INCOME TAX REPORTS (ITR)
Volume 331 : Part 1 (Issue dated 14-2-2011)
SUBJECT INDEX TO CASES REPORTED IN THIS PART
Appeal to High Court --Death of assessee--No abatement of appeal--Code of Civil Procedure, 1908, O. XXII, rr. 4, 11--Income-tax Act, 1961, ss. 159, 260A-- CIT v. Smt. V. Rukmini (Karn) . . . 102
Capital gains --Exemption--Sale of agricultural land--Whether land agricultural--Finding of fact--Land shown in revenue records as agricultural and no permission taken by assessee for conversion of land use--That no agricultural income shown in return not material--Gains from sale exempt--Income-tax Act, 1961, s. 45-- CIT v. Smt. Debbie Alemao (Bom) . . . 59
Exemption --Newly established undertakings in free trade zone--Change in shareholding in newly established company--Law applicable--Explanation 1 to section 10A(9) inserted w.e.f 1-4-2000 does not have retrospective effect--Effect of amendment in section 86 of Companies Act w.e.f 13-12-2000--Promoters of company having 51 per cent. of voting power even after change in shareholding resulted in their having less than 50 per cent. of the shares--Assessee entitled to exemption under section 10A in assessment year 2001-02--Income-tax Act, 1961, s. 10A--Companies Act, 1956, s. 86-- Zycus Infotech P. Ltd . v. CIT (Bom) . . . 72
Export --Special deduction under section 80HHC--Computation of business profits--Scope of Explanation (baa) to section 80HHC--Assessee manufacturing and exporting goods--Fees received for developmental work from foreign company--Developmental work intimately connected with manufacture and sale of goods--Fees could not be deducted in computing business profits--Income-tax Act, 1961, s. 80HHC-- CIT v. Motor Industries Co. Ltd. (Karn) . . . 79
Firm --Assessment--Status of firm--Certified copy of partnership deed to be furnished if assessment was claimed in status of firm for any assessment year commencing from 1993-94, irrespective of whether assessee was assessed as firm up to 1993-94--Mandatory requirement--Assessing Officer to verify records to find out whether assessee produced certified copy of partnership deed when assessment was taken up and if so grant status as firm--If not, assessee not entitled to assessment as firm--Income-tax Act, 1961, ss. 184, 185-- Bhaskar and Co. v. CIT (Ker) . . . 90
Income --Accounting--Mercantile system of accounting--Accrual of income--Only if right to receive accrues--Coaching institute--Beauty and slimming institute--Fees for full course or package received in advance--Services thereagainst to be rendered in next financial year--Accounting Standard--Income not recognised unless services rendered--Income does not accrue--Income-tax Act, 1961, ss. 5(1)(b), 145--Accounting Standards 1, 9-- CIT v. Dinesh Kumar Goel (Delhi) . . . 10
----Accrual of income--Interest--Interest on enhanced compensation on acquisition of land--Assessee following cash system--To be taxed in the year of receipt--Income-tax Act, 1961, s. 45(5)(b)--Land Acquisition Act, 1894, s. 34-- CIT v. Smt. Burfi (P&H) . . . 1
Industrial undertaking --Special deduction--Manufacture or production of article--Article need not be final product--Mixing rubber with chemicals, process oil, etc. to make compound rubber for tyre manufacturing companies--Production of article--Assessee entitled to deduction--Income-tax Act, 1961, s. 80-IB-- Midas Polymer Compounds P. Ltd . v. Asst. CIT [FB] (Ker) . . . 68
----Special deduction--Profits of business--Interest on delayed payments for job work--Whether eligible for deduction--Only if assessed as business income--Matter remanded--Income-tax Act, 1961, s. 80-IB-- Midas Polymer Compounds P. Ltd. v. Asst. CIT [FB] (Ker) . . . 68
Interpretation of taxing statutes --Rule against retrospectivity-- Zycus Infotech P. Ltd . v. CIT (Bom) . . . 72
Loss --Carry forward and set off--Condition precedent--Failure to file return of loss within time allowed in section 139(3)--Loss cannot be carried forward and set off--Income-tax Act, 1961, ss. 80, 139-- Joginder Paul (HUF) v. CIT (P&H) . . . 31
