Volume 339 : Part 2 (Issue dated 5-12-2011)
SUBJECT INDEX TO CASES REPORTED IN THIS PART
Appeal to Appellate Tribunal --Order under section 263 set aside--Proceedings thereafter infructuous--Tribunal has no jurisdiction to allow appeal from order of Commissioner--Income-tax Act, 1961, s. 263-- Anil Kumar Rastogi v. ITO (All) . . . 279
Business expenditure --Deferred revenue expenditure--Expenditure on purchases--Finding by Commissioner (Appeals) and Tribunal that amounts were deductible--Finding of fact--Income-tax Act, 1961-- CIT v. P. R. Packaging Ltd. (P&H) . . . 281
Capital gains --Short-term capital gains--Exemption--Depreciable assets--Export--Computation of capital gains--Income from plant and machinery exempt under section 10B--Expiry of period of exemption--Sale of assets as a block to sister concern--Asset transferred and purchased carrying same rate of depreciation--Assessee entitled to bene-fit of section 50(2)--Income-tax Act, 1961, ss. 10B, 50(2)-- S. Muthurajan v. Deputy CIT (Mad) . . . 301
Deduction of tax at source --Non-resident purchasing shares of Indian company--Notice under section 201--Notice making it clear that non-resident could urge jurisdictional and other facts--Matter had not been pre-judged--Notice could not be quashed--Income-tax Act, 1961, s. 201(1), (1A)-- Richter Holding Ltd . v. Assistant Director of Income-tax (International Taxation) (Karn) . . . 199
Exemption --Export--Application to Reserve Bank of India for extension of time for realisation of export proceeds--No reply from Reserve Bank--Extension of time for realisation of export proceeds by Reserve Bank under Foreign Exchange Management Act--Deemed approval for purposes of section 10A(3)--Assessee entitled to exemption--Income-tax Act, 1961, s. 10A-- CIT v. Morgan Stanley Advantage Services P. Ltd . (Bom) . . . 291
Income --Computation--Disallowance of expenditure related to exempt income--Interest attributable to investment in shares--No evidence that loans not utilized for acquisition of shares--No new shares purchased in immediately preceding years--Not relevant--Disallowance of proportionate part of interest attributable to investment in shares dividends from which exempt--Justified--Income-tax Act, 1961, ss. 10(34), 14A-- Dhanuka and Sons v. CIT (Cal) . . . 319
Income-tax --General principles--Assessment only according to law-- Chandrakant J. Patel v. V. N. Srivastava (Guj) . . . 310
Interest on borrowed capital --Expenditure in relation to income not forming part of total income--Borrowed funds utilised for acquisition of shares in company of which assessee acquired controlling interest--Acquisition of shares in form of investment and only benefit is dividend income--Assessee not entitled to deduction of interest--Income-tax Act, 1961, ss. 14A, 36(1)(iii)-- CIT v. Smt. Leena Ramachandran (Ker) . . . 296
Reassessment --Notice--Receipt of advisory fees from charitable institutions subject of assessment--Notice on ground charitable institutions benami of assessee--Income-tax authorities finding charitable institutions were genuine--Notice not valid--Income-tax Act, 1961, ss. 147, 148-- Dr. Bindeshwar Pathak v. CIT (Patna) . . . 272
----Notice after four years--Conditions precedent--Subsequent retrospective amendment--Proviso to section 147 not attracted--Income-tax Act, 1961, s. 147, proviso-- CIT v. SIL Investments Ltd . (Delhi) . . . 166
----Reassessment after four years--Non-resident company assessed under section 44BB after considering material on record--Notice based on subsequent decision of High Court and Explanatory Notes to Finance Bill, 2010--Not valid--Income-tax Act, 1961, ss. 44BB, 44D, 147, 148-- B. J. Services Co. Middle East Ltd . v. Deputy Director of Income-tax, International Taxation (Uttarakhand) . . . 169
Revision --Application for revision--Powers of Commissioner--Income offered for taxation by mistake--Commissioner cannot reject application on that ground--Income exempt under section 10(15)(iv)(fa) included in assessable income--On merits, assessee not ordinarily resident in India--Commissioner not justified in rejecting application for revision--Income-tax Act, 1961, s. 264-- Chandrakant J. Patel v. V. N. Srivastava (Guj) . . . 310
Search and seizure --Block assessment--Appeal--Competency of appeal--Appeal only against order of assessment--Validity of search can be challenged in appeal--Income-tax Act, 1961, ss. 158B, 235-- C. Ramaiah Reddy v. Asst. CIT (IMV) (Karn) . . . 210
