INCOME TAX REPORTS (ITR)
Volume 330 : Part 5 (Issue dated 31-1-2011)
SUBJECT INDEX TO CASES REPORTED IN THIS PART
Advance tax --Interest--Non-resident--Entire income liable to deduction of tax at source--Assessee not liable for advance tax--Cannot be charged interest for failure to pay advance tax--Income-tax Act, 1961, ss. 201, 209, 234B-- Director of Income-tax v. Jacabs Civil Incorporated (Delhi) . . . 578
Assessment --Assessment on agreed basis--Assessee cannot appeal against such order--Income-tax Act, 1961-- CIT v. Vamadevan Bhanu (Ker) . . . 559
Business expenditure --Disallowance--Excessive and unreasonable payments--Addition for purchases and sales made from sister concern--Finding by Commissioner (Appeals) as well as Tribunal as to genuineness of valuation in transaction between sister concerns not perverse--Findings of fact--Income-tax Act, 1961, s. 40A(2)(b)-- CIT v. Jyoti Industries (P&H) . . . 573
----Disallowance--Excessive or unreasonable payments--Trade discount--Discount allowed to sister concern--Assessee claiming 11 per cent. on ground of bulk sales--Assessing Officer allowing 3 per cent., Commissioner (Appeals) enhancing to 8 per cent. while Tribunal reducing to 5 per cent.--Assessee allowed 11 per cent. in earlier years--Assessee entitled to 11 per cent.--Trade discount not an expenditure--Section 40A(2)(b) does not apply--Income-tax Act, 1961, s. 40A(2)(b)-- United Exports v. CIT (Delhi) . . . 549
Capital gains --Valuation of capital asset--Reference to Departmental Valuation Officer--Condition precedent--Opinion of Assessing Officer that value claimed is less than fair market value--Income-tax Act, 1961, s. 55A-- CIT v. Umedbhai International P. Ltd. (Cal) . . . 506
Cash credits --Burden of proof--Initial burden on assessee to prove identity of creditors--Burden then shifts to Revenue to prove credits were not genuine--Identity of applicants for shares and their PAN numbers furnished--Amounts received through account payee cheques--Inability to find a few applicants--Not sufficient to invoke section 68--Income-tax Act, 1961, s. 68-- CIT v. Winstral Petrochemicals P. Ltd . (Delhi) . . . 603
Circulars --Scope of--Income-tax Act, 1961, s. 119-- Deputy CIT v. Sunita Finlease Ltd. (Chhattisgarh) . . . 491
Deductions --Law applicable--Section 14A prohibiting deduction of expenses relating to non-taxable income--Circular of CBDT dated 23-7-2001 stating that concluded assessments could not be reopened for purposes of section 14A--Meaning of "concluded assessment"--Assessment which could be modified by higher authority not a concluded assessment till expiry of time-limit for such modification--Assessment order remanded for modification in appeal--Subsequent revision of order--Permissible--Income-tax Act, 1961, s. 14A--CBDT Circular 11 dated 23-7-2001 (250 ITR (St.) 84)-- Catholic Syrian Bank Ltd . v. CIT (Ker) . . . 556
Deduction of tax at source --Salary--Effect of sub-section (3) of section 192--Default in deduction can be made up during financial year--Income-tax Act, 1961, ss. 192, 201-- CIT v. Enron Expat Services Inc. (Uttarakhand) . . . 496
Estimate of income --Gross profit--Assessee failing to produce books of account--Assessing Officer assessing income at 5 per cent. of gross receipts--Tribunal modifying to 4 per cent. of gross receipts--Justified--Assessment for previous year a guide not binding for subsequent years--Income-tax Act, 1961-- Arvind Baloni v. ITAT (P&H) . . . 589
Income-tax --General principles--Rule of consistency--Loss on sale of shares treated as business loss though stock of shares shown as investment--Assessment after enquiry--Different view not to be taken for subsequent year--Income-tax Act, 1961-- CIT v. Darius Pandole (Bom) . . . 485
Interest --Interest on excess refund--Provision not applicable prior to assessment year 2004-05--Income-tax Act, 1961, s. 234D-- Director of Income-tax v. Jacabs Civil Incorporated (Delhi) . . . 578
Interest on borrowed capital --Disallowance on ground that a part of amount given to subsidiary company--Revenue failing to establish that loan given for only personal purposes--Finding that interest not to be disallowed--Justified--Income-tax Act, 1961, ss. 36(1)(iii), 37-- CIT v. Dalmia Cement Bharat Ltd. (Delhi) . . . 595