"Manufacture" --Meaning of--Marble stones--Process starts from purchase of slab, cutting, polishing and various processes to make it marketable--Amounts to manufacturing process--Income-tax Act, 1961-- CIT v. Sophisticated Marbles and Granite Industries (Delhi) . . . 96
Offences and prosecution --Deduction of tax at source--Failure to deposit tax deducted at source to credit of Central Government--Company--Principal officer--Condition precedent for prosecution of director--Notice indicating intention to treat director as principal officer--Failure to issue such notice--Prosecution against director quashed--Income-tax Act, 1961, ss. 2(35), 276B-- ITO v. Delhi Iron Works (P) Ltd. (Delhi) . . . 5
Reassessment --Grounds for reassessment--Failure to disclose material facts necessary for assessment or information regarding escape of income from assessment--Company providing for depreciation in accounts--Change in method following amendment in Companies Act--Facts disclosed--Reassessment to re-compute depreciation--Not valid--Companies Act, 1956, Schs. VI, XIV--Income-tax Act, 1961, ss. 32, 115J, 147(a)-- Hind Syntex Ltd. v. CIT (MP) . . . 36
----Notice--Compulsory acquisition of land--Compensation--Enhancement of compensation--Non-disclosure of capital gains--Notice valid--Land Acquisition Act, 1894, s. 34 --Income-tax Act, 1961, ss. 147, 148-- Smt. Maya Rastogi v. CIT (All) . . . 116
----Notice--Limitation--Exclusion from limitation--Reassessment to give effect to finding or direction of appellate authority--No time limit applies but sanction of Joint Commissioner must be obtained--Income-tax Act, 1961, ss. 2(28C), 150, 151-- Smt. Maya Rastogi v. CIT (All) . . . 116
----Scope of provisions--Notice to reopen assessment to bring to tax income escaping assessment--Once assessment reopened, assessment to be made of such income and also any other which has escaped assessment--Income-tax Act, 1961, s. 147-- CIT v. Best Wood Industries and Saw Mills [FB] (Ker) . . . 63
Return --Return of loss--Condonation of delay--Central Board of Direct Taxes--Power to condone delay to avoid genuine hardship to assessee--State Electricity Board having loss of Rs. 1,500 crores--Delay in filing return owing to bifurcation of State--Genuine hardship if loss not carried forward--CBDT ought to have considered assessee's explanation--Matter remanded--Income-tax Act, 1961, ss. 119(2)(b), 139(3)-- Madhya Pradesh State Electricity Board v. Union of India (MP) . . . 50
Words and phrases --"Accrual"--Meaning of-- CIT v. Dinesh Kumar Goel (Delhi) . . . 10
SECTIONWISE INDEX TO CASES REPORTED IN THIS PART
Code of Civil Procedure, 1908 :
O. XXII, rr. 4, 11 --Appeal to High Court--Death of assessee--No abatement of appeal-- CIT v. Smt. V. Rukmini (Karn) . . . 102
S. 86 --Exemption--Newly established undertakings in free trade zone--Change in shareholding in newly established company--Law applicable--Explanation 1 to section 10A(9) inserted w.e.f 1-4-2000 does not have retrospective effect--Effect of amendment in section 86 of Companies Act w.e.f 13-12-2000--Promoters of company having 51 per cent. of voting power even after change in shareholding resulted in their having less than 50 per cent. of the shares--Assessee entitled to exemption under section 10A in assessment year 2001-02-- Zycus Infotech P. Ltd . v. CIT (Bom) . . . 72
Schs. VI, XIV --Reassessment--Grounds for reassessment--Failure to disclose material facts necessary for assessment or information regarding escape of income from assessment--Company providing for depreciation in accounts--Change in method following amendment in Companies Act--Facts disclosed--Reassessment to re-compute depreciation--Not valid-- Hind Syntex Ltd. v. CIT (MP) . . . 36
S. 2(28C) --Reassessment--Notice--Limitation--Exclusion from limitation--Reassess-ment to give effect to finding or direction of appellate authority--No time limit applies but sanction of Joint Commissioner must be obtained-- Smt. Maya Rastogi v. CIT (All) . . . 116
