INCOME TAX REPORTS (ITR)
Volume 329 : Part 4 (Issue dated 20-12-2010)
SUBJECT INDEX TO CASES REPORTED IN THIS PART
Accounting --Compulsory audit of accounts--Compulsory audit required where turnover exceeds forty lakhs of rupees--Meaning of account books--Books recording cash sales and purchase register constitute books of account--Income-tax Act, 1961, s. 2(12A)-- CIT v. S. C. Naregal (Karn) . . . 615
----Compulsory audit of accounts--Failure to get accounts audited--Penalty--Amount received whether commission or profits not relevant--Turnover is the criterion for getting accounts audited--Ignorance of law is no excuse--Penalty to be levied--Income-tax Act, 1961, ss. 44AB, 271B-- CIT v. S. C. Naregal (Karn) . . . 615
----Compulsory audit of accounts--Failure to get accounts audited--Penalty--Limitation--Six months from end of month in which penalty proceedings were initiated--Penalty proceedings initiated in March 2002--Imposition of penalty on 23-9-2002--Not barred by limitation--Income-tax Act, 1961, ss. 44AB, 275-- CIT v. S. C. Naregal
Appeal to Appellate Tribunal --Powers of Tribunal--Industrial undertaking--Power to remand--Claim for special deduction in assessment year 2003-04 in respect of business started in the year 1997-98--Tribunal justified in remanding matter--Income-tax Act, 1961, ss. 80-IB, 254-- Mrs. Bharti Sharma v. Asst. CIT (Delhi) . . . 534
Appeal to High Court --Competency of appeal--Monetary limit fixed by CBDT Circular--No bar for appeal where substantial question of law has been raised--Income-tax Act, 1961, s. 260A-- CIT v. S. C. Naregal (Karn) . . . 615
----Valuation of stock--Stock difference arrived at at time of survey--Worked out on basis of selling price instead of at cost price or market price whichever is less--Finding that there was no supporting evidence to prove there was really a stock difference--No substantial question of law--Income-tax Act, 1961, s. 260A-- CIT v. C. Jayantilal
Appeal to Supreme Court --Effect of decision of Supreme Court--Interpretation of provision from the beginning of its existence--Income-tax Act, 1961-- Kartikeya International v. CIT (All) . . . 539
Assessment --Special audit--Change of law--Condition precedent--Assessee to be given opportunity to be heard--Assessee must be informed that hearing is for considering approval for special audit--Prior to participation in hearing, assessee to be given access to material on basis of which approval for special audit proposed to be granted--Furnishing such material at hearing not sufficient--Income-tax Act, 1961, s. 142(2A)-- Indian Aluminium Co. Ltd. v. Deputy CIT (Cal) . . . 550
Audit --Order for special audit--Writ--High Court can consider whether there was material for issuing order--Sufficiency of material cannot be considered--Income-tax Act, 1961, s. 142(2A)--Constitution of India, art. 226-- Purvanchal Vidyut Vitran Nigam Ltd. v. Union of India (All) . . . 508
----Special audit--Accounts found to be complex--Order in the interests of Revenue--Order for special audit--Valid--Income-tax Act, 1961, s. 142(2A)-- Purvanchal Vidyut Vitran Nigam Ltd . v. Union of India (All) . . . 508
Business expenditure --Business loss--Illegal gratification for procuring car dealership not reflected in books of account--No business set up--Loss not allowable--Not permissible expenditure--Income-tax Act, 1961, s. 37-- CIT v. Jagdish Chand Gupta
Capital gains --Business income--Capital gains or business income--Assessee developing land and getting a portion of it as consideration--Assessee not engaged in developing real estate--Amount spent on developing land constituted sale consideration of portion of land obtained--Gains on sale of land--Assessable as capital gains--Income-tax Act, 1961, ss. 28, 45-- CIT v. S. Rajamannar (Karn) . . . 626
Commissioner --Revision--Assessing Officer failing to tax cash seized and later surrendered by assessee--Assessment order erroneous and prejudicial to interest of Revenue--Invocation of section 263 proper--Income-tax Act, 1961, s. 263--CIT v. Jagdish Chand Gupta (P&H) . . . 583
