INCOME TAX REPORTS (ITR)--PRINT AND ONLINE EDITION
SUBJECT INDEX TO CASES REPORTED
Amalgamation of companies --Depreciation--Written down value--Computation of written down value--Effect of Explanation 2 to section 43(6)--Income-tax Act, 1961, s. 43(6)-- E. I. D. Parry (India) Ltd. v. Deputy CIT (Mad) . . . 41
Business expenditure --Amortisation of expenses--Expenditure for raising capital for new projects and expansion of business--Expenses could be amortised--Income-tax Act, 1961, s. 35D-- E. I. D. Parry (India) Ltd. v. Deputy CIT (Mad) . . . 41
Investment allowance --Amalgamation of companies--Carry forward and set off of investment allowance--Transferor company not crediting reserves--Investment allowance could not be carried forward--Income-tax Act, 1961, s. 32A-- E. I. D. Parry (India) Ltd. v. Deputy CIT (Mad) . . . 41
Revision --Powers of Commissioner--Search and seizure--Block assessment--Provision requiring previous approval of Commissioner in respect of searches conducted prior to 1-1-1997--Effect--†Previous approval†, meaning of--Approval after application of mind by Commissioner--Commissioner not entitled to revise such order--Amendment of provision providing for previous approval of Joint Commissioner and Joint Director from 1-1-1997--Commissioner can revise such block assessment--Income-tax Act, 1961, ss. 158BG, 263-- CIT v. Smt. Annapoornamma Chandrashekar (Karn) . . . 32
--Deduction under section 35--Assessing Officer not accepting claim that expenditure was on scientific research--Reference must be made to prescribed authority--Rejection of claim without making such reference--Not valid--Income-tax Act, 1961 s. 35-- Deputy CIT (Assessment) v. Mastek Ltd. (Guj) . . . 54
ITR Volume 360 : Part 3 (Issue dated : 20-1-2014)
SUBJECT INDEX TO CASES REPORTED IN THIS PART
Accounting --Rejection of accounts--Appeal to Appellate Tribunal--Powers of Tribunal--Power to remand--Rejection of accounts by Assessing Officer set aside by Commissioner (Appeals) on production of fresh evidence--Assessing Officer not given opportunity to be heard regarding such evidence--Tribunal justified in remanding matter to Assessing Officer--Income-tax Act, 1961, ss. 145, 254-- Jayesh Raichand Shah v. Asst. CIT (Guj) . . . 387
Business expenditure --Disallowance--Excessive and unreasonable payments--Salaries paid to relatives--Finding that payments were not made exclusively for purposes of business--Disallowance justified--Income-tax Act, 1961, s. 37-- Jayesh Raichand Shah v. Asst. CIT (Guj) . . . 387
Capital gains --Transfer--Definition--Claim that assessee was in possession of property before date of sale deed--Assessee must prove claim--Finding by all income-tax authorities that there was no such proof--Transfer could not be treated as taking place before date of sale deed--Income-tax Act, 1961, ss. 2(47), 45-- Ms. Latha Ramachandra Inamdar v. Deputy CIT (Karn) . . . 367
Capital or revenue receipt --Agreement for sale of property--Purchaser paying earnest money but failing to pay balance consideration--Forfeiture of earnest money by assessee--Amount received by assessee was a capital receipt--Income-tax Act, 1961, s. 51-- CIT v. Meera Goyal (Delhi) . . . 346
Company --Book profit--Computation--Change in method of charging depreciation from straight line method to written down value method--No prohibition--Income-tax Act, 1961, s. 115J-- CIT v. Hindustan Pipe Udyog Ltd. (All) . . . 437
Depreciation --Motor vehicles--Higher rate of depreciation where used in business of running them for hire--Trucks leased by assessee to third parties for use in their business--Assessee entitled to depreciation at higher rate of forty per cent. on leased vehicles instead of normal rate of thirty per cent.--Income-tax Act, 1961, s. 32-- CIT v. H. B. Leasing and Finance Ltd. (Delhi) . . . 362
----Rate of depreciation--Tanker--Tanker mounted on chassis of truck--Tanker not part of truck--Entitled to 100 per cent. depreciation--Income-tax Act, 1961, s. 32--Income-tax Rules, 1962, Appex. I-- CIT v. H. B. Leasing and Finance Ltd. (Delhi) . . . 362
Export --Special deduction--Computation--Miscellaneous income and interest part of business income--Company--Book profit--Computation--Special deduction cannot be limited to thirty per cent. of miscellaneous income and interest--Income-tax Act, 1961, ss. 80HHC, 115JB-- CIT v. Flex Foods Ltd. (Delhi) . . . 359
Hindu undivided family --Individual or family property--Property originally belonging assessee’s grandfather--Assessee getting property after death of his father--Property distributed among members of assessee’s family on oral partition--Property retained by assessee and his wife--Family property--Income-tax Act, 1961-- CIT v. D. L. Nandagopala Reddy (Individual) (Karn) . . . 377
