INCOME TAX REPORTS (ITR)
Volume 340 : Part 2 (Issue dated 9-1-2012)
SUBJECT INDEX TO CASES REPORTED IN THIS PART
Business expenditure --Amount paid for corporate services to company in the same group--No evidence of actual services--Disallowance of 50 per cent. of amount--Justified--Income-tax Act, 1961-- MIL Controls Ltd . v. CIT (Ker) . . . 190
----Export commission--Commission deducted from export invoices--Commission deductible--Income-tax Act, 1961-- CIT v. Atma Prakash Batra (Guj) . . . 177
Capital gains --Sale of shares--Finding that transaction bogus--Finding of fact--Income-tax Act, 1961-- Balbir Chand Maini v. CIT (P&H) . . . 161
Charitable purposes --Charitable institution--Institution formed for telecasting and broadcasting television and radio programmes--Object not charitable--Institution not entitled to registration--Income-tax Act, 1961, ss. 11, 12A-- CIT v. A. Y. Broadcast Foundation (Ker) . . . 166
Deduction of tax at source --Failure to deduct tax at source--Orders under section 201(1) and (1A) after 4 years--Order cannot be annulled on delay and laches--Income-tax Act, 1961, s. 201(1), (1A)-- CIT (TDS) v. H. M. T. Ltd. (P&H) . . . 219
Income --Mutual concern--General principles--Social and recreational club--Club having banks as members--Difference between corporate members and other members under rules of club--Interest from deposits in banks--Club not offered higher rate of interest--Interest not exempt on principle of mutuality--Income-tax Act, 1961-- CIT v. Secunderabad Club Picket (AP) . . . 121
Income from undisclosed sources --Addition on account of unaccounted purchases--Finding that transactions were genuine--Addition not valid--Income-tax Act, 1961-- CIT v. Atma Prakash Batra (Guj) . . . 177
Penalty --Concealment of income--Reduction of closing stock on account of deterioration of old stocks--Assessee disclosing all material facts and no concealment of income--Making incorrect claim not a ground to impose penalty--Penalty to be deleted--Income-tax Act, 1961, s. 271(1)(c)-- CIT v. H. P. State Forest Corporation Ltd . (HP) . . . 204
----Loan or deposit exceeding prescribed limit otherwise than by account payee cheque or bank draft--Share application money--Revenue treating as undisclosed income--No penalty leviable treating it as deposit--Income-tax Act, 1961, ss. 269SS, 271D-- CIT v. R. P. Singh and Co. Pvt. Ltd . (Delhi) . . . 217
Reassessment --Issue not included in reasons recorded under section 148(2)--Power of Assessing Officer to assess or reassess income in respect of any issue subsequently in course of reassessment proceedings--Income-tax Act, 1961, ss. 147, 148(2)-- Balbir Chand Maini v. CIT (P&H) . . . 161
----Notice after four years--Conditions precedent--Failure to disclose material facts necessary for assessment--Reasons for notice must specify that there was failure to disclose material facts necessary for assessment--Income-tax Act, 1961, ss. 147, 148-- Sri Sakthi Textiles Ltd . v. Joint CIT (Mad) . . . 144
----Notice--Material already on record can form basis for reassessment--Amount spent on acquisition of machinery--Depreciation claimed on amount--Amount deducted as revenue expenditure--Reassessment proceedings to disallow expenditure--Valid--Income-tax Act, 1961, ss. 147, 148-- Sri Sakthi Textiles Ltd . v. Joint CIT (Mad) . . . 144
Recovery of tax --Writ--Garnishee proceedings--"Attachment"--Meaning of--Garnishee proceedings only when assessee is in default--Scope of bank guarantee--Search proceedings against assessee and seizure of articles--Articles released on bank guarantee on basis of FDRs of third persons--Garnishee proceedings against bank and attachment of FDRs--Persons to whom FDRs belonged could file writ petition against orders--Bank guarantee expiring before order under section 226(3)--Garnishee order not valid--FDRs did not belong to assessee--Attachment of FDRs not valid--Income-tax Act, 1961, ss. 132, 222, 226, 281B--Constitution of India, art. 226-- Gopal Das Khandelwal v. Union of India (All) . . . 235
Revision --Penalty--Powers of Commissioner--Order dropping penalty proceedings--Commissioner finding order erroneous and prejudicial to Revenue--Revision valid--Income-tax Act, 1961, ss. 263, 271(1)(c)-- R. A. Himmatsingka and Co . v. CIT (Patna) . . . 253
Search and seizure --Block assessment--Undisclosed income--Interest for delay in furnishing returns--Annulment of assessment under section 158BC--Interest could not be levied under section 158BFA--Income-tax Act, 1961, ss. 158BC, 158BFA-- CIT v. Micro Nova Pharmaceuticals P. Ltd. (Karn) . . . 118