Company --Minimum alternate tax--Advance tax--Interest--MAT credit to be given before charging interest under sections 234B and 234C--Income-tax Act, 1961, ss. 115JAA, 234B, 234C-- CIT v. Salora International Ltd. (Delhi) . . . 568
Income --Accrual of income--Mercantile system of accounting--Income must accrue-- Devsons Pvt. Ltd. v. CIT (Delhi) . . . 483
Income-tax enquiry --Notice to furnish particulars in connection with proceedings under sections 201 and 271C--Notice under section 131--Prior permission of Director/Commissioner not needed--Income-tax Act, 1961, ss. 131, 133, 201, 271C-- Thaliparamba Municipal Vanitha Service Sahakarana Sangham Ltd. v. ITO
Investment allowance --Condition precedent--Creation of reserve--Law applicable--Effect of amendment of sections 32A and 34 with retrospective effect--Reserve need not be created in a year in which loss has been incurred or where profits are insufficient--Income-tax Act, 1961, ss 32A, 34-- CIT v. Nagaland Roller Flour Mills Ltd. (Guwahati) . . . 631
Penalty --Concealment of income--Appeal to Appellate Tribunal--Findings in appeal from assessment not binding--Tribunal to examine material afresh and decide whether penalty for concealment or furnishing inaccurate particulars justified--Income-tax Act, 1961, s. 271(1)(c)-- Devsons Pvt. Ltd. v. CIT (Delhi) . . . 483
----Concealment of income--Business expenditure--Sundry creditors--Sums due to sub-contractors but not paid--Claim substantiated by log book verified by authorities and tax deducted on sums credited to sub-contractors--Claim accepted in other years--Not a case of furnishing inaccurate particulars--Income-tax Act, 1961, s. 271(1)(c)-- Devsons Pvt. Ltd. v. CIT (Delhi) . . . 483
----Concealment of income--Contractor--Total bills raised against municipality disclosed but sums deducted by municipality not shown in gross receipts--Matter in dispute and High Court finally holding against assessee--Not a case of concealment--Not a case of change of method of accounting from mercantile to cash--Income-tax Act, 1961, s. 271(1)(c)-- Devsons Pvt. Ltd. v. CIT (Delhi) . . . 483
----Concealment of income--Debatable claim to deduction--Not a case of furnishing inaccurate particulars--Income-tax Act, 1961, s. 271(1)(c)-- Devsons Pvt. Ltd. v. CIT (Delhi) . . . 483
----Furnishing inaccurate particulars--Industrial undertaking--Special deduction--Disallowance of claim to deduction--Not a case of furnishing inaccurate particulars of income--Penalty not leviable--Income-tax Act, 1961, ss. 80-IA, 80-IB, 271(1)(c)-- CIT v. Dharampal Premchand Ltd. (Delhi) . . . 572
Precedent --Effect of decision in Liberty India v. CIT [2009] 317 ITR 218-- Kartikeya International v. CIT (All) . . . 539
Reassessment --Notice--Notice within four years--Notice based on Supreme Court decision--Notice valid--Income-tax Act, 1961, ss. 147, 148-- Kartikeya International v. CIT (All) . . . 539
----Objections of assessee not considered--Reassessment set aside--Matter remanded--Income-tax Act, 1961-- IOT Infrastructure and Energy Services Ltd. v. Asst. CIT (Bom) . . . 547
Rectification of mistake --Mistake apparent from record--Assessing Officer disallowing deduction of bad debts--Tribunal holding entire amount including interest allowable--Assessee filing a rectification application for treating interest also as bad debt--Question not covered by original assessment--Issue not debatable or subject-matter of appeal--"Record" includes record available with Assessing Officer--Rectification can be done--Income-tax Act, 1961, s. 154-- CIT v. Lakshmi Vilas Bank
----Interest charged under sections 234B and 234C without allowing MAT credit--Debatable issue--Interest cannot be charged in rectification proceedings--Income-tax Act, 1961, ss. 115JAA, 154, 234B, 234C-- CIT v. Salora International Ltd .
