INCOME TAX REPORTS (ITR)--PRINT AND ONLINE EDITION
SUBJECT INDEX TO CASES REPORTED
Export --Export of computer software--Special deduction under section 80HHE--Computation--Effect of clause (d) of Explanation to section 80HHE--Reduction of 90 per cent. of income from brokerage, interest, rent charges or receipts of similar nature--Income from rendering of services--Not covered by clause (d)--90 per cent. of such income cannot be reduced while computing special deduction under section 80HHE--Income-tax Act, 1961, s. 80HHE-- CIT v. Robert Bosch (India) Ltd. (Karn) . . . 97
Interpretation of taxing statutes --Vicarious liability-- Moongipa Securities Ltd. v. Assistant CIT and WT (Delhi) . . . 108
Penalty --Concealment of income or wealth--Penalty under Income-tax Act and Wealth-tax Act--Liability to pay penalty arises only when order imposing penalty is passed--Income-tax Act, 1961--Wealth-tax Act, 1957-- Moongipa Securities Ltd. v. Assistant CIT and WT (Delhi) . . . 108
Precedent --Effect of decision of Supreme Court in CIT v. K. Ravindranathan Nair [2007] 295 ITR 228 (SC)-- CIT v. Robert Bosch (India) Ltd. (Karn) . . . 97
Settlement of cases --Case--Definition--Change of law--Maintainability of application--Pendency of assessment proceedings--Acceptance of return and return not taken up for scrutiny within time prescribed--Assessment not to be deemed pending only because final order of assessment not passed--Assessee’s assessment for years 2005-06 to 2008-09 barred by time without notice under section 143(2)--Settlement Commission ought not to have accepted petition for settlement--Income-tax Act, 1961, s. 245A(b)-- CIT v. ITSC (Guj) . . . 120
Succession --Recovery of tax and penalty due of predecessor from successor--Condition precedent--Order under section 170(3)--Income-tax Act, 1961, s. 170(3)-- Moongipa Securities Ltd. v. Assistant CIT and WT (Delhi) . . . 108
Wealth-tax --Succession--Recovery of tax and penalty due of predecessor from successor--No provision for such recovery under Wealth-tax Act--Wealth-tax Act, 1957-- Moongipa Securities Ltd. v. Assistant CIT and WT (Delhi) . . . 108
ITR Volume 361 : Part 1 (Issue dated : 17-2-2014)
SUBJECT INDEX TO CASES REPORTED IN THIS PART
Offences and prosecution --Wilful failure to file returns--Failure to file return within due date prescribed under section 139(1) or within time allowed in notices under sections 142 and 148--Further opportunity to file return in prescribed time not availed of--Onus on assessee to prove circumstances which prevented it from filing returns in terms of section 139(1) or in response to notices under sections 142 and 148--Failure wilful and offence made out--Best judgment assessments--Prosecution need not await culmination of assessment proceedings--That best judgment assessments made would not nullify liability of assessee to file return--Declaration in individual returns of partners that no return filed by firm because accounts of firm not finalised--Not to affect duty of firm to file return--Income-tax Act, 1961, ss. 139, 142, 144, 148, 276CC, 278E-- Sasi Enterprises v. Assistant CIT . . . 163
Advance tax --Interest--Company--Book profit--Interest can be charged on tax calculated on book profits--Income-tax Act, 1961, s. 234C-- Hotel and Allied P. Ltd. v. Deputy CIT (Ker) . . . 184
Appeal to Commissioner (Appeals) --Condition precedent--Tax on admitted income to be paid before filing appeal--Amount belonging to assessee available with Revenue far in excess of tax payable in terms of return and demand created under section 143(1)(a)--Requirements of section 249(4)(a) met--Assessee cannot be denied hearing on ground of non-payment of tax due on returned income--Income-tax Act, 1961, s. 249(4)(a)-- CIT v. Pramod Kumar Dang (Delhi) . . . 137
Assessment --Best judgment assessment--Notice--Service of notice--Burden of proof--Burden on Revenue to prove service of notice--No evidence of service by Revenue--Assessment not valid--Income-tax Act, 1961, ss. 142, 143-- CIT v. Gita Rani Ghosh (Gauhati) . . . 17
Business expenditure --Club expenses--Matter remanded to Assessing Officer to ascertain whether it was paid towards membership fee or otherwise-- Hotel and Allied P. Ltd. v. Deputy CIT (Ker) . . . 184
----Disallowance--Export--Commission--Payment of commission through banking channels with RBI approval pursuant to agreement approved by Government of India and UN--No illegality in making payment of commission--No evidence to show transaction relating to payment of commission not genuine or payment excessive and unreasonable--Disallowance of commission not justified--Income-tax Act, 1961, s. 37(1)-- CIT v. Rajarani Exports P. Ltd. (Cal) . . . 152