Industrial undertaking --Special deduction--Computation of relief under section 80-I--Relief granted under section 80HH cannot be deducted from gross total income--Income-tax Act, 1961, ss. 80HH, 80-I-- CIT v. Hindustan Pipe Udyog Ltd. (All) . . . 437
----Special deduction--Mining for lime--Manufacture of cement--Distinct and independent activities--Use of entire lime extracted from mining operations for manufacture of cement--Mining operation does not lose its independent identity--Assessee entitled to deduction only with respect to profits attributable to manufacture of cement and not with respect to profits attributable to mining activity--Profits derived from cement manufacturing activity can be apportioned in order to find profit from mining activity--Income-tax Act, 1961, s. 80HH-- Deccan Cements Ltd. v. CIT (AP) . . . 444
Interest on borrowed capital --Finding that loans were made from funds provided by assessee himself--Interest not deductible--Income-tax Act, 1961, s. 36(1)(iii)-- Jayesh Raichand Shah v. Asst. CIT (Guj) . . . 387
International transaction --Transfer pricing--Arm’s length price--Marketing services to associated enterprise--Different from services in nature of engineering services rendered by four comparables--Functionally different and not comparable--Adjustment arrived at by Transfer Pricing Officer and addition made by Assessing Officer--Not justified--Income-tax Act, 1961-- CIT v. Verizon India Pvt. Ltd. (Delhi) . . . 342
Interpretation of taxing statutes --Literal meaning--Not purposive meaning-- Deccan Cements Ltd. v. CIT (AP) . . . 444
Penalty --Concealment of income--Rejection of books of account on basis of fair gross profit rate--Retention of sales tax with assessee--No evidence to establish charge--Explanation offered by assessee not to be termed as not bona fide--Tribunal deleting penalty--Justified--Income-tax Act, 1961, s. 271(1)(c)-- CIT v. Whitelene Chemicals (Guj) . . . 385
Reassessment --Notice within or after four years--Issue of change of opinion is material for both--Income-tax Act, 1961, ss. 147, 148-- NTPC Ltd. v. Deputy CIT (Delhi) . . . 380
----Notice--Condition precedent--Disclosure in return of cancellation of assessee’s banking licence--No failure on part of assessee to disclose truly and fully all material facts--Reopening of assessment beyond period of four years from end of relevant assessment year not valid--Income-tax Act, 1961, s. 148-- Charotar Nagrik Sahakari Bank Ltd. v. Deputy CIT (Guj) . . . 373
----Notice--Profits from export of software--Exemption--Original assessment denying exemption in respect of arbitration award--Commissioner (Appeals) finding consideration received from exports did not include any amount received under arbitration award--Appeal preferred by Revenue pending before Tribunal--Reasons for reopening assessment recorded after order passed by Commissioner (Appeals) on ground narration in audit note indicating receipt was with regard to arbitration award--No evidence to show in notice that stamp paper purchased for arbitration work was connected with receipt with regard to arbitration award--Notice not valid--Income-tax Act, 1961, ss. 147, 148-- Nuwave E Solutions (P.) Ltd. v. Asst. CIT (Delhi) . . . 351
----Notice--Validity--Notice on grounds that expenditure wrongly claimed as revenue expenditure and that certain expenses not allowable under section 14A--Finding that there was no claim for that particular amount as revenue expenditure--Deduction under section 14A considered in original assessment proceedings--Notice was not valid--Income-tax Act, 1961, ss. 147, 148-- Reckitt Benckiser Healthcare India Ltd. v. Asst. CIT (OCD) (Guj) . . . 427
Rectification of mistakes --Search in premises of company and discovery of undisclosed income--Offer by five persons of part of the amount as their undisclosed income--Assessment on that basis--Subsequent settlement of case of sister company--Settlement Commission accepting part of amount offered as undisclosed income--Assessments of five persons not considered by Settlement Commission--Assessment of five persons could not be rectified deleting admitted accounts--Income-tax Act, 1961, s. 154-- CIT v. Manish Kumar Bothra (Karn) . . . 398
Settlement of cases --Application for settlement of case--Condition that assessee should make full and true disclosure of undisclosed income--Not a condition precedent--Question whether there has been full and true disclosure can be determined at any stage of proceedings before Settlement Commission--Income-tax Act, 1961, s. 245D-- CIT v. ITSC (Delhi) . . . 407
