SUBJECT INDEX TO CASES REPORTED
Capital gains --Transfer--When takes place--Assessee entering into agreement with developer for construction of residential project--Similar agreements entered into subsequently with developer for sale and development of property--Possession not handed over by assessee to developer--Agreement only permitting development to be carried out by developer--Entire control over property with assessee--Licence to construct property in name of assessee and occupancy certificate given to assessee--Execution of agreement did not amount to transfer in terms of section 53A of Transfer of Property Act--Assessee liable to pay capital gains tax only in terms of last agreement--Transfer of Property Act, 1882, s. 53A--Income-tax Act, 1961, s. 2(47)(v)-- CIT v. Sadia Shaikh (Bom) . . .169
Charitable purpose --Registration of trusts--Trust established with charitable as well as religious objects--Entitled to registration--Income-tax Act, 1961, ss. 11(1)(a), 12AA-- CIT v. Arulmigu Sri Kamatchi Amman Trust (Mad) . . . 191
Reassessment --Notice--Condition precedent--Reason to believe income had escaped assessment--Relevant material to form belief sufficient at stage of issue of notice--Sale of property--Evidence that consideration for sale more than what was declared--Notice of reassessment--Valid--Income-tax Act, 1961, ss. 147, 148-- Shree Om Builders and Colonizers v. Assistant CIT (Raj) . . . 177
----Notice--Validity--Condition precedent for notice--Reason to believe income had escaped assessment--Change of opinion not a ground for reassessment--Exemption granted under section 10B in scrutiny assessment--Notice on ground that exemption was granted erroneously--Notice not valid--Income-tax Act, 1961, ss. 147, 148-- Replika Press P. Ltd. v. Deputy CIT (Delhi) . . . 163
Recovery of tax --Garnishee proceedings--Effect of sub-section (3) of section 226--Notice under section 226(3) may be amended or revoked at any time--Writ petition without seeking revocation of order not permissible--Income-tax Act, 1961, s. 226--Constitution of India, art. 226-- Central Coal Fields Ltd. v. CIT (TDS) (Jharkhand) . . . 172
ITR Volume 361 : Part 3 (Issue dated : 3-3-2014)
SUBJECT INDEX TO CASES REPORTED IN THIS PART
Appeal to Appellate Tribunal --Duty of Tribunal--Tribunal setting aside order of Commissioner (Appeals)--Tribunal must consider entire evidence and record reasons for reversing his order--Question whether transactions in shares constituted business--Tribunal must consider transactions in detail--Matter remanded--Income-tax Act, 1961-- Altius Securities Trading P. Ltd. v. Deputy CIT (Mad) . . . 332
Assessment --Scrutiny of cases--CBDT circulars--Circular prescribing time limit of three months from date of filing return--Circular binding on income-tax authorities--Return filed on 29-10-2004--Notice under section 143(2) on 14-7-2005--Not within a period of three months--CBDT Circular No. 10--Income-tax Act, 1961, ss. 119, 143(2)-- Amal Kumar Ghosh v. Assistant CIT (Cal) . . . 458
Business expenditure --Disallowance--Payments subject to deduction of tax at source--Payments to sub-contractors--Assessee deducting tax at source under wrong provision resulting in short deduction of tax--No disallowance can be made applying section 40(a)(ia)--Income-tax Act, 1961, ss. 40(a)(ia), 194-I-- CIT v. S. K. Tekriwal (Cal) . . . 432
Cash credit --Mercantile system of accounting--Production and distribution of films--Advances received treated as liabilities in balance-sheet in year of receipt--Those advances offered as income in year of distribution--Addition on account of cash credit not justified--Income-tax Act, 1961, s. 68-- CIT v. K. E. Gnanavelraja (Mad) . . . 446
Exemption --Educational institution--Society for running educational institution--Property purchased in name of director of educational institution but transferred subsequently to educational institution--No violation of provisions of section 10(23C)(vi) or section 11--Assessee entitled to exemption--Income-tax Act, 1961, ss. 10(23C)(vi), 11-- CIT v. Sunbeam English School (All) . . . 325
----Export oriented unit--Part of exports of assessee comprising snack items--Part of manufacturing activity outsourced--Raw material for preparation of snack items not procured and supplied by assessee--Some follow up action taken by assessee for packing and storing snacks--Not manufacture or producing an article or thing--Assessee not entitled to exemption--Income-tax Act, 1961, s. 10B-- Deepkiran Foods P. Ltd. v. Assistant CIT (Guj) . . . 437