----Block assessment--Limitation--Limitation starts on date of final conclusion of search--Prohibitory order does not extend limitation--Income-tax Act, 1961, s. 158BE-- C. Ramaiah Reddy v. Asst. CIT (IMV) (Karn) . . . 210
----Undisclosed income--Addition on basis of two statements recorded in two days--Assessee withdrawing second statement--Assessee explaining that second statement not correct in the context of materials produced--Addition based on second statement to be set aside--Income-tax Act, 1961--CBDT Circular dated 10-3-2003-- M. Narayanan and Bros. v. Asst. CIT (Mad) . . . 192
Valuation of stock --Law applicable--Effect of insertion of section 145A w.e.f. 1-4-1999 --Excise duty on unsold stock not to be taken into account--Income-tax Act, 1961, s. 145A-- CIT v. Loknete Balasaheb Desai S. S. K. Ltd. (Bom) . . . 288
SECTIONWISE INDEX TO CASES REPORTED IN THIS PART
S. 10(34) --Income--Computation--Disallowance of expenditure related to exempt income--Interest attributable to investment in shares--No evidence that loans not utilized for acquisition of shares--No new shares purchased in immediately preceding years--Not relevant--Disallowance of proportionate part of interest attributable to investment in shares dividends from which exempt--Justified-- Dhanuka and Sons v. CIT (Cal) . . . 319
S. 10A --Exemption--Export--Application to Reserve Bank of India for extension of time for realisation of export proceeds--No reply from Reserve Bank--Extension of time for realisation of export proceeds by Reserve Bank under Foreign Exchange Management Act--Deemed approval for purposes of section 10A(3)--Assessee entitled to exemption-- CIT v. Morgan Stanley Advantage Services P. Ltd . (Bom) . . . 291
S. 10B --Capital gains--Short-term capital gains--Exemption--Depreciable assets--Export--Computation of capital gains--Income from plant and machinery exempt under section 10B--Expiry of period of exemption--Sale of assets as a block to sister concern--Asset transferred and purchased carrying same rate of depreciation--Assessee entitled to benefit of section 50(2)-- S. Muthurajan v. Deputy CIT (Mad) . . . 301
S. 14A --Income--Computation--Disallowance of expenditure related to exempt income--Interest attributable to investment in shares--No evidence that loans not utilized for acquisition of shares--No new shares purchased in immediately preceding years--Not relevant--Disallowance of proportionate part of interest attributable to investment in shares dividends from which exempt--Justified-- Dhanuka and Sons v. CIT (Cal) . . . 319
----Interest on borrowed capital--Expenditure in relation to income not forming part of total income--Borrowed funds utilised for acquisition of shares in company of which assessee acquired controlling interest--Acquisition of shares in form of investment and only benefit is dividend income--Assessee not entitled to deduction of interest-- CIT v. Smt. Leena Ramachandran (Ker) . . . 296
S. 36(1)(iii) --Interest on borrowed capital--Expenditure in relation to income not forming part of total income--Borrowed funds utilised for acquisition of shares in company of which assessee acquired controlling interest--Acquisition of shares in form of investment and only benefit is dividend income--Assessee not entitled to deduction of interest-- CIT v. Smt. Leena Ramachandran (Ker) . . . 296
S. 44BB --Reassessment--Reassessment after four years--Non-resident company assessed under section 44BB after considering material on record--Notice based on subsequent decision of High Court and Explanatory Notes to Finance Bill, 2010--Not valid-- B. J. Services Co. Middle East Ltd . v. Deputy Director of Income-tax, International Taxation (Uttarakhand) . . . 169
S. 44D --Reassessment--Reassessment after four years--Non-resident company assessed under section 44BB after considering material on record--Notice based on subsequent decision of High Court and Explanatory Notes to Finance Bill, 2010--Not valid-- B. J. Services Co. Middle East Ltd . v. Deputy Director of Income-tax, International Taxation (Uttarakhand) . . . 169
S. 50(2) --Capital gains--Short-term capital gains--Exemption--Depreciable assets--Export--Computation of capital gains--Income from plant and machinery exempt under section 10B--Expiry of period of exemption--Sale of assets as a block to sister concern--Asset transferred and purchased carrying same rate of depreciation--Assessee entitled to benefit of section 50(2)-- S. Muthurajan v. Deputy CIT (Mad) . . . 301
