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Thursday, August 11, 2011

ITR (TRIB) VOL 10 PART 7

 

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

Volume 10 : Part 7 (Issue dated : 15-08-2011)

SUBJECT INDEX TO CASES REPORTED IN THIS PART

Appellate Tribunal --Powers--Assessing Officer following judgment of Supreme Court refusing to consider claim made without filing revised return--Tribunal will not set aside in order to provide an opportunity to assessee to prove its claim--Income-tax Act, 1961, s. 254-- Jay Bharat Co-op. Housing Society Ltd. v. ITO (Mumbai) . . . 717

----Powers of Tribunal--Stay of recovery of penalty--Stay granted by High Court--Tribunal cannot interfere through parallel proceedings--Income-tax Act, 1961, s. 254-- G. Venkateswaran v. Asst. CIT (Chennai) . . . 770

Assessment --Powers of Assessing Officer--Assessee raising new claim before Assessing Officer with regard to doctrine of mutuality without filing revised return under section 139--Assessing Officer declining to entertain on ground that he has no power to entertain--Proper--Income-tax Act, 1961-- Jay Bharat Co-op. Housing Society Ltd. v. ITO (Mumbai) . . . 717

Capital or revenue receipt --Advance received for setting up facility--Treated as loan--Assessee forfeiting loan amount and depositing in reserve and surplus account and utilising for issue of bonus shares--Amount received even before starting of business and not relating to trading transaction--Amount not chargeable to tax on its forfeiture--Income-tax Act, 1961, s. 28-- Velocient Technologies Ltd. v. ITO (Delhi) . . . 750

Deduction of tax at source --Short fall in deduction--Assessee making suo motu disallowance--Assessing Officer scaling down--Commissioner (Appeals) reversing on ground exercise futile in view of eligibility to deduction--Not proper--Matter remanded--Income-tax Act, 1961, s. 40(a)(ia)-- Asst. CIT v. Pixie Enterprises (Chennai) . . . 744

Income from undisclosed sources --Unexplained money--Sale proceeds of shares--Assessee failing to show purchase details--Finding that income from undisclosed sources--Justified--Income- tax Act, 1961-- Smt. Kusum Lata v. Asst. CIT (Delhi) . . . 737

Industrial undertaking --Special deduction--Production of pilferage proof caps from printed aluminium sheets--Is manufacture--Assessee entitled to special deduction--Income-tax Act, 1961, s. 80-IB-- Asst. CIT v. Pixie Enterprises (Chennai) . . . 744

Penalty --Acceptance of loans exceeding prescribed limit otherwise than by account payee cheque--Scope of section 269SS--Provisions of section 269SS not applicable--No bona fide reason for receipt of loan--Imposition of penalty proper--Income-tax Act, 1961, s. 271D-- Mahak Singh v. ITO (Delhi) . . . 727

----Concealment of income--Assessing Officer disallowing certain claims and making additions--Addition deleted by Tribunal--Penalty cannot be imposed--Income-tax Act, 1961, s. 271(1)(c)-- Deputy CIT v. Nokia India P. Ltd. (Delhi) . . . 790

----Concealment of income--Claim of marketing expenses representing cellular phone sets gifted to employees and dealers--Claim bona fide and not false--Assessee providing bona fide explanation and furnishing all details--Discharge of burden under Explanation 1 to section 271(1)(c)--Deletion of penalty justified--Income-tax Act, 1961, s. 271(1)(c)-- Deputy CIT v. Nokia India P. Ltd. (Delhi) . . . 790

Reassessment --Income escaping assessment--Interest income--Exemption--Assessing Officer not invoking section 14A for disallowing interest expenditure--Section 147 cannot be resorted for making disallowance under section 14A and annulling assessment as void ab initio--Matter remanded--Income-tax Act, 1961, ss. 10(33), 14A, 147-- ITO v. Big Apple Clothing P. Ltd. (Delhi) . . . 782

Search and seizure --Block assessment--Undisclosed income--Assessing Officer verifying correctness of return for block period--Notice under section 143(2) mandatory--Notice must be served on assessee--No evidence of service of notice--Assessment of undisclosed income--Not valid--Income-tax Act, 1961, ss. 143(2), 158BC, 282-- Dr. Y. D. Singh v. Deputy CIT (Allahabad) . . . 698

SECTIONWISE INDEX TO CASES REPORTED IN THIS PART

Income-tax Act, 1961 :