----Block assessment--Undisclosed income--Liquor trade--Discovery of unaccounted sales--Determination of price based on evidence--Justified--Interest leviable under section 158BFA--Surcharge payable--Assessee not entitled to set off undisclosed income against miscellaneous receipts--Income-tax Act, 1961, ss. 158BC, 158BFA-- J. P. Narayanaswamy v. Deputy CIT (Karn) . . . 193
----Block assessment--Undisclosed income--Materials found during search showing unaccounted sales--Material relating to 112 days--Finding that unaccounted sales had taken place throughout the year--Addition for entire year based on material relating to 112 days--Valid--Income-tax Act, 1961-- Surinder Kumar v. CIT (P&H) . . . 173
Writ --Existence of alternative remedy--Not a bar for issue of writ--Constitution of India, art. 226-- Sri Sakthi Textiles Ltd . v. Joint CIT (Mad) . . . 144
Advance ruling --Application for--Maintainability--Pendency of proceedings under section 197 or revision therefrom not bar to application--Return filed by applicant and notices issued on same question by Assessing Officer under section 143(2)--Enquiry pending before Assessing Officer--Authority will not entertain application--Income-tax Act, 1961, ss. 143(2), 245R(2)-- SEPCOIII Electric Power Construction Corporation , In re (No. 1 ) . . . 225
----Application for--Maintainability--Rectification of mistake--Application not admitted on ground return filed by assessee and therefore matter pending before Assessing Officer--No mistake for rectification--Income-tax Act, 1961, ss. 143(2), 245R(2)--Authority for Advance Rulings (Procedure) Rules, 1996, r. 19-- SEPCOIII Electric Power Construction Corporation, In re (No. 2 ) . . . 231
----Authority--Jurisdiction--Application for ruling--Maintainability--Prohibition on entertaining application where question in issue before authorities--Disallowance of payment to non-resident in assessment of payer on ground tax not deducted at source--Appeal by payer--Question of liability of non-resident payee to tax in India in issue in appeal--Application by payee not maintainable--Income-tax Act, 1961, ss. 40(a)(i), 195, 245R(2)-- Foster Pty Ltd. , In re . . . 246
SECTIONWISE INDEX TO CASES REPORTED IN THIS PART
Art. 226 --Recovery of tax--Writ--Garnishee proceedings--"Attachment"--Meaning of--Garnishee proceedings only when assessee is in default--Scope of bank guarantee--Search proceedings against assessee and seizure of articles--Articles released on bank guarantee on basis of FDRs of third persons--Garnishee proceedings against bank and attachment of FDRs--Persons to whom FDRs belonged could file writ petition against orders--Bank guarantee expiring before order under section 226(3)--Garnishee order not valid--FDRs did not belong to assessee--Attachment of FDRs not valid-- Gopal Das Khandelwal v. Union of India (All) . . . 235
----Writ--Existence of alternative remedy--Not a bar for issue of writ-- Sri Sakthi Textiles Ltd . v. Joint CIT (Mad) . . . 144
S. 11 --Charitable purposes--Charitable institution--Institution formed for telecasting and broadcasting television and radio programmes--Object not charitable--Institution not entitled to registration-- CIT v. A. Y. Broadcast Foundation (Ker) . . . 166
S. 12A --Charitable purposes--Charitable institution--Institution formed for telecasting and broadcasting television and radio programmes--Object not charitable--Institution not entitled to registration-- CIT v. A. Y. Broadcast Foundation (Ker) . . . 166
S. 40(a)(i) --Advance ruling--Authority--Jurisdiction--Application for ruling--Maintainability--Prohibition on entertaining application where question in issue before authorities--Disallowance of payment to non-resident in assessment of payer on ground tax not deducted at source--Appeal by payer--Question of liability of non-resident payee to tax in India in issue in appeal--Application by payee not maintainable-- Foster Pty Ltd. , In re (AAR) . . . 246
S. 132 --Recovery of tax--Writ--Garnishee proceedings--"Attachment"--Meaning of--Garnishee proceedings only when assessee is in default--Scope of bank guarantee--Search proceedings against assessee and seizure of articles--Articles released on bank guarantee on basis of FDRs of third persons--Garnishee proceedings against bank and attachment of FDRs--Persons to whom FDRs belonged could file writ petition against orders--Bank guarantee expiring before order under section 226(3)--Garnishee order not valid--FDRs did not belong to assessee--Attachment of FDRs not valid-- Gopal Das Khandelwal v. Union of India (All) . . . 235
