ITR'S TRIBUNAL TAX REPORTS (ITR (TRIB)) -- PRINT AND ONLINE EDITION
SUBJECT INDEX TO CASES REPORTED
Appeal to Appellate Tribunal --Rectification of mistakes--Mistake apparent from record--Tribunal taking considered view that entire income earned by assessee from Indian projects taxable in India under article 7 of the Double Taxation Avoidance Agreement--No mistake apparent from record--Income-tax Act, 1961, s. 254--Double Taxation Avoidance Agreement between India and the United Kingdom, art. 7-- Linklaters and Paines v. ITO (International Taxation) (Mumbai) . . . 287
Double taxation relief --Shipping company--Assessee entering into joint pool agreement with other shipping companies to share space owned by others on vessel bound to India--Scope of article 8(4)--Assessee “otherwise liable to tax†in UAE and entitled to relief under DTAA--Nature of receipts of assessee not known--Matter remanded to determine nature of income and find if covered by article 8--Double Taxation Avoidance Agreement between India and the U. A. E., art. 8-- Additional Director of Income-tax (International Taxation) v. Simatech Shipping Forwarding LLC (Mumbai) . . . 303
PRINT EDITION
Volume 30 : Part 6 (Issue dated : 31-3-2014)
SUBJECT INDEX TO CASES REPORTED
Appeal to Appellate Tribunal --Right of respondent to support order appealed against “on any ground†decided against him--Scope of--Distinct from right to file cross appeal or cross-objections in appeal--Ground raised by assessee rejected by Commissioner (Appeals) but issue ultimately held in favour of assessee--Assessee can seek decision on ground as respondent before Tribunal--But other party must be put on notice--Income-tax Act, 1961, s. 253(4)--Income-tax (Appellate Tribunal) Rules, 1963, r. 27-- Deputy CIT v. Gupta Overseas (Agra) . . . 738
Business expenditure --Disallowance--Payments liable to deduction of tax at source--Deposit of tax deducted after due date--Individuals not required to deduct tax prior to June 1, 2007--Expenditure allowable--Income-tax Act, 1961, ss. 40(a)(ia), 194C-- Asst. CIT v. Smt. Pritam Kaur Kahlon (Chandigarh) . . . 710
----Disallowance--Payments liable to deduction of tax at source--Payments to non-residents--View of Special Bench of Tribunal in Merilyn Shipping and Transports v. Addl. CIT [2014] 16 ITR (Trib) 1 (Vishakapatnam) [SB] that disallowance attracted only to amounts remaining payable at year end--High Court in CIT v. Vector Shipping Services P. Ltd. [2013] 357 ITR 642 (All) refusing to consider question of law but observation approving Tribunal’s view--CBDT Circular expounding Department’s view to include amounts paid within year in scope of disallowance but to abide by High Court’s view in territories within court’s jurisdiction--Effect--Income-tax Act, 1961, s. 40(a)(ia)-- Deputy CIT v. Gupta Overseas (Agra) . . . 738
----Disallowance--Payments to non-residents--Allowance of deduction subject to deduction of tax at source--Effect of failure to withhold tax--Disallowance attracted only when assessee had liability withhold tax, i.e., when income embedded in payment liable to tax in India--Income-tax Act, 1961, s. 40(a)(ia)-- Deputy CIT v. Gupta Overseas (Agra) . . . 738
----Disallowance--Payments to non-residents--Failure to withhold tax--Payments towards development costs--Reimbursement of costs incurred by non-resident in development of product range of assessee--No income embedded in payment--No obligation on assessee to deduct tax at source--No disallowance--Income-tax Act, 1961, s. 40(a)(ia)-- Deputy CIT v. Gupta Overseas (Agra) . . . 738
----Disallowance--Payments to non-residents--Fees for technical services--Failure to withhold tax--Payment to non-resident entity for professional services--That entity to which payment made owned by individual would not take payment outside ambit of fees for technical services--Provisions relating to individuals not applicable--Assessee bound to deduct tax from payments--Failure to do so attracts disallowance of payment--Income-tax Act, 1961, s. 40(a)(ia)--Taxation Avoidance Agreement between India and Belgium, arts. 12(3)(b), 14-- Deputy CIT v. Gupta Overseas (Agra) . . . 738
----Disallowance--Payments to non-residents--Fees for technical services--Failure to withhold tax--Payments for purchase of goods--Vendors not having permanent establishment in India--Business profits not taxable in India--No liability to deduct tax at source--No disallowance under section 40(a)(i)--Income-tax Act, 1961, s. 40(a)(i)--Double Taxation Avoidance Agreement between India and Italy, art. 7-- Deputy CIT v. Gupta Overseas (Agra) . . . 738
----Disallowance--Payments to non-residents--Fees for technical services--Failure to withhold tax--Payments of “design and development expenses†--Payments for purchase of goods--Recipients not having permanent establishment in India--Transactions not taxable in India--No obligation on assessee not to withhold tax--No disallowance under section 40(a)(i)--Income-tax Act, 1961, s. 40(a)(ia)--Double Taxation Avoidance Agreement between India and Spain, art. 7-- Deputy CIT v. Gupta Overseas (Agra) . . . 738
