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
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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