S. 2(35) --Offences and prosecution--Deduction of tax at source--Failure to deposit tax deducted at source to credit of Central Government--Company--Principal officer--Condition precedent for prosecution of director--Notice indicating intention to treat director as principal officer--Failure to issue such notice--Prosecution against director quashed-- ITO v. Delhi Iron Works (P) Ltd. (Delhi) . . . 5
S. 5(1)(b) --Income--Accounting--Mercantile system of accounting--Accrual of income--Only if right to receive accrues--Coaching institute--Beauty and slimming institute--Fees for full course or package received in advance--Services thereagainst to be rendered in next financial year--Accounting Standard--Income not recognised unless services rendered--Income does not accrue--Accounting Standards 1, 9-- CIT v. Dinesh Kumar Goel (Delhi) . . . 10
S. 10A --Exemption--Newly established undertakings in free trade zone--Change in shareholding in newly established company--Law applicable--Explanation 1 to section 10A(9) inserted w.e.f 1-4-2000 does not have retrospective effect--Effect of amendment in section 86 of Companies Act w.e.f 13-12-2000--Promoters of company having 51 per cent. of voting power even after change in shareholding resulted in their having less than 50 per cent. of the shares--Assessee entitled to exemption under section 10A in assessment year 2001-02-- Zycus Infotech P. Ltd . v. CIT (Bom) . . . 72
S. 32 --Reassessment--Grounds for reassessment--Failure to disclose material facts necessary for assessment or information regarding escape of income from assessment--Company providing for depreciation in accounts--Change in method following amendment in Companies Act--Facts disclosed--Reassessment to re-compute depreciation--Not valid-- Hind Syntex Ltd. v. CIT (MP) . . . 36
S. 45 --Capital gains--Exemption--Sale of agricultural land--Whether land agricultural--Finding of fact--Land shown in revenue records as agricultural and no permission taken by assessee for conversion of land use--That no agricultural income shown in return not material--Gains from sale exempt-- CIT v. Smt. Debbie Alemao (Bom) . . . 59
S. 45(5)(b) --Income--Accrual of income--Interest--Interest on enhanced compensation on acquisition of land--Assessee following cash system--To be taxed in the year of receipt-- CIT v. Smt. Burfi (P&H) . . . 1
S. 80 --Loss--Carry forward and set off--Condition precedent--Failure to file return of loss within time allowed in section 139(3)--Loss cannot be carried forward and set off-- Joginder Paul (HUF) v. CIT (P&H) . . . 31
S. 80HHC --Export--Special deduction under section 80HHC--Computation of business profits--Scope of Explanation (baa) to section 80HHC--Assessee manufacturing and exporting goods--Fees received for developmental work from foreign company--Developmental work intimately connected with manufacture and sale of goods--Fees could not be deducted in computing business profits-- CIT v. Motor Industries Co. Ltd. (Karn) . . . 79
S. 80-IB --Industrial undertaking--Special deduction--Manufacture or production of article--Article need not be final product--Mixing rubber with chemicals, process oil, etc. to make compound rubber for tyre manufacturing companies--Production of article--Assessee entitled to deduction-- Midas Polymer Compounds P. Ltd . v. Asst. CIT [FB] (Ker) . . . 68
----Industrial undertaking--Special deduction--Profits of business--Interest on delayed payments for job work--Whether eligible for deduction--Only if assessed as business income--Matter remanded-- Midas Polymer Compounds P. Ltd. v. Asst. CIT [FB] (Ker) . . . 68
S. 115J --Reassessment--Grounds for reassessment--Failure to disclose material facts necessary for assessment or information regarding escape of income from assessment--Company providing for depreciation in accounts--Change in method following amendment in Companies Act--Facts disclosed--Reassessment to re-compute depreciation--Not valid-- Hind Syntex Ltd. v. CIT (MP) . . . 36