----Disallowance--Payments to non-residents--Fees for technical services--Failure to withhold tax--Payments of “design and development expenses†--Whether Spanish recipient an entity or an individual having no permanent establishment in India, in which case, payments would be independent professional services and not taxable--Whether payments were for designs, sketches and photographs for product development by assessee--Matter remanded--Double Taxation Avoidance Agreement between India and Spain, arts. 13, 15-- Deputy CIT v. Gupta Overseas (Agra) . . . 738
----Disallowance--Payments to non-residents--Fees for technical services--Failure to withhold tax--Payments to residents of Ireland, Denmark and Austria--Provisions of deduction neutrality non-discrimination attracted--Disallowance under section 40(a)(i) not permissible--Taxability of these payments in India not considered--Income-tax Act, 1961, s. 40(a)(ia)--Double Taxation Avoidance Agreement between India and Ireland, art. 24--Double Taxation Avoidance Agreement between India and Denmark, art. 24--Double Taxation Avoidance Agreement between India and Austria, art. 24-- Deputy CIT v. Gupta Overseas (Agra) . . . 738
----Disallowance--Payments to non-residents--Fees for technical services--Failure to withhold tax--Supply of samples and sketches to assessee to enable it to seek information in respect of fashion trends in Europe--Professional services rendered by individual--No fixed base in India--Payments not taxable as income under “independent personal services†--No disallowance--Income-tax Act, 1961, s. 40(a)(ia)--Double Taxation Avoidance Agreement between India and Italy, arts. 13, 15-- Deputy CIT v. Gupta Overseas (Agra) . . . 738
----Wastage--Assessee manufacturing wheel nuts--Nut carved out of solid piece and balance usable only as scrap--Wastage to be estimated on reasonable basis--Direction to Assessing Officer to make total addition of on account instead of three additions--Matter remanded--Income-tax Act, 1961, s. 37-- Asst. CIT v. Smt. Pritam Kaur Kahlon (Chandigarh) . . . 710
Charitable purpose --Definition--Main object of assessee including medical research and informal education and communication on health and nutritional issues for urban slums and rural communities--Assessee carrying out techno-medical research support for research and compilation of data on account of “rota virus†project--Activity constituting education within meaning of section 2(15)--Circular clarifying that purpose of trust or institution is relief to poor, education on medical relief to poor, constitute “charitable purpose†even if it incidentally involves carrying on commercial activity--Assessee entitled to exemption--Income-tax Act, 1961, ss. 2(15), 11, 12--CBDT Circular No. 11 of 2008-- ITO (Exemption) v. Society for Essential Health Action and Training (Delhi) . . . 698
----Special deduction--Donation for charitable purposes--Approval of trust for purposes of section 80G--Provision in trust deed authorising trustees to make donations to other institutions--Donations made to established organisations and genuineness not in doubt--Direction to competent authority to consider grant of approval under section 80G(5)(vi) --Entitlement of trust to exemption under section 11 to be considered at time of assessment, not at time of approval for purpose of section 80G--Income-tax Act, 1961, s. 80G(5)(vi)-- Tewari Charitable Trust v. Director of Income-tax (Exemption) (Mumbai) . . . 705
Double taxation avoidance --Protocol integral part of Agreement--To be given effect in same manner as other substantive parts of Agreement--Protocol providing for most favoured nation clause--Restricted scope of taxation of fees for technical services--Effect--Non-discrimination clause for harsher pre-conditions for eligibility to deduction not applicable--Payments disallowable for failure to withhold tax--Double Taxation Avoidance Agreement between India and Spain, arts. 13, 15--Protocol dated February 8, 1993--Income-tax Act, 1961, s. 40(a)(ia)-- Deputy CIT v. Gupta Overseas (Agra) . . . 738
----Provision against discrimination--Specific clauses on discrimination against deductions of payments--Pre-condition of tax withholding for deduction of payments to non-residents not permissible without similar pre-condition for deductibility of payments to residents--Pre-conditions ineffective by virtue of non-discrimination clause in Double Taxation Avoidance Agreements--Not to affect deduction--Provision in Agreement that national of one Contracting State should not be discriminated against “by reason of nationality†--Scope of--Residence not relevant--Comparison between nationals “in same circumstances and similar conditions†--Taxpayer who is resident of Contracting State and one who is not are not in same circumstances--Different pre-conditions for deductibility of payments to residents and non-residents permissible--Double Taxation Avoidance Agreement between India and Spain, art. 26--Double Taxation Avoidance Agreement between India and Italy, art. 25--Double Taxation Avoidance Agreement between India and Ireland, art. 24--Double Taxation Avoidance Agreement between India and United Kingdom, art. 26--Double Taxation Avoidance Agreement between India and Denmark, art. 24--Double Taxation Avoidance Agreement between India and Austria, art. 24--Double Taxation Avoidance Agreement between India and Belgium, art. 24-- Deputy CIT v. Gupta Overseas (Agra) . . . 738
