ITR VOL 349 PART 1

 

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INCOME TAX REPORTS (ITR)

Volume 349 Part 1 (Issue dated 19-11-2012)

SUBJECT INDEX TO CASES REPORTED IN THIS PART

HIGH COURTS

Assessment --Intimation on basis of return--Assessing Officer cannot disallow claim and make addition for lack of evidence--When proof is required notice for production of evidence in support of return to be issued--Intimation to be set aside--Income-tax Act, 1961, s. 143(1)(a)-- Indian Drugs and Pharmaceuticals Ltd . v . Union of India  (Delhi) . . . 32

----Intimation under section 143(1)(a)--Addition related to debatable issues and documents not required to be filed with return--No power to disallow claim on lack of proof of claim--Income-tax Act, 1961, s. 143(1)(a), proviso (i), cl. (iii)-- Abhishek Cement Ltd . v . Union of India (Delhi) . . . 1

Business expenditure --Company--Premia on keyman insurance for directors--Policies subsequently assigned to directors--Premia deductible as business expenditure--Income-tax Act, 1961, s. 37-- CIT v . Rajan Nanda (Delhi) . . . 8

----Deduction only on actual payment--Tax dues--Assessee failing to enclose with return documents to show payment of tax--Section 43B applicable--Income-tax Act, 1961, s. 43B-- Abhishek Cement Ltd . v . Union of India (Delhi) . . . 1

----Provision for warranty--Deductible--Matter remanded for verification of double deduction--Justified--Income-tax Act, 1961, s. 37-- CIT v . Toyota Kirloskar Motors Pvt. Ltd. (Karn) . . . 65

Capital gains --Long-term capital gains--Exemption--Sale of residential property and investment of gains in residential property and bonds--No condition that purchase of property or investment in bonds should be exclusively in name of assessee--Inclusion of husband’s name as joint owner in sale deed as well as in bonds--Assessee entitled to exemption of entire investment--Transfer of Property Act, 1882, s. 45--Income-tax Act 1961, ss. 54, 54EC-- Director of Income-tax (International Taxation) v . Mrs. Jennifer Bhide (Karn) . . . 80

----Long-term capital loss--Exemption--Acquisition of property by firm from partner’s wife and sale to another at loss--Assessee‘s account showing debit of amount--Revenue failing to enquire facts of loss on sale--Order of Tribunal deleting disallowance not perverse--Income-tax Act, 1961, s. 54-- CIT v. Bharti Overseas Trading Co . (Delhi) . . . 52

Capital or revenue expenditure --Fee paid for obtaining software and licence and for renewing licence--Revenue expenditure--Income-tax Act, 1961-- CIT v . Toyota Kirloskar Motors Pvt. Ltd . (Karn) . . . 65

Company --Book profits--Computation of profits under section 115JA--Limited powers of Assessing Officer--Prior period expenses--Deductible--Income-tax Act, 1961, s. 115JA-- Tamil Nadu Cements Corporation Ltd . v. Joint CIT (Mad) . . . 58

----Dividend--Deemed dividend--Partners of assessee shareholders in a company--Firm receiving payment from company--Contention that payment not out of accumulated profits not examined by Commissioner (Appeals) and Tribunal--Matter remanded--Income-tax Act, 1961, s. 2(22)(e)-- CIT v. Bharti Overseas Trading Co . (Delhi) . . . 52

Deduction of tax at source --Works contract--Contract for purchase of natural gas--Payment of charges for transportation of natural gas to seller--Transport of gas part of sale transaction not under works contract or contract for carriage of goods--Transportation charges not liable to tax deduction at source--Income-tax Act, 1961, s. 194C-- CIT (TDS) v . Krishak Bharati Co-operative Ltd . (Guj) . . . 68

Exemption --Export--Method of computing exemption under section 10A--Income-tax Act, 1961, s. 10A-- CIT v . Tata Elxsi Ltd . (Karn) . . . 98

Penalty --Concealment of income--Claim for deduction which was debatable--No concealment of income--Penalty could not be levied--Income-tax Act, 1961, s. 271(1)(c)-- Karan Raghav Exports P. Ltd . v . CIT (Delhi) . . . 112

Precedent --Effect of decision of Supreme Court in Apollo Tyres v. CIT [2002] 255 ITR 273 (SC)-- Tamil Nadu Cements Corporation Ltd . v . Joint CIT (Mad) . . . 58

Reassessment --Notice--Validity--No tangible material for belief that income had escaped assessment--Claim for expenses in original assessment--Assessment after considering claim--Notice on ground expenses wrongly allowed--Not valid--Income-tax Act, 1961, ss. 147, 148-- CIT v . Amitabh Bachchan (Bom) . . . 76

Salary --Profits in lieu of salary--Keyman insurance policies--Assignment to employee/director--Conversion into an ordinary policy--Difference between actual premia paid and surrender value--Not assessable as profits in lieu of salary in hands of employee/director--Maturity value of such policies--Not assessable--Income-tax Act, 1961, ss. 15, 17-- CIT v . Rajan Nanda (Delhi) . . . 8

Search and seizure --Presumption as to correctness of seized documents--Must be given full effect--Expenditure shown on documents--Must be allowed--Income-tax Act, 1961, ss. 37, 132(4A)-- CIT v. Indeo Airways Pvt. Ltd. (Delhi) . . . 85

Valuation of stock --Sugar--Assessee purchasing and exporting sugar--Net realisable value of stock--No statutory or contractual obligation for reimbursement of export losses from manufacturers--Reimbursement payments not includible in net realisable value--Income-tax Act, 1961-- CIT v . Indian Sugar and Gen. Industry Export Import (Delhi) . . . 38

----Valuation of closing stock--Valuation to be at cost price or market price whichever is lower--Income-tax Act, 1961-- CIT v . Indian Sugar and Gen. Industry Export Import (Delhi) . . . 38