Foreign projects --Special deduction--Definition of foreign project--Planning and designing executed as a single integral work order--Projects requiring manpower, job design, control system design and design of a method of employing specific technology--Entire consideration attributable to such execution of projects--Certificate of auditors on Form 10CCA furnished--Assessee entitled to deduction--Income-tax Act, 1961, s. 80HHB-- Maritime Overseas v. CIT (Cal) . . . 434
Industrial undertaking --Special deduction--Reduction of expenses on proportionate basis relating to one unit--Tribunal remanding matter to Assessing Officer to examine whether receipts were derived from manufacturing activities and if so to include them in profits--Appeal to High Court--Assessing Officer further directed to look at scrap sales and labour work and other interest receipts vis-a-vis unit-wise--Income-tax Act, 1961, s. 80-IA-- CIT v. Brakes India Ltd. (Mad) . . . 424
Loss --Carry forward and set off--Speculation business--Speculation loss--Deeming fiction that where any part of company’s business consists of purchase and sale of shares company deemed to carry on speculative transaction--Whether assessee was in business of advancing loans and earning interest--Not to be concluded by one isolated instance--Gross total income of assessee mainly consisting of income chargeable under head “Capital gains†or “Income from other sources†--Deeming fiction not applicable--Loss cannot be treated as speculation loss--Income-tax Act, 1961, s. 73-- CIT v. Paranjay Mercantile Ltd. (Guj) . . . 462
Penalty --Concealment of income--Furnishing inaccurate particulars of income--Sundry creditors’ account--Confirmation of third parties in regard to balances differing from balances recorded in books of assessee--No efforts made to rebut--Penalty justified--Income-tax Act, 1961, s. 271(1)(c)-- Bajrang Glass Emporium v. CIT (All) . . . 376
----Concealment of income--Furnishing inaccurate particulars--Five traders belonging to particular community leaving town during communal riots or otherwise refusing to give confirmation letters--Assessee filing revised return deleting outstanding entries for five traders--That assessee could not obtain confirmation letters of outstanding entries from only five traders out of fifteen--Cannot be termed as either concealment of income or furnished inaccurate particulars--Penalty could not be imposed--Income-tax Act, 1961, s. 271(1)(c)-- CIT v. Mathura Commercial Co. (All) . . . 380
----Concealment of income--Furnishing inaccurate particulars--Reassessment--Inflation of purchase price--Surrender of amount after detection by Assessing Officer--Finding that this was not a case of bona fide mistake on part of assessee--Finding of fact--Penalty leviable--Income-tax Act, 1961, s. 271(1)(c)-- Standard Hind Co. v. CIT (All) . . . 370
Reassessment --Notice after four years--Conditions that officer must be satisfied that there has been an escapement in assessment of income, which is chargeable to tax because of failure by assessee to file return under section 139--Conditions must be reflected in notice itself--Notice and consequential steps not valid--Income-tax Act, 1961, ss. 147, 148-- Tecumseh Products India Pvt. Ltd. v. Assistant CIT (AP) . . . 429
Recovery of tax --Authority not to initiate recovery proceedings till expiry of period of limitation for filing appeal against assessment order--Authority directed not to take any coercive steps for recovery against assessee till time for filing appeal exhausted--Income-tax Act, 1961-- Dishnet Wireless Ltd. v. Assistant CIT (Mad) . . . 449
----Stay of recovery proceedings--General principles--Recovery proceedings against statutory corporation--Appeal by corporation against dismissal of appeal by Commissioner (Appeals)--Revenue in not only attaching bank account but withdrawing money from bank was before expiry of time limit for filing an appeal--Not justified--Income-tax Act, 1961, ss. 156, 220(6), 254(2A)-- Director of Income-tax (Exemption) v. ITAT (Bom) . . . 469
Rectification of mistakes --Mistake apparent from record--Interest waived by creditor in year in question shown as income--Assessment for preceding year pending at time of filing return--Disallowance of interest for earlier year by subsequent order--Failure by assessee to challenge disallowance for earlier year and to file revised return for year in question--Mistake of assessee not mistake apparent from record--Demand for deficit of tax--Intimation cannot be rectified--Income-tax Act, 1961, s. 154(1)(b)-- M Far Hotels Ltd. v. CIT (Ker) . . . 442