Penalty --Assessee claiming revenue expenditure--Penalty imposed holding expenditure capital--Finding by Commissioner (Appeals) as well as Tribunal that issue debatable--Penalty not attracted--Income-tax Act, 1961, s. 271(1)(c)-- CIT v. Krishna Maruti Ltd. (Delhi) . . . 547
----Concealment of income--Assessee computing pre-operative expenses after deducting interest and showing in balance-sheet filed along with return of income--Assessing Officer holding that interest cannot be adjusted against pre-operative expenses--Not a case of concealment of income--Penalty cannot be imposed--Income-tax Act, 1961, s. 271(1)(c)-- CIT v. Mushashi Autoparts India P. Ltd. (Delhi) . . . 545
Reassessment --Unexplained money--Presumption that represents income of year in which found--Voluntary disclosure under 1997 Scheme of assets stated to be acquired in 1985-86 and 1986-87--Declaration becoming invalid for failure to pay tax--Reassessment for assessment year 1998-99 on basis of disclosure--Permissible--Income-tax Act, 1961, ss. 69A, 147, 148--Finance Act, 1997, ss 68, 71, 72-- CIT v. Prem Pal (P&H) . . . 499
Recovery of tax --Interest on delayed payment of tax--Waiver of interest--Conditions precedent--Conditions laid down in section 220(2A) are cumulative--Payment of interest whether would cause genuine hardship to assessee--Income of relevant period to be taken into account--Past liabilities not relevant--Finding that payment of interest would not cause genuine hardship--Refusal to waive interest--Justified--Income-tax Act, 1961, s. 220(2A)-- P. Sudhakaran v. Deputy CIT (Ker) . . . 488
----Interest--Waiver of interest--Law applicable--Section 220(2A) inserted with effect from 1-10-1984--Not applicable where assessments completed and demand notices issued before 1-10-1984--Writ petition challenging validity of provision--Failure to pay tax under disputed provision--Presumption of validity of provision--Provision subsequently held valid by Supreme Court--Levy of interest justified--Income-tax Act, 1961, s. 220(2A)-- Prakash Tubes Ltd. v. Union of India (Delhi) . . . 561
Rectification of mistakes --Loss--Set-off--Debatable issue not mistake apparent from record--Wrong allowance of set off of losses could not be rectified under section 154--Income-tax Act, 1961, ss. 143(3), 154, 158BC-- CIT v. Soora Subramanian (Mad) . . . 591
Revision --Limitation--Order of assessment subject of rectification--Notice for revision on issue not affected by rectification and referring to order of assessment--Limitation to be reckoned from date of assessment order, not date of rectification--Income-tax Act, 1961, ss. 143, 154, 263-- CIT v. Shriram Engineering Construction Co. Ltd . (Mad) . . . 568
Scrutiny of cases --Circular--Circular prescribing time limit of three months for scrutiny for returns filed in financial year 2004-05--Circular binding on Revenue authorities--CBDT Instruction No. 9 of 2004, dated September 20, 2004--Income-tax Act, 1961, s. 119-- Deputy CIT v. Sunita Finlease Ltd. (Chhattisgarh) . . . 491
Search and seizure --Block assessment--Undisclosed income--Definition--No valid return of income filed by assessee for any of the years of block period--Response to notice issued under section 131 not disclosure for the purpose of Act--Onus on assessee to disclose undisclosed income by way of return before commencement of search--Block assessment on materials seized on search valid--Matter remanded--Income-tax Act, 1961, ss. 132, 158BB, 158BC, 158BD-- CIT v. Sivabala Devi (Mad) . . . 510
----Block assessment--Warrant of authorisation issued in joint names of husband and wife--Individual assessment on wife alone--Not valid--Income-tax Act, 1961, s. 158BC-- CIT v. Smt. Vandana Verma (All) . . . 533
SECTIONWISE INDEX TO CASES REPORTED IN THIS PART
Ss. 68, 71, 72 --Reassessment--Unexplained money--Presumption that represents income of year in which found--Voluntary disclosure under 1997 Scheme of assets stated to be acquired in 1985-86 and 1986-87--Declaration becoming invalid for failure to pay tax--Reassessment for assessment year 1998-99 on basis of disclosure--Permissible-- CIT v. Prem Pal (P&H) . . . 499
S. 14A --Deductions--Law applicable--Section 14A prohibiting deduction of expenses relating to non-taxable income--Circular of CBDT dated 23-7-2001 stating that concluded assessments could not be reopened for purposes of section 14A--Meaning of "concluded assessment"--Assessment which could be modified by higher authority not a concluded assessment till expiry of time-limit for such modification--Assessment order remanded for modification in appeal--Subsequent revision of order--Permissible--CBDT Circular 11 dated 23-7-2001 (250 ITR (St.) 84)-- Catholic Syrian Bank Ltd . v. CIT (Ker) . . . 556