S. 10(33) --Reassessment--Income escaping assessment--Interest income--Exemption--Assessing Officer not invoking section 14A for disallowing interest expenditure--Section 147 cannot be resorted for making disallowance under section 14A and annulling assessment as void ab initio--Matter remanded-- ITO v. Big Apple Clothing P. Ltd. (Delhi) . . . 782

S. 14A --Reassessment--Income escaping assessment--Interest income--Exemption--Assessing Officer not invoking section 14A for disallowing interest expenditure--Section 147 cannot be resorted for making disallowance under section 14A and annulling assessment as void ab initio--Matter remanded-- ITO v. Big Apple Clothing P. Ltd. (Delhi) . . . 782

S. 28 --Capital or revenue receipt--Advance received for setting up facility--Treated as loan--Assessee forfeiting loan amount and depositing in reserve and surplus account and utilising for issue of bonus shares--Amount received even before starting of business and not relating to trading transaction--Amount not chargeable to tax on its forfeiture-- Velocient Technologies Ltd. v. ITO (Delhi) . . . 750

S. 40(a)(ia) --Deduction of tax at source--Short fall in deduction--Assessee making suo motu disallowance--Assessing Officer scaling down--Commissioner (Appeals) reversing on ground exercise futile in view of eligibility to deduction--Not proper--Matter remanded-- Asst. CIT v. Pixie Enterprises (Chennai) . . . 744

S. 80-IB --Industrial undertaking--Special deduction--Production of pilferage proof caps from printed aluminium sheets--Is manufacture--Assessee entitled to special deduction-- Asst. CIT v. Pixie Enterprises (Chennai) . . . 744

S. 143(2) --Search and seizure--Block assessment--Undisclosed income--Assessing Officer verifying correctness of return for block period--Notice under section 143(2) mandatory--Notice must be served on assessee--No evidence of service of notice--Assessment of undisclosed income--Not valid---- Dr. Y. D. Singh v. Deputy CIT (Allahabad) . . . 698

S. 147 --Reassessment--Income escaping assessment--Interest income--Exemption--Assessing Officer not invoking section 14A for disallowing interest expenditure--Section 147 cannot be resorted for making disallowance under section 14A and annulling assessment as void ab initio--Matter remanded-- ITO v. Big Apple Clothing P. Ltd. (Delhi) . . . 782

S. 158BC --Search and seizure--Block assessment--Undisclosed income--Assessing Officer verifying correctness of return for block period--Notice under section 143(2) mandatory--Notice must be served on assessee--No evidence of service of notice--Assessment of undisclosed income--Not valid---- Dr. Y. D. Singh v. Deputy CIT (Allahabad) . . . 698

S. 254 --Appellate Tribunal--Powers of Tribunal--Stay of recovery of penalty--Stay granted by High Court--Tribunal cannot interfere through parallel proceedings-- G. Venkateswaran v. Asst. CIT (Chennai) . . . 770

----Appellate Tribunal--Powers--Assessing Officer following judgment of Supreme Court refusing to consider claim made without filing revised return--Tribunal will not set aside in order to provide an opportunity to assessee to prove its claim-- Jay Bharat Co-op. Housing Society Ltd. v. ITO (Mumbai) . . . 717

S. 271(1)(c) --Penalty--Concealment of income--Assessing Officer disallowing certain claims and making additions--Addition deleted by Tribunal--Penalty cannot be imposed-- Deputy CIT v. Nokia India P. Ltd. (Delhi) . . . 790

----Penalty--Concealment of income--Claim of marketing expenses representing cellular phone sets gifted to employees and dealers--Claim bona fide and not false--Assessee providing bona fide explanation and furnishing all details--Discharge of burden under Explanation 1 to section 271(1)(c)--Deletion of penalty justified-- Deputy CIT v. Nokia India P. Ltd. (Delhi) . . . 790

S. 271D --Penalty--Acceptance of loans exceeding prescribed limit otherwise than by account payee cheque--Scope of section 269SS--Provisions of section 269SS not applicable--No bona fide reason for receipt of loan--Imposition of penalty proper-- Mahak Singh v. ITO (Delhi) . . . 727

S. 282 --Search and seizure--Block assessment--Undisclosed income--Assessing Officer verifying correctness of return for block period--Notice under section 143(2) mandatory--Notice must be served on assessee--No evidence of service of notice--Assessment of undisclosed income--Not valid--Dr. Y. D. Singh v. Deputy CIT (Allahabad) . . . 698

 

CA.RAJU SHAH

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