Statutory Audit of Co-operative Societies for the year 2010-11 - Circular [1 Attachment]

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From: WAGHCHAURE NILKANTH fcanrw1970@gmail.com

 

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Dear Friends,

 

Circular Dt 11.04.2011 from Commissioner of Cooperative Societies, Pune  regarding Statutory Audit of Co-operative Societies for the year 2010-11 and Change in NPA is attached for your information.

 

Regards.

  Nilkanth R. Waghchaure

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Attachment(s) from WAGHCHAURE NILKANTH

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Circular.zip

ITR VOL 333 PART 2 AND ITR (TRIB) VOL 9 PART 1

 

INCOME TAX REPORTS (ITR)

Volume 333 : Part 2 (Issue dated 2-5-2011)

SUBJECT INDEX TO CASES REPORTED IN THIS PART

HIGH COURTS

Appeal to Appellate Tribunal --Duty of Tribunal--Order passed by Tribunal ex parte due to non-appearance of appellant--Sufficient cause shown for non-appearance--Tribunal must set aside ex parte order--Income-tax (Appellate Tribunal) Rules, 1963 r. 24-- Devendra G. Pasale v. Asst. CIT (Guj) . . . 263

Bad debt --Conditions precedent--Debt must be shown in accounts as income of assessee--Assets and liabilities of L taken over by assessee and another company--Debt of L written off by assessee--No evidence that assessee had taken over debt--Debt not shown as income of assessee--Assessee not entitled to deduction of debt--Income-tax Act, 1961, s. 36(1)(vii), (2)(i)-- CIT v. Lal Woollen and Silk Mills Pvt. Ltd .(P&H) . . . 254

Business expenditure --Disallowance--Excessive and unreasonable payments--Truck hire charges paid on per truck basis to concern of assessee's son at rate lower than to other parties--Disallowance not proper--Income-tax Act, 1961, s. 40A(2)-- CIT v. Brij Pal Sharma (P&H) . . . 229

----Machinery hire charges--That charges excessive and assessee could have purchased an excavator for that cost--Irrelevant--Failure to summon party to determine veracity of claim--Assessee producing books showing payment and confirmation of party--Claim allowable--Income-tax Act, 1961-- CIT v. Brij Pal Sharma (P&H) . . . 229

----Payments by assessee to party partly in cash--Assessee requesting Assessing Officer to summon person to whom cash payment made--Addition without summoning person--Not proper--Income-tax Act, 1961-- CIT v. Brij Pal Sharma (P&H) . . . 229

Cash credits --Burden of proof--Share application money--Identity of subscribers established--Burden on Revenue to prove transaction was not genuine--No such proof--Amount not assessable under section 68--Income-tax Act, 1961, s. 68-- CIT v. STL Extrusion P. Ltd. (MP) . . . 269

Charitable purposes --Charitable trust--Exemption--Denial of exemption--Investment of income of trust in debentures--Meaning of debentures--Debentures are bonds--Charitable trust could not be denied exemption--Income-tax Act, 1961, ss. 11(5), 13(1)(d)-- DIT v. Shree Visheshwar Nath Memorial Public Charitable Trust (Delhi) . . . 248

Export --Special deduction--Mode of computation--Liability of deduction under clause (baa) to Explanation--Net interest alone to be taken into account--Income-tax Act, 1961, s. 80HHC, Expln. (baa)-- CIT v. Gokuldas Exports (Karn) . . . 214

Industrial undertaking --Special deduction under section 80-IB--Condition precedent--Manufacture or production of article --Meaning of manufacture and production--Procurement of parts and assembling windmill amounts to production of article--Assessee entitled to special deduction under section 80-IB--Income-tax Act, 1961, s. 80-IB-- CIT v. Chiranjjeevi Wind Energy Ltd. (Mad) . . . 192

Interpretation of taxing statutes --Term not defined in the Income-tax Act--Definition in a different act and meaning in common parlance to be taken--Companies Act, 1956, s. 2(12)-- DIT v. Shree Visheshwar Nath Memorial Public Charitable Trust (Delhi) . . . 248

Penalty --Concealment of income--Search and seizure--Law applicable--Effect of amendment of section 271--Search in premises of assessee--Statement by assessee disclosing details of concealed income and paying tax thereon--Assessee entitled to immunity from penalty--Income-tax Act, 1961, s. 271(1)(c), Expln. 5(2)-- CIT v. A B Kage and Co . (Karn) . . . 189

Precedent --Effect of Supreme Court decisions in India Cine Agencies v. CIT [2009] 308 ITR 98 and CIT v. Sesa Goa Ltd. [2004] 271 ITR 331-- CIT v. Chiranjjeevi Wind Energy Ltd . (Mad) . . . 192

Reassessment --Notice--Acquisition of property--Enhancement of compensation--Issue sub judice--Disclosure of enhancement of compensation amount in return for relevant assessment year--Amount invested in bonds--Reassessment on ground exemption not available in such year--Not a reason to reopen for that year--Income-tax Act, 1961, ss. 54E, 147(a), 148-- Central India Electric Supply Co. Ltd. v. ITO (Delhi) . . . 237

----Writ--Information received from Directorate of Investigation that assessee beneficiary of bogus accommodation entries--Assessing Officer has reason to believe that income escaped assessment--Sufficiency of reason cannot be considered in writ petition--Assessee to participate in reassessment proceedings and to satisfy that no escapement of taxable income--Income-tax Act, 1961 ss. 147, 148--Constitution of India, art. 226-- AGR Investment Ltd. v. Addl. CIT (Delhi) . . . 146

Revision --Commissioner--No cogent and valid reasons for coming to conclusion that assessment order was erroneous and prejudicial to interests of Revenue--Interpretation of clause (baa) of Explanation to section 80HHC--Assessing Officer taking one out of two views--Order not prejudicial to interests of Revenue--Revision not valid--Income-tax Act, 1961, ss. 80HHC, 263-- CIT v. Gokuldas Exports (Karn) . . . 214

Search and seizure --Block assessment--Draft assessment approved by Commissioner and copy of assessment order and notice of demand issued to assessee within limitation--Assessment order not containing signature of Assessing Officer--Order not invalidated--Order not barred by limitation--Income-tax Act, 1961, ss. 158BE, 158BG, 292B-- CIT v. T. O. Abraham and Co. (Ker) . . . 182

----Block assessment--Tribunal holding that condition precedent for initiating proceedings under section 158BD not satisfied and assessments void ab initio--Not proper--Seized cash and documents requisitioned under section 132A and detailed information of accounts furnished--Assessment valid--Matter remanded-- Income-tax Act, 1961, ss. 132A, 158BC, 158BD-- CIT v. Mittal Consul and Co .(Delhi) . . . 163