S. 145A --Valuation of stock--Law applicable--Effect of insertion of section 145A w.e.f. 1-4-1999--Excise duty on unsold stock not to be taken into account-- CIT v. Loknete Balasaheb Desai S. S. K. Ltd. (Bom) . . . 288
S. 147 --Reassessment--Notice--Receipt of advisory fees from charitable institutions subject of assessment--Notice on ground charitable institutions benami of assessee--Income-tax authorities finding charitable institutions were genuine--Notice not valid-- Dr. Bindeshwar Pathak v. CIT (Patna) . . . 272
----Reassessment--Reassessment after four years--Non-resident company assessed under section 44BB after considering material on record--Notice based on subsequent decision of High Court and Explanatory Notes to Finance Bill, 2010--Not valid-- B. J. Services Co. Middle East Ltd . v. Deputy Director of Income-tax, International Taxation (Uttarakhand) . . . 169
S. 147, proviso --Reassessment--Notice after four years--Conditions precedent--Subsequent retrospective amendment--Proviso to section 147 not attracted-- CIT v. SIL Investments Ltd . (Delhi) . . . 166
S. 148 --Reassessment--Notice--Receipt of advisory fees from charitable institutions subject of assessment--Notice on ground charitable institutions benami of assessee--Income-tax authorities finding charitable institutions were genuine--Notice not valid-- Dr. Bindeshwar Pathak v. CIT (Patna) . . . 272
----Reassessment--Reassessment after four years--Non-resident company assessed under section 44BB after considering material on record--Notice based on subsequent decision of High Court and Explanatory Notes to Finance Bill, 2010--Not valid-- B. J. Services Co. Middle East Ltd . v. Deputy Director of Income-tax, International Taxation (Uttarakhand) . . . 169
S. 158B --Search and seizure--Block assessment--Appeal--Competency of appeal--Appeal only against order of assessment--Validity of search can be challenged in appeal-- C. Ramaiah Reddy v. Asst. CIT (IMV) (Karn) . . . 210
S. 158BE --Search and seizure--Block assessment--Limitation--Limitation starts on date of final conclusion of search--Prohibitory order does not extend limitation-- C. Ramaiah Reddy v. Asst. CIT (IMV) (Karn) . . . 210
S. 201(1), (1A) --Deduction of tax at source--Non-resident purchasing shares of Indian company--Notice under section 201--Notice making it clear that non-resident could urge jurisdictional and other facts--Matter had not been pre-judged--Notice could not be quashed-- Richter Holding Ltd . v. Assistant Director of Income-tax (International Taxation) (Karn) . . . 199
S. 235 --Search and seizure--Block assessment--Appeal--Competency of appeal--Appeal only against order of assessment--Validity of search can be challenged in appeal-- C. Ramaiah Reddy v. Asst. CIT (IMV) (Karn) . . . 210
S. 263 --Appeal to Appellate Tribunal--Order under section 263 set aside--Proceedings thereafter infructuous--Tribunal has no jurisdiction to allow appeal from order of Commissioner-- Anil Kumar Rastogi v. ITO (All) . . . 279
S. 264 --Revision--Application for revision--Powers of Commissioner--Income offered for taxation by mistake--Commissioner cannot reject application on that ground--Income exempt under section 10(15)(iv)(fa) included in assessable income--On merits, assessee not ordinarily resident in India--Commissioner not justified in rejecting application for revision-- Chandrakant J. Patel v. V. N. Srivastava (Guj) . . . 310
ITR'S TRIBUNAL TAX REPORTS (ITR (TRIB))
Volume 12 : Part 6 (Issue dated : 05-12-2011)
SUBJECT INDEX TO CASES REPORTED IN THIS PART
Advance tax --Levy of interest--Direction to allow consequential relief to assessee--Section 234D applicable from assessment year 2004-05--Not applicable to assessment year 2002-03--Income-tax Act, 1961, ss. 234B, 234C, 234D-- Sunit S. Shah v. Asst. CIT (Ahmedabad) . . . 596
Business expenditure --Disallowance--Expenditure on travelling and conveyance, telephone and mobile, vehicle maintenance, etc.--Disallowance at 25 per cent. for personal element --Assessee not making any effort to show such expenses excessive or not reasonable--Disallowance justified--Income-tax Act, 1961-- K. J. Prabhakar v. Asst. CIT (Chennai) . . . 603
Depreciation --Office premises--Wholly and exclusively for business purposes--Depreciation allowed in previous year--Direction to verify past records and allow depreciation--Income-tax Act, 1961-- Sunit S. Shah v. Asst. CIT (Ahmedabad) . . . 596