Refund --Interest--Delay in paying interest--Interest on interest not payable--Income-tax Act, 1961, s. 244-- CIT v. Brakes India Ltd. (Mad) . . . 424
Search and seizure --Validity--Error in panchnama--Error does not render search invalid--Income-tax Act, 1961, ss. 132, 158BE-- MDLR Resorts P. Ltd. v. CIT (Delhi) . . . 407
----Writ--Existence of alternative remedy--Assessment order under section 153A--Writ petition not maintainable against such order--Income-tax Act, 1961, s. 153A--Constitution of India, art. 226-- MDLR Resorts P. Ltd. v. CIT (Delhi) . . . 407
Speculative transaction --Definition--Exception--Speculative loss--Set-off--Purchase and sale of shares--Non-delivery based transaction--Disclosure of each and every transaction--Bona fides of transactions not doubted--Transactions part of jobbing--Assessee covered by exception in clause (c) of proviso to section 43(5)--Income-tax Act, 1961, s. 43(5)-- CIT v. Sri Ram Kishan Gupta (All) . . . 387
Valuation of closing stock --Land purchased by assessee in dispute before civil court--Dispute having adverse impact on market value of land--Assessee reducing value of closing stock--No change in method of valuation--Department accepting value as value of opening stock in subsequent year--Addition on account of undervaluation of closing stock not proper--Income-tax Act, 1961-- CIT v. Satish Estate P. Ltd. (P&H) . . . 451
Words and phrases --Meaning of panchnama-- MDLR Resorts P. Ltd. v. CIT (Delhi) . . . 407
Advance ruling --Non-resident--“Fees for technical services†--Definition--Consultancy agreement between Indian company and holding Netherlands company--Services using experience, knowledge and expertise of holding company rendered--Consideration covered by broad definition of “fees for technical services†--Indian company merely taking assistance of Netherlands company in its business activities outside India--No transfer of technical know-how, skill, knowledge or expertise so as to enable Indian company to apply it independently--Payment for services not “fees for technical services†--Netherlands company having no presence in India--Profits arising out of rendering of services by Netherlands company not taxable in India--Payment not subject to withholding of tax--No materials to suggest transaction an arrangement solely for purpose of avoidance of tax--Income-tax Act, 1961, ss. 9(1)(vii), Expln. 2 , 195, 245R--Double Taxation Avoidance Agreement between India and the Netherlands, art. 12(5), (6)-- Endemol India P. Ltd., In re (No. 1 ) . . . 340
----Non-resident--Fees for technical services--Agreement for provision of specialised services to applicant to aid in production of programmes for which non-resident agreed to commission its representative as executive producer--Services amount to consultancy services--But technical knowledge, expertise, skill, know-how or process not made available to applicant so as to enable it to apply technology independently--Consideration for services rendered by non-resident to applicant not fees for technical services--No permanent establishment of non-resident in India--Profits not taxable in India--Transaction not subject to withholding of tax--No material made available to suggest transaction an arrangement solely for avoidance of tax--Double Taxation Avoidance Agreement between India and Singapore, arts. 7, 12(4)--Income-tax Act, 1961, ss. 195, 245R(2)-- Endemol India P. Ltd., In re (No. 2 ) . . . 353
----Non-resident--Fees for technical services--Definition--Payments for production of programmes for purpose of broadcasting and telecasting--Production of programmes for telecasting specifically characterised as “work†for purpose of section 194C--Services cannot be characterised as “fees for technical services†--Non-resident not having permanent establishment in India--Services rendered and utilised outside India and payments for services received outside India--No business connection in India--Income not taxable in India--Transaction not subject to withholding of tax--Income-tax Act, 1961, ss. 9(1)(vii), 194C, 195-- Endemol India P. Ltd., In re (No. 3 ) . . . 361