S. 119(2)(b) --Return--Return of loss--Condonation of delay--Central Board of Direct Taxes--Power to condone delay to avoid genuine hardship to assessee--State Electricity Board having loss of Rs. 1,500 crores--Delay in filing return owing to bifurcation of State--Genuine hardship if loss not carried forward--CBDT ought to have considered assessee's explanation--Matter remanded-- Madhya Pradesh State Electricity Board v. Union of India (MP) . . . 50
S. 139 --Loss--Carry forward and set off--Condition precedent--Failure to file return of loss within time allowed in section 139(3)--Loss cannot be carried forward and set off-- Joginder Paul (HUF) v. CIT (P&H) . . . 31
S. 139(3) --Return--Return of loss--Condonation of delay--Central Board of Direct Taxes--Power to condone delay to avoid genuine hardship to assessee--State Electricity Board having loss of Rs. 1,500 crores--Delay in filing return owing to bifurcation of State--Genuine hardship if loss not carried forward--CBDT ought to have considered assessee's explanation--Matter remanded-- Madhya Pradesh State Electricity Board v. Union of India (MP) . . . 50
S. 145 --Income--Accounting--Mercantile system of accounting--Accrual of income--Only if right to receive accrues--Coaching institute--Beauty and slimming institute--Fees for full course or package received in advance--Services thereagainst to be rendered in next financial year--Accounting Standard--Income not recognised unless services rendered--Income does not accrue--Accounting Standards 1, 9-- CIT v. Dinesh Kumar Goel (Delhi) . . . 10
S. 147 --Reassessment--Notice--Compulsory acquisition of land--Compensation--Enhancement of compensation--Non-disclosure of capital gains--Notice valid-- Smt. Maya Rastogi v. CIT (All) . . . 116
----Reassessment--Scope of provisions--Notice to reopen assessment to bring to tax income escaping assessment--Once assessment reopened, assessment to be made of such income and also any other which has escaped assessment-- CIT v. Best Wood Industries and Saw Mills [FB] (Ker) . . . 63
S. 147(a) --Reassessment--Grounds for reassessment--Failure to disclose material facts necessary for assessment or information regarding escape of income from assessment--Company providing for depreciation in accounts--Change in method following amendment in Companies Act--Facts disclosed--Reassessment to re-compute depreciation--Not valid-- Hind Syntex Ltd. v. CIT (MP) . . . 36
S. 148 --Reassessment--Notice--Compulsory acquisition of land--Compensation--Enhancement of compensation--Non-disclosure of capital gains--Notice valid-- Smt. Maya Rastogi v. CIT (All) . . . 116
S. 150 --Reassessment--Notice--Limitation--Exclusion from limitation--Reassessment to give effect to finding or direction of appellate authority--No time limit applies but sanction of Joint Commissioner must be obtained-- Smt. Maya Rastogi v. CIT (All) . . . 116
S. 151 --Reassessment--Notice--Limitation--Exclusion from limitation--Reassessment to give effect to finding or direction of appellate authority--No time limit applies but sanction of Joint Commissioner must be obtained-- Smt. Maya Rastogi v. CIT (All) . . . 116
S. 159 --Appeal to High Court--Death of assessee--No abatement of appeal-- CIT v. Smt. V. Rukmini (Karn) . . . 102
S. 184 --Firm--Assessment--Status of firm--Certified copy of partnership deed to be furnished if assessment was claimed in status of firm for any assessment year commencing from 1993-94, irrespective of whether assessee was assessed as firm up to 1993-94--Mandatory requirement--Assessing Officer to verify records to find out whether assessee produced certified copy of partnership deed when assessment was taken up and if so grant status as firm--If not, assessee not entitled to assessment as firm-- Bhaskar and Co. v. CIT (Ker) . . . 90
S. 185 --Firm--Assessment--Status of firm--Certified copy of partnership deed to be furnished if assessment was claimed in status of firm for any assessment year commencing from 1993-94, irrespective of whether assessee was assessed as firm up to 1993-94--Mandatory requirement--Assessing Officer to verify records to find out whether assessee produced certified copy of partnership deed when assessment was taken up and if so grant status as firm--If not, assessee not entitled to assessment as firm-- Bhaskar and Co. v. CIT (Ker) . . . 90