----Conditions precedent--Reason to believe based on materials--Writ--Record showing formation of opinion, rationality and application of mind by authorities--Writ petition not maintainable--Constitution of India, art. 226--Income-tax Act, 1961, s. 132 -- Gwalior Citizen Sakh Sahakarita Maryadit v. Union of India (MP) . . . 196

Words and phrases --"Debenture"--DIT v. Shree Visheshwar Nath Memorial Public Charitable Trust (Delhi) . . . 248

----"Manufacture" and "production"--Meanings of-- CIT v. Chiranjjeevi Wind Energy Ltd. (Mad) . . . 192

 

SECTIONWISE INDEX TO CASES REPORTED IN THIS PART

Companies Act, 1956 :

S. 2(12) --Interpretation of taxing statutes--Term not defined in the Income-tax Act--Definition in a different act and meaning in common parlance to be taken-- DIT v. Shree Visheshwar Nath Memorial Public Charitable Trust (Delhi) . . . 248

Constitution of India :

Art. 226 --Reassessment--Writ--Information received from Directorate of Investigation that assessee beneficiary of bogus accommodation entries--Assessing Officer has reason to believe that income escaped assessment--Sufficiency of reason cannot be considered in writ petition--Assessee to participate in reassessment proceedings and to satisfy that no escapement of taxable income-- AGR Investment Ltd. v. Addl. CIT (Delhi) . . . 146

----Search and seizure--Conditions precedent--Reason to believe based on materials--Writ--Record showing formation of opinion, rationality and application of mind by authorities--Writ petition not maintainable-- Gwalior Citizen Sakh Sahakarita Maryadit v. Union of India (MP) . . . 196

Income-tax (Appellate Tribunal) Rules, 1963 :

r. 24 --Appeal to Appellate Tribunal--Duty of Tribunal--Order passed by Tribunal ex parte due to non-appearance of appellant--Sufficient cause shown for non-appearance--Tribunal must set aside ex parte order-- Devendra G. Pasale v. Asst. CIT (Guj) . . . 263

Income-tax Act, 1961 :

S. 11(5) --Charitable purposes--Charitable trust--Exemption--Denial of exemption --Investment of income of trust in debentures--Meaning of debentures--Debentures are bonds--Charitable trust could not be denied exemption-- DIT v. Shree Visheshwar Nath Memorial Public Charitable Trust (Delhi) . . . 248

S. 13(1)(d) --Charitable purposes--Charitable trust--Exemption--Denial of exemption--Investment of income of trust in debentures--Meaning of debentures--Debentures are bonds--Charitable trust could not be denied exemption-- DIT v. Shree Visheshwar Nath Memorial Public Charitable Trust (Delhi) . . . 248

S. 36(1)(vii), (2)(i) --Bad debt--Conditions precedent--Debt must be shown in accounts as income of assessee--Assets and liabilities of L taken over by assessee and another company--Debt of L written off by assessee--No evidence that assessee had taken over debt--Debt not shown as income of assessee--Assessee not entitled to deduction of debt-- CIT v. Lal Woollen and Silk Mills Pvt. Ltd .(P&H) . . . 254

S. 40A(2) --Business expenditure--Disallowance--Excessive and unreasonable payments--Truck hire charges paid on per truck basis to concern of assessee's son at rate lower than to other parties--Disallowance not proper-- CIT v. Brij Pal Sharma (P&H) . . . 229

S. 54E --Reassessment--Notice--Acquisition of property--Enhancement of compensation--Issue sub judice--Disclosure of enhancement of compensation amount in return for relevant assessment year--Amount invested in bonds--Reassessment on ground exemption not available in such year--Not a reason to reopen for that year-- Central India Electric Supply Co. Ltd. v. ITO (Delhi) . . . 237

S. 68 --Cash credits--Burden of proof--Share application money--Identity of subscribers established--Burden on Revenue to prove transaction was not genuine--No such proof--Amount not assessable under section 68-- CIT v. STL Extrusion P. Ltd. (MP) . . . 269

S. 80HHC --Revision--Commissioner--No cogent and valid reasons for coming to conclusion that assessment order was erroneous and prejudicial to interests of Revenue--Interpretation of clause (baa) of Explanation to section 80HHC--Assessing Officer taking one out of two views--Order not prejudicial to interests of Revenue--Revision not valid-- CIT v. Gokuldas Exports (Karn) . . . 214

S. 80HHC, Expln. (baa) --Export--Special deduction--Mode of computation--Liability of deduction under clause (baa) to Explanation--Net interest alone to be taken into account-- CIT v. Gokuldas Exports (Karn) . . . 214

S. 80-IB --Industrial undertaking--Special deduction under section 80-IB --Condition precedent--Manufacture or production of article --Meaning of manufacture and production--Procurement of parts and assembling windmill amounts to production of article--Assessee entitled to special deduction under section 80-IB-- CIT v. Chiranjjeevi Wind Energy Ltd. (Mad) . . . 192

S. 132 --Search and seizure--Conditions precedent--Reason to believe based on materials--Writ--Record showing formation of opinion, rationality and application of mind by authorities--Writ petition not maintainable-- Gwalior Citizen Sakh Sahakarita Maryadit v. Union of India (MP) . . . 196

S. 132A --Search and seizure--Block assessment--Tribunal holding that condition precedent for initiating proceedings under section 158BD not satisfied and assessments void ab initio--Not proper--Seized cash and documents requisitioned under section 132A and detailed information of accounts furnished--Assessment valid--Matter remanded-- CIT v. Mittal Consul and Co . (Delhi) . . . 163

S. 147 --Reassessment--Writ--Information received from Directorate of Investigation that assessee beneficiary of bogus accommodation entries--Assessing Officer has reason to believe that income escaped assessment--Sufficiency of reason cannot be considered in writ petition--Assessee to participate in reassessment proceedings and to satisfy that no escapement of taxable income-- AGR Investment Ltd. v. Addl. CIT (Delhi) . . . 146

S. 147(a) --Reassessment--Notice--Acquisition of property--Enhancement of compensation--Issue sub judice--Disclosure of enhancement of compensation amount in return for relevant assessment year--Amount invested in bonds--Reassessment on ground exemption not available in such year--Not a reason to reopen for that year-- Central India Electric Supply Co. Ltd. v. ITO (Delhi) . . . 237

S. 148 --Reassessment--Notice--Acquisition of property--Enhancement of compensation--Issue sub judice--Disclosure of enhancement of compensation amount in return for relevant assessment year--Amount invested in bonds--Reassessment on ground exemption not available in such year--Not a reason to reopen for that year-- Central India Electric Supply Co. Ltd. v. ITO (Delhi) . . . 237

----Reassessment--Writ--Information received from Directorate of Investigation that assessee beneficiary of bogus accommodation entries--Assessing Officer has reason to believe that income escaped assessment--Sufficiency of reason cannot be considered in writ petition--Assessee to participate in reassessment proceedings and to satisfy that no escapement of taxable income-- AGR Investment Ltd. v. Addl. CIT (Delhi) . . . 146