S. 36(1)(iii) --Interest on borrowed capital--Disallowance on ground that a part of amount given to subsidiary company--Revenue failing to establish that loan given for only personal purposes--Finding that interest not to be disallowed--Justified-- CIT v. Dalmia Cement Bharat Ltd. (Delhi) . . . 595
S. 37 --Interest on borrowed capital--Disallowance on ground that a part of amount given to subsidiary company--Revenue failing to establish that loan given for only personal purposes--Finding that interest not to be disallowed--Justified-- CIT v. Dalmia Cement Bharat Ltd. (Delhi) . . . 595
S. 40A(2)(b) --Business expenditure--Disallowance--Excessive and unreasonable payments--Addition for purchases and sales made from sister concern--Finding by Commissioner (Appeals) as well as Tribunal as to genuineness of valuation in transaction between sister concerns not perverse--Findings of fact-- CIT v. Jyoti Industries (P&H) . . . 573
----Business expenditure--Disallowance--Excessive or unreasonable payments--Trade discount--Discount allowed to sister concern--Assessee claiming 11 per cent. on ground of bulk sales--Assessing Officer allowing 3 per cent., Commissioner (Appeals) enhancing to 8 per cent. while Tribunal reducing to 5 per cent.--Assessee allowed 11 per cent. in earlier years--Assessee entitled to 11 per cent.--Trade discount not an expendi-ture--Section 40A(2)(b) does not apply-- United Exports v. CIT (Delhi) . . . 549
S. 55A --Capital gains--Valuation of capital asset--Reference to Departmental Valuation Officer--Condition precedent--Opinion of Assessing Officer that value claimed is less than fair market value-- CIT v. Umedbhai International P. Ltd. (Cal) . . . 506
S. 68 --Cash credits--Burden of proof--Initial burden on assessee to prove identity of creditors--Burden then shifts to Revenue to prove credits were not genuine--Identity of applicants for shares and their PAN numbers furnished--Amounts received through account payee cheques--Inability to find a few applicants--Not sufficient to invoke section 68-- CIT v. Winstral Petrochemicals P. Ltd . (Delhi) . . . 603
S. 69A --Reassessment--Unexplained money--Presumption that represents income of year in which found--Voluntary disclosure under 1997 Scheme of assets stated to be acquired in 1985-86 and 1986-87--Declaration becoming invalid for failure to pay tax--Reassessment for assessment year 1998-99 on basis of disclosure--Permissible-- CIT v. Prem Pal (P&H) . . . 499
S. 119 --Circulars--Scope of-- Deputy CIT v. Sunita Finlease Ltd. (Chhattisgarh) . . . 491
----Scrutiny of cases--Circular--Circular prescribing time limit of three months for scrutiny for returns filed in financial year 2004-05--Circular binding on Revenue authorities--CBDT Instruction No. 9 of 2004, dated September 20, 2004-- Deputy CIT v. Sunita Finlease Ltd. (Chhattisgarh) . . . 491
S. 132 --Search and seizure--Block assessment--Undisclosed income--Definition--No valid return of income filed by assessee for any of the years of block period--Response to notice issued under section 131 not disclosure for the purpose of Act--Onus on assessee to disclose undisclosed income by way of return before commencement of search--Block assessment on materials seized on search valid--Matter remanded-- CIT v. Sivabala Devi (Mad) . . . 510
S. 143 --Revision--Limitation--Order of assessment subject of rectification--Notice for revision on issue not affected by rectification and referring to order of assessment--Limitation to be reckoned from date of assessment order, not date of rectification-- CIT v. Shriram Engineering Construction Co. Ltd . (Mad) . . . 568
S. 143(3) --Rectification of mistakes--Loss--Set-off--Debatable issue not mistake apparent from record--Wrong allowance of set off of losses could not be rectified under section 154-- CIT v. Soora Subramanian (Mad) . . . 591
S. 147 --Reassessment--Unexplained money--Presumption that represents income of year in which found--Voluntary disclosure under 1997 Scheme of assets stated to be acquired in 1985-86 and 1986-87--Declaration becoming invalid for failure to pay tax--Reassessment for assessment year 1998-99 on basis of disclosure--Permissible-- CIT v. Prem Pal (P&H) . . . 499