Precedent --Double Taxation Avoidance Agreements--Interpretation--Decision in context of one Agreement not necessarily applicable for other Agreements where differently worded-- Deputy CIT v. Gupta Overseas (Agra) . . . 738
Search and seizure --Block assessment--Penalty--Limitation--Scope of section 158BFA--Failure to complete penalty proceedings within statutory time frame--Order set aside--Income-tax Act, 1961, s. 158BFA(2)-- Smt. G. Akila v. Deputy CIT (Chennai) . . . 732
SECTIONWISE INDEX TO CASES REPORTED IN THIS PART
Double Taxation Avoidance Agreement between India and Austria :
Art. 24 --Business expenditure--Disallowance--Payments to non-residents--Fees for technical services--Failure to withhold tax--Payments to residents of Ireland, Denmark and Austria--Provisions of deduction neutrality non-discrimination attracted--Disallowance under section 40(a)(i) not permissible--Taxability of these payments in India not considered-- Deputy CIT v. Gupta Overseas (Agra) . . . 738
----Double taxation avoidance--Provision against discrimination--Specific clauses on discrimination against deductions of payments--Pre-condition of tax withholding for deduction of payments to non-residents not permissible without similar pre-condition for deductibility of payments to residents--Pre-conditions ineffective by virtue of non-discrimination clause in Double Taxation Avoidance Agreements--Not to affect deduction--Provision in Agreement that national of one Contracting State should not be discriminated against “by reason of nationality†--Scope of--Residence not relevant--Comparison between nationals “in same circumstances and similar conditions†--Taxpayer who is resident of Contracting State and one who is not are not in same circumstances--Different pre-conditions for deductibility of payments to residents and non-residents permissible-- Deputy CIT v. Gupta Overseas (Agra) . . . 738
Double Taxation Avoidance Agreement between India and Belgium :
Arts. 12(3)(b), 14 --Business expenditure--Disallowance--Payments to non-residents--Fees for technical services--Failure to withhold tax--Payment to non-resident entity for professional services--That entity to which payment made owned by individual would not take payment outside ambit of fees for technical services--Provisions relating to individuals not applicable--Assessee bound to deduct tax from payments--Failure to do so attracts disallowance of payment-- Deputy CIT v. Gupta Overseas (Agra) . . . 738
Art. 24 --Double taxation avoidance--Provision against discrimination--Specific clauses on discrimination against deductions of payments--Pre-condition of tax withholding for deduction of payments to non-residents not permissible without similar pre-condition for deductibility of payments to residents--Pre-conditions ineffective by virtue of non-discrimination clause in Double Taxation Avoidance Agreements--Not to affect deduction--Provision in Agreement that national of one Contracting State should not be discriminated against “by reason of nationality†--Scope of--Residence not relevant--Comparison between nationals “in same circumstances and similar conditions†--Taxpayer who is resident of Contracting State and one who is not are not in same circumstances--Different pre-conditions for deductibility of payments to residents and non-residents permissible-- Deputy CIT v. Gupta Overseas (Agra) . . . 738
Double Taxation Avoidance Agreement between India and Denmark :
Art. 24 --Business expenditure--Disallowance--Payments to non-residents--Fees for technical services--Failure to withhold tax--Payments to residents of Ireland, Denmark and Austria--Provisions of deduction neutrality non-discrimination attracted--Disallowance under section 40(a)(i) not permissible--Taxability of these payments in India not considered-- Deputy CIT v. Gupta Overseas (Agra) . . . 738
----Double taxation avoidance--Provision against discrimination--Specific clauses on discrimination against deductions of payments--Pre-condition of tax withholding for deduction of payments to non-residents not permissible without similar pre-condition for deductibility of payments to residents--Pre-conditions ineffective by virtue of non-discrimination clause in Double Taxation Avoidance Agreements--Not to affect deduction--Provision in Agreement that national of one Contracting State should not be discriminated against “by reason of nationality†--Scope of--Residence not relevant--Comparison between nationals “in same circumstances and similar conditions†--Taxpayer who is resident of Contracting State and one who is not are not in same circumstances--Different pre-conditions for deductibility of payments to residents and non-residents permissible-- Deputy CIT v. Gupta Overseas (Agra) . . . 738