S. 143(2) --Advance ruling--Application for--Maintainability--Pendency of proceedings under section 197 or revision therefrom not bar to application--Return filed by applicant and notices issued on same question by Assessing Officer under section 143(2)--Enquiry pending before Assessing Officer--Authority will not entertain application-- SEPCOIII Electric Power Construction Corporation , In re (No. 1 ) (AAR) . . . 225
----Advance ruling--Application for--Maintainability--Rectification of mistake--Application not admitted on ground return filed by assessee and therefore matter pending before Assessing Officer--No mistake for rectification-- SEPCOIII Electric Power Construction Corporation, In re (No. 2 ) (AAR) . . . 231
S. 147 --Reassessment--Issue not included in reasons recorded under section 148(2)--Power of Assessing Officer to assess or reassess income in respect of any issue subsequently in course of reassessment proceedings-- Balbir Chand Maini v. CIT (P&H) . . . 161
----Reassessment--Notice--Material already on record can form basis for reassessment--Amount spent on acquisition of machinery--Depreciation claimed on amount--Amount deducted as revenue expenditure--Reassessment proceedings to disallow expenditure--Valid-- Sri Sakthi Textiles Ltd . v. Joint CIT (Mad) . . . 144
----Reassessment--Notice after four years--Conditions precedent--Failure to disclose material facts necessary for assessment--Reasons for notice must specify that there was failure to disclose material facts necessary for assessment-- Sri Sakthi Textiles Ltd . v. Joint CIT (Mad) . . . 144
S. 148 --Reassessment--Notice--Material already on record can form basis for reassessment--Amount spent on acquisition of machinery--Depreciation claimed on amount--Amount deducted as revenue expenditure--Reassessment proceedings to disallow expenditure--Valid-- Sri Sakthi Textiles Ltd . v. Joint CIT (Mad) . . . 144
----Reassessment--Notice after four years--Conditions precedent--Failure to disclose material facts necessary for assessment--Reasons for notice must specify that there was failure to disclose material facts necessary for assessment-- Sri Sakthi Textiles Ltd . v. Joint CIT (Mad) . . . 144
S. 148(2) --Reassessment--Issue not included in reasons recorded under section 148(2)--Power of Assessing Officer to assess or reassess income in respect of any issue subsequently in course of reassessment proceedings-- Balbir Chand Maini v. CIT (P&H) . . . 161
S. 158BC --Search and seizure--Block assessment--Undisclosed income--Interest for delay in furnishing returns--Annulment of assessment under section 158BC--Interest could not be levied under section 158BFA-- CIT v. Micro Nova Pharmaceuticals P. Ltd. (Karn) . . . 118
----Search and seizure--Block assessment--Undisclosed income--Liquor trade--Discovery of unaccounted sales--Determination of price based on evidence--Justified--Interest leviable under section 158BFA--Surcharge payable--Assessee not entitled to set off undisclosed income against miscellaneous receipts-- J. P. Narayanaswamy v. Deputy CIT (Karn) . . . 193
S. 158BFA --Search and seizure--Block assessment--Undisclosed income--Interest for delay in furnishing returns--Annulment of assessment under section 158BC--Interest could not be levied under section 158BFA-- CIT v. Micro Nova Pharmaceuticals P. Ltd. (Karn) . . . 118
----Search and seizure--Block assessment--Undisclosed income--Liquor trade--Discovery of unaccounted sales--Determination of price based on evidence--Justified--Interest leviable under section 158BFA--Surcharge payable--Assessee not entitled to set off undisclosed income against miscellaneous receipts-- J. P. Narayanaswamy v. Deputy CIT (Karn) . . . 193
S. 195 --Advance ruling--Authority--Jurisdiction--Application for ruling--Maintainability--Prohibition on entertaining application where question in issue before authorities--Disallowance of payment to non-resident in assessment of payer on ground tax not deducted at source--Appeal by payer--Question of liability of non-resident payee to tax in India in issue in appeal--Application by payee not maintainable-- Foster Pty Ltd. , In re (AAR) . . . 246
S. 201(1), (1A) --Deduction of tax at source--Failure to deduct tax at source--Orders under section 201(1) and (1A) after 4 years--Order cannot be annulled on delay and laches-- CIT (TDS) v. H. M. T. Ltd. (P&H) . . . 219