S. 148 --Reassessment--Unexplained money--Presumption that represents income of year in which found--Voluntary disclosure under 1997 Scheme of assets stated to be acquired in 1985-86 and 1986-87--Declaration becoming invalid for failure to pay tax--Reassessment for assessment year 1998-99 on basis of disclosure--Permissible-- CIT v. Prem Pal (P&H) . . . 499
S. 154 --Rectification of mistakes--Loss--Set-off--Debatable issue not mistake apparent from record--Wrong allowance of set off of losses could not be rectified under section 154-- CIT v. Soora Subramanian (Mad) . . . 591
----Revision--Limitation--Order of assessment subject of rectification--Notice for revision on issue not affected by rectification and referring to order of assessment--Limitation to be reckoned from date of assessment order, not date of rectification-- CIT v. Shriram Engineering Construction Co. Ltd . (Mad) . . . 568
S. 158BB --Search and seizure--Block assessment--Undisclosed income--Definition--No valid return of income filed by assessee for any of the years of block period--Response to notice issued under section 131 not disclosure for the purpose of Act--Onus on assessee to disclose undisclosed income by way of return before commencement of search--Block assessment on materials seized on search valid--Matter remanded-- CIT v. Sivabala Devi (Mad) . . . 510
S. 158BC --Rectification of mistakes--Loss--Set-off--Debatable issue not mistake apparent from record--Wrong allowance of set off of losses could not be rectified under section 154-- CIT v. Soora Subramanian (Mad) . . . 591
----Search and seizure--Block assessment--Undisclosed income--Definition--No valid return of income filed by assessee for any of the years of block period--Response to notice issued under section 131 not disclosure for the purpose of Act--Onus on assessee to disclose undisclosed income by way of return before commencement of search--Block assessment on materials seized on search valid--Matter remanded-- CIT v. Sivabala Devi (Mad) . . . 510
----Search and seizure--Block assessment--Warrant of authorisation issued in joint names of husband and wife--Individual assessment on wife alone--Not valid-- CIT v. Smt. Vandana Verma (All) . . . 533
S. 158BD --Search and seizure--Block assessment--Undisclosed income--Definition--No valid return of income filed by assessee for any of the years of block period--Response to notice issued under section 131 not disclosure for the purpose of Act--Onus on assessee to disclose undisclosed income by way of return before commencement of search--Block assessment on materials seized on search valid--Matter remanded-- CIT v. Sivabala Devi (Mad) . . . 510
S. 192 --Deduction of tax at source--Salary--Effect of sub-section (3) of section 192--Default in deduction can be made up during financial year-- CIT v. Enron Expat Services Inc. (Uttarakhand) . . . 496
S. 201 --Advance tax--Interest--Non-resident--Entire income liable to deduction of tax at source--Assessee not liable for advance tax--Cannot be charged interest for failure to pay advance tax-- Director of Income-tax v. Jacabs Civil Incorporated (Delhi) . . . 578
----Deduction of tax at source--Salary--Effect of sub-section (3) of section 192--Default in deduction can be made up during financial year-- CIT v. Enron Expat Services Inc. (Uttarakhand) . . . 496
S. 209 --Advance tax--Interest--Non-resident--Entire income liable to deduction of tax at source--Assessee not liable for advance tax--Cannot be charged interest for failure to pay advance tax-- Director of Income-tax v. Jacabs Civil Incorporated (Delhi) . . . 578
S. 220(2A) --Recovery of tax--Interest on delayed payment of tax--Waiver of interest--Conditions precedent--Conditions laid down in section 220(2A) are cumulative--Payment of interest whether would cause genuine hardship to assessee--Income of relevant period to be taken into account--Past liabilities not relevant--Finding that payment of interest would not cause genuine hardship--Refusal to waive interest--Justified-- P. Sudhakaran v. Deputy CIT (Ker) . . . 488
----Recovery of tax--Interest--Waiver of interest--Law applicable--Section 220(2A) inserted with effect from 1-10-1984--Not applicable where assessments completed and demand notices issued before 1-10-1984--Writ petition challenging validity of provision--Failure to pay tax under disputed provision--Presumption of validity of provision--Provision subsequently held valid by Supreme Court--Levy of interest justified-- Prakash Tubes Ltd. v. Union of India (Delhi) . . . 561