----Disallowance--Payments on which tax deductible at source--Payment to contractors--Tax deducted at source before March 31 of year and amounts deposited in Central Government before last date for filing return--No disallowance could be made--Income-tax Act, 1961, s. 40(a)(ia)-- CIT v. J. K. Construction Co. (Guj) . . . 181
----Disallowance--Payments on which tax deductible at source--Transportation and other charges incurred by agent on behalf of assessee--Relationship between assessee and agent is principal and agent--Assessee not required to deduct tax at source--No question of disallowance--Income-tax Act, 1961, s. 40(a)(ia)-- CIT v. Gujarat Narmada Valley Fertilizers Co. Ltd. (Guj) . . . 192
----Disallowance--Payments subject to deduction of tax at source--Payment to group concern of assessee--Assessee proving group concern acting as agent and amount paid on behalf of assessee by its agent--No disallowance--Income-tax Act, 1961, s. 40(a)(ia)-- CIT v. Harbanslal Malhotra and Sons P. Ltd. (Cal) . . . 82
Cash credit --Addition under section 68--Duty of Assessing Officer to conduct enquiry--Amounts shown as share application money--Evidence furnished to establish genuineness of transactions--No enquiry by Assessing Officer--Mere rejection of evidence without giving reasons--Addition of amount--Not valid--Income-tax Act, 1961, s. 68-- CIT v. Gangeshwari Metal P. Ltd. (Delhi) . . . 10
----Unexplained investment--Appellate authorities finding director of assessee had ample availability of funds from which he could have advanced loan to assessee--Share application money--Assessee discharging initial burden to establish identity, creditworthiness and genuineness for allotment of shares--Deletion of addition justified--Income-tax Act, 1961, s. 68-- CIT v. Nipuan Auto Pvt Ltd. (Delhi) . . . 155
----Civil construction business--Undisclosed income--Best judgment assessment--Net profit rate of 3.1 per cent. in preceding year relevant--Commissioner (Appeals) adopting rate of seven per cent. instead of 4.5 per cent. declared by assessee--Reasonable assessment--Outstanding balances of creditors--Deletion of additions on basis of confirmations--Justified--Income-tax Act, 1961, s. 68-- CIT v. Jogendra Singh and Co. (All) . . . 78
----Share application money--Evidence that applications were genuine--Addition under section 68--Not valid--Income-tax Act, 1961, s. 68.-- CIT v. Expo Globe India Ltd. (Delhi) . . . 147
Charitable purpose --Charitable Trust--Registration of trusts--Independent of grant or denial of exemption under section 10(23C)(vi)--Cancellation of registration on basis of disallowance of exemption under section 10(23C)(vi) on ground institution did not exist solely for educational purposes--Order denying exemption not showing institution not fulfilling conditions of section 11--Order solely relying on order of Chief Commissioner--Tribunal restoring registration on ground in assessment years 2004-05 and 2006-07 exemption under section 11 was allowed to assessee--Justified--Income-tax Act, 1961, ss. 10(23C)(vi), 11-- CIT v. Jeevan Deep Charitable Trust (All) . . . 143
Deduction of tax at source --Conveyance allowance--No relevance or bearing on actual expenditure incurred by employees--Will not come within purview of section 10(14)--Taxable under head “Salary†--Employer bound to deduct tax at source on conveyance allowance--Income-tax Act, 1961, ss. 10(14), 195-- Sriram Refregeration Industries v. ITO (AP) . . . 119
----Conveyance allowance--Whether forms part of salary--Non-deduction of tax at source--Section 201 had no application at relevant point of time--Income-tax Act, 1961, s. 201-- Sriram Refregeration Industries v. ITO (AP) . . . 119
----Payment to non-resident--Obligation to deduct only when sum paid is chargeable under Act--Letter of credit--Foreign bank charging interest on Indian bank in process of negotiating letter of credit on behalf of assessee--Assessee had privity of contract only with Indian bank--No obligation of assessee to make tax deduction at source--Income-tax Act, 1961, s. 195-- Sriram Refregeration Industries v. ITO (AP) . . . 119
----Winnings from lottery--Winnings in kind--No duty on payer to deduct tax at source--Income-tax Act, 1961, ss. 194B, 201-- CIT v. Hindustan Lever Ltd. (Karn) . . .1
