INCOME TAX REPORTS (ITR)
Volume 331 : Part 2 (Issue dated 21-2-2011)
SUBJECT INDEX TO CASES REPORTED IN THIS PART
Appeal to High Court --Delay in filing appeal--High Court can condone delay--Income-tax Act, 1961, s. 260A-- CIT v. R. K. B. K. Ltd . (Cal) . . . 269
Capital gains --Exemption--Transfer of residential house and purchase or construction of a residential house within the prescribed time--Meaning of "a residential house" in section 54--Transfer of residential house and purchase of four flats in the same residential building--Assessee entitled to exemption under section 54--Income-tax Act, 1961, s. 54--General Clauses Act, 1897, s. 13-- CIT v. Smt. K. G. Rukminiamma (Karn) . . . 211
Charitable purpose --Charitable institution--Registration--Agricultural produce market committee--Income received to be spent for purpose mentioned--Including object of general public utility--Samiti entitled to registration--Income-tax Act, 1961, ss. 2(15), 12A, 12AA-- CIT v. Krishi Upaj Mandi Samiti, Jaisalmer (Raj) . . . 135
----Charitable institution--Registration--Agricultural produce marketing committees set up by State Government--Charitable institution entitled to registration--Income-tax Act, 1961, ss. 2(15), 11, 12, 12A-- CIT v. Krishi Upaj Mandi Samiti, Shrimadhopur (Raj) . . . 174
----Registration of trust--Agricultural produce marketing committees--Delay in application for registration from assessment year 2003-04 due to bona fide belief that registration was not necessary and in getting approval and legal advice from Government authorities--Delay to be condoned--Income-tax Act, 1961, ss. 12A, 12AA-- CIT v. Krishi Utpadan Mandi Samiti (All) . . . 154
----Registration of trust--"Charitable purposes", "property"--Meanings of--Samiti set up by State Government to regulate sale and purchase of agricultural produce and develop facilities for marketing of agricultural produce--Committees declared as local authorities exempted from tax till 2003--Dominant object of samitis was advancement of general public utility--Cess collected by samitis utilised for objects of samitis--Samitis entitled to registration--Income-tax Act, 1961, ss. 2(15), 11, 12A, 12AA-- CIT v. Krishi Utpadan Mandi Samiti (All) . . . 154
----Registration of trust--Market committee constituted statutorily with object of helping agriculturists and consumers--Entitled to registration--Benefit of exemption depends upon whether income utilised for charitable purpose--Income-tax Act, 1961, ss. 11, 12A, 12AA-- CIT v. Krishi Upaj Mandi Samiti (MP) . . . 140
Charitable trust --Registration--Application for registration--Delay in filing application--Assessee executing trust deed in 2000, started activities in 2005--Assessee as per advice of chartered accountant filing application belatedly--Delay to be condoned--Income-tax Act, 1961, s. 12AA-- CIT v. Indian Gospel Fellowship Trust (Mad) . . . 283
Commissioner --Revision--Depreciation on goodwill--Revision on ground goodwill not an asset entitled to depreciation--Goodwill valuable commercial asset similar to other intangibles eligible to depreciation--Where two views are possible and Assessing Officer accepting one view which is a plausible one, not appropriate to exercise power under section 263--Income-tax Act, 1961, ss. 32, 263-- CIT v. Hindustan Coco Cola Beverages P. Ltd. (Delhi) . . . 192
Income --Accrual--Non-banking financial company--Method of accounting--Mercantile system of accounting--Interest accrued on non-performing assets not recognised as income--In conformity with notification issued by Reserve Bank of India--No question of accrual of income--Income-tax Act, 1961-- CIT v. Coimbatore Lakshmi Inv. and Finance Co. Ltd . (Mad) . . . 229
Income from other sources --Deduction--Interest on borrowed capital--Assessee manufacturing and exporting textiles--Funds transferred from cash credit/packing credit--Interest on such funds--Not entitled to deduction--Income-tax Act, 1961, s. 57(iii)-- CIT v. Dhanalakshmi Weaving Works (Ker) . . . 188
Industrial undertaking --Special deduction--Duty draw back --Does not form part of net profit--Income-tax Act, 1961, s. 80-IB-- Eastman Exports Global Clothing P. Ltd. v. Asst. CIT (Mad) . . . 232
Interpretation of taxing statutes --Effect of Explanation -- CIT v. Jet Airways (I) Ltd . (Bom) . . . 236