S. 260A --Appeal to High Court--Death of assessee--No abatement of appeal-- CIT v. Smt. V. Rukmini (Karn) . . . 102
S. 276B --Offences and prosecution--Deduction of tax at source--Failure to deposit tax deducted at source to credit of Central Government--Company--Principal officer--Condition precedent for prosecution of director--Notice indicating intention to treat director as principal officer--Failure to issue such notice--Prosecution against director quashed-- ITO v. Delhi Iron Works (P) Ltd. (Delhi) . . . 5
S. 34 --Income--Accrual of income--Interest--Interest on enhanced compensation on acquisition of land--Assessee following cash system--To be taxed in the year of receipt-- CIT v. Smt. Burfi (P&H) . . . 1
----Reassessment--Notice--Compulsory acquisition of land--Compensation--Enhancement of compensation--Non-disclosure of capital gains--Notice valid-- Smt. Maya Rastogi v. CIT (All) . . . 116
ITR'S TRIBUNAL TAX REPORTS (ITR (TRIB))
Volume 7 : Part 7 (Issue dated : 14-2-2011)
SUBJECT INDEX TO CASES REPORTED IN THIS PART
Assessment --Estimation of trading income--Application of gross profit rate at 14 per cent. without reason--Direction to Assessing Officer to apply 13 per cent. gross profit rate agreed to by assessee proper--Income-tax Act, 1961-- ITO v . Nitesh Maheshwari (Jaipur) . . . 645
----Reference to Valuation Officer--Investment in construction of house--Investment disclosed in books of account--Expenditure proved by vouchers--Reference to Valuation Officer without rejecting books of account or pointing out defects in books of account--Not proper--Addition on basis of higher value adopted by Valuation Officer not justified--Section 142A not applicable--Direction to allow deduction of 20 per cent. of CPWD rates and 12 per cent. for self supervision proper--Income-tax Act, 1961, s. 143 -- ITO v. Nitesh Maheshwari (Jaipur) . . . 645
Best judgment assessment --Enhancement of turnover--Disallowance of sundry credits--Disallowance of cutting expenses--Disallowance without material--Entire income of assessee subject to deduction--Disallowances deleted-- ITO v. Smt. Asha Mittal (Jaipur) . . . 633
Business income --Deemed profits--Cessation of liability--No deduction in earlier year on account of interest allowed--Addition to be deleted--Income-tax Act, 1961, s. 41(1)-- Asst. CIT v. Rollatainers Ltd. (Delhi) . . . 665
Capital asset --Depreciation--Toll road constructed by assessee on "build, own, operate and transfer" basis--Assessee constructing road in course of carrying out its business activities--Is an asset owned by assessee--Assessee entitled to depreciation--Income-tax Act, 1961, s. 32-- Gujarat Road and Infrastructure Co. Ltd. v. CIT (Ahmedabad) . . . 730
Capital gains --Exemption--Investment of gains in residential house--Assessee purchasing ground floor and first floor in two deeds on two consecutive days--Whole constituting single residential unit--Assessee entitled to deduction--Income-tax Act, 1961, s. 54F-- Asst. CIT v. Sudha Gurtoo (Delhi) . . . 653
----Long-term capital gains--Assessee entering into agreement to purchase property in adverse possession of tenant obtaining possession from tenant after payment under consent terms--Assessee deemed to be holding ownership rights in property from date of agreement not date of obtaining possession--Indexation to be allowed from that date--Income-tax Act, 1961, ss. 2(42A), 45-- Ms. Nita A. Patel v. ITO (Mumbai) . . . 659
Deduction of tax at source --Commission--Assessee, a Government undertaking, engaged in extraction of iron ore--Assessee disentitled to export iron ore with iron content of sixty-four per cent. and above in terms of Exim Policy--Export of iron ore by MMTC not on behalf of assessee but on principal to principal basis--Agreement between assessee and exporter not deciding factor of nature of transaction--Payment to MMTC not commission--Assessee not liable to deduct tax at source--Income-tax Act, 1961, ss. 194H, 201, (1A)-- NMDC Ltd. v. Asst. CIT (TDS) (Visakhapatnam) . . . 690