S. 222 --Recovery of tax--Writ--Garnishee proceedings--"Attachment"--Meaning of--Garnishee proceedings only when assessee is in default--Scope of bank guarantee--Search proceedings against assessee and seizure of articles--Articles released on bank guarantee on basis of FDRs of third persons--Garnishee proceedings against bank and attachment of FDRs--Persons to whom FDRs belonged could file writ petition against orders--Bank guarantee expiring before order under section 226(3)--Garnishee order not valid--FDRs did not belong to assessee--Attachment of FDRs not valid-- Gopal Das Khandelwal v. Union of India (All) . . . 235
S. 226 --Recovery of tax--Writ--Garnishee proceedings--"Attachment"--Meaning of--Garnishee proceedings only when assessee is in default--Scope of bank guarantee--Search proceedings against assessee and seizure of articles--Articles released on bank guarantee on basis of FDRs of third persons--Garnishee proceedings against bank and attachment of FDRs--Persons to whom FDRs belonged could file writ petition against orders--Bank guarantee expiring before order under section 226(3)--Garnishee order not valid--FDRs did not belong to assessee--Attachment of FDRs not valid-- Gopal Das Khandelwal v. Union of India (All) . . . 235
S. 245R(2) --Advance ruling--Application for--Maintainability--Pendency of proceedings under section 197 or revision therefrom not bar to application--Return filed by applicant and notices issued on same question by Assessing Officer under section 143(2)--Enquiry pending before Assessing Officer--Authority will not entertain application-- SEPCOIII Electric Power Construction Corporation , In re (No. 1 ) (AAR) . . . 225
----Advance ruling--Application for--Maintainability--Rectification of mistake--Application not admitted on ground return filed by assessee and therefore matter pending before Assessing Officer--No mistake for rectification-- SEPCOIII Electric Power Construction Corporation, In re (No. 2 ) (AAR) . . . 231
----Advance ruling--Authority--Jurisdiction--Application for ruling--Maintainability--Prohibition on entertaining application where question in issue before authorities--Disallowance of payment to non-resident in assessment of payer on ground tax not deducted at source--Appeal by payer--Question of liability of non-resident payee to tax in India in issue in appeal--Application by payee not maintainable-- Foster Pty Ltd. , In re (AAR) . . . 246
S. 263 --Revision--Penalty--Powers of Commissioner--Order dropping penalty proceedings--Commissioner finding order erroneous and prejudicial to Revenue--Revision valid-- R. A. Himmatsingka and Co . v. CIT (Patna) . . . 253
S. 269SS --Penalty--Loan or deposit exceeding prescribed limit otherwise than by account payee cheque or bank draft--Share application money--Revenue treating as undisclosed income--No penalty leviable treating it as deposit-- CIT v. R. P. Singh and Co. Pvt. Ltd . (Delhi) . . . 217
S. 271(1)(c) --Penalty--Concealment of income--Reduction of closing stock on account of deterioration of old stocks--Assessee disclosing all material facts and no concealment of income--Making incorrect claim not a ground to impose penalty--Penalty to be deleted-- CIT v. H. P. State Forest Corporation Ltd . (HP) . . . 204
----Revision--Penalty--Powers of Commissioner--Order dropping penalty proceedings--Commissioner finding order erroneous and prejudicial to Revenue--Revision valid-- R. A. Himmatsingka and Co . v. CIT (Patna) . . . 253
S. 271D --Penalty--Loan or deposit exceeding prescribed limit otherwise than by account payee cheque or bank draft--Share application money--Revenue treating as undisclosed income--No penalty leviable treating it as deposit-- CIT v. R. P. Singh and Co. Pvt. Ltd . (Delhi) . . . 217
S. 281B --Recovery of tax--Writ--Garnishee proceedings--"Attachment"--Meaning of--Garnishee proceedings only when assessee is in default--Scope of bank guarantee--Search proceedings against assessee and seizure of articles--Articles released on bank guarantee on basis of FDRs of third persons--Garnishee proceedings against bank and attachment of FDRs--Persons to whom FDRs belonged could file writ petition against orders--Bank guarantee expiring before order under section 226(3)--Garnishee order not valid--FDRs did not belong to assessee--Attachment of FDRs not valid-- Gopal Das Khandelwal v. Union of India (All) . . . 235
Authority for Advance Rulings (Procedure) Rules, 1996 :
Rule 19 --Advance ruling--Application for--Maintainability--Rectification of mistake--Application not admitted on ground return filed by assessee and therefore matter pending before Assessing Officer--No mistake for rectification-- SEPCOIII Electric Power Construction Corporation, In re (No. 2 ) (AAR) . . . 231
No comments:
Post a Comment