ITR'S TRIBUNAL TAX REPORTS (ITR (TRIB)) -- PRINT AND ONLINE EDITION
SUBJECT INDEX TO CASES REPORTED
Penalty --Furnishing inaccurate particulars--Claim to excess depreciation--Absence of concealment or furnishing of inaccurate particulars--Not by itself ground for levying penalty--Income-tax Act, 1961, s. 271(1)(c)-- Lala Harbhagwan Dass Memorial and Dr. Prem Hospital P. Ltd. v. ITO (Delhi) . . . 13
Volume 29 : Part 3 (Issue dated : 20-1-2014)
SUBJECT INDEX TO CASES REPORTED
Assessment --Assessee furnishing reaudited accounts with unexplained variations from earlier accounts--No addition permissible on account of estimation of income on trading account--Unless further assets or incorrect source of investment found--Income-tax Act, 1961-- Assistant CIT v. Raviraj Relempaadu (Mumbai) . . 387
Business expenditure --Accrued or contingent liability--Provision for discount--Not allowable--Actual discount allowable after verification--Income-tax Act, 1961, s. 37-- Honeywell Electrical Devices and Systems India Ltd. v. Assistant CIT (Chennai) . . . 347
----Disallowance--Sum liable to deduction of tax at source--Income-tax Act, 1961, s. 40(a)(ia)-- Assistant CIT v. Raviraj Relempaadu (Mumbai) . . 387
Capital or --Film production--Expenditure incurred for uncompleted film--Revenue in nature--Income-tax Rules, 1962, r. 9A-- Assistant CIT v. A. K. Films P. Ltd. (Mumbai) . . . 308
Deduction of tax at source --Credit for tax deducted--Effect of amendment to section 199--Credit allowable to person in whose hands income assessable--Credit can be allowed to de facto owner, even when certificate of tax deduction at source is in name of deductee--Income-tax Act, 1961, s. 199-- ITO v. Amee Hosang Mistry (Mumbai) . . 397
Exemption --Export--Deduction--Deduction under section 10A to be computed prior to setting off losses of other industrial units--Income-tax Act, 1961, s. 10A-- Avineon India P. Ltd. v. Deputy CIT (Hyderabad) . . . 404
Export --Exemption--Computation of exemption--Travel expenses incurred in foreign currency to be excluded both from export turnover and from total turnover--Income-tax Act, 1961, s. 10A-- Honeywell Electrical Devices and Systems India Ltd. v. Assistant CIT (Chennai) . . . 347
International transactions --Arm’s length price--Segmental results to be accepted even if not reported in audited accounts--Transfer Pricing Officer accepting segmental results of assessee for earlier years on contract manufacturing transactions with associated enterprise for computing relief under section 10A--No change in facts--No reason for not accepting segmental reports in determining arm’s length price for this assessment year--Comparison of external comparables margin with entity-level margin of assessee not proper--Income-tax Act, 1961, s. 92CA-- Honeywell Electrical Devices and Systems India Ltd. v. Assistant CIT (Chennai) . . . 347
----Arm’s length price--Transfer pricing--Cancelled transaction--Transaction to be excluded for purpose of benchmarking transfer price--Income-tax Act, 1961-- Livingstones v. Deputy CIT (Mumbai) . . . 362
----Arm’s length price--Transfer pricing--Difference between credit period and realisation period given to associated enterprise and third party--No interest charged on delayed payments by third party--Notional interest for delayed payment by associated enterprises cannot be charged--Income-tax Act, 1961-- Livingstones v. Deputy CIT (Mumbai) . . . 362
----Arm’s length price--Transfer pricing--Difference between price of transactions with associated enterprise and those with non-associated enterprise--Element of bad debt risk involved in case of third party--Study can be made under comparable uncontrolled price method--Price difference to be ignored--Income-tax Rules, 1962, r. 10B-- Livingstones v. Deputy CIT (Mumbai) . . . 362