----Purposive interpretation--Casus omissus-- CIT v. R. K. B. K. Ltd. (Cal) . . . 269
Reassessment --Notice--Deduction allowed under section 80-IA --Initiation of proceedings on change of opinion on whether assessee engaged in manufacture--Not permissible--Assessee allowed deduction in preceding as well as subsequent years--Group company engaged in similar activity also allowed deduction--Proceedings to be quashed--Income-tax Act, 1961, ss. 80-IA, 147, 148-- Northern Strips Ltd . v. ITO (Delhi) . . . 224
----Scope of power of Assessing Officer--Law applicable--Effect of amendment of section 147 w.e.f. 1-4-1989--Assessing Officer can also assess other incomes not referred to in notice of reassessment--Power to assess such other income only if income referred to in notice of reassessment has been assessed--Income-tax Act, 1961, s. 147-- CIT v. Jet Airways (I) Ltd. (Bom) . . . 236
Recovery of tax --Hindu undivided family--Firm--Hindu undivided family or individual property--Karta of Hindu undivided family becoming partner in firm--Finding that he had become a partner in his individual capacity--Hindu undivided family properties could not be attached in proceedings for recovery of tax due by firm--Income-tax Act, 1961-- ITO v. Tippala China Appa Rao (AP) . . . 248
----Provisional attachment--Limitation--Department to show whether time extended as required under law--Income-tax Act, 1961, s. 281B-- VLS Finance Ltd. v. Asst. CIT (Delhi) . . . 131
Revision --Commissioner--Assessing Officer allowing claim for depreciation without examining facts--False claim for depreciation in prior years--Order erroneous--Commissioner justified in setting aside order in revision--Income-tax Act, 1961, s. 263-- CIT v. English Indian Clays Ltd. (Ker) . . . 219
Search and seizure --Return of seized assets--Direction not to release seized assets till assessment completed--Assessment made treating as unexplained investment of assessee--Tribunal deleting addition on jewellery--Jewellery not released on ground it did not belong to assessee alone--No proof that jewellery belonging to a third person--Matter remanded--Income-tax Act, 1961, s. 69A-- Madhu Lalwani v. CIT (Delhi) . . . 184
Unexplained investment --Cost of construction of property--Estimate based on relevant material--Justified--Income-tax Act, 1961-- CIT v. Smt. V. Gajalakshmi (Mad) . . . 216
SECTIONWISE INDEX TO CASES REPORTED IN THIS PART
S. 13 --Capital gains--Exemption--Transfer of residential house and purchase or construction of a residential house within the prescribed time--Meaning of "a residential house" in section 54--Transfer of residential house and purchase of four flats in the same residential building--Assessee entitled to exemption under section 54-- CIT v. Smt. K. G. Rukminiamma (Karn) . . . 211
S. 2(15) --Charitable purpose--Charitable institution--Registration--Agricultural produce market committee--Income received to be spent for purpose mentioned--Including object of general public utility--Samiti entitled to registration-- CIT v. Krishi Upaj Mandi Samiti, Jaisalmer (Raj) . . . 135
----Charitable purpose--Charitable institution--Registration--Agricultural produce marketing committees set up by State Government--Charitable institution entitled to registration-- CIT v. Krishi Upaj Mandi Samiti, Shrimadhopur (Raj) . . . 174
----Charitable purpose--Registration of trust--"Charitable purposes", "property"--Meanings of--Samiti set up by State Government to regulate sale and purchase of agricultural produce and develop facilities for marketing of agricultural produce--Committees declared as local authorities exempted from tax till 2003--Dominant object of samitis was advancement of general public utility--Cess collected by samitis utilised for objects of samitis--Samitis entitled to registration-- CIT v. Krishi Utpadan Mandi Samiti (All) . . . 154
S. 11 --Charitable purpose--Charitable institution--Registration--Agricultural produce marketing committees set up by State Government--Charitable institution entitled to registration-- CIT v. Krishi Upaj Mandi Samiti, Shrimadhopur (Raj) . . . 174