S. 234B --Advance tax--Interest--Non-resident--Entire income liable to deduction of tax at source--Assessee not liable for advance tax--Cannot be charged interest for failure to pay advance tax-- Director of Income-tax v. Jacabs Civil Incorporated (Delhi) . . . 578
S. 234D --Interest--Interest on excess refund--Provision not applicable prior to assessment year 2004-05-- Director of Income-tax v. Jacabs Civil Incorporated (Delhi) . . . 578
S. 263 --Revision--Limitation--Order of assessment subject of rectification--Notice for revision on issue not affected by rectification and referring to order of assessment--Limitation to be reckoned from date of assessment order, not date of rectification-- CIT v. Shriram Engineering Construction Co. Ltd . (Mad) . . . 568
S. 271(1)(c) --Penalty--Assessee claiming revenue expenditure--Penalty imposed holding expenditure capital--Finding by Commissioner (Appeals) as well as Tribunal that issue debatable--Penalty not attracted-- CIT v. Krishna Maruti Ltd. (Delhi) . . . 547
----Penalty--Concealment of income--Assessee computing pre-operative expenses after deducting interest and showing in balance-sheet filed along with return of income--Assessing Officer holding that interest cannot be adjusted against pre-operative expenses--Not a case of concealment of income--Penalty cannot be imposed-- CIT v. Mushashi Autoparts India P. Ltd. (Delhi) . . . 545
ITR'S TRIBUNAL TAX REPORTS (ITR (TRIB))
Volume 7 : Part 5 (Issue dated : 31-1-2011)
SUBJECT INDEX TO CASES REPORTED IN THIS PART
Appeal to Appellate Tribunal --Jurisdiction--Restricted to subject-matter of appeal --Not confined to grounds raised in appeal--Decision on any other ground may be given after affording an opportunity to affected party--Income-tax Act, 1961, s. 254--Income-tax (Appellate Tribunal) Rules, 1963, r. 11--J oint CIT v. Reuters Ltd. (Mumbai) . . . 422
----Powers--Ground not set forth in appeal--Ground regarding existence of permanent establishment--No definite finding--Non-resident and Indian company whether associated enterprises--Deputation of employee of non-resident to Indian company to render services whether indication of Indian company service permanent establishment of non-resident--Plea within parameters of grounds of appeal to Tribunal--Matter remanded--Double Taxation Avoidance Agreement between India and the U. K. art. 5(2)(k), (5)-- Joint CIT v. Reuters Ltd. (Mumbai) . . . 422
Assessment --Estimation of income--Gross profit rate--Rejection of books of account--Additions on basis of books of account arbitrary--Assessing Officer estimating income on basis of gross profit rate--Justified--Income-tax Act, 1961-- Asst. CIT v. Lakshmi Industries (Chennai) . . . 495
Capital gains --Computation of capital gains--Assessees acquiring property by inheritance--Indexation to be with reference to year in which previous owner acquired asset--Property acquired by previous owner prior to 1-4-1981--Cost inflation index relating to financial year 1981-82 to be adopted--Income-tax Act, 1961, s. 2(42A), Expln. 1(b)-- M. Siva Parvathi v. ITO (Visakhapatnam) . . . 468
----Computation of capital gains--Deductions--Sale of house property acquired by inheritance--Payment made to persons claiming to be legal heirs--Expenditure incurred in removing encumbrance to transfer--Payments to tenants--Deductible--Income-tax Act, 1961-- M. Siva Parvathi v. ITO (Visakhapatnam) . . . 468
----Computation of capital gains--Property acquired by inheritance--Agreement to sell entered into prior to introduction of section 50C--Delay in registering sale deed due to genuine reasons--Completion of transaction after introduction of section 50C--Section 50C not applicable--Income-tax Act, 1961, s. 50C-- M. Siva Parvathi v. ITO (Visakhapatnam) . . . 468
----Exemption--Investment of net consideration in construction of "a residential house" and purchase of flat--Exemption restricted to investment in construction of residential house--Income-tax Act, 1961, s. 54-- M. Siva Parvathi v. ITO (Visakhapatnam) . . . 468
Deduction of tax at source --Works contract--Film finance--Assessee advancing money for production of film--Amount recoverable from producer of film--Assessee given certain rights--Agreement did not result in works contract--Assessee not liable to deduct tax at source on advances--Income-tax Act, 1961, s. 194C-- Muktha Arts v. Asst. CIT (Mumbai) . . . 517