Interpretation of taxing statutes --Harmonious construction--Specific and general provisions--General principles-- Endemol India P. Ltd., In re (No. 3 ) . . . 361
----Strict construction-- Endemol India P. Ltd., In re (No. 1 ) . . . 340
SECTIONWISE INDEX TO CASES REPORTED IN THIS PART
Art. 226 --Search and seizure--Writ--Existence of alternative remedy--Assessment order under section 153A--Writ petition not maintainable against such order-- MDLR Resorts P. Ltd. v. CIT (Delhi) . . . 407
Double Taxation Avoidance Agreement between India and the Netherlands :
Art. 12(5), (6) --Advance ruling--Non-resident--“Fees for technical services†--Definition--Consultancy agreement between Indian company and holding Netherlands company--Services using experience, knowledge and expertise of holding company rendered--Consideration covered by broad definition of “fees for technical services†--Indian company merely taking assistance of Netherlands company in its business activities outside India--No transfer of technical know-how, skill, knowledge or expertise so as to enable Indian company to apply it independently--Payment for services not “fees for technical services†--Netherlands company having no presence in India--Profits arising out of rendering of services by Netherlands company not taxable in India--Payment not subject to withholding of tax--No materials to suggest transaction an arrangement solely for purpose of avoidance of tax-- Endemol India P. Ltd., In re (No. 1 ) (AAR). . . 340
Double Taxation Avoidance Agreement between India and Singapore :
Arts. 7, 12(4) --Advance ruling--Non-resident--Fees for technical services--Agreement for provision of specialised services to applicant to aid in production of programmes for which non-resident agreed to commission its representative as executive producer--Services amount to consultancy services--But technical knowledge, expertise, skill, know-how or process not made available to applicant so as to enable it to apply technology independently--Consideration for services rendered by non-resident to applicant not fees for technical services--No permanent establishment of non-resident in India--Profits not taxable in India--Transaction not subject to withholding of tax--No material made available to suggest transaction an arrangement solely for avoidance of tax-- Endemol India P. Ltd., In re (No. 2 ) (AAR). . . 353
S. 9(1)(vii), Expln. 2 --Advance ruling--Non-resident--“Fees for technical services†--Definition--Consultancy agreement between Indian company and holding Netherlands company--Services using experience, knowledge and expertise of holding company rendered--Consideration covered by broad definition of “fees for technical services†--Indian company merely taking assistance of Netherlands company in its business activities outside India--No transfer of technical know-how, skill, knowledge or expertise so as to enable Indian company to apply it independently--Payment for services not “fees for technical services†--Netherlands company having no presence in India--Profits arising out of rendering of services by Netherlands company not taxable in India--Payment not subject to withholding of tax--No materials to suggest transaction an arrangement solely for purpose of avoidance of tax-- Endemol India P. Ltd., In re (No. 1 ) (AAR). . . 340
S. 9(1)(vii) --Advance ruling--Non-resident--Fees for technical services--Definition--Payments for production of programmes for purpose of broadcasting and telecasting--Production of programmes for telecasting specifically characterised as “work†for purpose of section 194C--Services cannot be characterised as “fees for technical services†--Non-resident not having permanent establishment in India--Services rendered and utilised outside India and payments for services received outside India--No business connection in India--Income not taxable in India--Transaction not subject to withholding of tax-- Endemol India P. Ltd., In re (No. 3 ) (AAR). . . 361
S. 10(23C)(vi) --Exemption--Educational institution--Society for running educational institution--Property purchased in name of director of educational institution but transferred subsequently to educational institution--No violation of provisions of section 10(23C)(vi) or section 11--Assessee entitled to exemption-- CIT v. Sunbeam English School (All) . . . 325
