INCOME TAX REPORTS (ITR)
Volume 342 : Part 3 (Issue dated 2-4-2012)
SUBJECT INDEX TO CASES REPORTED IN THIS PART
Business expenditure --Disallowance--Travel expenses of employees--Effect of rule 6D--Disallowance to be calculated with respect to each journey undertaken--Income-tax Act, 1961, s. 37--Income-tax Rules, 1962, r. 6D-- CIT v. SRF Ltd. (Delhi) . . . 106
----Interest for delayed payment of sales tax--To be allowed--Income-tax Act, 1961, ss. 37, 43B--Himachal Pradesh General Sales Tax Act, 1968, s. 17A-- Shankar Trading Co. P. Ltd. v. CIT (Delhi) . . . 81
Capital gains --Transfer--Company--Scheme of arrangement or compromise--Sanction of court--Demerger--Scheme providing for transfer of assets to transferee company without consideration--Not a demerger but a gift--Amalgamation of transferee company with another company proposed after demerger--Not a case of restructuring within same group--Transaction intended solely to avoid income-tax, stamp duty and value added tax--Transferee company a paper company with nominal share capital but to hold assets worth crores of rupees after sanction of scheme--Scheme not to be sanctioned--Companies Act, 1956, ss. 391 to 394--Income-tax Act, 1961, ss. 45, 47(iii)--Bombay Stamp Act, 1958, Sch., art. 20(d)-- Vodafone Essar Gujarat Ltd ., In re(Guj) . . . 135
Company --Book profits--Computation--Effect of clause (i) of Explanation to section 115J(1A)--Amount withdrawn from revaluation reserve--Reserves not reflected in profit and loss account--Amount could not be reduced from book profits--Income-tax Act, 1961, s. 115J-- CIT v. SRF Ltd . (Delhi) . . . 106
Industrial undertaking --Special deduction--Condition prece-dent--Lawful commencement of manufacturing activity on or before 31-3-2004--Licence under Factories Act--Essential for commencing manufacturing activity--Failure to obtain licence or apply for licence prior to 31-3-2004--Assessee not entitled to deduction--Licence applied for prior to that date but obtained thereafter--Assessee entitled to deduction but licence not to relate back to date of application--Income-tax Act, 1961, s. 80-IB(4)--Factories Act, 1948, ss. 6, 7, 92, 112--Goa, Daman and Diu Factories Rules, 1985, rr. 3, 4, 5, 6, 7, 9-- CIT v. Jolly Polymers (Guj) . . . 87
Memorandum of association --Board of directors--Ultra vires act--Resolution of demerger passed at time when power not given in memorandum--Cannot be ratified by shareholders-- Vodafone Essar Gujarat Ltd. , In re (Guj) . . . 135
Reassessment --Notice--Issue regarding deduction under section 80-IA--Assessing Officer examining and considering during original assessment--No deliberate failure or omission by assessee to disclose material facts--Notice to be quashed--Income-tax Act, 1961, ss. 80-IA, 147, 148-- RRB Consultants and Engineers P. Ltd . v. Deputy CIT (Delhi) . . . 127
Scheme of arrangement or compromise --Scope of provisions--Restructuring not an arrangement contemplated in provision--Reconstruction--Must be in connection with arrangement--Gift not an arrangement--Companies Act, 1956, ss. 391 to 394-- Vodafone Essar Gujarat Ltd. , In re (Guj) . . . 135
SECTIONWISE INDEX TO CASES REPORTED IN THIS PART
Sch., art. 20(d) --Capital gains--Transfer--Company--Scheme of arrangement or compromise--Sanction of court--Demerger--Scheme providing for transfer of assets to transferee company without consideration--Not a demerger but a gift--Amalgamation of transferee company with another company proposed after demerger--Not a case of restructuring within same group--Transaction intended solely to avoid income-tax, stamp duty and value added tax--Transferee company a paper company with nominal share capital but to hold assets worth crores of rupees after sanction of scheme--Scheme not to be sanctioned-- Vodafone Essar Gujarat Ltd ., In re (Guj) . . . 135
Ss. 391 to 394 --Capital gains--Transfer--Company--Scheme of arrangement or compromise--Sanction of court--Demerger--Scheme providing for transfer of assets to transferee company without consideration--Not a demerger but a gift--Amalgamation of transferee company with another company proposed after demerger--Not a case of restructuring within same group--Transaction intended solely to avoid income-tax, stamp duty and value added tax--Transferee company a paper company with nominal share capital but to hold assets worth crores of rupees after sanction of scheme--Scheme not to be sanctioned-- Vodafone Essar Gujarat Ltd ., In re (Guj) . . . 135
----Scheme of arrangement or compromise--Scope of provisions--Restructuring not an arrangement contemplated in provision--Reconstruction--Must be in connection with arrangement--Gift not an arrangement-- Vodafone Essar Gujarat Ltd. , In re(Guj) . . . 135
Ss. 6, 7, 92, 112 --Industrial undertaking--Special deduction--Condition prece-dent--Lawful commencement of manufacturing activity on or before 31-3-2004--Licence under Factories Act--Essential for commencing manufacturing activity--Failure to obtain licence or apply for licence prior to 31-3-2004--Assessee not entitled to deduction--Licence applied for prior to that date but obtained thereafter--Assessee entitled to deduction but licence not to relate back to date of application-- CIT v. Jolly Polymers (Guj) . . . 87
