INCOME TAX REPORTS (ITR)
Volume 331 : Part 4 (Issue dated 7-3-2011)
SUBJECT INDEX TO CASES REPORTED IN THIS PART
Appeal to High Court --Circular prescribing monetary limits for appeals and references by Department--Binding on Department--Direction to Commissioner to move Board for instructions to withdraw appeals or references where tax effect less than prescribed--Income-tax Act, 1961, s. 260A--CBDT Circular dated October 24, 2005-- CIT v. Vitessee Trading Ltd. (Bom) . . . 433
Block assessment --Undisclosed income--Revised return after search--No exclusion of income declared in return from block assessment--Income-tax Act, 1961, ss. 139(4), 158BB-- CIT v. K. P. Chandradasan (Ker) . . . 443
Income --Business income--Remission of liability--Assessee becoming a sick company--Financial institution writing off part of its loan to the company--Amount credited to capital reserve account--No deduction claimed in respect of loan--Amount credited to capital reserve account not assessable under section 41--Income-tax Act, 1961, s. 41-- CIT v. Tosha International Ltd. (Delhi) . . . 440
Reassessment --Return filed by assessee within time disclosing particulars for claiming deduction under section 80HHC--Reassessment within four years scaling down deduction--Second reassessment notice beyond four year period on basis of Supreme Court ruling for disallowing section 80HHC deduction in toto--Not permissible--Income-tax Act, 1961, ss. 147, 148-- CIT v. Baer Shoes (India) Pvt. Ltd. (Mad) . . . 435
SECTIONWISE INDEX TO CASES REPORTED IN THIS PART
S. 41 --Income--Business income--Remission of liability--Assessee becoming a sick company--Financial institution writing off part of its loan to the company--Amount credited to capital reserve account--No deduction claimed in respect of loan--Amount credited to capital reserve account not assessable under section 41-- CIT v. Tosha International Ltd. (Delhi) . . . 440
S. 139(4) --Block assessment--Undisclosed income--Revised return after search--No exclusion of income declared in return from block assessment-- CIT v. K. P. Chandradasan (Ker) . . . 443
S. 147 --Reassessment--Return filed by assessee within time disclosing particulars for claiming deduction under section 80HHC--Reassessment within four years scaling down deduction--Second reassessment notice beyond four year period on basis of Supreme Court ruling for disallowing section 80HHC deduction in toto--Not permissible-- CIT v. Baer Shoes (India) Pvt. Ltd. (Mad) . . . 435
S. 148 --Reassessment--Return filed by assessee within time disclosing particulars for claiming deduction under section 80HHC--Reassessment within four years scaling down deduction--Second reassessment notice beyond four year period on basis of Supreme Court ruling for disallowing section 80HHC deduction in toto--Not permissible-- CIT v. Baer Shoes (India) Pvt. Ltd. (Mad) . . . 435
S. 158BB --Block assessment--Undisclosed income--Revised return after search--No exclusion of income declared in return from block assessment-- CIT v. K. P. Chandradasan (Ker) . . . 443
S. 260A --Appeal to High Court--Circular prescribing monetary limits for appeals and references by Department--Binding on Department--Direction to Commissioner to move Board for instructions to withdraw appeals or references where tax effect less than prescribed--CBDT Circular dated October 24, 2005-- CIT v. Vitessee Trading Ltd. (Bom) . . . 433
ITR'S TRIBUNAL TAX REPORTS (ITR (TRIB))
Volume 8 : Part 1 (Issue dated : 7-3-2011)
SUBJECT INDEX TO CASES REPORTED IN THIS PART
Accounting --Rejection of accounts--Estimate of income--Net profit rate subject to depreciation and interest more than restricted trading addition--To be deleted--Income-tax Act, 1961, s. 145(3)-- Asst. CIT v. Prabhu Dayal Kanojiya (Jaipur) . . . 45
Appeal to Appellate Tribunal --Appeal to Commissioner (Appeals)--Assessee obtaining advancement of date of hearing consequent on notice of recovery proposing coercive measures--Advanced date intimated to Assessing Officer but Assessing Officer not appearing before Commissioner (Appeals) nor seeking time--Commissioner (Appeals) considering issues in great detail--Appeal to Appellate Tribunal seeking remand to Commissioner (Appeals) for consideration of merits--Remand not necessary --Income-tax Act, 1961, ss. 253, 254-- ITO v. Veto Electropowers (Jaipur) . . . 76
Deduction --Disallowance of expenditure in relation to income which does not form part of total income--Disallowance of 2 per cent. of dividend income as expenses attributable for earning income--No evidence relating to specific expenditure to tax free dividend--Deletion of addition proper--Income-tax Act, 1961, s. 14A-- Asst. CIT v. Sun Investments P. Ltd. (Delhi) . . . 33