Exemption --Educational institution--Condition that institution should be "financed by Government"--State legislation providing for compulsory contributions by member societies to education fund set apart as source of finance for educational institution promoting co-operative movement in India--Finance received by co-operative society from members in accordance with State legislation--Constitutes indirect financing by Government--Educational institution entitled to exemption--Maharashtra State Co-operative Societies Act, 1960, s. 68--Income-tax Act, 1961, s. 10(23C)(iiiab)-- Maharashtra Rajya Sahakari Sangh Maryadit v. ITO (Pune) . . . 675
----Local authority--District rural development agency--Notified area created by State Government under Gujarat Industrial Development Act for industrial development --Self-governing institutions--Powers of notified area equivalent to that of other municipal bodies--Notified area governed by Gujarat Municipalities Act--Notified area deemed municipality and local authority--Exemption to be allowed--Constitution of India, art. 243Q--Income-tax Act, 1961, s. 10(20)--Gujarat Industrial Development Act, 1962, s. 16--Gujarat Municipalities Act, 1963, ss. 264A, 264B-- ITO v. Sachin Notified Area (Ahmedabad) . . . 699
Industrial undertaking --Special deduction--Manufacture--Sawing, cutting and sizing of marble blocks--Is manufacture--Assessee entitled to deduction--Income-tax Act, 1961, s. 80-IB-- ITO v. Smt. Asha Mittal (Jaipur) . . . 633
Loss --Set off and carry forward--Amalgamation of companies--To be decided at time of allowance of loss--Income-tax Act, 1961, s. 72A-- Gujarat Road and Infrastructure Co. Ltd. v. CIT (Ahmedabad) . . . 730
Penalty --Furnishing of inaccurate particulars of income--Assessee reporting profit as loss deliberately--Explanation that mistake of reporting profit as loss due to inadvertent error in operating formula--Error not rectified despite notice--Discrepancies in book profit, audited report--Case of furnishing in-accurate particulars of income--Penalty exigible--Income-tax Act, 1961, s. 271(1)(c)-- Deputy CIT v. Terra Energy Ltd. (Chennai) . . . 711
Reassessment --Industrial undertaking--Special deduction--Deduction allowed for two earlier years--Notice for reassessment based on Supreme Court decision--Permissible--Income-tax Act, 1961, ss. 80-IB, 147, 148-- ITO v. Smt. Asha Mittal (Jaipur) . . . 633
----Validity--Commissioner (Appeals) holding re-opening was on change of opinion --Bound to hold reassessment invalid--Income-tax Act, 1961, s. 148-- Asst. CIT v. Rollatainers Ltd. (Delhi) . . . 665
Revision --Commissioner--Direction to Assessing Officer to verify expenses on road overlay and renewal expenses--Not warranted--Income-tax Act, 1961, s. 263-- Gujarat Road and Infrastructure Co. Ltd. v. CIT (Ahmedabad) . . . 730
----Commissioner--Failure by Assessing Officer to make enquiry with regard to deduction claimed--Assessment order prejudicial to interests of Revenue--Matter remanded--Income-tax Act, 1961, ss. 10A, 263-- TCE Consulting Engineers Ltd. v. Addl. CIT (Mumbai) . . . 718
Words and phrases --"Held"-- Ms. Nita A. Patel v. ITO (Mumbai) . . . 659
----"Building"-- Gujarat Road and Infrastructure Co. Ltd. v. CIT (Ahmedabad) . . . 730
SECTIONWISE INDEX TO CASES REPORTED IN THIS PART
Art. 243Q --Exemption--Local authority--District rural development agency--Notified area created by State Government under Gujarat Industrial Development Act for industrial development--Self-governing institutions--Powers of notified area equivalent to that of other municipal bodies--Notified area governed by Gujarat Municipalities Act --Notified area deemed municipality and local authority--Exemption to be allowed-- ITO v. Sachin Notified Area (Ahmedabad) . . . 699
Gujarat Industrial Development Act, 1962 :