Exemption --Export processing zones--Loss of non-export processing zone unit--Need not be set off against profit/income of export processing zone unit--Brought forward losses of non-export processing zone unit--Not to be deducted or reduced from profit/income of export processing zone unit--Income-tax Act, 1961, ss. 10A, 10B, 80A-- CIT v. TEI Technologies Pvt. Ltd. (Delhi) . . . 36
Hospital --Exemption--Maternity hospital--Medical attention not confined to medical treatment of persons only suffering from illness or mental disability--Prevalence of mental disability is not governing requirement of entirety of sub-clause (iiiae)--Whether hospital exists solely for philanthropic purposes and not for purpose of profit and aggregate annual receipts must not exceed prescribed amount--Matter remanded to Assessing Officer--Income-tax Act, 1961, s. 10(23C)(iiiae)-- Nehru Prasutika Aspatal Samiti v. CIT (All) . . . 68
Hotel --Special deduction--Earnings in convertible foreign exchange--All units of assessee to be taken together--Computation of benefit cannot be given separately to each hotel--Profits of entire business of assessee to be reckoned as a whole--Income-tax Act, 1961, s. 80HHD-- Hotel and Allied P. Ltd. v. Deputy CIT (Ker) . . . 184
Income --Accrual--Time of accrual--Refund of tax consequent to appellate order--Determination or quantification does not postpone accrual--Right deemed to have accrued in relevant year even though dispute as to right settled in later year--Income-tax Act, 1961, s. 244(1A)-- M. Jaffer Saheb (Decd.) v. CIT (AP) . . . 25
----Expenditure in relation to income not includible in taxable income--Dividend--No expenditure incurred for earning exempt income--Consistent stand of assessee--Assessing Officer to collect relevant material to determine expenditure relating to such exempt income--Assessing Officer substituting application of rule 8D for section 14A(2)--Not permissible--Income-tax Act, 1961, s. 14A--Income-tax Rules, 1962, r. 8D-- CIT v. Deepak Mittal (P&H) . . .131
Income from business or profession --Astrologer--Assessee instrumental in election victory of certain candidates--Amount received from candidates as mark of admiration--Without rendering service such as poojas and further procedures sums would not have been paid to assessee--Sum assessable as income from business--Income-tax Act, 1961-- N. K. Unnikrishna Panicker v. CIT (Ker) . . . 187
Income from other sources --Effect of section 56--Interest from bank and other dividends--Assessable only as income from other sources--Income-tax Act, 1961, s. 56-- Hotel and Allied P. Ltd. v. Deputy CIT (Ker) . . . 184
Industrial undertaking --Special deduction--Production of article--Bottling of gas into gas cylinders amounts to production--Assessee entitled to deduction--Income-tax Act, 1961, ss. 80HHC, 80-I, 80-IA-- CIT v. Hindustan Petroleum Corporation Ltd. (Bom) . . . 190
Interpretation of taxing statutes --†Illness†--Ordinary and natural meaning-- Nehru Prasutika Aspatal Samiti v. CIT (All) . . . 68
Penalty --Interest--Waiver of--Application for waiver for several years--Order rejecting waiver petition for failure to pay tax or furnish proof of satisfactory arrangement for payment of such tax--Commissioner assuming relief could be given once for one year--Not justified--Order set aside for years for which tax and interest shown to have been paid and matter remanded for remaining four years--Income-tax Act, 1961, s. 273A-- Asha Pal Gulati v. CBDT (Delhi) . . . 73
Refund --Application for refund--Delay in filing return--Condonation of delay--Audit of assessee done and audit report submitted well in time--Assessee could have filed return within time--Change of management cannot be a ground to condone delay--Income-tax Act, 1961, s. 239-- Learning Curve Technologies Bangalore P. Ltd. v. Assistant CIT (Karn) . . . 183
Refund --Interest on refund--Accrual of interest from previous year relevant to assessment year--Chargeable to tax in respective year for which interest paid--Income-tax Act, 1961, s. 244(1A)-- M. Jaffer Saheb (Decd.) v. CIT (AP) . . . 25
Transfer of case --Notice to be given under section 127 to indicate reasons for proposed transfer--Order under section 127(2) passed without giving notice liable to be set aside--Income-tax Act, 1961, s. 127(2)-- Smt. Chandra Prabha Kushwaha v. CIT (All) . . . 66
Transfer pricing --International transactions--Arm’s length price--Assessee entering into international transactions of buying services for sourcing of goods in India for its associated enterprise--Assessee receiving service charges of 5 per cent. of cost plus mark-up--Application of transactional margin method--Calculation of net profit margin to be with reference to cost incurred by assessee and not by third party manufacturer or associated enterprise--Income-tax Act, 1961, s. 92D--Income-tax Rules, 1962, r. 10B(1)(e)-- LI and Fung India Pvt. Ltd. v. CIT (Delhi) . . . 85