Deduction of tax at source --Failure to deduct--Time limit for treating deductor as in default--Maximum time limit available for initiating and completing reassessment--Income-tax Act, 1961, s. 201(1), (1A)-- Asst. CIT (TDS) v. Merchant Shipping Services Pvt. Ltd. (Mumbai) . . . 1
----Work--Technical services--Assessee, a shipping agent, availing of services for movement of containers by use of cranes--Not a case of provision of technical services--But of carriage of goods--Tax deductible under section 194C and not under section 194J --Income-tax Act, 1961, ss. 9(1)(vii), Expln. 2, 194C, 194J, 201(1), (1A)-- Asst. CIT (TDS) v. Merchant Shipping Services Pvt. Ltd. (Mumbai) . . . 1
Export --Deduction--Disqualification where unit formed by reconstruction of existing unit--Change of ownership of unit--Not a reconstruction--Deduction allowable--Income-tax Act, 1961, s. 10B-- ITO v. Veto Electropowers (Jaipur) . . . 76
Income from business or income from other sources --Interest income on fixed deposit receipts--Income from other sources--Assessee disclosing net profit rate after excluding interest income subject to allowable depreciation and interest payment to third parties--No separate addition required--Income-tax Act, 1961-- Asst. CIT v. Prabhu Dayal Kanojiya (Jaipur) . . . 45
Interpretation of taxing statutes --Ejusdem generis--Special excludes general-- Asst. CIT (TDS) v. Merchant Shipping Services Pvt. Ltd. (Mumbai) . . . 1
Non-resident --Unexplained investment--Remittance from foreign country through banking channels--Amount deposited in bank and used as security for advance to Indian company--Amount not assessable under section 69--Income-tax Act, 1961, s. 5--Circular No. 5 dated 20-2-1969-- Smt. Susila Ramasamy v. Asst. CIT (Chennai) . . . 18
Penalty --Concealment of income--Penalty imposed after treating loss on account of share trading as speculative loss--Details of share transaction available in return--Loss incurred and quantum of loss not disputed--Penalty not justified--Income-tax Act, 1961, ss. 73, Expln., 271(1)(c)-- SRJ Securities Ltd. v. ITO (Delhi) . . . 41
----Furnishing inaccurate particulars of income--Claim to deduction of loss on account of foreign exchange rate fluctuation--Loan taken from foreign company utilised on capital and revenue items--Failure by assessee to furnish details of expenditure--Explanation that nature of expenditure debatable--Bona fide belief that deduction of expenditure on security deposits, purchase of computers, plant and machinery, furniture and other fixed assets allowable--Penalty not leviable in respect thereof--Expenditure on payment of tax--Appropriation of income--Explanation of assessee not acceptable--Levy of penalty in respect thereof proper--Income-tax Act, 1961, s. 271(1)(c)-- Microsoft Corporation (India) P. Ltd. v. Deputy CIT (Delhi) . . . 58
Search and seizure --Block assessment--Limitation--Notice--Validity--Satisfaction of Assessing Officer recorded in May 2004 whereas last date for completion of block assessment was February 28, 2003--Proceedings barred by time--Notice invalid--Income-tax Act, 1961, ss. 158BD, 158BE-- Deputy CIT v. Rano Singh (Delhi) . . . 36
Words and phrases --"Technical services"-- Asst. CIT (TDS) v. Merchant Shipping Services Pvt. Ltd. (Mumbai) . . . 1
SECTIONWISE INDEX TO CASES REPORTED IN THIS PART
S. 5 --Non-resident--Unexplained investment--Remittance from foreign country through banking channels--Amount deposited in bank and used as security for advance to Indian company--Amount not assessable under section 69--Circular No. 5 dated 20-2-1969-- Smt. Susila Ramasamy v. Asst. CIT (Chennai) . . . 18
S. 9(1)(vii), Expln. 2 --Deduction of tax at source--Work--Technical services--Assessee, a shipping agent, availing of services for movement of containers by use of cranes--Not a case of provision of technical services--But of carriage of goods--Tax deductible under section 194C and not under section 194J-- Asst. CIT (TDS) v. Merchant Shipping Services Pvt. Ltd. (Mumbai) . . . 1
S. 10B --Export--Deduction--Disqualification where unit formed by reconstruction of existing unit--Change of ownership of unit--Not a reconstruction--Deduction allowable-- ITO v. Veto Electropowers (Jaipur) . . . 76
S. 14A --Deduction--Disallowance of expenditure in relation to income which does not form part of total income--Disallowance of 2 per cent. of dividend income as expenses attributable for earning income--No evidence relating to specific expenditure to tax free dividend--Deletion of addition proper-- Asst. CIT v. Sun Investments P. Ltd. (Delhi) . . . 33
S. 73, Expln. --Penalty--Concealment of income--Penalty imposed after treating loss on account of share trading as speculative loss--Details of share transaction available in return--Loss incurred and quantum of loss not disputed--Penalty not justified-- SRJ Securities Ltd. v. ITO (Delhi) . . . 41