S. 158BC --Search and seizure--Block assessment--Tribunal holding that condition precedent for initiating proceedings under section 158BD not satisfied and assessments void ab initio--Not proper--Seized cash and documents requisitioned under section 132A and detailed information of accounts furnished--Assessment valid--Matter remanded-- CIT v. Mittal Consul and Co . (Delhi) . . . 163

S. 158BD --Search and seizure--Block assessment--Tribunal holding that condition precedent for initiating proceedings under section 158BD not satisfied and assessments void ab initio--Not proper--Seized cash and documents requisitioned under section 132A and detailed information of accounts furnished--Assessment valid--Matter remanded-- CIT v. Mittal Consul and Co . (Delhi) . . . 163

S. 158BE --Search and seizure--Block assessment--Draft assessment approved by Commissioner and copy of assessment order and notice of demand issued to assessee within limitation--Assessment order not containing signature of Assessing Officer--Order not invalidated--Order not barred by limitation-- CIT v. T. O. Abraham and Co. (Ker) . . . 182

S. 158BG --Search and seizure--Block assessment--Draft assessment approved by Commissioner and copy of assessment order and notice of demand issued to assessee within limitation--Assessment order not containing signature of Assessing Officer--Order not invalidated--Order not barred by limitation-- CIT v. T. O. Abraham and Co. (Ker) . . . 182

S. 263 --Revision--Commissioner--No cogent and valid reasons for coming to conclusion that assessment order was erroneous and prejudicial to interests of Revenue--Interpretation of clause (baa) of Explanation to section 80HHC--Assessing Officer taking one out of two views--Order not prejudicial to interests of Revenue--Revision not valid-- CIT v. Gokuldas Exports (Karn) . . . 214

S. 271(1)(c), Expln. 5(2) --Penalty--Concealment of income--Search and seizure--Law applicable--Effect of amendment of section 271--Search in premises of assessee--Statement by assessee disclosing details of concealed income and paying tax thereon--Assessee entitled to immunity from penalty-- CIT v. A B Kage and Co .(Karn) . . . 189

S. 292B --Search and seizure--Block assessment--Draft assessment approved by Commissioner and copy of assessment order and notice of demand issued to assessee within limitation--Assessment order not containing signature of Assessing Officer--Order not invalidated--Order not barred by limitation-- CIT v. T. O. Abraham and Co. (Ker) . . . 182

ITR'S TRIBUNAL TAX REPORTS (ITR (TRIB))

Volume 9 : Part 1 (Issue dated : 02-05-2011)

SUBJECT INDEX TO CASES REPORTED IN THIS PART

Appellate Tribunal --Special Bench--Bound by decision of jurisdictional High Court -- Tata Communications Ltd. v. Asst. CIT [SB] (Mumbai) . . . 1

Appeal to Appellate Tribunal --Powers of Tribunal--Power to grant stay pending disposal of appeal--Power to extend stay beyond period of 365 days where delay not attributable to assessee--Amendment in 2008 notwithstanding--Income-tax Act, 1961, s. 254(2A), third proviso (as amended by the Finance Act, 2008, w. e. f. 1-10-2008)-- Tata Communications Ltd. v. Asst. CIT [SB] (Mumbai) . . . 1

----Special Bench--Power to consider and dispose of appeals finally--Income-tax Act, 1961, s. 255(4)-- Tata Communications Ltd. v. Asst. CIT [SB] (Mumbai) . . . 1

Bad debt --Irrecoverable interest on intercorporate deposits--Finding that assessee made best efforts to retrieve balance interest from parties but irrecoverable--Finding of fact--Income-tax Act, 1961, s. 36(1)(vii), (2)-- JSW Steel Ltd. v. Asst. CIT (Bangalore) . . . 39

Business expenditure --Deduction only on actual payment--Insertion of Explanation 3C to section 43B with retrospective effect from April 1, 1989--Application only to loans and advances and not to preference shares--Conversion of liability of interest into cumulative redeemable preference shares--Actual payment for purposes of section 43B --Income-tax Act, 1961, s. 43B, Expln. 3C -- JSW Steel Ltd. v. Asst. CIT (Bangalore) . . . 39

----Environment monitoring expenses and community development expenses--Expenditure on replacement of electricity meters--Head office expenses--Allowable--Income-tax Act, 1961, s. 37-- Reliance Infrastructure Ltd. v. Addl. CIT (Mumbai) . . . 84

Business income --Income from sale of units of mutual fund and securities--Considered as business income in previous years--To be considered as business income in present year--Income-tax Act, 1961, s. 28-- Reliance Infrastructure Ltd. v. Addl. CIT (Mumbai) . . . 84

Business loss --Advance for acquisition of capital asset--Non-recoverability of partial advance--Genuineness of claim of write off--No sufficient opportunity to put forth assessee's view either before Assessing Officer or Commissioner (Appeals)--Matter remanded--Income-tax Act, 1961-- JSW Steel Ltd. v. Asst. CIT (Bangalore) . . . 39

Capital gains --Sale of majority shares in group company--That company holding landed property purchased in same year--Sale of shares in effect sale of property--Colourable device to evade payment of taxation on short-term capital gains--Surplus arising on sale of shares as short-term capital gains liable for taxation--Income-tax Act, 1961, s. 10(38)-- Bhoruka Engineering Industries Ltd. v. Deputy CIT (Bangalore) . . . 75

Capital gains or business income --Sale of shares--Surplus fund invested in shares--Assessee disclosing profit from investment in shares as long-term capital gains in previous years as well as subsequent years--Profit from sale of shares assessable as capital gains--Income-tax Act, 1961, s. 45-- Nidhi Dyeing and Printing Mills P. Ltd. v. ITO (Ahmedabad) . . . 65

Depreciation --Goodwill--Amalgamation of companies--No specific sum paid for goodwill of transferor company--No cost incurred by assessee--Mere entry in books of account--Depreciation not allowable--Income-tax Act, 1961, s. 32-- Chowgule and Co. P. Ltd. v. Asst. CIT (Panaji) . . . 21

Income from other sources --Interest income--Surplus business funds deployed to earn interest income--Is income from other sources--Income-tax Act, 1961, s. 56-- Reliance Infrastructure Ltd. v. Addl. CIT (Mumbai) . . . 84

Industrial undertaking --Special deduction--Income from generation of electricity--Mode of computation for deduction--Tariff fixed by Regulatory Commission--Not reflecting true rates with regard to activity of generation of power--Not necessary of deviate from regular mode of computation having regard to consumer selling price--Income-tax Act, 1961, s. 80-IA-- Reliance Infrastructure Ltd. v. Addl. CIT (Mumbai) . . . 84