Goa, Daman and Diu Factories Rules, 1985 :
Rr. 3, 4, 5, 6, 7, 9 --Industrial undertaking--Special deduction--Condition prece-dent--Lawful commencement of manufacturing activity on or before 31-3-2004--Licence under Factories Act--Essential for commencing manufacturing activity--Failure to obtain licence or apply for licence prior to 31-3-2004--Assessee not entitled to deduction--Licence applied for prior to that date but obtained thereafter--Assessee entitled to deduction but licence not to relate back to date of application-- CIT v. Jolly Polymers (Guj) . . . 87
Himachal Pradesh General Sales Tax Act, 1968 :
S. 17A --Business expenditure--Interest for delayed payment of sales tax--To be allowed-- Shankar Trading Co. P. Ltd. v. CIT (Delhi) . . . 81
S. 37 --Business expenditure--Disallowance--Travel expenses of employees--Effect of rule 6D--Disallowance to be calculated with respect to each journey undertaken-- CIT v. SRF Ltd. (Delhi) . . . 106
----Business expenditure--Interest for delayed payment of sales tax--To be allowed-- Shankar Trading Co. P. Ltd. v. CIT (Delhi) . . . 81
S. 43B --Business expenditure--Interest for delayed payment of sales tax--To be allowed-- Shankar Trading Co. P. Ltd. v. CIT (Delhi) . . . 81
S. 45 --Capital gains--Transfer--Company--Scheme of arrangement or compromise--Sanction of court--Demerger--Scheme providing for transfer of assets to transferee company without consideration--Not a demerger but a gift--Amalgamation of transferee company with another company proposed after demerger--Not a case of restructuring within same group--Transaction intended solely to avoid income-tax, stamp duty and value added tax--Transferee company a paper company with nominal share capital but to hold assets worth crores of rupees after sanction of scheme--Scheme not to be sanctioned-- Vodafone Essar Gujarat Ltd ., In re (Guj) . . . 135
S. 47(iii) --Capital gains--Transfer--Company--Scheme of arrangement or compromise--Sanction of court--Demerger--Scheme providing for transfer of assets to transferee company without consideration--Not a demerger but a gift--Amalgamation of transferee company with another company proposed after demerger--Not a case of restructuring within same group--Transaction intended solely to avoid income-tax, stamp duty and value added tax--Transferee company a paper company with nominal share capital but to hold assets worth crores of rupees after sanction of scheme--Scheme not to be sanctioned-- Vodafone Essar Gujarat Ltd ., In re (Guj) . . . 135
S. 80-IA --Reassessment--Notice--Issue regarding deduction under section 80-IA--Assessing Officer examining and considering during original assessment--No deliberate failure or omission by assessee to disclose material facts--Notice to be quashed-- RRB Consultants and Engineers P. Ltd . v. Deputy CIT (Delhi) . . . 127
S. 80-IB(4) --Industrial undertaking--Special deduction--Condition prece-dent--Lawful commencement of manufacturing activity on or before 31-3-2004--Licence under Factories Act--Essential for commencing manufacturing activity--Failure to obtain licence or apply for licence prior to 31-3-2004--Assessee not entitled to deduction--Licence applied for prior to that date but obtained thereafter--Assessee entitled to deduction but licence not to relate back to date of application-- CIT v. Jolly Polymers (Guj) . . . 87
S. 115J --Company--Book profits--Computation--Effect of clause (i) of Explanation to section 115J(1A)--Amount withdrawn from revaluation reserve--Reserves not reflected in profit and loss account--Amount could not be reduced from book profits-- CIT v. SRF Ltd . (Delhi) . . . 106
S. 147 --Reassessment--Notice--Issue regarding deduction under section 80-IA--Assessing Officer examining and considering during original assessment--No deliberate failure or omission by assessee to disclose material facts--Notice to be quashed-- RRB Consultants and Engineers P. Ltd . v. Deputy CIT (Delhi) . . . 127
S. 148 --Reassessment--Notice--Issue regarding deduction under section 80-IA--Assessing Officer examining and considering during original assessment--No deliberate failure or omission by assessee to disclose material facts--Notice to be quashed-- RRB Consultants and Engineers P. Ltd . v. Deputy CIT (Delhi) . . . 127
R. 6D --Business expenditure--Disallowance--Travel expenses of employees--Effect of rule 6D--Disallowance to be calculated with respect to each journey undertaken-- CIT v. SRF Ltd. (Delhi) . . . 106
ITR'S TRIBUNAL TAX REPORTS (ITR (TRIB))
Volume 14 : Part 6 (Issue dated : 26-3-2012)
SUBJECT INDEX TO CASES REPORTED IN THIS PART
Business expenditure --Disallowance of expenditure relating to exempt income--Interest on tax free bonds--Expenditure to be restricted to one per cent.--Income-tax Act, 1961, ss. 10(15), 14A-- Asst. CIT v. National Stock Exchange of India Ltd. (Mumbai) . . . 583