S. 10B --Exemption--Export oriented unit--Part of exports of assessee comprising snack items--Part of manufacturing activity outsourced--Raw material for preparation of snack items not procured and supplied by assessee--Some follow up action taken by assessee for packing and storing snacks--Not manufacture or producing an article or thing--Assessee not entitled to exemption-- Deepkiran Foods P. Ltd. v. Assistant CIT (Guj) . . . 437
S. 11 --Exemption--Educational institution--Society for running educational institution--Property purchased in name of director of educational institution but transferred subsequently to educational institution--No violation of provisions of section 10(23C)(vi) or section 11--Assessee entitled to exemption-- CIT v. Sunbeam English School (All) . . . 325
S. 40(a)(ia) --Business expenditure--Disallowance--Payments subject to deduction of tax at source--Payments to sub-contractors--Assessee deducting tax at source under wrong provision resulting in short deduction of tax--No disallowance can be made applying section 40(a)(ia)-- CIT v. S. K. Tekriwal (Cal) . . . 432
S. 43(5) --Speculative transaction--Definition--Exception--Speculative loss--Set-off--Purchase and sale of shares--Non-delivery based transaction--Disclosure of each and every transaction--Bona fides of transactions not doubted--Transactions part of jobbing--Assessee covered by exception in clause (c) of proviso to section 43(5)-- CIT v. Sri Ram Kishan Gupta (All) . . . 387
S. 68 --Cash credit--Mercantile system of accounting--Production and distribution of films--Advances received treated as liabilities in balance-sheet in year of receipt--Those advances offered as income in year of distribution--Addition on account of cash credit not justified-- CIT v. K. E. Gnanavelraja (Mad) . . . 446
S. 73 --Loss--Carry forward and set off--Speculation business--Speculation loss--Deeming fiction that where any part of company’s business consists of purchase and sale of shares company deemed to carry on speculative transaction--Whether assessee was in business of advancing loans and earning interest--Not to be concluded by one isolated instance--Gross total income of assessee mainly consisting of income chargeable under head “Capital gains†or “Income from other sources†--Deeming fiction not applicable--Loss cannot be treated as speculation loss-- CIT v. Paranjay Mercantile Ltd. (Guj) . . . 462
S. 80HHB --Foreign projects--Special deduction--Definition of foreign project--Planning and designing executed as a single integral work order--Projects requiring manpower, job design, control system design and design of a method of employing specific technology--Entire consideration attributable to such execution of projects--Certificate of auditors on Form 10CCA furnished--Assessee entitled to deduction-- Maritime Overseas v. CIT (Cal) . . . 434
S. 80-IA --Industrial undertaking--Special deduction--Reduction of expenses on proportionate basis relating to one unit--Tribunal remanding matter to Assessing Officer to examine whether receipts were derived from manufacturing activities and if so to include them in profits--Appeal to High Court--Assessing Officer further directed to look at scrap sales and labour work and other interest receipts vis-a-vis unit-wise-- CIT v. Brakes India Ltd. (Mad) . . . 424
S. 119 --Assessment--Scrutiny of cases--CBDT circulars--Circular prescribing time limit of three months from date of filing return--Circular binding on income-tax authorities--Return filed on 29-10-2004--Notice under section 143(2) on 14-7-2005--Not within a period of three months--CBDT Circular No. 10-- Amal Kumar Ghosh v. Assistant CIT (Cal) . . . 458
S. 132 --Search and seizure--Validity--Error in panchnama--Error does not render search invalid-- MDLR Resorts P. Ltd. v. CIT (Delhi) . . . 407
S. 143(2) --Assessment--Scrutiny of cases--CBDT circulars--Circular prescribing time limit of three months from date of filing return--Circular binding on income-tax authorities--Return filed on 29-10-2004--Notice under section 143(2) on 14-7-2005--Not within a period of three months--CBDT Circular No. 10-- Amal Kumar Ghosh v. Assistant CIT (Cal) . . . 458
S. 147 --Reassessment--Notice after four years--Conditions that officer must be satisfied that there has been an escapement in assessment of income, which is chargeable to tax because of failure by assessee to file return under section 139--Conditions must be reflected in notice itself--Notice and consequential steps not valid-- Tecumseh Products India Pvt. Ltd. v. Assistant CIT (AP) . . . 429