SECTIONWISE INDEX TO CASES REPORTED IN THIS PART
S. 10(14) --Deduction of tax at source--Conveyance allowance--No relevance or bearing on actual expenditure incurred by employees--Will not come within purview of section 10(14)--Taxable under head “Salary†--Employer bound to deduct tax at source on conveyance allowance-- Sriram Refregeration Industries v. ITO (AP) . . . 119
S. 10(23C)(iiiae) --Hospital--Exemption--Maternity hospital--Medical attention not confined to medical treatment of persons only suffering from illness or mental disability--Prevalence of mental disability is not governing requirement of entirety of sub-clause (iiiae)--Whether hospital exists solely for philanthropic purposes and not for purpose of profit and aggregate annual receipts must not exceed prescribed amount--Matter remanded to Assessing Officer-- Nehru Prasutika Aspatal Samiti v. CIT (All) . . . 68
S. 10(23C)(vi) --Charitable purpose--Charitable Trust--Registration of trusts--Independent of grant or denial of exemption under section 10(23C)(vi)--Cancellation of registration on basis of disallowance of exemption under section 10(23C)(vi) on ground institution did not exist solely for educational purposes--Order denying exemption not showing institution not fulfilling conditions of section 11--Order solely relying on order of Chief Commissioner--Tribunal restoring registration on ground in assessment years 2004-05 and 2006-07 exemption under section 11 was allowed to assessee--Justified-- CIT v. Jeevan Deep Charitable Trust (All) . . . 143
S. 10A --Exemption--Export processing zones--Loss of non-export processing zone unit--Need not be set off against profit/income of export processing zone unit--Brought forward losses of non-export processing zone unit--Not to be deducted or reduced from profit/income of export processing zone unit-- CIT v. TEI Technologies Pvt. Ltd. (Delhi) . . . 36
S. 10B --Exemption--Export processing zones--Loss of non-export processing zone unit--Need not be set off against profit/income of export processing zone unit--Brought forward losses of non-export processing zone unit--Not to be deducted or reduced from profit/income of export processing zone unit-- CIT v. TEI Technologies Pvt. Ltd. (Delhi) . . . 36
S. 11 --Charitable purpose--Charitable Trust--Registration of trusts --Independent of grant or denial of exemption under section 10(23C)(vi)--Cancellation of registration on basis of disallowance of exemption under section 10(23C)(vi) on ground institution did not exist solely for educational purposes--Order denying exemption not showing institution not fulfilling conditions of section 11--Order solely relying on order of Chief Commissioner--Tribunal restoring registration on ground in assessment years 2004-05 and 2006-07 exemption under section 11 was allowed to assessee--Justified-- CIT v. Jeevan Deep Charitable Trust (All) . . . 143
S. 14A --Income--Expenditure in relation to income not includible in taxable income--Dividend--No expenditure incurred for earning exempt income--Consistent stand of assessee--Assessing Officer to collect relevant material to determine expenditure relating to such exempt income--Assessing Officer substituting application of rule 8D for section 14A(2)--Not permissible-- CIT v. Deepak Mittal (P&H) . . .131
S. 37(1) --Business expenditure--Disallowance--Export--Commission--Payment of commission through banking channels with RBI approval pursuant to agreement approved by Government of India and UN--No illegality in making payment of commission--No evidence to show transaction relating to payment of commission not genuine or payment excessive and unreasonable--Disallowance of commission not justified-- CIT v. Rajarani Exports P. Ltd. (Cal) . . . 152
S. 40(a)(ia) --Business expenditure--Disallowance--Payments on which tax deductible at source--Payment to contractors--Tax deducted at source before March 31 of year and amounts deposited in Central Government before last date for filing return--No disallowance could be made-- CIT v. J. K. Construction Co. (Guj) . . . 181
----Business expenditure--Disallowance--Payments on which tax deductible at source--Transportation and other charges incurred by agent on behalf of assessee--Relationship between assessee and agent is principal and agent--Assessee not required to deduct tax at source--No question of disallowance-- CIT v. Gujarat Narmada Valley Fertilizers Co. Ltd. (Guj) . . . 192