Revision --Commissioner--Where two views possible, Assessing Officer adopting one view--Revision not permissible--Income-tax Act, 1961, s. 263-- CIT v. Saluja Exim Ltd . (P&H) . . . 603
Undisclosed income --Assessee surrendering amount seized--Statement admitting sum paid as illegal gratification for car dealership--Statement corroborated by circumstances not shown to be erroneous--Retraction after four months--Is an afterthought--Sum represents undisclosed income of assessee--Income-tax Act, 1961, s. 69-- CIT v. Jagdish Chand Gupta (P&H) . . . 583
Unexplained investment --Finding that investments had been satisfactorily explained--No addition could be made under section 69--Income-tax Act, 1961, s. 69-- CIT v. Ashok Arora (P&H) . . . 578
Wealth-tax --Reassessment--Property valued at much higher figure in income-tax return--Reassessment proceedings based on such return--Valid--Wealth-tax Act, 1957, s. 17-- P. K. Kurian v. Asst. CWT (Ker) . . . 529
Writ --Order of Tribunal rectifying its order on merits--Rejection of application for rectification on question of reopening of assessment--Writ--Proper remedy is appeal--Writ petition not maintainable--Income-tax Act, 1961, s. 260A-- Lakshmi Vilas Bank Ltd. v. ITAT (Mad) . . . 564
SECTIONWISE INDEX TO CASES REPORTED IN THIS PART
Art. 226 --Audit--Order for special audit--Writ--High Court can consider whether there was material for issuing order--Sufficiency of material cannot be considered-- Purvanchal Vidyut Vitran Nigam Ltd. v. Union of India (All) . . . 508
S. 2(12A) --Accounting--Compulsory audit of accounts--Compulsory audit required where turnover exceeds forty lakhs of rupees--Meaning of account books--Books recording cash sales and purchase register constitute books of account-- CIT v. S. C. Naregal (Karn) . . . 615
S. 28 --Capital gains--Business income--Capital gains or business income--Assessee developing land and getting a portion of it as consideration--Assessee not engaged in developing real estate--Amount spent on developing land constituted sale consideration of portion of land obtained--Gains on sale of land--Assessable as capital gains-- CIT v. S. Rajamannar (Karn) . . . 626
S. 32A --Investment allowance--Condition precedent--Creation of reserve--Law applicable--Effect of amendment of sections 32A and 34 with retrospective effect--Reserve need not be created in a year in which loss has been incurred or where profits are insufficient-- CIT v. Nagaland Roller Flour Mills Ltd. (Guwahati) . . . 631
S. 34 --Investment allowance--Condition precedent--Creation of reserve--Law applicable--Effect of amendment of sections 32A and 34 with retrospective effect--Reserve need not be created in a year in which loss has been incurred or where profits are insufficient-- CIT v. Nagaland Roller Flour Mills Ltd. (Guwahati) . . . 631
S. 37 --Business expenditure--Business loss--Illegal gratification for procuring car dealership not reflected in books of account--No business set up--Loss not allowable--Not permissible expenditure-- CIT v. Jagdish Chand Gupta (P&H) . . . 583
S. 44AB --Accounting--Compulsory audit of accounts--Failure to get accounts audited--Penalty--Amount received whether commission or profits not relevant--Turnover is the criterion for getting accounts audited--Ignorance of law is no excuse--Penalty to be levied-- CIT v. S. C. Naregal (Karn) . . . 615
----Accounting--Compulsory audit of accounts--Failure to get accounts audited--Penalty--Limitation--Six months from end of month in which penalty proceedings were initiated--Penalty proceedings initiated in March 2002--Imposition of penalty on 23-9-2002--Not barred by limitation-- CIT v. S. C. Naregal (Karn) . . . 615