S. 148 --Reassessment--Notice after four years--Conditions that officer must be satisfied that there has been an escapement in assessment of income, which is chargeable to tax because of failure by assessee to file return under section 139--Conditions must be reflected in notice itself--Notice and consequential steps not valid-- Tecumseh Products India Pvt. Ltd. v. Assistant CIT (AP) . . . 429
S. 153A --Search and seizure--Writ--Existence of alternative remedy--Assessment order under section 153A--Writ petition not maintainable against such order-- MDLR Resorts P. Ltd. v. CIT (Delhi) . . . 407
S. 154(1)(b )--Rectification of mistakes--Mistake apparent from record--Interest waived by creditor in year in question shown as income--Assessment for preceding year pending at time of filing return--Disallowance of interest for earlier year by subsequent order--Failure by assessee to challenge disallowance for earlier year and to file revised return for year in question--Mistake of assessee not mistake apparent from record--Demand for deficit of tax--Intimation cannot be rectified-- M Far Hotels Ltd. v. CIT (Ker) . . . 442
S. 156 --Recovery of tax--Stay of recovery proceedings--General principles--Recovery proceedings against statutory corporation--Appeal by corporation against dismissal of appeal by Commissioner (Appeals)--Revenue in not only attaching bank account but withdrawing money from bank was before expiry of time limit for filing an appeal--Not justified-- Director of Income-tax (Exemption) v. ITAT (Bom) . . . 469
S. 158BE --Search and seizure--Validity--Error in panchnama--Error does not render search invalid-- MDLR Resorts P. Ltd. v. CIT (Delhi) . . . 407
S. 194C --Advance ruling--Non-resident--Fees for technical services--Definition--Payments for production of programmes for purpose of broadcasting and telecasting--Production of programmes for telecasting specifically characterised as “work†for purpose of section 194C--Services cannot be characterised as “fees for technical services†--Non-resident not having permanent establishment in India--Services rendered and utilised outside India and payments for services received outside India--No business connection in India--Income not taxable in India--Transaction not subject to withholding of tax-- Endemol India P. Ltd., In re (No. 3 ) (AAR). . . 361
S. 194-I --Business expenditure--Disallowance--Payments subject to deduction of tax at source--Payments to sub-contractors--Assessee deducting tax at source under wrong provision resulting in short deduction of tax--No disallowance can be made applying section 40(a)(ia)-- CIT v. S. K. Tekriwal (Cal) . . . 432
S. 195 --Advance ruling--Non-resident--Fees for technical services--Agreement for provision of specialised services to applicant to aid in production of programmes for which non-resident agreed to commission its representative as executive producer--Services amount to consultancy services--But technical knowledge, expertise, skill, know-how or process not made available to applicant so as to enable it to apply technology independently--Consideration for services rendered by non-resident to applicant not fees for technical services--No permanent establishment of non-resident in India--Profits not taxable in India--Transaction not subject to withholding of tax--No material made available to suggest transaction an arrangement solely for avoidance of tax-- Endemol India P. Ltd., In re (No. 2 ) (AAR). . . 353
----Advance ruling--Non-resident--“Fees for technical services†--Definition--Consultancy agreement between Indian company and holding Netherlands company--Services using experience, knowledge and expertise of holding company rendered--Consideration covered by broad definition of “fees for technical services†--Indian company merely taking assistance of Netherlands company in its business activities outside India--No transfer of technical know-how, skill, knowledge or expertise so as to enable Indian company to apply it independently--Payment for services not “fees for technical services†--Netherlands company having no presence in India--Profits arising out of rendering of services by Netherlands company not taxable in India--Payment not subject to withholding of tax--No materials to suggest transaction an arrangement solely for purpose of avoidance of tax-- Endemol India P. Ltd., In re (No. 1 ) (AAR). . . 340