----Charitable purpose--Registration of trust--"Charitable purposes", "property"--Meanings of--Samiti set up by State Government to regulate sale and purchase of agricultural produce and develop facilities for marketing of agricultural produce--Committees declared as local authorities exempted from tax till 2003--Dominant object of samitis was advancement of general public utility--Cess collected by samitis utilised for objects of samitis--Samitis entitled to registration-- CIT v. Krishi Utpadan Mandi Samiti (All) . . . 154
----Charitable purpose--Registration of trust--Market committee constituted statutorily with object of helping agriculturists and consumers--Entitled to registration--Benefit of exemption depends upon whether income utilised for charitable purpose-- CIT v. Krishi Upaj Mandi Samiti (MP) . . . 140
S. 12 --Charitable purpose--Charitable institution--Registration--Agricultural produce marketing committees set up by State Government--Charitable institution entitled to registration-- CIT v. Krishi Upaj Mandi Samiti, Shrimadhopur (Raj) . . . 174
S. 12A --Charitable purpose--Charitable institution--Registration--Agricultural produce market committee--Income received to be spent for purpose mentioned--Including object of general public utility--Samiti entitled to registration-- CIT v. Krishi Upaj Mandi Samiti, Jaisalmer (Raj) . . . 135
----Charitable purpose--Charitable institution--Registration--Agricultural produce marketing committees set up by State Government--Charitable institution entitled to registration-- CIT v. Krishi Upaj Mandi Samiti, Shrimadhopur (Raj) . . . 174
----Charitable purpose--Registration of trust--Agricultural produce marketing committees--Delay in application for registration from assessment year 2003-04 due to bona fide belief that registration was not necessary and in getting approval and legal advice from Government authorities--Delay to be condoned-- CIT v. Krishi Utpadan Mandi Samiti (All) . . . 154
----Charitable purpose--Registration of trust--"Charitable purposes", "property"--Meanings of--Samiti set up by State Government to regulate sale and purchase of agricultural produce and develop facilities for marketing of agricultural produce--Committees declared as local authorities exempted from tax till 2003--Dominant object of samitis was advancement of general public utility--Cess collected by samitis utilised for objects of samitis--Samitis entitled to registration-- CIT v. Krishi Utpadan Mandi Samiti (All) . . . 154
----Charitable purpose--Registration of trust--Market committee constituted statutorily with object of helping agriculturists and consumers--Entitled to registration--Benefit of exemption depends upon whether income utilised for charitable purpose-- CIT v. Krishi Upaj Mandi Samiti (MP) . . . 140
S. 12AA --Charitable purpose--Charitable institution--Registration--Agricultural produce market committee--Income received to be spent for purpose mentioned--Including object of general public utility--Samiti entitled to registration-- CIT v. Krishi Upaj Mandi Samiti, Jaisalmer (Raj) . . . 135
----Charitable purpose--Registration of trust--Agricultural produce marketing committees--Delay in application for registration from assessment year 2003-04 due to bona fide belief that registration was not necessary and in getting approval and legal advice from Government authorities--Delay to be condoned-- CIT v. Krishi Utpadan Mandi Samiti (All) . . . 154
----Charitable purpose--Registration of trust--"Charitable purposes", "property"--Meanings of--Samiti set up by State Government to regulate sale and purchase of agricultural produce and develop facilities for marketing of agricultural produce--Committees declared as local authorities exempted from tax till 2003--Dominant object of samitis was advancement of general public utility--Cess collected by samitis utilised for objects of samitis--Samitis entitled to registration-- CIT v. Krishi Utpadan Mandi Samiti (All) . . . 154
----Charitable purpose--Registration of trust--Market committee constituted statutorily with object of helping agriculturists and consumers--Entitled to registration--Benefit of exemption depends upon whether income utilised for charitable purpose-- CIT v. Krishi Upaj Mandi Samiti (MP) . . . 140
----Charitable trust--Registration--Application for registration--Delay in filing application--Assessee executing trust deed in 2000, started activities in 2005--Assessee as per advice of chartered accountant filing application belatedly--Delay to be condoned-- CIT v. Indian Gospel Fellowship Trust (Mad) . . . 283