Words and phrases --‘‘Derived from†--‘‘Attributable to†--Meanings of-- Deccan Cements Ltd. v. CIT (AP) . . . 444
SECTIONWISE INDEX TO CASES REPORTED IN THIS PART
S. 2(47) --Capital gains--Transfer--Definition--Claim that assessee was in possession of property before date of sale deed--Assessee must prove claim--Finding by all income-tax authorities that there was no such proof--Transfer could not be treated as taking place before date of sale deed-- Ms. Latha Ramachandra Inamdar v. Deputy CIT (Karn) . . . 367
S. 32 --Depreciation--Motor vehicles--Higher rate of depreciation where used in business of running them for hire--Trucks leased by assessee to third parties for use in their business--Assessee entitled to depreciation at higher rate of forty per cent. on leased vehicles instead of normal rate of thirty per cent.-- CIT v. H. B. Leasing and Finance Ltd. (Delhi) . . . 362
----Depreciation--Rate of depreciation--Tanker--Tanker mounted on chassis of truck--Tanker not part of truck--Entitled to 100 per cent. depreciation-- CIT v. H. B. Leasing and Finance Ltd. (Delhi) . . . 362
S. 36(1)(iii) --Interest on borrowed capital--Finding that loans were made from funds provided by assessee himself--Interest not deductible-- Jayesh Raichand Shah v. Asst. CIT (Guj) . . . 387
S. 37 --Business expenditure--Disallowance--Excessive and unreasonable payments--Salaries paid to relatives--Finding that payments were not made exclusively for purposes of business--Disallowance justified-- Jayesh Raichand Shah v. Asst. CIT (Guj) . . . 387
S. 45 --Capital gains--Transfer--Definition--Claim that assessee was in possession of property before date of sale deed--Assessee must prove claim--Finding by all income-tax authorities that there was no such proof--Transfer could not be treated as taking place before date of sale deed-- Ms. Latha Ramachandra Inamdar v. Deputy CIT (Karn) . . . 367
S. 51 --Capital or revenue receipt--Agreement for sale of property--Purchaser paying earnest money but failing to pay balance consideration--Forfeiture of earnest money by assessee--Amount received by assessee was a capital receipt-- CIT v. Meera Goyal (Delhi) . . . 346
S. 80HH --Industrial undertaking--Special deduction--Computation of relief under section 80-I--Relief granted under section 80HH cannot be deducted from gross total income-- CIT v. Hindustan Pipe Udyog Ltd. (All) . . . 437
----Industrial undertaking--Special deduction--Mining for lime--Manufacture of cement--Distinct and independent activities--Use of entire lime extracted from mining operations for manufacture of cement--Mining operation does not lose its independent identity--Assessee entitled to deduction only with respect to profits attributable to manufacture of cement and not with respect to profits attributable to mining activity--Profits derived from cement manufacturing activity can be apportioned in order to find profit from mining activity-- Deccan Cements Ltd. v. CIT (AP) . . . 444
S. 80HHC --Export--Special deduction--Computation--Miscellaneous income and interest part of business income--Company--Book profit--Computation--Special deduction cannot be limited to thirty per cent. of miscellaneous income and interest-- CIT v. Flex Foods Ltd. (Delhi) . . . 359
S. 80-I --Industrial undertaking--Special deduction--Computation of relief under section 80-I--Relief granted under section 80HH cannot be deducted from gross total income-- CIT v. Hindustan Pipe Udyog Ltd. (All) . . . 437
S. 115J --Company--Book profit--Computation--Change in method of charging depreciation from straight line method to written down value method--No prohibition-- CIT v. Hindustan Pipe Udyog Ltd. (All) . . . 437
S. 115JB --Export--Special deduction--Computation--Miscellaneous income and interest part of business income--Company--Book profit--Computation--Special deduction cannot be limited to thirty per cent. of miscellaneous income and interest-- CIT v. Flex Foods Ltd. (Delhi) . . . 359
S. 145 --Accounting--Rejection of accounts--Appeal to Appellate Tribunal--Powers of Tribunal--Power to remand--Rejection of accounts by Assessing Officer set aside by Commissioner (Appeals) on production of fresh evidence--Assessing Officer not given opportunity to be heard regarding such evidence--Tribunal justified in remanding matter to Assessing Officer-- Jayesh Raichand Shah v. Asst. CIT (Guj) . . . 387
