated income of assessment years 1975-76 to 1982-83 and furnishing returns of income--No case of concealment of income or furnishing of inaccurate particulars--Penalty cannot be imposed-- Dhanya Kumar Jain v. ITO (Indore) . . . 497
----Search and seizure--Assessment under section 132(5)--Reassessment--Notice based on order passed under section 132(5)--No application of mind by Assessing Officer to material on record--No material to prove assessee recorded unexplained cash credits in books of account--Failure to make out case of escapement of income--Reassessment quashed-- Shukla Construction Co. v. Asst. CIT (Indore) . . . 432
S. 163(1)(c) --Non-resident--Agent--Who is--Any person "from or through whom" non-resident is in receipt of income directly or indirectly--Single transaction of purchase of shares by assessee from non-resident--Consideration remitted by assessee after deduction of tax at source--Assessee can be treated as agent of non-resident--That assessee has deducted tax at source will not preclude liability to be treated as agent-- Utkal Investments Ltd. v. Asst. Director of Income-tax (International Taxation) (Mumbai) . . . 481
S. 194C --Deduction of tax at source--Payments to contractors--Delay in depositing tax deducted at source--Liability to interest--Payment not covered by section 204--Assessee not exempt from interest--Assessee not entitled to claim that payment was for supply of material--Once tax deducted assessee bound to pay it-- Block Development Officer v. ITO (TDS) (Delhi) . . . 426
S. 195 --Non-resident--Agent--Who is--Any person "from or through whom" non-resident is in receipt of income directly or indirectly--Single transaction of purchase of shares by assessee from non-resident--Consideration remitted by assessee after deduction of tax at source--Assessee can be treated as agent of non-resident--That assessee has deducted tax at source will not preclude liability to be treated as agent-- Utkal Investments Ltd. v. Asst. Director of Income-tax (International Taxation) (Mumbai) . . . 481
S. 201 --Deduction of tax at source--Limitation--Delay of four years from end of financial year in issuing notice--Proceedings barred by time-- Block Development Officer v. ITO (TDS) (Delhi) . . . 426
S. 201(1A) --Deduction of tax at source--Payments to contractors--Delay in depositing tax deducted at source--Liability to interest--Payment not covered by section 204--Assessee not exempt from interest--Assessee not entitled to claim that payment was for supply of material--Once tax deducted assessee bound to pay it-- Block Development Officer v. ITO (TDS) (Delhi) . . . 426
S. 204 --Deduction of tax at source--Payments to contractors--Delay in depositing tax deducted at source--Liability to interest--Payment not covered by section 204--Assessee not exempt from interest--Assessee not entitled to claim that payment was for supply of material--Once tax deducted assessee bound to pay it-- Block Development Officer v. ITO (TDS) (Delhi) . . . 426
S. 246A --Appeal to Commissioner (Appeals)--Maintainability--Revision--Fresh assessment in pursuance of revision order--Appeal from fresh assessment only on issue not attaining finality--Matter remanded-- Dr. A. Naresh Babu v. ITO (Hyderabad) . . . 485
S. 253(6)(d) --Appeal to Appellate Tribunal--Fees--Commissioner (Appeals) dismissing appeal on ground of non-maintainability--Sum of Rs. 500 payable as fee-- Dr. A. Naresh Babu v. ITO (Hyderabad) . . . 485
S. 264 --Appeal to Commissioner (Appeals)--Maintainability--Revision--Fresh assessment in pursuance of revision order--Appeal from fresh assessment only on issue not attaining finality--Matter remanded-- Dr. A. Naresh Babu v. ITO (Hyderabad) . . . 485
S. 271(1)(c) --Reassessment--Penalty--Concealment of income--Assessee providing bona fide explanation in relation to seized cash as accumulated income of assessment years 1975-76 to 1982-83 and furnishing returns of income--No case of concealment of income or furnishing of inaccurate particulars--Penalty cannot be imposed-- Dhanya Kumar Jain v. ITO (Indore) . . . 497
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