S. 45 --Capital gains--Business income--Capital gains or business income--Assessee developing land and getting a portion of it as consideration--Assessee not engaged in developing real estate--Amount spent on developing land constituted sale consideration of portion of land obtained--Gains on sale of land--Assessable as capital gains-- CIT v. S. Rajamannar (Karn) . . . 626
S. 69 --Undisclosed income--Assessee surrendering amount seized--Statement admitting sum paid as illegal gratification for car dealership--Statement corroborated by circumstances not shown to be erroneous--Retraction after four months--Is an afterthought--Sum represents undisclosed income of assessee-- CIT v. Jagdish Chand Gupta (P&H) . . . 583
----Unexplained investment--Finding that investments had been satisfactorily explained--No addition could be made under section 69-- CIT v. Ashok Arora
S. 80-IA --Penalty--Furnishing inaccurate particulars--Industrial undertaking--Special deduction--Disallowance of claim to deduction--Not a case of furnishing inaccurate particulars of income--Penalty not leviable-- CIT v. Dharampal Premchand Ltd.
S. 80-IB --Appeal to Appellate Tribunal--Powers of Tribunal--Industrial undertaking--Power to remand--Claim for special deduction in assessment year 2003-04 in respect of business started in the year 1997-98--Tribunal justified in remanding matter-- Mrs. Bharti Sharma v. Asst. CIT (Delhi) . . . 534
----Penalty--Furnishing inaccurate particulars--Industrial undertaking--Special deduction--Disallowance of claim to deduction--Not a case of furnishing inaccurate particulars of income--Penalty not leviable-- CIT v. Dharampal Premchand Ltd.
S. 115JAA --Company--Minimum alternate tax--Advance tax--Interest--MAT credit to be given before charging interest under sections 234B and 234C-- CIT v. Salora International Ltd. (Delhi) . . . 568
----Rectification of mistake--Interest charged under sections 234B and 234C without allowing MAT credit--Debatable issue--Interest cannot be charged in rectification proceedings-- CIT v. Salora International Ltd . (Delhi) . . . 568
S. 131 --Income-tax enquiry--Notice to furnish particulars in connection with proceedings under sections 201 and 271C--Notice under section 131--Prior permission of Director/Commissioner not needed-- Thaliparamba Municipal Vanitha Service Sahakarana Sangham Ltd. v. ITO (Ker) . . . 609
S. 133 --Income-tax enquiry--Notice to furnish particulars in connection with proceedings under sections 201 and 271C--Notice under section 131--Prior permission of Director/Commissioner not needed-- Thaliparamba Municipal Vanitha Service Sahakarana Sangham Ltd. v. ITO (Ker) . . . 609
S. 142(2A) --Assessment--Special audit--Change of law--Condition precedent--Assessee to be given opportunity to be heard--Assessee must be informed that hearing is for considering approval for special audit--Prior to participation in hearing, assessee to be given access to material on basis of which approval for special audit proposed to be granted--Furnishing such material at hearing not sufficient-- Indian Aluminium Co. Ltd. v. Deputy CIT (Cal) . . . 550
----Audit--Special audit--Accounts found to be complex--Order in the interests of Revenue--Order for special audit--Valid-- Purvanchal Vidyut Vitran Nigam Ltd . v. Union of India (All) . . . 508
----Audit--Order for special audit--Writ--High Court can consider whether there was material for issuing order--Sufficiency of material cannot be considered-- Purvanchal Vidyut Vitran Nigam Ltd. v. Union of India (All) . . . 508