Rectification of mistakes --Condition precedent--Mistake must be obvious--Lease of property found to be sham--Addition made to annual value of property--Application for rectification granting credit for tax paid by lessee--Question debatable--Credit could not be given in rectification proceedings--Income-tax Act, 1961, s. 154-- Sahney Kirkwood P. Ltd. v. Deputy CIT (Mumbai) . . . 57

 

SECTIONWISE INDEX TO CASES REPORTED IN THIS PART

Income-tax Act, 1961 :

S. 10(38) --Capital gains--Sale of majority shares in group company--That company holding landed property purchased in same year--Sale of shares in effect sale of property--Colourable device to evade payment of taxation on short-term capital gains--Surplus arising on sale of shares as short-term capital gains liable for taxation-- Bhoruka Engineering Industries Ltd. v. Deputy CIT (Bangalore) . . . 75

S. 28 --Business income--Income from sale of units of mutual fund and securities--Considered as business income in previous years--To be considered as business income in present year-- Reliance Infrastructure Ltd. v. Addl. CIT (Mumbai) . . . 84

S. 32 --Depreciation--Goodwill--Amalgamation of companies--No specific sum paid for goodwill of transferor company--No cost incurred by assessee--Mere entry in books of account--Depreciation not allowable-- Chowgule and Co. P. Ltd. v. Asst. CIT (Panaji) . . . 21

S. 36(1)(vii) --Bad debt--Irrecoverable interest on intercorporate deposits--Finding that assessee made best efforts to retrieve balance interest from parties but irrecoverable--Finding of fact-- JSW Steel Ltd. v. Asst. CIT (Bangalore) . . . 39

S. 36(1)(2) --Bad debt--Irrecoverable interest on intercorporate deposits--Finding that assessee made best efforts to retrieve balance interest from parties but irrecoverable--Finding of fact-- JSW Steel Ltd. v. Asst. CIT (Bangalore) . . . 39

S. 37 --Business expenditure--Environment monitoring expenses and community development expenses--Expenditure on replacement of electricity meters--Head office expenses--Allowable-- Reliance Infrastructure Ltd. v. Addl. CIT (Mumbai) . . . 84

S. 43B, Expln. 3C --Business expenditure--Deduction only on actual payment--Insertion of Explanation 3C to section 43B with retrospective effect from April 1, 1989--Application only to loans and advances and not to preference shares--Conversion of liability of interest into cumulative redeemable preference shares--Actual payment for purposes of section 43B-- JSW Steel Ltd. v. Asst. CIT (Bangalore) . . . 39

S. 45 --Capital gains or business income--Sale of shares--Surplus fund invested in shares--Assessee disclosing profit from investment in shares as long-term capital gains in previous years as well as subsequent years--Profit from sale of shares assessable as capital gains-- Nidhi Dyeing and Printing Mills P. Ltd. v. ITO (Ahmedabad) . . . 65

S. 56 --Income from other sources--Interest income--Surplus business funds deployed to earn interest income--Is income from other sources-- Reliance Infrastructure Ltd. v. Addl. CIT (Mumbai) . . . 84

S. 80-IA --Industrial undertaking--Special deduction--Income from generation of electricity--Mode of computation for deduction--Tariff fixed by Regulatory Commission--Not reflecting true rates with regard to activity of generation of power--Not necessary of deviate from regular mode of computation having regard to consumer selling price-- Reliance Infrastructure Ltd. v. Addl. CIT (Mumbai) . . . 84

S. 154 --Rectification of mistakes--Condition precedent--Mistake must be obvious--Lease of property found to be sham--Addition made to annual value of property--Application for rectification granting credit for tax paid by lessee--Question debatable--Credit could not be given in rectification proceedings-- Sahney Kirkwood P. Ltd. v. Deputy CIT (Mumbai) . . . 57

S. 254(2A) , third proviso (as amended by the Finance Act, 2008, w. e. f. 1-10-2008)--Appeal to Appellate Tribunal--Powers of Tribunal--Power to grant stay pending disposal of appeal--Power to extend stay beyond period of 365 days where delay not attributable to assessee--Amendment in 2008 notwithstanding-- Tata Communications Ltd. v. Asst. CIT [SB] (Mumbai) . . . 1

S. 255(4) --Appeal to Appellate Tribunal--Special Bench--Power to consider and dispose of appeals finally-- Tata Communications Ltd. v. Asst. CIT [SB] (Mumbai) . . . 1

 

 CA. RAJU SHAH

Service tax notifications 29 to 37 dated 25-4-11

Service Tax Notifications No. 29-37/11

Service Tax Notifications No. 29-37/11 dated 25-4-2011.

1.29/2011 - Service Tax, dated 25-04-2011 - Appoints the 1st day of May 2011 as the day for Finance Act, 2011 ( 8 of 2011) to come into force.

2. 30/2011 - Service Tax, dated 25-04-2011 -Exempts certain taxable service.

3. 31/2011 - Service Tax, dated 25-04-2011 - Exempts certain taxable service.

4. 32/2011 - Service Tax, dated 25-04-2011 - Rescinds Notification No.25/2006-Service Tax, dated the 13th July, 2006.

5. 33/2011 - Service Tax, dated 25-04-2011- Regarding exemption to preschool coaching and training.

6. 34/2011 - Service Tax, dated 25-04-2011 - Further amendments in Notification No. 1/2006-Service Tax, dated the 1st March, 2006.

7. 35/2011 - Service Tax, dated 25-04-2011 - Amends Service Tax Rules, 1994.

8. 36/2011 - Service Tax, dated 25-04-2011 - Amends Export of Services Rules, 2005.

9. 37/2011 - Service Tax, dated 25-04-2011 - Amends Taxation of Services Rules 2006.

ITR VOL 333 PART 1

 

INCOME TAX REPORTS (ITR)

Volume 333 : Part 1 (Issue dated 25-4-2011)

SUBJECT INDEX TO CASES REPORTED IN THIS PART

SUPREME COURT

Foreign exchange --Contravention of provisions of Act--Liable to prosecution as well as penalty by adjudicating officer--Proceeding before adjudicating officer for acts considered offence--Exoneration in adjudication proceedings--No case for criminal proceedings thereafter on same facts--Foreign Exchange Regulation Act, 1973, ss. 8, 9, 50, 51, 56-- Radheshyam Kejriwal v. State of West Bengal . . . 58

HIGH COURTS

Appeal to Appellate Tribunal --Stay--Pendency of an identical issue before Special Bench--Whether Tribunal has no power to extend stay beyond a period of 365 days--Not decided--Direction for pending matter to be disposed of within four months--Income-tax Act, 1961, s. 254(2A)-- Jethmal Faujimal Soni v. ITAT (Bom) . . . 96

Appellate Tribunal --Powers--Change of law--Tribunal has power to extend period of stay beyond three hundred and sixty-five days--Income-tax Act, 1961, s. 254(2A), third proviso-- CIT v. Ronuk Industries Ltd. (Bom) . . . 99