S. 16 --Exemption--Local authority--District rural development agency--Notified area created by State Government under Gujarat Industrial Development Act for industrial development--Self-governing institutions--Powers of notified area equivalent to that of other municipal bodies--Notified area governed by Gujarat Municipalities Act--Notified area deemed municipality and local authority--Exemption to be allowed-- ITO v. Sachin Notified Area (Ahmedabad) . . . 699
Gujarat Municipalities Act, 1963 :
Ss. 264A, 264B --Exemption--Local authority--District rural development agency--Notified area created by State Government under Gujarat Industrial Development Act for industrial development --Self-governing institutions--Powers of notified area equivalent to that of other municipal bodies--Notified area governed by Gujarat Municipalities Act --Notified area deemed municipality and local authority--Exemption to be allowed-- ITO v. Sachin Notified Area (Ahmedabad) . . . 699
S. 2(42A) --Capital gains--Long-term capital gains--Assessee entering into agreement to purchase property in adverse possession of tenant obtaining possession from tenant after payment under consent terms--Assessee deemed to be holding ownership rights in property from date of agreement not date of obtaining possession--Indexation to be allowed from that date-- Ms. Nita A. Patel v. ITO (Mumbai) . . . 659
S. 10(20) --Exemption--Local authority--District rural development agency--Notified area created by State Government under Gujarat Industrial Development Act for industrial development--Self-governing institutions--Powers of notified area equivalent to that of other municipal bodies--Notified area governed by Gujarat Municipalities Act --Notified area deemed municipality and local authority--Exemption to be allowed-- ITO v. Sachin Notified Area (Ahmedabad) . . . 699
S. 10(23C)(iiiab) --Exemption--Educational institution--Condition that institution should be "financed by Government"--State legislation providing for compulsory contributions by member societies to education fund set apart as source of finance for educational institution promoting co-operative movement in India--Finance received by co-operative society from members in accordance with State legislation--Constitutes indirect financing by Government--Educational institution entitled to exemption-- Maharashtra Rajya Sahakari Sangh Maryadit v. ITO (Pune) . . . 675
S. 10A --Revision--Commissioner--Failure by Assessing Officer to make enquiry with regard to deduction claimed--Assessment order prejudicial to interests of Revenue --Matter remanded-- TCE Consulting Engineers Ltd. v. Addl. CIT (Mumbai) . . . 718
S. 32 --Capital asset--Depreciation--Toll road constructed by assessee on "build, own, operate and transfer" basis--Assessee constructing road in course of carrying out its business activities--Is an asset owned by assessee--Assessee entitled to depreciation -- Gujarat Road and Infrastructure Co. Ltd. v. CIT (Ahmedabad) . . . 730
S. 41(1) --Business income--Deemed profits--Cessation of liability--No deduction in earlier year on account of interest allowed--Addition to be deleted-- Asst. CIT v. Rollatainers Ltd. (Delhi) . . . 665
S. 45 --Capital gains--Long-term capital gains--Assessee entering into agreement to purchase property in adverse possession of tenant obtaining possession from tenant after payment under consent terms--Assessee deemed to be holding ownership rights in property from date of agreement not date of obtaining possession--Indexation to be allowed from that date-- Ms. Nita A. Patel v. ITO (Mumbai) . . . 659
S. 54F --Capital gains--Exemption--Investment of gains in residential house--Assessee purchasing ground floor and first floor in two deeds on two consecutive days--Whole constituting single residential unit--Assessee entitled to deduction-- Asst. CIT v. Sudha Gurtoo (Delhi) . . . 653
S. 72A --Loss--Set off and carry forward--Amalgamation of companies--To be decided at time of allowance of loss-- Gujarat Road and Infrastructure Co. Ltd. v. CIT (Ahmedabad) . . . 730
S. 80-IB --Industrial undertaking--Special deduction--Manufacture--Sawing, cutting and sizing of marble blocks--Is manufacture--Assessee entitled to deduction-- ITO v. Smt. Asha Mittal (Jaipur) . . . 633