S. 147 --Reassessment--Notice--Notice within four years--Notice based on Supreme Court decision--Notice valid-- Kartikeya International v. CIT
S. 148 --Reassessment--Notice--Notice within four years--Notice based on Supreme Court decision--Notice valid-- Kartikeya International v. CIT
S. 154 --Rectification of mistake--Interest charged under sections 234B and 234C without allowing MAT credit--Debatable issue--Interest cannot be charged in rectification proceedings-- CIT v. Salora International Ltd . (Delhi) . . . 568
----Rectification of mistake--Mistake apparent from record--Assessing Officer disallowing deduction of bad debts--Tribunal holding entire amount including interest allowable--Assessee filing a rectification application for treating interest also as bad debt--Question not covered by original assessment--Issue not debatable or subject-matter of appeal--"Record" includes record available with Assessing Officer--Rectification can be done-- CIT v. Lakshmi Vilas Bank (Mad) . . . 591
S. 201 --Income-tax enquiry--Notice to furnish particulars in connection with proceedings under sections 201 and 271C--Notice under section 131--Prior permission of Director/Commissioner not needed-- Thaliparamba Municipal Vanitha Service Sahakarana Sangham Ltd. v. ITO (Ker) . . . 609
S. 234B --Company--Minimum alternate tax--Advance tax--Interest--MAT credit to be given before charging interest under sections 234B and 234C-- CIT v. Salora International Ltd. (Delhi) . . . 568
----Rectification of mistake--Interest charged under sections 234B and 234C without allowing MAT credit--Debatable issue--Interest cannot be charged in rectification proceedings-- CIT v. Salora International Ltd . (Delhi) . . . 568
S. 234C --Company--Minimum alternate tax--Advance tax--Interest--MAT credit to be given before charging interest under sections 234B and 234C-- CIT v. Salora International Ltd. (Delhi) . . . 568
----Rectification of mistake--Interest charged under sections 234B and 234C without allowing MAT credit--Debatable issue--Interest cannot be charged in rectification proceedings-- CIT v. Salora International Ltd . (Delhi) . . . 568
S. 254 --Appeal to Appellate Tribunal--Powers of Tribunal--Industrial undertaking--Power to remand--Claim for special deduction in assessment year 2003-04 in respect of business started in the year 1997-98--Tribunal justified in remanding matter-- Mrs. Bharti Sharma v. Asst. CIT (Delhi) . . . 534
S. 260A --Appeal to High Court--Competency of appeal--Monetary limit fixed by CBDT Circular--No bar for appeal where substantial question of law has been raised-- CIT v. S. C. Naregal (Karn) . . . 615
----Appeal to High Court--Valuation of stock--Stock difference arrived at at time of survey--Worked out on basis of selling price instead of at cost price or market price whichever is less--Finding that there was no supporting evidence to prove there was really a stock difference--No substantial question of law-- CIT v. C. Jayantilal
----Writ--Order of Tribunal rectifying its order on merits--Rejection of application for rectification on question of reopening of assessment--Writ--Proper remedy is appeal--Writ petition not maintainable-- Lakshmi Vilas Bank Ltd. v. ITAT
S. 263 --Commissioner--Revision--Assessing Officer failing to tax cash seized and later surrendered by assessee--Assessment order erroneous and prejudicial to interest of Revenue--Invocation of section 263 proper--CIT v. Jagdish Chand Gupta
----Revision--Commissioner--Where two views possible, Assessing Officer adopting one view--Revision not permissible-- CIT v. Saluja Exim Ltd .