S. 32 --Commissioner--Revision--Depreciation on goodwill--Revision on ground goodwill not an asset entitled to depreciation--Goodwill valuable commercial asset similar to other intangibles eligible to depreciation--Where two views are possible and Assessing Officer accepting one view which is a plausible one, not appropriate to exercise power under section 263-- CIT v. Hindustan Coco Cola Beverages P. Ltd. (Delhi) . . . 192
S. 54 --Capital gains--Exemption--Transfer of residential house and purchase or construction of a residential house within the prescribed time--Meaning of "a residential house" in section 54--Transfer of residential house and purchase of four flats in the same residential building--Assessee entitled to exemption under section 54-- CIT v. Smt. K. G. Rukminiamma (Karn) . . . 211
S. 57(iii) --Income from other sources--Deduction--Interest on borrowed capital--Assessee manufacturing and exporting textiles--Funds transferred from cash credit/packing credit--Interest on such funds--Not entitled to deduction-- CIT v. Dhanalakshmi Weaving Works (Ker) . . . 188
S. 69A --Search and seizure--Return of seized assets--Direction not to release seized assets till assessment completed--Assessment made treating as unexplained investment of assessee--Tribunal deleting addition on jewellery--Jewellery not released on ground it did not belong to assessee alone--No proof that jewellery belonging to a third person--Matter remanded-- Madhu Lalwani v. CIT (Delhi) . . . 184
S. 80-IA --Reassessment--Notice--Deduction allowed under section 80-IA--Initiation of proceedings on change of opinion on whether assessee engaged in manufacture--Not permissible--Assessee allowed deduction in preceding as well as subsequent years--Group company engaged in similar activity also allowed deduction--Proceedings to be quashed-- Northern Strips Ltd . v. ITO (Delhi) . . . 224
S. 80-IB --Industrial undertaking--Special deduction--Duty draw back --Does not form part of net profit-- Eastman Exports Global Clothing P. Ltd. v. Asst. CIT (Mad) . . . 232
S. 147 --Reassessment--Notice--Deduction allowed under section 80-IA --Initiation of proceedings on change of opinion on whether assessee engaged in manufacture--Not permissible--Assessee allowed deduction in preceding as well as subsequent years--Group company engaged in similar activity also allowed deduction--Proceedings to be quashed-- Northern Strips Ltd . v. ITO (Delhi) . . . 224
----Reassessment--Scope of power of Assessing Officer--Law applicable--Effect of amendment of section 147 w.e.f. 1-4-1989--Assessing Officer can also assess other incomes not referred to in notice of reassessment--Power to assess such other income only if income referred to in notice of reassessment has been assessed-- CIT v. Jet Airways (I) Ltd. (Bom) . . . 236
S. 148 --Reassessment--Notice--Deduction allowed under section 80-IA --Initiation of proceedings on change of opinion on whether assessee engaged in manufacture--Not permissible--Assessee allowed deduction in preceding as well as subsequent years--Group company engaged in similar activity also allowed deduction--Proceedings to be quashed-- Northern Strips Ltd . v. ITO (Delhi) . . . 224
S. 260A --Appeal to High Court--Delay in filing appeal--High Court can condone delay-- CIT v. R. K. B. K. Ltd . (Cal) . . . 269
S. 263 --Commissioner--Revision--Depreciation on goodwill--Revision on ground goodwill not an asset entitled to depreciation--Goodwill valuable commercial asset similar to other intangibles eligible to depreciation--Where two views are possible and Assessing Officer accepting one view which is a plausible one, not appropriate to exercise power under section 263-- CIT v. Hindustan Coco Cola Beverages P. Ltd. (Delhi) . . . 192
----Revision--Commissioner--Assessing Officer allowing claim for depreciation without examining facts--False claim for depreciation in prior years--Order erroneous--Commissioner justified in setting aside order in revision-- CIT v. English Indian Clays Ltd. (Ker) . . . 219
S. 281B --Recovery of tax--Provisional attachment--Limitation--Department to show whether time extended as required under law-- VLS Finance Ltd. v. Asst. CIT (Delhi) . . . 131