Export --New industrial undertaking engaged in export--Deduction of 100 per cent. profits under section 10B--Assessee manufacturing and exporting garments--Forward contracts to protect sales from exchange fluctuations--Transaction speculative in character--Profits from forward contracts derived from speculation business--Not entitled to deduction under section 10B--Income-tax Act, 1961, ss. 10B, 28, Expln. 2-- Asst. CIT v. K. Mohan and Co. (Exports) P. Ltd. (Bangalore) . . . 507
Penalty --Concealment of income--Assessee agreeing to addition of unexplained credit on realising creditor will not co-operate--All details regarding identity of creditor and genuineness of transaction furnished by assessee--Failure to produce creditor to prove transaction to satisfaction of Assessing Officer--Imposition of penalty not justified--Income-tax Act, 1961, s. 271(1)(c)-- New Raja Jewellery v. ITO (Chennai) . . . 459
----Concealment of income--Disallowance of deductions on software expenditure and meal expenses accepted by assessee--Penalty cannot be imposed merely because assessee allowed matter to attain finality--Income-tax Act, 1961, s. 271(1)(c)-- Deputy CIT v. Boston Consulting Group (India) P. Ltd. (Mumbai) . . . 417
Revision --Commissioner--Show-cause notice by Income-tax Officer on proposal by Joint Commissioner--Assessment order not examined prior to initiation of revision proceedings--No application of mind by Commissioner--Revision order void ab initio--Income-tax Act, 1961, s. 263-- Jheendu Ram v. CIT (Lucknow) . . . 463
Search and seizure --Block assessment--Scope of section 158BC--Assessing Officer acquires jurisdiction to initiate block assessment only on issue of notice--Notice not mere procedural requirement--Notice to be issued by registered post acknowledgment due--Return to be filed thereafter--Income-tax Act, 1961, s. 158BC-- Asst. CIT v. Lakshmi Industries (Chennai) . . . 495
----Block assessment--Validity--Notice--Service of notice--No material to prove notice served on assessee--Failure on part of Department to issue notice despite information regarding non-receipt of notice by assessee--Expiry of time to issue notice when assessee filed return--Proceedings null and void ab initio--Income-tax Act, 1961, s. 158BC-- Asst. CIT v. Lakshmi Industries (Chennai) . . . 495
----Undisclosed income--Investments in power looms, rental income from hiring of looms and unexplained loans--Investments made prior to 1999--Addition cannot be made in 2002-03--Gross monthly rent of power loom determined based on seized material--Twenty per cent. deduction allowable on expenses incurred--Cash flow statement with regard to loans not properly considered by Assessing Officer--Matter remanded--Income-tax Act, 1961, s. 69-- Masoomkhan Shabbirkhan Pathan v. Deputy CIT (Mumbai) . . . 443
Words and phrases --"Thereon", "Pass such orders as Tribunal thinks fit"-- Joint CIT v. Reuters Ltd. (Mumbai) . . . 422
SECTIONWISE INDEX TO CASES REPORTED IN THIS PART
Double Taxation Avoidance Agreement between India and the U. K. :
Art. 5(2)(k), (5) --Appeal to Appellate Tribunal--Powers--Ground not set forth in appeal--Ground regarding existence of permanent establishment--No definite finding--Non-resident and Indian company whether associated enterprises--Deputation of employee of non-resident to Indian company to render services whether indication of Indian company service permanent establishment of non-resident--Plea within parameters of grounds of appeal to Tribunal--Matter remanded-- Joint CIT v. Reuters Ltd. (Mumbai) . . . 422
Income-tax (Appellate Tribunal) Rules, 1963 :
R. 11 --Appeal to Appellate Tribunal--Jurisdiction--Restricted to subject-matter of appeal--Not confined to grounds raised in appeal--Decision on any other ground may be given after affording an opportunity to affected party--J oint CIT v. Reuters Ltd. (Mumbai) . . . 422
S. 2(42A), Expln. 1(b) --Capital gains--Computation of capital gains--Assessees acquiring property by inheritance--Indexation to be with reference to year in which previous owner acquired asset--Property acquired by previous owner prior to 1-4-1981--Cost inflation index relating to financial year 1981-82 to be adopted-- M. Siva Parvathi v. ITO (Visakhapatnam) . . . 468