Business expenditure --Capital or revenue expenditure--Amount spent for expansion of business--Expansion plans abandoned--Amount spent revenue expenditure--Amount paid to consultants for increasing efficiency and profitability--Assignment terminated before work was completed--Amount spent constituted revenue expenditure--Income-tax Act, 1961, s. 37-- Indo Rama Synthetics India Ltd . v. CIT (Delhi) . . . 18

Cash credits --Appeal to Appellate Tribunal--Appeal by Department against order of Commissioner (Appeals) deleting additions--Department seeking adjournment to file paper book --Tribunal allowing appeal without paper book--Assessee to be given opportunity to submit papers--Order of Tribunal to be set aside--Matter remanded--Income-tax Act, 1961, s. 68-- Krishan Kumar Sethi v. CIT (Delhi) . . . 16

----Share application money--Relevant material details and particulars of share applicants available on record--Assessing Officer to make proper investigation and reach shareholders--Addition cannot be made in assessee's hands--Income-tax Act, 1961-- CIT v. Creative World Telefilms Ltd. (Bom) . . . 100

----Share application money received by assessee- company--Assessee identifying shareholders--Creditworthiness of intending shareholders--Burden of proof--Not on assessee--Department to enquire with investors--Income-tax Act, 1961, s. 68-- CIT v. Arunananda Textiles P. Ltd. (Karn) . . . 116

----Share application money--Assessee producing PAN number, bank account, copies of income-tax returns of share applicants--Primary onus of assessee discharged--Addition not sustainable--Income-tax Act, 1961, s. 68-- CIT v. Oasis Hospitalities P. Ltd . (Delhi) . . . 119

----Share application money--Finding that identity and creditworthiness of share applicants not proved--Addition justified--Income-tax Act, 1961, s. 68-- CIT v. Oasis Hospitalities P. Ltd. (Delhi) . . . 119

Income from house property --Annual letting value--Determination--"Amount for which property could reasonably be expected to be let"--Determination of fair rent--Principles--Assessee taking inordinately large sum as interest-free deposit compared to agreed monthly rent--Addition of notional interest thereon--Not proper--Fair rent must be determined--Income-tax Act, 1961, s. 23(1)(a), (b)-- CIT v. Moni Kumar Subba [FB] (Delhi) . . . 38

Industrial undertaking --Special deduction under section 80-IB--Condition precedent--Manufacture or production of article--Conversion of corrugated sheets into boxes amounts to manufacture--Assessee entitled to special deduction under section 80-IB--Income-tax Act, 1961, s. 80-IB-- CIT v. Zainab Trading P. Ltd. (Mad) . . . 144

Local authority --Meaning of--Agency constituted by State Government for agricultural and rural development--Not a local authority--Not entitled to reduction of rate of tax--Income-tax Act, 1961, ss. 10(20), 197--General Clauses Act, 1897, s. 3-- Sone Command Area Development Agency v. Union of India (Patna) . . . 102

Penalty --Concealment of income--Share application money--Identity and creditworthiness of share applicants not proved on account of passage of substantial period--Not a case of concealment of income--Tribunal rightly deleting penalty--Income-tax Act, 1961, s. 271(1)(c)-- CIT v. Oasis Hospitalities P. Ltd. (Delhi) . . . 119

Precedent --Effect of decision of Supreme Court in Union of India v. R. C. Jain [1981] AIR 1981 SC 951-- Sone Command Area Development Agency v. Union of India (Patna) . . . 102

Rectification of mistakes --Cash credit--No satisfactory explanation regarding credit--Addition to total income of assessee--No mistake on record--Addition could not be deleted in rectification proceedings--Income-tax Act, 1961, s. 154-- Goel Die Cast Ltd. v. CIT (P&H) . . . 141

Revision --Deduction of tax at source--Certificate of no deduction--Order under section 197--Writ--High Court--Proper remedy is revision under section 264(2)--Writ petition not maintainable--Income-tax Act, 1961, ss. 197, 264(2)--Constitution of India, art. 226-- SIS Live v. ITO (Delhi) . . . 13

Undisclosed income --Excess unexplained cash--Unexplained trade advances--Tribunal deleting additions without any legal and valid reasons--Matter remanded--Income-tax Act, 1961-- CIT v. ASK Brothers Ltd . (Karn) . . . 111

Unexplained investment --Share application money--Proposed shareholders admitting payment of amounts for shares to be allotted--No investigation with regard to persons who submitted share applications--Amounts not undisclosed income of assessee--Income-tax Act, 1961-- CIT v. ASK Brothers Ltd. (Karn) . . . 111

AUTHORITY FOR ADVANCE RULINGS

Double taxation avoidance agreement --Rule that nationals of one contracting State should not be subjected to taxation more burdensome than that of the other--Capital gains--Arising from the sale of shares--Long-term capital gains--Denial to non-resident of benefit given to resident--Does not amount to discrimination--Income-tax Act, 1961, s. 48, second proviso--Double Taxation Avoidance Agreement between India and Canada, art. 24(1)-- Transworld Garnet Co. Ltd. , In re . . . 1

Non-resident --Double taxation avoidance--Capital gains--Resident of Mauritius--Capital gains arising from sale of shares in Indian company to another Mauritian company--Not taxable in India--Income-tax Act, 1961--Double Taxation Avoidance Agreement between India and Mauritius, art. 13(4)-- D. B. Zwirn Mauritius Trading No. 3 Ltd ., In re . . . 32

 

SECTIONWISE INDEX TO CASES REPORTED IN THIS PART

Constitution of India :

Art. 226 --Revision--Deduction of tax at source--Certificate of no deduction--Order under section 197--Writ--High Court--Proper remedy is revision under section 264(2)--Writ petition not maintainable-- SIS Live v. ITO (Delhi) . . . 13

Double Taxation Avoidance Agreement between India and Canada :

Art. 24(1) --Double taxation avoidance agreement--Rule that nationals of one contracting State should not be subjected to taxation more burdensome than that of the other--Capital gains--Arising from the sale of shares--Long-term capital gains--Denial to non-resident of benefit given to resident--Does not amount to discrimination-- Transworld Garnet Co. Ltd. , In re (AAR) . . . 1

Double Taxation Avoidance Agreement between India and Mauritius :

Art. 13(4) --Non-resident--Double taxation avoidance--Capital gains--Resident of Mauritius--Capital gains arising from sale of shares in Indian company to another Mauritian company--Not taxable in India-- D. B. Zwirn Mauritius Trading No. 3 Ltd ., In re (AAR) . . . 32

Foreign Exchange Regulation Act, 1973 :

Ss. 8, 9, 50, 51, 56 --Foreign exchange--Contravention of provisions of Act--Liable to prosecution as well as penalty by adjudicating officer--Proceeding before adjudicating officer for acts considered offence--Exoneration in adjudication proceedings--No case for criminal proceedings thereafter on same facts-- Radheshyam Kejriwal v. State of West Bengal (SC) . . . 58