----Business expenditure--Disallowance--Payments subject to deduction of tax at source--Payment to group concern of assessee--Assessee proving group concern acting as agent and amount paid on behalf of assessee by its agent--No disallowance-- CIT v. Harbanslal Malhotra and Sons P. Ltd. (Cal) . . . 82
S. 56 --Income from other sources--Effect of section 56--Interest from bank and other dividends--Assessable only as income from other sources-- Hotel and Allied P. Ltd. v. Deputy CIT (Ker) . . . 184
S. 68 --Cash credits--Addition under section 68--Duty of Assessing Officer to conduct enquiry--Amounts shown as share application money--Evidence furnished to establish genuineness of transactions--No enquiry by Assessing Officer--Mere rejection of evidence without giving reasons--Addition of amount--Not valid-- CIT v. Gangeshwari Metal P. Ltd. (Delhi) . . . 10
----Cash credits--Civil construction business--Undisclosed income--Best judgment assessment--Net profit rate of 3.1 per cent. in preceding year relevant--Commissioner (Appeals) adopting rate of seven per cent. instead of 4.5 per cent. declared by assessee--Reasonable assessment--Outstanding balances of creditors--Deletion of additions on basis of confirmations--Justified-- CIT v. Jogendra Singh and Co. (All) . . . 78
----Cash credits--Share application money--Evidence that applications were genuine--Addition under section 68--Not valid-- CIT v. Expo Globe India Ltd. (Delhi) . . . 147
----Cash credits--Unexplained investment--Appellate authorities finding director of assessee had ample availability of funds from which he could have advanced loan to assessee--Share application money--Assessee discharging initial burden to establish identity, creditworthiness and genuineness for allotment of shares--Deletion of addition justified-- CIT v. Nipuan Auto Pvt Ltd. (Delhi) . . . 155
S. 80A --Exemption--Export processing zones--Loss of non-export processing zone unit--Need not be set off against profit/income of export processing zone unit--Brought forward losses of non-export processing zone unit--Not to be deducted or reduced from profit/income of export processing zone unit-- CIT v. TEI Technologies Pvt. Ltd. (Delhi) . . . 36
S. 80HHD --Hotel--Special deduction--Earnings in convertible foreign exchange--All units of assessee to be taken together--Computation of benefit cannot be given separately to each hotel--Profits of entire business of assessee to be reckoned as a whole-- Hotel and Allied P. Ltd. v. Deputy CIT (Ker) . . . 184
S. 80HHC --Industrial undertaking--Special deduction--Production of article--Bottling of gas into gas cylinders amounts to production--Assessee entitled to deduction-- CIT v. Hindustan Petroleum Corporation Ltd. (Bom) . . . 190
S. 80-I --Industrial undertaking--Special deduction--Production of article--Bottling of gas into gas cylinders amounts to production--Assessee entitled to deduction-- CIT v. Hindustan Petroleum Corporation Ltd. (Bom) . . . 190
S. 80-IA --Industrial undertaking--Special deduction--Production of article--Bottling of gas into gas cylinders amounts to production--Assessee entitled to deduction-- CIT v. Hindustan Petroleum Corporation Ltd. (Bom) . . . 190
S. 92D --Transfer pricing--International transactions--Arm’s length price--Assessee entering into international transactions of buying services for sourcing of goods in India for its associated enterprise--Assessee receiving service charges of 5 per cent. of cost plus mark-up--Application of transactional margin method--Calculation of net profit margin to be with reference to cost incurred by assessee and not by third party manufacturer or associated enterprise-- LI and Fung India Pvt. Ltd. v. CIT (Delhi) . . . 85
S. 127(2) --Transfer of case--Notice to be given under section 127 to indicate reasons for proposed transfer--Order under section 127(2) passed without giving notice liable to be set aside-- Smt. Chandra Prabha Kushwaha v. CIT (All) . . . 66
S. 139 --Offences and prosecution--Wilful failure to file returns--Failure to file return within due date prescribed under section 139(1) or within time allowed in notices under sections 142 and 148--Further opportunity to file return in prescribed time not availed of--Onus on assessee to prove circumstances which prevented it from filing returns in terms of section 139(1) or in response to notices under sections 142 and 148--Failure wilful and offence made out--Best judgment assessments--Prosecution need not await culmination of assessment proceedings--That best judgment assessments made would not nullify liability of assessee to file return--Declaration in individual returns of partners that no return filed by firm because accounts of firm not finalised--Not to affect duty of firm to file return-- Sasi Enterprises v. Assistant CIT (SC). . . 163