----Lease premium--To be disallowed--Income-tax Act, 1961-- Asst. CIT v. National Stock Exchange of India Ltd. (Mumbai) . . . 583
----Prior-period expenses--Assessee following mercantile method--Finding that liability arose in preceding year--To be disallowed--Income-tax Act, 1961-- Asst. CIT v. National Stock Exchange of India Ltd. (Mumbai) . . . 583
Business income or income from house property --Licence fee--Letting out of plant and building--Finding that letting out was temporary arrangement to overcome financial crisis--Income assessable as business income--Income-tax Act, 1961, ss. 22, 28-- Asst. CIT v. S & S Industries Enterprises Ltd. (Chennai) . . . 574
Capital gains --Transfer--Must be of existing asset--Joint venture agreement between assessee and developer contemplating development of commercial complex on land contributed by assessee--Developer's interest protected by allotment of 50 per cent. of shares in assessee upon completion of project--Project yet to commence--No asset existing for transfer in year in question--No capital gains arise--Income-tax Act, 1961, ss. 2(47), 45-- Vijaya Productions P. Ltd. v. Addl. CIT (Chennai) . . . 614
Capital or revenue expenditure --Stock exchange--Expenditure on VSAT installation charges, repairs and replacement--Is revenue expenditure--Income-tax Act, 1961-- Asst. CIT v. National Stock Exchange of India Ltd. (Mumbai) . . . 583
Depreciation --Computer software--To be allowed at 25 per cent.--Income-tax Act, 1961, s. 32-- Asst. CIT v. National Stock Exchange of India Ltd. (Mumbai) . . . 583
----Computer--Disallowance on ground that system used for less than 180 days--Trial period to be included--Assessee entitled to full depreciation--Income-tax Act, 1961, s. 32-- Asst. CIT v. National Stock Exchange of India Ltd. (Mumbai) . . . 583
----Stock exchange--Network equipment located in premises of assessee and VSAT antenna and coding equipment located in member's premises--Assessee entitled to full depreciation--Income-tax Act, 1961-- Asst. CIT v. National Stock Exchange of India Ltd. (Mumbai) . . . 583
Penalty --Search and seizure--Assessee making payment within permissible time upon receiving notice under section 156--Penalty cannot be imposed--Income-tax Act, 1961, s. 271AAA-- Deputy CIT v. Pioneer Marbles and Interiors P. Ltd. (Kolkata) . . . 608
SECTIONWISE INDEX TO CASES REPORTED IN THIS PART
S. 2(47) --Capital gains--Transfer--Must be of existing asset--Joint venture agreement between assessee and developer contemplating development of commercial complex on land contributed by assessee--Developer's interest protected by allotment of 50 per cent. of shares in assessee upon completion of project--Project yet to commence--No asset existing for transfer in year in question--No capital gains arise-- Vijaya Productions P. Ltd. v. Addl. CIT (Chennai) . . . 614
S. 10(15) --Business expenditure--Disallowance of expenditure relating to exempt income--Interest on tax free bonds--Expenditure to be restricted to one per cent.-- Asst. CIT v. National Stock Exchange of India Ltd. (Mumbai) . . . 583
S. 14A --Business expenditure--Disallowance of expenditure relating to exempt income--Interest on tax free bonds--Expenditure to be restricted to one per cent.-- Asst. CIT v. National Stock Exchange of India Ltd. (Mumbai) . . . 583
S. 22 --Business income or income from house property--Licence fee--Letting out of plant and building--Finding that letting out was temporary arrangement to overcome financial crisis--Income assessable as business income-- Asst. CIT v. S & S Industries Enterprises Ltd. (Chennai) . . . 574
S. 28 --Business income or income from house property--Licence fee--Letting out of plant and building--Finding that letting out was temporary arrangement to overcome financial crisis--Income assessable as business income-- Asst. CIT v. S & S Industries Enterprises Ltd. (Chennai) . . . 574
S. 32 --Depreciation--Computer software--To be allowed at 25 per cent.-- Asst. CIT v. National Stock Exchange of India Ltd. (Mumbai) . . . 583
----Depreciation--Computer--Disallowance on ground that system used for less than 180 days--Trial period to be included--Assessee entitled to full depreciation-- Asst. CIT v. National Stock Exchange of India Ltd. (Mumbai) . . . 583
S. 45 --Capital gains--Transfer--Must be of existing asset--Joint venture agreement between assessee and developer contemplating development of commercial complex on land contributed by assessee--Developer's interest protected by allotment of 50 per cent. of shares in assessee upon completion of project--Project yet to commence--No asset existing for transfer in year in question--No capital gains arise-- Vijaya Productions P. Ltd. v. Addl. CIT (Chennai) . . . 614
S. 271AAA --Penalty--Search and seizure--Assessee making payment within permissible time upon receiving notice under section 156--Penalty cannot be imposed-- Deputy CIT v. Pioneer Marbles and Interiors P. Ltd. (Kolkata) . . . 608
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