General Clauses Act, 1897 :

S. 3 --Local authority--Meaning of--Agency constituted by State Government for agricultural and rural development--Not a local authority--Not entitled to reduction of rate of tax-- Sone Command Area Development Agency v. Union of India (Patna) . . . 102

Income-tax Act, 1961 :

S. 10(20) --Local authority--Meaning of--Agency constituted by State Government for agricultural and rural development--Not a local authority--Not entitled to reduction of rate of tax-- Sone Command Area Development Agency v. Union of India (Patna) . . . 102

S. 23(1)(a), (b) --Income from house property--Annual letting value--Determination--"Amount for which property could reasonably be expected to be let"--Determination of fair rent--Principles--Assessee taking inordinately large sum as interest-free deposit compared to agreed monthly rent--Addition of notional interest thereon--Not proper--Fair rent must be determined-- CIT v. Moni Kumar Subba [FB] (Delhi) . . . 38

S. 37 --Business expenditure--Capital or revenue expenditure--Amount spent for expansion of business--Expansion plans abandoned--Amount spent revenue expenditure--Amount paid to consultants for increasing efficiency and profitability--Assignment terminated before work was completed--Amount spent constituted revenue expenditure-- Indo Rama Synthetics India Ltd . v. CIT (Delhi) . . . 18

S. 48, second proviso --Double taxation avoidance agreement--Rule that nationals of one contracting State should not be subjected to taxation more burdensome than that of the other--Capital gains--Arising from the sale of shares--Long-term capital gains--Denial to non-resident of benefit given to resident--Does not amount to discrimination-- Transworld Garnet Co. Ltd. , In re (AAR) . . . 1

S. 68 --Cash credits--Appeal to Appellate Tribunal--Appeal by Department against order of Commissioner (Appeals) deleting additions--Department seeking adjournment to file paper book --Tribunal allowing appeal without paper book--Assessee to be given opportunity to submit papers--Order of Tribunal to be set aside--Matter remanded-- Krishan Kumar Sethi v. CIT (Delhi) . . . 16

----Cash credits--Share application money received by assessee- company--Assessee identifying shareholders--Creditworthiness of intending shareholders--Burden of proof--Not on assessee--Department to enquire with investors-- CIT v. Arunananda Textiles P. Ltd. (Karn) . . . 116

----Cash credits--Share application money--Assessee producing PAN number, bank account, copies of income-tax returns of share applicants--Primary onus of assessee discharged--Addition not sustainable-- CIT v. Oasis Hospitalities P. Ltd . (Delhi) . . . 119

----Cash credits--Share application money--Finding that identity and creditworthiness of share applicants not proved--Addition justified-- CIT v. Oasis Hospitalities P. Ltd. (Delhi) . . . 119

S. 80-IB --Industrial undertaking--Special deduction under section 80-IB--Condition precedent--Manufacture or production of article--Conversion of corrugated sheets into boxes amounts to manufacture--Assessee entitled to special deduction under section 80-IB-- CIT v. Zainab Trading P. Ltd. (Mad) . . . 144

S. 154 --Rectification of mistakes--Cash credit--No satisfactory explanation regarding credit--Addition to total income of assessee--No mistake on record--Addition could not be deleted in rectification proceedings-- Goel Die Cast Ltd. v. CIT (P&H) . . . 141

S. 197 --Local authority--Meaning of--Agency constituted by State Government for agricultural and rural development--Not a local authority--Not entitled to reduction of rate of tax-- Sone Command Area Development Agency v. Union of India (Patna) . . . 102

----Revision--Deduction of tax at source--Certificate of no deduction--Order under section 197--Writ--High Court--Proper remedy is revision under section 264(2)--Writ petition not maintainable-- SIS Live v. ITO (Delhi) . . . 13

S. 254(2A) --Appeal to Appellate Tribunal--Stay--Pendency of an identical issue before Special Bench--Whether Tribunal has no power to extend stay beyond a period of 365 days--Not decided--Direction for pending matter to be disposed of within four months-- Jethmal Faujimal Soni v. ITAT (Bom) . . . 96

S. 254(2A), third proviso --Appellate Tribunal--Powers--Change of law--Tribunal has power to extend period of stay beyond three hundred and sixty-five days-- CIT v. Ronuk Industries Ltd. (Bom) . . . 99

S. 264(2) --Revision--Deduction of tax at source--Certificate of no deduction--Order under section 197--Writ--High Court--Proper remedy is revision under section 264(2)--Writ petition not maintainable-- SIS Live v. ITO (Delhi) . . . 13

S. 271(1)(c) --Penalty--Concealment of income--Share application money--Identity and creditworthiness of share applicants not proved on account of passage of substantial period--Not a case of concealment of income--Tribunal rightly deleting penalty-- CIT v. Oasis Hospitalities P. Ltd. (Delhi) . . . 119

CA.RAJU SHAH

ROC will take Penal action for wrong Certification of e-forms

ROC will take Penal action for wrong Certification of e-forms under the Companies
Act, 1956 by the Practicing CA, CS, ICWAI

ROC will take Penal action for wrong Certification of e-forms under the Companies Act, 1956 by the
Practicing CA, CS, ICWAI

No 17/102/2011 CL-V Circular 14/2011, Dated: 08.04.2011

Subject:- Certification of e-forms under the Companies Act, 1956 by the Practicing professionals

1. Ministry of Corporate Affairs has been steadily progressing towards total electronic filing and approval regime.
Objective is to do away with human intervention in MCA approvals to the maximum extent possible.

2. For this purpose, Ministry of Corporate Affairs has entrusted practicing professionals registered as Members of
the professional bodies namely, ICAI, ICSI & ICWAI with the responsibility of ensuring integrity of documents filed
by them with MCA in electronic mode. Professionals are now to be responsible for submitting /certifying documents
(to be signed digitally by them) and system would accept most of these documents online without approval by
Registrar of Companies or other officers of the Ministry.

3. However, to ensure that the data integrity is maintained at all times, there will be checking of such submissions
to guard against fraudulent filing. In addition to the penal actions against the companies and their officers in default
for furnishing incorrect or false information in the documents as provided under the Companies Act, 1956, action
would also be taken on receipt of any complaint, anonymous or otherwise, against such professionals in the
following manner:-
a) Alleged wrong submissions: In such cases, quick enquiry will be conducted by the concerned RD who will be
assessing prima facie, cases of wrong doing by the professionals. Concerned professionals will be given time for
furnishing explanation before conveying to a cancellation.
b) This report will be submitted to e-Governance Cell of MCA. The Cell will inform in the concerned Professional
Institute to initiate an enquiry and complete the same within a month's time.
c) Simultaneously, the concerned professional shall be debarred and shall not be allowed to enter to submit any
document on MCA Portal. This debarment will be for a period of 30 days or till the final enquiry report is received
from the respective Professional Institute.
d) MCA will take a final decision after considering the report so received.