S. 271(1)(c) --Penalty--Concealment of income--Appeal to Appellate Tribunal--Findings in appeal from assessment not binding--Tribunal to examine material afresh and decide whether penalty for concealment or furnishing inaccurate particulars justified-- Devsons Pvt. Ltd. v. CIT (Delhi) . . . 483
----Penalty--Concealment of income--Business expenditure--Sundry creditors--Sums due to sub-contractors but not paid--Claim substantiated by log book verified by authorities and tax deducted on sums credited to sub-contractors--Claim accepted in other years--Not a case of furnishing inaccurate particulars-- Devsons Pvt. Ltd. v. CIT
----Penalty--Concealment of income--Contractor--Total bills raised against municipality disclosed but sums deducted by municipality not shown in gross receipts--Matter in dispute and High Court finally holding against assessee--Not a case of concealment--Not a case of change of method of accounting from mercantile to cash-- Devsons Pvt. Ltd. v. CIT (Delhi) . . . 483
----Penalty--Concealment of income--Debatable claim to deduction--Not a case of furnishing inaccurate particulars-- Devsons Pvt. Ltd. v. CIT (Delhi) . . . 483
----Penalty--Furnishing inaccurate particulars--Industrial undertaking--Special deduction--Disallowance of claim to deduction--Not a case of furnishing inaccurate particulars of income--Penalty not leviable-- CIT v. Dharampal Premchand Ltd.
S. 271B --Accounting--Compulsory audit of accounts--Failure to get accounts audited--Penalty--Amount received whether commission or profits not relevant--Turnover is the criterion for getting accounts audited--Ignorance of law is no excuse--Penalty to be levied-- CIT v. S. C. Naregal (Karn) . . . 615
S. 271C --Income-tax enquiry--Notice to furnish particulars in connection with proceedings under sections 201 and 271C--Notice under section 131--Prior permission of Director/Commissioner not needed-- Thaliparamba Municipal Vanitha Service Sahakarana Sangham Ltd. v. ITO (Ker) . . . 609
S. 275 --Accounting--Compulsory audit of accounts--Failure to get accounts audited--Penalty--Limitation--Six months from end of month in which penalty proceedings were initiated--Penalty proceedings initiated in March 2002--Imposition of penalty on 23-9-2002--Not barred by limitation-- CIT v. S. C. Naregal
S. 17 --Wealth-tax--Reassessment--Property valued at much higher figure in income-tax return--Reassessment proceedings based on such return--Valid-- P. K. Kurian v. Asst. CWT (Ker) . . . 529
ITR'S TRIBUNAL TAX REPORTS (ITR (TRIB))
Volume 6 : Part 8 (Issue dated : 20-12-2010)
SUBJECT INDEX TO CASES REPORTED IN THIS PART
Business expenditure --Festival expenses--Advance payment not bad debt--Disallowance justified--Telephone expenses--Telephones used by employees for personal purposes--Disallowance on estimate basis without any adverse material on record--Not proper--Income-tax Act, 1961, ss. 37, 36(1)(vii)-- Deputy CIT v. Gymkhana Club (Delhi) . . . 808
----Trade association--Special provision for deduction--Claim at 50 per cent. of total income--Failure to establish expenses incurred solely for protection and advancement of common interests of members--Disallowance justified--Income-tax Act, 1961, s. 44A(1), (3)-- Deputy CIT v. Gymkhana Club (Delhi) . . . 808
Deduction of tax at source --Interest--Bank--Notional provision for half yearly interest on account of cumulative deposit shown in general ledger reversed on next working day--Interest credited to provisioning account for macro-monitoring--Interest not due and payable on that day--Deduction of tax not obligatory--Income-tax Act, 1961, ss. 194A, 201--Circular No. 3, dated 2-3-2010-- Bank of Maharashtra v. ITO (Ahmedabad) . . . 824
Income --Income or capital--Amount declared as membership entrance fees--Club to establish amount received from members for availing of facilities extended by it--Bye-laws of club regarding effect of cessation of membership of club to be examined--Matter remanded--Income-tax Act, 1961, s. 44A(1)-- Deputy CIT v. Gymkhana Club (Delhi) . . . 808