----Arm’s length price--Transfer pricing--Transactional net margin method--Comparable uncontrolled price method--Sale of diamonds of similar description to associated enterprises and third party--Sale of product without clear demarcation--Prices of two transactions could be compared--Internal comparable uncontrolled price method available--No need to resort to transactional net margin method--Income-tax Act, 1961-- Livingstones v. Deputy CIT (Mumbai) . . . 362
----Arm’s length price--Transfer pricing methods--Transactional net margin method--Comparable uncontrolled price--Cost plus method--To be resorted to as last resort when traditional methods rendered inapplicable--Matter remanded--Income-tax Act, 1961-- Twilight Jewellery P. Ltd. v. Deputy CIT (Mumbai) . . . 296
----Transfer pricing--Arm’s length price--Segment-wise data--Functions, assets and risks analysis in each activity have distinct and separate considerations--Independent segmental activities required to be analysed on transaction to transaction basis not by combining all activities--Income-tax Act, 1961-- Avineon India P. Ltd. v. Deputy CIT (Hyderabad) . . . 404
----Transfer pricing--Arm’s length price--Selection of comparables--Companies in which extra-ordinary events occurred--Supernormal profit companies--Companies which adopt different method of rendering service--High turnover companies--To be excluded as comparables--Income-tax Act, 1961-- Avineon India P. Ltd. v. Deputy CIT (Hyderabad) . . . 404
----Transfer pricing--Arm’s length price--Selection of comparables--Companies similar in functional parameters and assessee accepting lower turnover companies--Exclusion of company on basis of turnover alone not proper--Income-tax Act, 1961-- IVY Comptech P. Ltd. v. Deputy CIT (Hyderabad) . . . 328
----Transfer pricing--Arm’s length price--Selection of comparables--Comparable selected by assessee and accepted by Transfer Pricing Officer--Issue not agitated by assessee--Commissioner (Appeals) cannot review decision of Assessing Officer when issue not agitated to exclude comparable--Income-tax Act, 1961-- IVY Comptech P. Ltd. v. Deputy CIT (Hyderabad) . . . 328
----Transfer pricing--Arm’s length price--Selection of comparables--Rejection of contemporaneous data and undertaking fresh selection of comparables--Sufficient opportunity given to assessee at time of proceedings by Transfer Pricing Officer--No necessity for preparing transfer pricing documentation again--Income-tax Act, 1961-- Avineon India P. Ltd. v. Deputy CIT (Hyderabad) . . . 404
----Transfer pricing--Arm’s length price--Working capital adjustment--Requiring verification by Transfer Pricing Officer--Matter remanded--Income-tax Act, 1961-- Avineon India P. Ltd. v. Deputy CIT (Hyderabad) . . . 404
----Transfer pricing--Computation of arm’s length price--To be made with reference to associate enterprise transactions alone not with non-associate enterprise transactions--Income-tax Act, 1961-- Avineon India P. Ltd. v. Deputy CIT (Hyderabad) . . . 404
Revision --Commissioner--Business expenditure--Disallowance--Payments subject to deduction of tax at source--Tax deducted at source before 31st March of previous year and paid to Central Government account before due date for filing of return--Expenditure cannot be disallowed--Commissioner not justified in invoking power of revision--Income-tax Act, 1961, ss. 40(a)(ia), 263-- R. V. Chakrapani v. Assistant CIT (Hyderabad) . . . 342
----Commissioner--Erroneous claim for depreciation--Dropping penalty proceedings by Assessing Officer on following Co-ordinate bench decision--Decision to be followed as bona fide belief is final finding of fact--Order not erroneous and prejudicial to interests of Revenue--Revision to be quashed--Income-tax Act, 1961, ss. 263, 271(1)(c)-- Lala Harbhagwan Das and Memorial and Dr. Prem Hospital P. Ltd. v. CIT (Delhi) . . . 316
SECTIONWISE INDEX TO CASES REPORTED IN THIS PART