Yours faithfully,

(Sanjay Shorey) Dy. Director

Copy to:
The Secretary, ICAI, ICSI, ICWAI :- With a request to publish it in their respective journals and give wider publicity
to their practicing members

Regards,
-------
CA.C.V.PAWAR

RBI Recognises DISA (ICAI) Qualification

---------- Forwarded message ----------
From: bheda atul <bhedaac2001@yahoo.co.in>
Date: Mon, Apr 18, 2011 at 1:46 PM
Subject: Message from EGroup of SolapurCAs RBI Recognises DISA (ICAI) Qualification
To:

 

 

To obtain an aligned printout please download the (28 kb) version to your machine and then use respective software to print the story.

Date: Apr 15, 2011

Submission of system audit reports

RBI/2010-11/476 DPSS.CO.OSD. No. 2374/06.11.001/2010-2011 April 15, 2011 To all Authorised Payment System Operators & Entities Dear Sir, Submission of system audit reports Please refer to our earlier circulars DPSS.AD.No./1206/02.27.005/2009-2010 dated December 7, 2009 and DPSS.1444/ 06.11.001/ 2010-2011 dated December 27, 2010 on the captioned subject. In partial modification of the instructions contained therein, it is advised that the system audit may be conducted by a Certified Information Systems Auditor (CISA) and registered with Information Systems Audit and Control Association (ISACA) or by a holder of a Diploma in Information System Audit (DISA) qualification of the Institute of Chartered Accountants of India (ICAI). Please acknowledge receipt. Yours faithfully, G. Srinivas (General Manager)

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ITR (TRIB) VOL 8 PART 7

ITR'S TRIBUNAL TAX REPORTS (ITR (TRIB))

Volume 8 : Part 7 (Issue dated : 18-04-2011)

SUBJECT INDEX TO CASES REPORTED IN THIS PART

Business expenditure --Accounting--Write off of inventory of non/slow moving items--Write off of inventory under accepted accounting policy followed from year to year--Allowed in previous years--To be allowed this year also--Income-tax Act, 1961-- Central Electronics Ltd . v. Assessing Officer (Delhi) . . . 696

----Commission--Payment supported by confirmation letters of payees and particulars of tax deducted at source--Agency commission from principal received against payment commission--Expenditure incurred for business purposes--Addition deleted--Income-tax Act, 1961, s. 37-- Addl. CIT v. Titan Engineers (Bangalore) . . . 748

----Method of accounting--Deferred revenue expenditure--Change in method adopted for writing off of balance deferred expenditure--Whether change in method of accounting bona fide--Matter remanded--Income-tax Act, 1961-- Central Electronics Ltd. v. Assessing Officer (Delhi) . . . 696

----Pre-operative expenses--Setting up of business and commencement of business --Business of air transportation--No aircraft available till end of relevant previous year--No setting up of business--Assessee not entitled to deduction--Income-tax Act, 1961, s. 37-- Kingfisher Training and Aviation Services Ltd. v. Asst. CIT (Bangalore) . . . 692

Business income or salary --Assessee running computer centres and conducting training programmes--No proof of existence of employer-employee relationship--Assessee meeting all expenses of business--Reimbursement of certain expenditure and supply of material cannot ipso facto render business contract into salary contract--Receipts business income and expenses allowable--Income-tax Act, 1961-- Asst. CIT v. Rajiv Kalia (Delhi) . . . 741

Cash credits --Advance received towards supply of machineries--Adjustment of advance against billed amount--Accounts disclosing advance converted to sale proceeds of assessee--Transaction established with documentary evidence--Deletion of addition justified--Income-tax Act, 1961, s. 68-- Addl. CIT v. Titan Engineers (Bangalore) . . . 748

----Assessee failing to furnish proof regarding cash credit, identity of lenders, their financial capacity and genuineness of transactions--Additions made justified--Income-tax Act, 1961, s. 68-- ITO v. Ripul C. Dalal (Ahmedabad) . . . 717

Charitable purposes --Charitable trust--Registration of trust--Trust whether charitable--Totality of objects of trust to be considered--Trust with main object of constructing dwelling places for weaker section of society--Profits to be utilised for other charitable purposes--Trust entitled to registration--Income-tax Act, 1961, ss. 12A, 12AA-- Jayaben Visanji Maru Foundation v. ITO (Exemption) (Mumbai) . . . 753

Exemption --New industrial undertaking in free trade zone--Export of computer software--Exemption under section 10A and special deduction under section 80HHE--Unit for production of software set up in previous year relevant for assessment year 2001-02--Registration on 14-1-2003--Special deduction under section 80HHE available up to 13-1-2003--Exemption under section 10A allowable from 14-1-2003 to 31-3-2003--Initial year for purposes of section 10A was assessment year 2001-02--Income-tax Act, 1961, ss. 10A, 80HHE--Circular No. 1, dated January 6, 2005-- ITO v. Vidya Tech Solutions P. Ltd. (Delhi) . . . 705

Loss --Short-term capital loss--Transactions in securities--Dividend received in financial year 2002-03, whereas loss from sale of units in 2003-04--No restriction that dividend or income on such securities or units be received in particular year--Redemption of units by mutual funds only buy-back of units and amounts to transfer--Income-tax Act, 1961, ss. 2(47), 94(7)-- Administrator of Estate of Late E. F. Dinshaw v. ITO (International Taxation) (Mumbai) . . . 771

Penalty --Concealment of income and furnishing of inaccurate particulars--Expenses on travel claimed as employee of company--Finding that assessee was not an employee when he incurred expenses--Levy of penalty--Valid--Income-tax Act, 1961, s. 271(1)(c) -- Yogesh T. Vani v. ITO (Ahmedabad) . . . 779

----Furnishing inaccurate particulars of income--Expenses incurred towards plant and machinery and repairs to building--Disallowance and imposition of penalty treating part expenses as capital in nature--Commissioner (Appeals) deleting penalty holding issue debatable--Justified--Income-tax Act, 1961, s. 271(1)(c)-- Deputy CIT v. Shivalik Global Ltd . (Delhi) . . . 761

Reassessment --Addition on account of bad debts--Assessee producing all relevant documents at time of original assessment--Notice issued under section 148 after expiry of 4 years--Assessing Officer accepting claim of assessee at time of original assessment--Reassessment on change of opinion--Not valid--Income-tax Act, 1961, s. 147-- Ashok Pesticides v. ITO (Ahmedabad) . . . 763

----Notice--Validity--No assessment made on original return--Notice issued within four years--Valid--Income-tax Act, 1961, ss. 147, Expln. 2(b), 148-- ITO v. Ripul C. Dalal (Ahmedabad) . . . 717