S. 142 --Assessment--Best judgment assessment--Notice--Service of notice--Burden of proof--Burden on Revenue to prove service of notice--No evidence of service by Revenue--Assessment not valid-- CIT v. Gita Rani Ghosh (Gauhati) . . . 17
----Offences and prosecution--Wilful failure to file returns--Failure to file return within due date prescribed under section 139(1) or within time allowed in notices under sections 142 and 148--Further opportunity to file return in prescribed time not availed of--Onus on assessee to prove circumstances which prevented it from filing returns in terms of section 139(1) or in response to notices under sections 142 and 148--Failure wilful and offence made out--Best judgment assessments--Prosecution need not await culmination of assessment proceedings--That best judgment assessments made would not nullify liability of assessee to file return--Declaration in individual returns of partners that no return filed by firm because accounts of firm not finalised--Not to affect duty of firm to file return-- Sasi Enterprises v. Assistant CIT (SC). . . 163
S. 143 --Assessment--Best judgment assessment--Notice--Service of notice--Burden of proof--Burden on Revenue to prove service of notice--No evidence of service by Revenue--Assessment not valid-- CIT v. Gita Rani Ghosh (Gauhati) . . . 17
S. 144 --Offences and prosecution--Wilful failure to file returns--Failure to file return within due date prescribed under section 139(1) or within time allowed in notices under sections 142 and 148--Further opportunity to file return in prescribed time not availed of--Onus on assessee to prove circumstances which prevented it from filing returns in terms of section 139(1) or in response to notices under sections 142 and 148--Failure wilful and offence made out--Best judgment assessments--Prosecution need not await culmination of assessment proceedings--That best judgment assessments made would not nullify liability of assessee to file return--Declaration in individual returns of partners that no return filed by firm because accounts of firm not finalised--Not to affect duty of firm to file return-- Sasi Enterprises v. Assistant CIT (SC). . . 163
S. 148 --Offences and prosecution--Wilful failure to file returns--Failure to file return within due date prescribed under section 139(1) or within time allowed in notices under sections 142 and 148--Further opportunity to file return in prescribed time not availed of--Onus on assessee to prove circumstances which prevented it from filing returns in terms of section 139(1) or in response to notices under sections 142 and 148--Failure wilful and offence made out--Best judgment assessments--Prosecution need not await culmination of assessment proceedings--That best judgment assessments made would not nullify liability of assessee to file return--Declaration in individual returns of partners that no return filed by firm because accounts of firm not finalised--Not to affect duty of firm to file return-- Sasi Enterprises v. Assistant CIT (SC). . . 163
S. 194B --Deduction of tax at source--Winnings from lottery--Winnings in kind--No duty on payer to deduct tax at source-- CIT v. Hindustan Lever Ltd. (Karn) . . .1
S. 195 --Deduction of tax at source--Conveyance allowance--No relevance or bearing on actual expenditure incurred by employees--Will not come within purview of section 10(14)--Taxable under head “Salary†--Employer bound to deduct tax at source on conveyance allowance-- Sriram Refregeration Industries v. ITO (AP) . . . 119
----Deduction of tax at source--Payment to non-resident--Obligation to deduct only when sum paid is chargeable under Act--Letter of credit--Foreign bank charging interest on Indian bank in process of negotiating letter of credit on behalf of assessee--Assessee had privity of contract only with Indian bank--No obligation of assessee to make tax deduction at source-- Sriram Refregeration Industries v. ITO (AP) . . . 119
S. 201 --Deduction of tax at source--Conveyance allowance--Whether forms part of salary--Non-deduction of tax at source--Section 201 had no application at relevant point of time-- Sriram Refregeration Industries v. ITO (AP) . . . 119
----Deduction of tax at source--Winnings from lottery--Winnings in kind--No duty on payer to deduct tax at source-- CIT v. Hindustan Lever Ltd. (Karn) . . .1