S. 10B --Export--New industrial undertaking engaged in export--Deduction of 100 per cent. profits under section 10B--Assessee manufacturing and exporting garments--Forward contracts to protect sales from exchange fluctuations--Transaction speculative in character--Profits from forward contracts derived from speculation business--Not entitled to deduction under section 10B-- Asst. CIT v. K. Mohan and Co. (Exports) P. Ltd. (Bangalore) . . . 507
S. 28, Expln. 2 --Export--New industrial undertaking engaged in export--Deduction of 100 per cent. profits under section 10B--Assessee manufacturing and exporting garments--Forward contracts to protect sales from exchange fluctuations--Transaction speculative in character--Profits from forward contracts derived from speculation business--Not entitled to deduction under section 10B-- Asst. CIT v. K. Mohan and Co. (Exports) P. Ltd. (Bangalore) . . . 507
S. 50C --Capital gains--Computation of capital gains--Property acquired by inheritance--Agreement to sell entered into prior to introduction of section 50C--Delay in registering sale deed due to genuine reasons--Completion of transaction after introduction of section 50C--Section 50C not applicable-- M. Siva Parvathi v. ITO (Visakhapatnam) . . . 468
S. 54 --Capital gains--Exemption--Investment of net consideration in construction of "a residential house" and purchase of flat--Exemption restricted to investment in construction of residential house-- M. Siva Parvathi v. ITO (Visakhapatnam) . . . 468
S. 69 --Search and seizure--Undisclosed income--Investments in power looms, rental income from hiring of looms and un-explained loans--Investments made prior to 1999--Addition cannot be made in 2002-03--Gross monthly rent of power loom determined based on seized material--Twenty per cent. deduction allowable on expenses incurred--Cash flow statement with regard to loans not properly considered by Assessing Officer--Matter remanded-- Masoomkhan Shabbirkhan Pathan v. Deputy CIT (Mumbai) . . . 443
S. 158BC --Search and seizure--Block assessment--Scope of section 158BC--Assessing Officer acquires jurisdiction to initiate block assessment only on issue of notice--Notice not mere procedural requirement--Notice to be issued by registered post acknowledgment due--Return to be filed thereafter-- Asst. CIT v. Lakshmi Industries (Chennai) . . . 495
----Search and seizure--Block assessment--Validity--Notice--Service of notice--No material to prove notice served on assessee--Failure on part of Department to issue notice despite information regarding non-receipt of notice by assessee--Expiry of time to issue notice when assessee filed return--Proceedings null and void ab initio-- Asst. CIT v. Lakshmi Industries (Chennai) . . . 495
S. 194C --Deduction of tax at source--Works contract--Film finance--Assessee advancing money for production of film--Amount recoverable from producer of film--Assessee given certain rights--Agreement did not result in works contract--Assessee not liable to deduct tax at source on advances-- Muktha Arts v. Asst. CIT (Mumbai) . . . 517
S. 254 --Appeal to Appellate Tribunal--Jurisdiction--Restricted to subject-matter of appeal --Not confined to grounds raised in appeal--Decision on any other ground may be given after affording an opportunity to affected party--J oint CIT v. Reuters Ltd. (Mumbai) . . . 422
S. 263 --Revision--Commissioner--Show-cause notice by Income-tax Officer on proposal by Joint Commissioner--Assessment order not examined prior to initiation of revision proceedings--No application of mind by Commissioner--Revision order void ab initio-- Jheendu Ram v. CIT (Lucknow) . . . 463
S. 271(1)(c) --Penalty--Concealment of income--Assessee agreeing to addition of unexplained credit on realising creditor will not co-operate--All details regarding identity of creditor and genuineness of transaction furnished by assessee--Failure to produce creditor to prove transaction to satisfaction of Assessing Officer--Imposition of penalty not justified-- New Raja Jewellery v. ITO (Chennai) . . . 459
----Penalty--Concealment of income--Disallowance of deductions on software expenditure and meal expenses accepted by assessee--Penalty cannot be imposed merely because assessee allowed matter to attain finality--Deputy CIT v. Boston Consulting Group (India) P. Ltd. (Mumbai) . . . 417
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