Search and seizure --Assessment in search cases--Assessing Officer having concurrent jurisdiction passing assessment order--Not permissible under CBDT Notification--Notice under section 143(2) not issued to assessee--Assessment without jurisdiction--Income-tax Act, 1961, ss. 153A, 153C--Notification No. 285, dated October 10, 2006-- P. Sukumar HUF v. Asst. CIT (Chennai) . . . 737

Unexplained expenditure --Repayment of loan--Satisfactory explanation regarding availability of money from current profits and receipt of refund from seller of car--Relief allowed by Commissioner (Appeals) and disallowance of Rs. 20,000 out of claim of expenditure reasonable--Income-tax Act, 1961, s. 69C-- ITO v. Ripul C. Dalal (Ahmedabad) . . . 717

 

SECTIONWISE INDEX TO CASES REPORTED IN THIS PART

Income-tax Act, 1961 :

S. 2(47) --Loss--Short-term capital loss--Transactions in securities--Dividend received in financial year 2002-03, whereas loss from sale of units in 2003-04--No restriction that dividend or income on such securities or units be received in particular year --Redemption of units by mutual funds only buy-back of units and amounts to transfer -- Administrator of Estate of Late E. F. Dinshaw v. ITO (International Taxation) (Mumbai) . . . 771

S. 10A --Exemption--New industrial undertaking in free trade zone--Export of computer software--Exemption under section 10A and special deduction under section 80HHE--Unit for production of software set up in previous year relevant for assessment year 2001-02--Registration on 14-1-2003--Special deduction under section 80HHE available up to 13-1-2003--Exemption under section 10A allowable from 14-1-2003 to 31-3-2003--Initial year for purposes of section 10A was assessment year 2001-02--Circular No. 1, dated January 6, 2005-- ITO v. Vidya Tech Solutions P. Ltd. (Delhi) . . . 705

S. 12A --Charitable purposes--Charitable trust--Registration of trust--Trust whether charitable--Totality of objects of trust to be considered--Trust with main object of constructing dwelling places for weaker section of society--Profits to be utilised for other charitable purposes--Trust entitled to registration-- Jayaben Visanji Maru Foundation v. ITO (Exemption) (Mumbai) . . . 753

S. 12AA --Charitable purposes--Charitable trust--Registration of trust--Trust whether charitable--Totality of objects of trust to be considered--Trust with main object of constructing dwelling places for weaker section of society--Profits to be utilised for other charitable purposes--Trust entitled to registration-- Jayaben Visanji Maru Foundation v. ITO (Exemption) (Mumbai) . . . 753

S. 37 --Business expenditure--Commission--Payment supported by confirmation letters of payees and particulars of tax deducted at source--Agency commission from principal received against payment commission--Expenditure incurred for business purposes--Addition deleted-- Addl. CIT v. Titan Engineers (Bangalore) . . . 748

----Business expenditure--Pre-operative expenses--Setting up of business and commencement of business--Business of air transportation--No aircraft available till end of relevant previous year--No setting up of business--Assessee not entitled to deduction-- Kingfisher Training and Aviation Services Ltd. v. Asst. CIT (Bangalore) . . . 692

S. 68 --Cash credits--Advance received towards supply of machineries--Adjustment of advance against billed amount--Accounts disclosing advance converted to sale proceeds of assessee--Transaction established with documentary evidence--Deletion of addition justified-- Addl. CIT v. Titan Engineers (Bangalore) . . . 748

----Cash credits--Assessee failing to furnish proof regarding cash credit, identity of lenders, their financial capacity and genuineness of transactions--Additions made justified-- ITO v. Ripul C. Dalal (Ahmedabad) . . . 717

S. 69C --Unexplained expenditure--Repayment of loan--Satisfactory explanation regarding availability of money from current profits and receipt of refund from seller of car--Relief allowed by Commissioner (Appeals) and disallowance of Rs. 20,000 out of claim of expenditure reasonable-- ITO v. Ripul C. Dalal (Ahmedabad) . . . 717

S. 80HHE --Exemption--New industrial undertaking in free trade zone--Export of computer software--Exemption under section 10A and special deduction under section 80HHE--Unit for production of software set up in previous year relevant for assessment year 2001-02--Registration on 14-1-2003--Special deduction under section 80HHE avail- able up to 13-1-2003--Exemption under section 10A allowable from 14-1-2003 to 31-3-2003--Initial year for purposes of section 10A was assessment year 2001-02--Circular No. 1, dated January 6, 2005-- ITO v. Vidya Tech Solutions P. Ltd. (Delhi) . . . 705

S. 94(7) --Loss--Short-term capital loss--Transactions in securities--Dividend received in financial year 2002-03, whereas loss from sale of units in 2003-04--No restriction that dividend or income on such securities or units be received in particular year--Redemption of units by mutual funds only buy-back of units and amounts to transfer-- Administrator of Estate of Late E. F. Dinshaw v. ITO (International Taxation) (Mumbai) . . . 771

S. 147 --Reassessment--Addition on account of bad debts--Assessee producing all relevant documents at time of original assessment--Notice issued under section 148 after expiry of 4 years--Assessing Officer accepting claim of assessee at time of original assessment--Reassessment on change of opinion--Not valid-- Ashok Pesticides v. ITO (Ahmedabad) . . . 763

S. 147, Expln. 2(b) --Reassessment--Notice--Validity--No assessment made on original return--Notice issued within four years--Valid-- ITO v. Ripul C. Dalal (Ahmedabad) . . . 717

S. 148 --Reassessment--Notice--Validity--No assessment made on original return--Notice issued within four years--Valid-- ITO v. Ripul C. Dalal (Ahmedabad) . . . 717

S. 153A --Search and seizure--Assessment in search cases--Assessing Officer having concurrent jurisdiction passing assessment order--Not permissible under CBDT Notification--Notice under section 143(2) not issued to assessee--Assessment without jurisdiction--Notification No. 285, dated October 10, 2006-- P. Sukumar HUF v. Asst. CIT (Chennai) . . . 737

S. 153C --Search and seizure--Assessment in search cases--Assessing Officer having concurrent jurisdiction passing assessment order--Not permissible under CBDT Notification--Notice under section 143(2) not issued to assessee--Assessment without jurisdiction--Notification No. 285, dated October 10, 2006-- P. Sukumar HUF v. Asst. CIT (Chennai) . . . 737

S. 271(1)(c) --Penalty--Concealment of income and furnishing of inaccurate particulars--Expenses on travel claimed as employee of company--Finding that assessee was not an employee when he incurred expenses--Levy of penalty--Valid-- Yogesh T. Vani v. ITO (Ahmedabad) . . . 779

----Penalty--Furnishing inaccurate particulars of income--Expenses incurred towards plant and machinery and repairs to building--Disallowance and imposition of penalty treating part expenses as capital in nature--Commissioner (Appeals) deleting penalty holding issue debatable--Justified-- Deputy CIT v. Shivalik Global Ltd . (Delhi) . . . 761

 

CA.RAJU SHAH

.

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