S. 10A --Exemption--Export--Deduction--Deduction under section 10A to be computed prior to setting off losses of other industrial units-- Avineon India P. Ltd. v. Deputy CIT (Hyderabad) . . . 404
----Export--Exemption--Computation of exemption--Travel expenses incurred in foreign currency to be excluded both from export turnover and from total turnover-- Honeywell Electrical Devices and Systems India Ltd. v. Assistant CIT (Chennai) . . . 347
S. 37 --Business expenditure--Accrued or contingent liability--Provision for discount--Not allowable--Actual discount allowable after verification-- Honeywell Electrical Devices and Systems India Ltd. v. Assistant CIT (Chennai) . . . 347
S. 40(a)(ia) --Business expenditure--Disallowance--Sum liable to deduction of tax at source-- Assistant CIT v. Raviraj Relempaadu (Mumbai) . . 387
----Revision--Commissioner--Business expenditure--Disallowance--Payments subject to deduction of tax at source--Tax deducted at source before 31st March of previous year and paid to Central Government account before due date for filing of return--Expenditure cannot be disallowed--Commissioner not justified in invoking power of revision-- R. V. Chakrapani v. Assistant CIT (Hyderabad) . . . 342
S. 92CA --International transactions--Arm’s length price--Segmental results to be accepted even if not reported in audited accounts--Transfer Pricing Officer accepting segmental results of assessee for earlier years on contract manufacturing transactions with associated enterprise for computing relief under section 10A--No change in facts--No reason for not accepting segmental reports in determining arm’s length price for this assessment year--Comparison of external comparables margin with entity-level margin of assessee not proper-- Honeywell Electrical Devices and Systems India Ltd. v. Assistant CIT (Chennai) . . . 347
S. 199 --Deduction of tax at source--Credit for tax deducted--Effect of amendment to section 199--Credit allowable to person in whose hands income assessable--Credit can be allowed to de facto owner, even when certificate of tax deduction at source is in name of deductee-- ITO v. Amee Hosang Mistry (Mumbai) . . 397
S. 263 --Revision--Commissioner--Business expenditure--Disallowance--Payments subject to deduction of tax at source--Tax deducted at source before 31st March of previous year and paid to Central Government account before due date for filing of return--Expenditure cannot be disallowed--Commissioner not justified in invoking power of revision-- R. V. Chakrapani v. Assistant CIT (Hyderabad) . . . 342
----Revision--Commissioner--Erroneous claim for depreciation--Dropping penalty proceedings by Assessing Officer on following Co-ordinate bench decision--Decision to be followed as bona fide belief is final finding of fact--Order not erroneous and prejudicial to interests of Revenue--Revision to be quashed-- Lala Harbhagwan Das and Memorial and Dr. Prem Hospital P. Ltd. v. CIT (Delhi) . . . 316
S. 271(1)(c) --Revision--Commissioner--Erroneous claim for depreciation--Dropping penalty proceedings by Assessing Officer on following Co-ordinate bench decision--Decision to be followed as bona fide belief is final finding of fact--Order not erroneous and prejudicial to interests of Revenue--Revision to be quashed-- Lala Harbhagwan Das and Memorial and Dr. Prem Hospital P. Ltd. v. CIT (Delhi) . . . 316
R. 9A --Capital or revenue expenditure--Film production--Expenditure incurred for uncompleted film--Revenue in nature-- Assistant CIT v. A. K. Films P. Ltd. (Mumbai) . . . 308
R. 10B --International transactions--Arm’s length price--Transfer pricing--Difference between price of transactions with associated enterprise and those with non-associated enterprise--Element of bad debt risk involved in case of third party--Study can be made under comparable uncontrolled price method--Price difference to be ignored-- Livingstones v. Deputy CIT (Mumbai) . . . 362
No comments:
Post a Comment