S. 147 --Reassessment--Notice--Profits from export of software--Exemption--Original assessment denying exemption in respect of arbitration award--Commissioner (Appeals) finding consideration received from exports did not include any amount received under arbitration award--Appeal preferred by Revenue pending before Tribunal--Reasons for reopening assessment recorded after order passed by Commissioner (Appeals) on ground narration in audit note indicating receipt was with regard to arbitration award--No evidence to show in notice that stamp paper purchased for arbitration work was connected with receipt with regard to arbitration award--Notice not valid-- Nuwave E Solutions (P.) Ltd. v. Asst. CIT (Delhi) . . . 351
----Reassessment--Notice--Validity--Notice on grounds that expenditure wrongly claimed as revenue expenditure and that certain expenses not allowable under section 14A--Finding that there was no claim for that particular amount as revenue expenditure--Deduction under section 14A considered in original assessment proceedings--Notice was not valid-- Reckitt Benckiser Healthcare India Ltd. v. Asst. CIT (OCD) (Guj) . . . 427
----Reassessment--Notice within or after four years--Issue of change of opinion is material for both-- NTPC Ltd. v. Deputy CIT (Delhi) . . . 380
S. 148 --Reassessment--Notice--Condition precedent--Disclosure in return of cancellation of assessee’s banking licence--No failure on part of assessee to disclose truly and fully all material facts--Reopening of assessment beyond period of four years from end of relevant assessment year not valid-- Charotar Nagrik Sahakari Bank Ltd. v. Deputy CIT (Guj) . . . 373
----Reassessment--Notice--Profits from export of software--Exemption--Original assessment denying exemption in respect of arbitration award--Commissioner (Appeals) finding consideration received from exports did not include any amount received under arbitration award--Appeal preferred by Revenue pending before Tribunal--Reasons for reopening assessment recorded after order passed by Commissioner (Appeals) on ground narration in audit note indicating receipt was with regard to arbitration award--No evidence to show in notice that stamp paper purchased for arbitration work was connected with receipt with regard to arbitration award--Notice not valid-- Nuwave E Solutions (P.) Ltd. v. Asst. CIT (Delhi) . . . 351
----Reassessment--Notice--Validity--Notice on grounds that expenditure wrongly claimed as revenue expenditure and that certain expenses not allowable under section 14A--Finding that there was no claim for that particular amount as revenue expenditure--Deduction under section 14A considered in original assessment proceedings--Notice was not valid-- Reckitt Benckiser Healthcare India Ltd. v. Asst. CIT (OCD) (Guj) . . . 427
----Reassessment--Notice within or after four years--Issue of change of opinion is material for both-- NTPC Ltd. v. Deputy CIT (Delhi) . . . 380
S. 154 --Rectification of mistakes--Search in premises of company and discovery of undisclosed income--Offer by five persons of part of the amount as their undisclosed income--Assessment on that basis--Subsequent settlement of case of sister company--Settlement Commission accepting part of amount offered as undisclosed income--Assessments of five persons not considered by Settlement Commission--Assessment of five persons could not be rectified deleting admitted accounts-- CIT v. Manish Kumar Bothra (Karn) . . . 398
S 245D --Settlement of cases--Application for settlement of case--Condition that assessee should make full and true disclosure of undisclosed income--Not a condition precedent--Question whether there has been full and true disclosure can be determined at any stage of proceedings before Settlement Commission-- CIT v. ITSC (Delhi) . . . 407
S. 254 --Accounting--Rejection of accounts--Appeal to Appellate Tribunal--Powers of Tribunal--Power to remand--Rejection of accounts by Assessing Officer set aside by Commissioner (Appeals) on production of fresh evidence--Assessing Officer not given opportunity to be heard regarding such evidence--Tribunal justified in remanding matter to Assessing Officer-- Jayesh Raichand Shah v. Asst. CIT (Guj) . . . 387
S. 271(1)(c) --Penalty--Concealment of income--Rejection of books of account on basis of fair gross profit rate--Retention of sales tax with assessee--No evidence to establish charge--Explanation offered by assessee not to be termed as not bona fide--Tribunal deleting penalty--Justified-- CIT v. Whitelene Chemicals (Guj) . . . 385
Appex. I --Depreciation--Rate of depreciation--Tanker--Tanker mounted on chassis of truck--Tanker not part of truck--Entitled to 100 per cent. depreciation-- CIT v. H. B. Leasing and Finance Ltd. (Delhi) . . . 362
No comments:
Post a Comment