Income --Exemption--Gift from Hindu undivided family to its member--Hindu undivided family is a group of relatives--Section 56(2) applicable--Amount not assessable--Amount also exempt under section 10(2)--Income-tax Act, 1961, ss. 10(2), 56(2)-- Vineetkumar Raghavjibhai Bhalodia v. ITO (Rajkot) . . . 616
----Professional receipt--Direction to allow enough time to furnish details--Matter remanded--Income-tax Act, 1961-- Sunit S. Shah v. Asst. CIT (Ahmedabad) . . . 596
Penalty --Assessee offering additional income during survey--No clear finding in penalty order whether addition on account of concealment of income or furnishing inaccurate particulars of income--Not a case for imposition of penalty--Income-tax Act, 1961, s. 271(1)(c)-- Asst. CIT v. RMP Infotech P. Ltd. (Chennai) . . . 581
----Concealment of income--Charitable purpose--Exemption--Equipment of trust being used by private hospital run by its trustees--Assessee not entitled to exemption under section 11--Levy of penalty justified--Income-tax Act, 1961, ss. 11, 13, 271(1)(c)-- Chinnammal ENT Medical Education and Research Foundation v. Asst. CIT (Exemption) (Chennai) . . . 589
Rectification of mistake --Mistake apparent from record--Reimbursement of excise duty--Amount neither debited in profit and loss account nor in computation of income --Disallowance of reimbursement of excise duty--Amounts to mistake apparent from record--Income-tax Act, 1961, ss. 143(3), 154-- Deputy CIT v. SIEL Ltd . (Delhi) . . . 577
Revision --Powers of Commissioner--Assessee providing services of storing blood stem cells for period of 21 years--Lump sum collection in nature of advance and not income against services--Assessing Officer following one of possible views--Assessment order just and proper--Revision not sustainable--Income-tax Act, 1961, s. 263-- Lifecell International P. Ltd. v. Asst. CIT (Chennai) . . . 611
Search and seizure --Block assessment--Undisclosed income--Meaning of--Income that would not have been disclosed--Additions permissible only on basis of evidence found in search--Disclosures made to Department in course of statement recorded under section 131 prior to search--Information as to bank accounts available with Department before search--Moneys in account cannot be treated as undisclosed income for assessment under Chapter XIV-B--Income-tax Act, 1961, ss. 144, 158B(b), 158BB(1), 158BC, 158BD-- Shibu Soren v. Asst. CIT (Delhi) . . . 540
Unexplained investment --Assessee claiming gift from father--No evidence to establish source of income of father--Addition proper--Income-tax Act, 1961, s. 69-- K. J. Prabhakar v. Asst. CIT (Chennai) . . . 603
Words and phrases --"Relatives"-- Vineetkumar Raghavjibhai Bhalodia v. ITO (Rajkot) . . . 616
SECTIONWISE INDEX TO CASES REPORTED IN THIS PART
S. 10(2) --Income--Exemption--Gift from Hindu undivided family to its member--Hindu undivided family is a group of relatives--Section 56(2) applicable--Amount not assessable--Amount also exempt under section 10(2)-- Vineetkumar Raghavjibhai Bhalodia v. ITO (Rajkot) . . . 616
S. 11 --Penalty--Concealment of income--Charitable purpose--Exemption--Equipment of trust being used by private hospital run by its trustees--Assessee not entitled to exemption under section 11--Levy of penalty justified-- Chinnammal ENT Medical Education and Research Foundation v. Asst. CIT (Exemption) (Chennai) . . . 589
S. 13 --Penalty--Concealment of income--Charitable purpose--Exemption--Equipment of trust being used by private hospital run by its trustees--Assessee not entitled to exemption under section 11--Levy of penalty justified-- Chinnammal ENT Medical Education and Research Foundation v. Asst. CIT (Exemption) (Chennai) . . . 589
S. 56(2) --Income--Exemption--Gift from Hindu undivided family to its member--Hindu undivided family is a group of relatives--Section 56(2) applicable--Amount not assessable--Amount also exempt under section 10(2)-- Vineetkumar Raghavjibhai Bhalodia v. ITO (Rajkot) . . . 616
S. 69 --Unexplained investment--Assessee claiming gift from father--No evidence to establish source of income of father--Addition proper-- K. J. Prabhakar v. Asst. CIT (Chennai) . . . 603
S. 143(3) --Rectification of mistake--Mistake apparent from record--Reimbursement of excise duty--Amount neither debited in profit and loss account nor in computation of income--Disallowance of reimbursement of excise duty--Amounts to mistake apparent from record-- Deputy CIT v. SIEL Ltd. (Delhi) . . . 577