----Advance ruling--Non-resident--Fees for technical services--Definition--Payments for production of programmes for purpose of broadcasting and telecasting--Production of programmes for telecasting specifically characterised as “work†for purpose of section 194C--Services cannot be characterised as “fees for technical services†--Non-resident not having permanent establishment in India--Services rendered and utilised outside India and payments for services received outside India--No business connection in India--Income not taxable in India--Transaction not subject to withholding of tax-- Endemol India P. Ltd., In re (No. 3 ) (AAR). . . 361
S. 220(6) --Recovery of tax--Stay of recovery proceedings--General principles--Recovery proceedings against statutory corporation--Appeal by corporation against dismissal of appeal by Commissioner (Appeals)--Revenue in not only attaching bank account but withdrawing money from bank was before expiry of time limit for filing an appeal--Not justified-- Director of Income-tax (Exemption) v. ITAT (Bom) . . . 469
S. 244 --Refund--Interest--Delay in paying interest--Interest on interest not payable-- CIT v. Brakes India Ltd. (Mad) . . . 424
S. 245R --Advance ruling--Non-resident--“Fees for technical services†--Definition--Consultancy agreement between Indian company and holding Netherlands company--Services using experience, knowledge and expertise of holding company rendered--Consideration covered by broad definition of “fees for technical services†--Indian company merely taking assistance of Netherlands company in its business activities outside India--No transfer of technical know-how, skill, knowledge or expertise so as to enable Indian company to apply it independently--Payment for services not “fees for technical services†--Netherlands company having no presence in India--Profits arising out of rendering of services by Netherlands company not taxable in India--Payment not subject to withholding of tax--No materials to suggest transaction an arrangement solely for purpose of avoidance of tax-- Endemol India P. Ltd., In re (No. 1 ) (AAR). . . 340
S. 245R(2) --Advance ruling--Non-resident--Fees for technical services--Agreement for provision of specialised services to applicant to aid in production of programmes for which non-resident agreed to commission its representative as executive producer--Services amount to consultancy services--But technical knowledge, expertise, skill, know-how or process not made available to applicant so as to enable it to apply technology independently--Consideration for services rendered by non-resident to applicant not fees for technical services--No permanent establishment of non-resident in India--Profits not taxable in India--Transaction not subject to withholding of tax--No material made available to suggest transaction an arrangement solely for avoidance of tax-- Endemol India P. Ltd., In re (No. 2 ) (AAR). . . 353
S. 254(2A) --Recovery of tax--Stay of recovery proceedings--General principles--Recovery proceedings against statutory corporation--Appeal by corporation against dismissal of appeal by Commissioner (Appeals)--Revenue in not only attaching bank account but withdrawing money from bank was before expiry of time limit for filing an appeal--Not justified-- Director of Income-tax (Exemption) v. ITAT (Bom) . . . 469
S. 271(1)(c) --Penalty--Concealment of income--Furnishing inaccurate particulars of income--Sundry creditors’ account--Confirmation of third parties in regard to balances differing from balances recorded in books of assessee--No efforts made to rebut--Penalty justified-- Bajrang Glass Emporium v. CIT (All) . . . 376
----Penalty--Concealment of income--Furnishing inaccurate particulars--Five traders belonging to particular community leaving town during communal riots or otherwise refusing to give confirmation letters--Assessee filing revised return deleting outstanding entries for five traders--That assessee could not obtain confirmation letters of outstanding entries from only five traders out of fifteen--Cannot be termed as either concealment of income or furnished inaccurate particulars--Penalty could not be imposed-- CIT v. Mathura Commercial Co. (All) . . . 380
----Penalty--Concealment of income--Furnishing inaccurate particulars--Reassessment--Inflation of purchase price--Surrender of amount after detection by Assessing Officer--Finding that this was not a case of bona fide mistake on part of assessee--Finding of fact--Penalty leviable-- Standard Hind Co. v. CIT (All) . . . 370
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