S. 234C --Advance tax--Interest--Company--Book profit--Interest can be charged on tax calculated on book profits-- Hotel and Allied P. Ltd. v. Deputy CIT (Ker) . . . 184
S. 239 --Refund--Application for refund--Delay in filing return--Condonation of delay--Audit of assessee done and audit report submitted well in time--Assessee could have filed return within time--Change of management cannot be a ground to condone delay-- Learning Curve Technologies Bangalore P. Ltd. v. Assistant CIT (Karn) . . . 183
S. 244(1A) --Income--Accrual--Time of accrual--Refund of tax consequent to appellate order--Determination or quantification does not postpone accrual--Right deemed to have accrued in relevant year even though dispute as to right settled in later year-- M. Jaffer Saheb (Decd.) v. CIT (AP) . . . 25
----Refund--Interest on refund--Accrual of interest from previous year relevant to assessment year--Chargeable to tax in respective year for which interest paid-- M. Jaffer Saheb (Decd.) v. CIT (AP) . . . 25
S. 249(4)(a) --Appeal to Commissioner (Appeals)--Condition precedent--Tax on admitted income to be paid before filing appeal--Amount belonging to assessee available with Revenue far in excess of tax payable in terms of return and demand created under section 143(1)(a)--Requirements of section 249(4)(a) met--Assessee cannot be denied hearing on ground of non-payment of tax due on returned income-- CIT v. Pramod Kumar Dang (Delhi) . . . 137
S. 273A --Penalty--Interest--Waiver of--Application for waiver for several years--Order rejecting waiver petition for failure to pay tax or furnish proof of satisfactory arrangement for payment of such tax--Commissioner assuming relief could be given once for one year--Not justified--Order set aside for years for which tax and interest shown to have been paid and matter remanded for remaining four years-- Asha Pal Gulati v. CBDT (Delhi) . . . 73
S. 276CC --Offences and prosecution--Wilful failure to file returns--Failure to file return within due date prescribed under section 139(1) or within time allowed in notices under sections 142 and 148--Further opportunity to file return in prescribed time not availed of--Onus on assessee to prove circumstances which prevented it from filing returns in terms of section 139(1) or in response to notices under sections 142 and 148--Failure wilful and offence made out--Best judgment assessments--Prosecution need not await culmination of assessment proceedings--That best judgment assessments made would not nullify liability of assessee to file return--Declaration in individual returns of partners that no return filed by firm because accounts of firm not finalised--Not to affect duty of firm to file return-- Sasi Enterprises v. Assistant CIT (SC). . . 163
S. 278E --Offences and prosecution--Wilful failure to file returns--Failure to file return within due date prescribed under section 139(1) or within time allowed in notices under sections 142 and 148--Further opportunity to file return in prescribed time not availed of--Onus on assessee to prove circumstances which prevented it from filing returns in terms of section 139(1) or in response to notices under sections 142 and 148--Failure wilful and offence made out--Best judgment assessments--Prosecution need not await culmination of assessment proceedings--That best judgment assessments made would not nullify liability of assessee to file return--Declaration in individual returns of partners that no return filed by firm because accounts of firm not finalised--Not to affect duty of firm to file return-- Sasi Enterprises v. Assistant CIT (SC). . . 163
R. 8D --Income--Expenditure in relation to income not includible in taxable income--Dividend--No expenditure incurred for earning exempt income--Consistent stand of assessee--Assessing Officer to collect relevant material to determine expenditure relating to such exempt income--Assessing Officer substituting application of rule 8D for section 14A(2)--Not permissible-- CIT v. Deepak Mittal (P&H) . . .131
R. 10B(1)(e) --Transfer pricing--International transactions--Arm’s length price--Assessee entering into international transactions of buying services for sourcing of goods in India for its associated enterprise--Assessee receiving service charges of 5 per cent. of cost plus mark-up--Application of transactional margin method--Calculation of net profit margin to be with reference to cost incurred by assessee and not by third party manufacturer or associated enterprise-- LI and Fung India Pvt. Ltd. v. CIT (Delhi) . . . 85
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