ITR'S TRIBUNAL TAX REPORTS (ITR (TRIB))
Volume 7 : Part 8 (Issue dated : 21-2-2011)
SUBJECT INDEX TO CASES REPORTED IN THIS PART
Business expenditure --Licence fee paid to parent company under technical assistance agreement--Allowable--Income-tax Act, 1961-- Deputy CIT v. Nestle India Ltd. (Delhi) . . . 758
Deduction of tax at source --Failure to deduct--Interest payable by deductor only up to date of payment by creditor--Assessing Officer to ascertain whether tax liability of creditor discharged and to verify whether income of creditor exempt under sections 11 and 12--Matter remanded--Income-tax Act, 1961, ss. 201(1), (1A)-- ITO v. Executive Officer cum Secretary Marketing Committee (Delhi) . . . 769
----Interest--Liability to deduct tax--Interest accrued on loan entered in books of account--Mere non receipt of interest by creditor does not make assessee not liable to deduct tax--Income-tax Act, 1961, s. 194A-- ITO v. Executive Officer cum Secretary Marketing Committee (Delhi) . . . 769
Donation to charitable institution --Special deduction--Approval of institution--Renewal of--Educational institution registered with main object of constructing schools and colleges to impart education--No construction activity carried out by institution except purchase of land--No expenditure incurred by institution towards achieving main object--Denial of renewal of approval justified--Income-tax Act, 1961, s. 80G-- Pearls Educational Institute v. CIT (Delhi) . . . 804
Income from house property --Ownership of property--Deemed owner--Tenancy must be for more than twelve years--Assessee enjoying lease from month to month without any provision for lease in perpetuity or for more than one year--Assessee not deemed owner--Income from subletting assessable as income from other sources--Income-tax Act, 1961, ss. 22, 27(iiib), 269UA(f)(i)-- Tushar Pravinchandra Shah v. Deputy CIT (Ahmedabad) . . . 776
Industrial undertaking in backward area --Special deduction --Profits and gains "derived from" industrial undertaking--Income from wind energy generation--Amount adjusted in respect of wind energy generated and surrendered to TNEB pursuant to agreement--Windmill generating less than 10 per cent. of total requirement of electrical energy--Value of electrical energy generated by windmill represented reduction in electricity charges payable to TNEB--90 per cent. of income from wind energy not to be reduced under Explanation (baa) to section 80HHC--Income-tax Act, 1961, s. 80HHC, Expln. (baa) -- Elgitread (India) Ltd. v. Asst. CIT (Chennai) . . . 813
Penalty --Concealment of income--Long-term capital gains arising on surrender of tenancy rights in factory premises--Claim for deduction of expenses on payments to workers--Disallowance of deduction on ground expenses not relating to transfer--Assessee disclosing full details of income pertaining to claim--No finding that claim not bona fide--Penalty to be deleted--Income-tax Act, 1961, ss. 48(i), 271(1)(c)-- Asst. CIT v. Megji Mathradas (Mumbai) . . . 749
Reassessment --Notice on basis of escapement of particular item of income--Order of reassessment making additions of other items of income--Order valid--Income-tax Act, 1961, ss. 147, 148-- ITO v. M. V. Balaji (Chennai) . . . 795
----Notice--Service of notice--Assessee responding to notice--No objection before Assessing Officer that notice was not served--Reassessment proceedings valid--Income-tax Act, 1961, ss. 147, 148-- ITO v. M. V. Balaji (Chennai) . . . 795
SECTIONWISE INDEX TO CASES REPORTED IN THIS PART
S. 22 --Income from house property--Ownership of property--Deemed owner--Tenancy must be for more than twelve years--Assessee enjoying lease from month to month without any provision for lease in perpetuity or for more than one year--Assessee not deemed owner--Income from subletting assessable as income from other sources-- Tushar Pravinchandra Shah v. Deputy CIT (Ahmedabad) . . . 776
S. 27(iiib) --Income from house property--Ownership of property--Deemed owner --Tenancy must be for more than twelve years--Assessee enjoying lease from month to month without any provision for lease in perpetuity or for more than one year--Assessee not deemed owner--Income from subletting assessable as income from other sources-- Tushar Pravinchandra Shah v. Deputy CIT (Ahmedabad) . . . 776