Penalty --Concealment of income--Note along with return disclosing all relevant material facts--Assessee's explanation regarding interest expenditure and investments for purpose of earning dividends--Not found false--Mere fact that re-calculation of total income by Assessing Officer not same as that of assessee--No concealment of particulars or furnishing of in-accurate particulars of such income--No deemed concealment in terms of Explanation 1 to section 271(1)(c)--Not a fit case for penalty--Income-tax Act, 1961, s. 271(1)(c), Expln. 1-- Mimosa Investment Co. P. Ltd. v. ITO (Mumbai) . . . 789
Revision --Commissioner--Capital or revenue expenditure--Deductions allowed on technical know-how fees and accrual of interest income on deposits without considering disallowance in earlier years--Lack of application of mind and failure to comply with principle of consistency--No reasons recorded in assessment order for such deviation in views--Order erroneous and prejudicial to interests of Revenue--Revision justified--Income-tax Act, 1961, s. 263-- Frick India Ltd . v. Deputy CIT (Delhi) . . . 802
Words and phrases --"Conceal"--"Prescribed"--"Total income"--"Has furnished inaccurate particulars of income"--"Has concealed particulars of income"-- Mimosa Investment Co. P. Ltd. v. ITO (Mumbai) . . . 789
SECTIONWISE INDEX TO CASES REPORTED IN THIS PART
S. 36(1)(vii) --Business expenditure--Festival expenses--Advance payment not bad debt--Disallowance justified--Telephone expenses--Telephones used by employees for personal purposes--Disallowance on estimate basis without any adverse material on record--Not proper-- Deputy CIT v. Gymkhana Club (Delhi) . . . 808
S. 37 --Business expenditure--Festival expenses--Advance payment not bad debt--Disallowance justified--Telephone expenses--Telephones used by employees for personal purposes--Disallowance on estimate basis without any adverse material on record--Not proper-- Deputy CIT v. Gymkhana Club (Delhi) . . . 808
S. 44A(1), (3) --Business expenditure--Trade association--Special provision for deduction--Claim at 50 per cent. of total income--Failure to establish expenses incurred solely for protection and advancement of common interests of members--Disallowance justified-- Deputy CIT v. Gymkhana Club (Delhi) . . . 808
S. 44A(1) --Income--Income or capital--Amount declared as membership entrance fees--Club to establish amount received from members for availing of facilities extended by it--Bye-laws of club regarding effect of cessation of membership of club to be examined--Matter remanded-- Deputy CIT v. Gymkhana Club (Delhi) . . . 808
S. 194A --Deduction of tax at source--Interest--Bank--Notional provision for half yearly interest on account of cumulative deposit shown in general ledger reversed on next working day--Interest credited to provisioning account for macro-monitoring--Interest not due and payable on that day--Deduction of tax not obligatory--Circular No. 3, dated 2-3-2010-- Bank of Maharashtra v. ITO (Ahmedabad) . . . 824
S. 201 --Deduction of tax at source--Interest--Bank--Notional provision for half yearly interest on account of cumulative deposit shown in general ledger reversed on next working day--Interest credited to provisioning account for macro-monitoring--Interest not due and payable on that day--Deduction of tax not obligatory--Circular No. 3, dated 2-3-2010-- Bank of Maharashtra v. ITO (Ahmedabad) . . . 824
S. 263 --Revision--Commissioner--Capital or revenue expenditure--Deductions allowed on technical know-how fees and accrual of interest income on deposits without considering disallowance in earlier years--Lack of application of mind and failure to comply with principle of consistency--No reasons recorded in assessment order for such deviation in views--Order erroneous and prejudicial to interests of Revenue--Revision justified-- Frick India Ltd . v. Deputy CIT (Delhi) . . . 802
S. 271(1)(c), Expln. 1 --Penalty--Concealment of income--Note along with return disclosing all relevant material facts--Assessee's explanation regarding interest expenditure and investments for purpose of earning dividends--Not found false--Mere fact that re-calculation of total income by Assessing Officer not same as that of assessee--No concealment of particulars or furnishing of in-accurate particulars of such income--No deemed concealment in terms of Explanation 1 to section 271(1)(c)--Not a fit case for penalty-- Mimosa Investment Co. P. Ltd. v. ITO (Mumbai) . . . 789
=CA. RAJU SHAH
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