S. 145(3) --Accounting--Rejection of accounts--Estimate of income--Net profit rate subject to depreciation and interest more than restricted trading addition--To be deleted-- Asst. CIT v. Prabhu Dayal Kanojiya (Jaipur) . . . 45
S. 158BD --Search and seizure--Block assessment--Limitation--Notice--Validity--Satisfaction of Assessing Officer recorded in May 2004 whereas last date for completion of block assessment was February 28, 2003--Proceedings barred by time--Notice invalid -- Deputy CIT v. Rano Singh (Delhi) . . . 36
S. 158BE --Search and seizure--Block assessment--Limitation--Notice--Validity--Satisfaction of Assessing Officer recorded in May 2004 whereas last date for completion of block assessment was February 28, 2003--Proceedings barred by time--Notice invalid-- Deputy CIT v. Rano Singh (Delhi) . . . 36
S. 194C --Deduction of tax at source--Work--Technical services--Assessee, a shipping agent, availing of services for movement of containers by use of cranes--Not a case of provision of technical services--But of carriage of goods--Tax deductible under section 194C and not under section 194J-- Asst. CIT (TDS) v. Merchant Shipping Services Pvt. Ltd. (Mumbai) . . . 1
S. 194J --Deduction of tax at source--Work--Technical services--Assessee, a shipping agent, availing of services for movement of containers by use of cranes--Not a case of provision of technical services--But of carriage of goods--Tax deductible under section 194C and not under section 194J-- Asst. CIT (TDS) v. Merchant Shipping Services Pvt. Ltd. (Mumbai) . . . 1
S. 201(1) --Deduction of tax at source--Failure to deduct--Time limit for treating deductor as in default--Maximum time limit available for initiating and completing re-assessment-- Asst. CIT (TDS) v. Merchant Shipping Services Pvt. Ltd. (Mumbai) . . . 1
----Deduction of tax at source--Work--Technical services--Assessee, a shipping agent, availing of services for movement of containers by use of cranes--Not a case of provision of technical services--But of carriage of goods--Tax deductible under section 194C and not under section 194J-- Asst. CIT (TDS) v. Merchant Shipping Services Pvt. Ltd. (Mumbai) . . . 1
S. 201(1A) --Deduction of tax at source--Failure to deduct--Time limit for treating deductor as in default--Maximum time limit available for initiating and completing re-assessment-- Asst. CIT (TDS) v. Merchant Shipping Services Pvt. Ltd. (Mumbai) . . . 1
----Deduction of tax at source--Work--Technical services--Assessee, a shipping agent, availing of services for movement of containers by use of cranes--Not a case of provision of technical services--But of carriage of goods--Tax deductible under section 194C and not under section 194J-- Asst. CIT (TDS) v. Merchant Shipping Services Pvt. Ltd. (Mumbai) . . . 1
S. 253 --Appeal to Appellate Tribunal--Appeal to Commissioner (Appeals)--Assessee obtaining advancement of date of hearing consequent on notice of recovery proposing coercive measures--Advanced date intimated to Assessing Officer but Assessing Officer not appearing before Commissioner (Appeals) nor seeking time--Commissioner (Appeals) considering issues in great detail--Appeal to Appellate Tribunal seeking remand to Commissioner (Appeals) for consideration of merits--Remand not necessary -- ITO v. Veto Electropowers (Jaipur) . . . 76
S. 254 --Appeal to Appellate Tribunal--Appeal to Commissioner (Appeals)--Assessee obtaining advancement of date of hearing consequent on notice of recovery proposing coercive measures--Advanced date intimated to Assessing Officer but Assessing Officer not appearing before Commissioner (Appeals) nor seeking time--Commissioner (Appeals) considering issues in great detail--Appeal to Appellate Tribunal seeking remand to Commissioner (Appeals) for consideration of merits--Remand not necessary -- ITO v. Veto Electropowers (Jaipur) . . . 76
S. 271(1)(c) --Penalty--Concealment of income--Penalty imposed after treating loss on account of share trading as speculative loss--Details of share transaction available in return--Loss incurred and quantum of loss not disputed--Penalty not justified-- SRJ Securities Ltd. v. ITO (Delhi) . . . 41
----Penalty--Furnishing inaccurate particulars of income--Claim to deduction of loss on account of foreign exchange rate fluctuation--Loan taken from foreign company utilised on capital and revenue items--Failure by assessee to furnish details of expenditure--Explanation that nature of expenditure debatable--Bona fide belief that deduction of expenditure on security deposits, purchase of computers, plant and machinery, furniture and other fixed assets allowable--Penalty not leviable in respect thereof--Expenditure on payment of tax--Appropriation of income--Explanation of assessee not acceptable--Levy of penalty in respect thereof proper-- Microsoft Corporation (India) P. Ltd. v. Deputy CIT (Delhi) . . . 58
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