S. 48(i) --Penalty--Concealment of income--Long-term capital gains arising on surrender of tenancy rights in factory premises--Claim for deduction of expenses on payments to workers--Disallowance of deduction on ground expenses not relating to transfer--Assessee disclosing full details of income pertaining to claim--No finding that claim not bona fide--Penalty to be deleted-- Asst. CIT v. Megji Mathradas (Mumbai) . . . 749
S. 80G --Donation to charitable institution--Special deduction--Approval of institution--Renewal of--Educational institution registered with main object of constructing schools and colleges to impart education--No construction activity carried out by institution except purchase of land--No expenditure incurred by institution towards achieving main object--Denial of renewal of approval justified-- Pearls Educational Institute v. CIT (Delhi) . . . 804
S. 80HHC, Expln. (baa) --Industrial undertaking in backward area--Special deduction--Profits and gains "derived from" industrial undertaking--Income from wind energy generation--Amount adjusted in respect of wind energy generated and surrendered to TNEB pursuant to agreement--Windmill generating less than 10 per cent. of total requirement of electrical energy--Value of electrical energy generated by windmill represented reduction in electricity charges payable to TNEB--90 per cent. of income from wind energy not to be reduced under Explanation (baa) to section 80HHC-- Elgitread (India) Ltd. v. Asst. CIT (Chennai) . . . 813
S. 147 --Reassessment--Notice on basis of escapement of particular item of income--Order of reassessment making additions of other items of income--Order valid-- ITO v. M. V. Balaji (Chennai) . . . 795
----Reassessment--Notice--Service of notice--Assessee responding to notice--No objection before Assessing Officer that notice was not served--Reassessment proceedings valid-- ITO v. M. V. Balaji (Chennai) . . . 795
S. 148 --Reassessment--Notice on basis of escapement of particular item of income--Order of reassessment making additions of other items of income--Order valid-- ITO v. M. V. Balaji (Chennai) . . . 795
----Reassessment--Notice--Service of notice--Assessee responding to notice--No objection before Assessing Officer that notice was not served--Reassessment proceedings valid-- ITO v. M. V. Balaji (Chennai) . . . 795
S. 194A --Deduction of tax at source--Interest--Liability to deduct tax--Interest accrued on loan entered in books of account--Mere non receipt of interest by creditor does not make assessee not liable to deduct tax-- ITO v. Executive Officer cum Secretary Marketing Committee (Delhi) . . . 769
S. 201(1) --Deduction of tax at source--Failure to deduct--Interest payable by deductor only up to date of payment by creditor--Assessing Officer to ascertain whether tax liability of creditor discharged and to verify whether income of creditor exempt under sections 11 and 12--Matter remanded-- ITO v. Executive Officer cum Secretary Marketing Committee (Delhi) . . . 769
S. 201(1A) --Deduction of tax at source--Failure to deduct--Interest payable by deductor only up to date of payment by creditor--Assessing Officer to ascertain whether tax liability of creditor discharged and to verify whether income of creditor exempt under sections 11 and 12--Matter remanded-- ITO v. Executive Officer cum Secretary Marketing Committee (Delhi) . . . 769
S. 269UA(f)(i) --Income from house property--Ownership of property--Deemed owner--Tenancy must be for more than twelve years--Assessee enjoying lease from month to month without any provision for lease in perpetuity or for more than one year --Assessee not deemed owner--Income from subletting assessable as income from other sources-- Tushar Pravinchandra Shah v. Deputy CIT (Ahmedabad) . . . 776
S. 271(1)(c) --Penalty--Concealment of income--Long-term capital gains arising on surrender of tenancy rights in factory premises--Claim for deduction of expenses on payments to workers--Disallowance of deduction on ground expenses not relating to transfer--Assessee disclosing full details of income pertaining to claim--No finding that claim not bona fide--Penalty to be deleted-- Asst. CIT v. Megji Mathradas (Mumbai) . . . 749
-CA.RAJU SHAH
No comments:
Post a Comment