----Reassessment--Industrial undertaking--Special deduction--Deduction allowed for two earlier years--Notice for reassessment based on Supreme Court decision--Permissible-- ITO v. Smt. Asha Mittal (Jaipur) . . . 633
S. 143 --Assessment--Reference to Valuation Officer--Investment in construction of house--Investment disclosed in books of account--Expenditure proved by vouchers--Reference to Valuation Officer without rejecting books of account or pointing out defects in books of account--Not proper--Addition on basis of higher value adopted by Valuation Officer not justified--Section 142A not applicable--Direction to allow deduction of 20 per cent. of CPWD rates and 12 per cent. for self supervision proper-- ITO v. Nitesh Maheshwari (Jaipur) . . . 645
S. 147 --Reassessment--Industrial undertaking--Special deduction--Deduction allowed for two earlier years--Notice for reassessment based on Supreme Court decision --Permissible-- ITO v. Smt. Asha Mittal (Jaipur) . . . 633
S. 148 --Reassessment--Industrial undertaking--Special deduction--Deduction allowed for two earlier years--Notice for reassessment based on Supreme Court decision --Permissible-- ITO v. Smt. Asha Mittal (Jaipur) . . . 633
----Reassessment--Validity--Commissioner (Appeals) holding re-opening was on change of opinion --Bound to hold reassessment invalid-- Asst. CIT v. Rollatainers Ltd. (Delhi) . . . 665
S. 194H --Deduction of tax at source--Commission--Assessee, a Government undertaking, engaged in extraction of iron ore--Assessee disentitled to export iron ore with iron content of sixty-four per cent. and above in terms of Exim Policy--Export of iron ore by MMTC not on behalf of assessee but on principal to principal basis--Agreement between assessee and exporter not deciding factor of nature of transaction--Payment to MMTC not commission--Assessee not liable to deduct tax at source-- NMDC Ltd. v. Asst. CIT (TDS) (Visakhapatnam) . . . 690
S. 201(1A) --Deduction of tax at source--Commission--Assessee, a Government undertaking, engaged in extraction of iron ore--Assessee disentitled to export iron ore with iron content of sixty-four per cent. and above in terms of Exim Policy--Export of iron ore by MMTC not on behalf of assessee but on principal to principal basis--Agreement between assessee and exporter not deciding factor of nature of transaction--Payment to MMTC not commission--Assessee not liable to deduct tax at source-- NMDC Ltd. v. Asst. CIT (TDS) (Visakhapatnam) . . . 690
S. 263 --Revision--Commissioner--Direction to Assessing Officer to verify expenses on road overlay and renewal expenses--Not warranted-- Gujarat Road and Infrastructure Co. Ltd. v. CIT (Ahmedabad) . . . 730
----Revision--Commissioner--Failure by Assessing Officer to make enquiry with regard to deduction claimed--Assessment order prejudicial to interests of Revenue--Matter remanded-- TCE Consulting Engineers Ltd. v. Addl. CIT (Mumbai) . . . 718
S. 271(1)(c) --Penalty--Furnishing of inaccurate particulars of income--Assessee reporting profit as loss deliberately--Explanation that mistake of reporting profit as loss due to inadvertent error in operating formula--Error not rectified despite notice--Discrepancies in book profit, audited report--Case of furnishing inaccurate particulars of income--Penalty exigible-- Deputy CIT v. Terra Energy Ltd. (Chennai) . . . 711
Maharashtra State Co-operative Societies Act, 1960 :
S. 68--Exemption--Educational institution--Condition that institution should be "financed by Government"--State legislation providing for compulsory contributions by member societies to education fund set apart as source of finance for educational institution promoting co-operative movement in India--Finance received by co-operative society from members in accordance with State legislation--Constitutes indirect financing by Government--Educational institution entitled to exemption-- Maharashtra Rajya Sahakari Sangh Maryadit v. ITO (Pune) . . . 675
-CA.RAJU SHAH.
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