S. 144 --Search and seizure--Block assessment--Undisclosed income--Meaning of--Income that would not have been disclosed--Additions permissible only on basis of evidence found in search--Disclosures made to Department in course of statement recorded under section 131 prior to search--Information as to bank accounts available with Department before search--Moneys in account cannot be treated as undisclosed income for assessment under Chapter XIV-B-- Shibu Soren v. Asst. CIT (Delhi) . . . 540
S. 154 --Rectification of mistake--Mistake apparent from record--Reimbursement of excise duty--Amount neither debited in profit and loss account nor in computation of income--Disallowance of reimbursement of excise duty--Amounts to mistake apparent from record-- Deputy CIT v. SIEL Ltd. (Delhi) . . . 577
S. 158B(b) --Search and seizure--Block assessment--Undisclosed income--Meaning of--Income that would not have been disclosed--Additions permissible only on basis of evidence found in search--Disclosures made to Department in course of statement recorded under section 131 prior to search--Information as to bank accounts available with Department before search--Moneys in account cannot be treated as undisclosed income for assessment under Chapter XIV-B-- Shibu Soren v. Asst. CIT (Delhi) . . . 540
S. 158BB(1) --Search and seizure--Block assessment--Undisclosed income--Meaning of--Income that would not have been disclosed--Additions permissible only on basis of evidence found in search--Disclosures made to Department in course of statement recorded under section 131 prior to search--Information as to bank accounts available with Department before search--Moneys in account cannot be treated as undisclosed income for assessment under Chapter XIV-B-- Shibu Soren v. Asst. CIT (Delhi) . . . 540
S. 158BC --Search and seizure--Block assessment--Undisclosed income--Meaning of--Income that would not have been disclosed--Additions permissible only on basis of evidence found in search--Disclosures made to Department in course of statement recorded under section 131 prior to search--Information as to bank accounts available with Department before search--Moneys in account cannot be treated as undisclosed income for assessment under Chapter XIV-B-- Shibu Soren v. Asst. CIT (Delhi) . . . 540
S. 158BD --Search and seizure--Block assessment--Undisclosed income--Meaning of--Income that would not have been disclosed--Additions permissible only on basis of evidence found in search--Disclosures made to Department in course of statement recorded under section 131 prior to search--Information as to bank accounts available with Department before search--Moneys in account cannot be treated as undisclosed income for assessment under Chapter XIV-B-- Shibu Soren v. Asst. CIT (Delhi) . . . 540
S. 234B --Advance tax--Levy of interest--Direction to allow consequential relief to assessee--Section 234D applicable from assessment year 2004-05--Not applicable to assessment year 2002-03-- Sunit S. Shah v. Asst. CIT (Ahmedabad) . . . 596
S. 234C --Advance tax--Levy of interest--Direction to allow consequential relief to assessee--Section 234D applicable from assessment year 2004-05--Not applicable to assessment year 2002-03-- Sunit S. Shah v. Asst. CIT (Ahmedabad) . . . 596
S. 234D --Advance tax--Levy of interest--Direction to allow consequential relief to assessee--Section 234D applicable from assessment year 2004-05--Not applicable to assessment year 2002-03-- Sunit S. Shah v. Asst. CIT (Ahmedabad) . . . 596
S. 263 --Revision--Powers of Commissioner--Assessee providing services of storing blood stem cells for period of 21 years--Lump sum collection in nature of advance and not income against services--Assessing Officer following one of possible views--Assessment order just and proper--Revision not sustainable-- Lifecell International P. Ltd. v. Asst. CIT (Chennai) . . . 611
S. 271(1)(c) --Penalty--Assessee offering additional income during survey--No clear finding in penalty order whether addition on account of concealment of income or furnishing inaccurate particulars of income--Not a case for imposition of penalty--Asst. CIT v. RMP Infotech P. Ltd. (Chennai) . . . 581
----Penalty--Concealment of income--Charitable purpose--Exemption--Equipment of trust being used by private hospital run by its trustees--Assessee not entitled to exemption under section 11--Levy of penalty justified-- Chinnammal ENT Medical Education and Research Foundation v. Asst. CIT (Exemption) (Chennai) . . . 589
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