Double Taxation Avoidance Agreement between India and Ireland :
Art. 24 --Business expenditure--Disallowance--Payments to non-residents--Fees for technical services--Failure to withhold tax--Payments to residents of Ireland, Denmark and Austria--Provisions of deduction neutrality non-discrimination attracted--Disallowance under section 40(a)(i) not permissible--Taxability of these payments in India not considered-- Deputy CIT v. Gupta Overseas (Agra) . . . 738
----Double taxation avoidance--Provision against discrimination--Specific clauses on discrimination against deductions of payments--Pre-condition of tax withholding for deduction of payments to non-residents not permissible without similar pre-condition for deductibility of payments to residents--Pre-conditions ineffective by virtue of non-discrimination clause in Double Taxation Avoidance Agreements--Not to affect deduction--Provision in Agreement that national of one Contracting State should not be discriminated against “by reason of nationality†--Scope of--Residence not relevant--Comparison between nationals “in same circumstances and similar conditions†--Taxpayer who is resident of Contracting State and one who is not are not in same circumstances--Different pre-conditions for deductibility of payments to residents and non-residents permissible-- Deputy CIT v. Gupta Overseas (Agra) . . . 738
Double Taxation Avoidance Agreement between India and Italy :
Art. 7 --Business expenditure--Disallowance--Payments to non-residents--Fees for technical services--Failure to withhold tax--Payments for purchase of goods--Vendors not having permanent establishment in India--Business profits not taxable in India--No liability to deduct tax at source--No disallowance under section 40(a)(i)-- Deputy CIT v. Gupta Overseas (Agra) . . . 738
Arts. 13, 15 --Business expenditure--Disallowance--Payments to non-residents--Fees for technical services--Failure to withhold tax--Supply of samples and sketches to assessee to enable it to seek information in respect of fashion trends in Europe--Professional services rendered by individual--No fixed base in India--Payments not taxable as income under “independent personal services†--No disallowance-- Deputy CIT v. Gupta Overseas (Agra) . . . 738
Art. 25 --Double taxation avoidance--Provision against discrimination--Specific clauses on discrimination against deductions of payments--Pre-condition of tax withholding for deduction of payments to non-residents not permissible without similar pre-condition for deductibility of payments to residents--Pre-conditions ineffective by virtue of non-discrimination clause in Double Taxation Avoidance Agreements--Not to affect deduction--Provision in Agreement that national of one Contracting State should not be discriminated against “by reason of nationality†--Scope of--Residence not relevant--Comparison between nationals “in same circumstances and similar conditions†--Taxpayer who is resident of Contracting State and one who is not are not in same circumstances--Different pre-conditions for deductibility of payments to residents and non-residents permissible-- Deputy CIT v. Gupta Overseas (Agra) . . . 738
Double Taxation Avoidance Agreement between India and Spain :
Art. 7 --Business expenditure--Disallowance--Payments to non-residents--Fees for technical services--Failure to withhold tax--Payments of “design and development expenses†--Payments for purchase of goods--Recipients not having permanent establishment in India--Transactions not taxable in India--No obligation on assessee not to withhold tax--No disallowance under section 40(a)(i)-- Deputy CIT v. Gupta Overseas (Agra) . . . 738
Arts. 13, 15 --Business expenditure--Disallowance--Payments to non-residents--Fees for technical services--Failure to withhold tax--Payments of “design and development expenses†--Whether Spanish recipient an entity or an individual having no permanent establishment in India, in which case, payments would be independent professional services and not taxable--Whether payments were for designs, sketches and photographs for product development by assessee--Matter remanded-- Deputy CIT v. Gupta Overseas (Agra) . . . 738
----Double taxation avoidance--Protocol integral part of Agreement--To be given effect in same manner as other substantive parts of Agreement--Protocol providing for most favoured nation clause--Restricted scope of taxation of fees for technical services--Effect--Non-discrimination clause for harsher pre-conditions for eligibility to deduction not applicable--Payments disallowable for failure to withhold tax-- Deputy CIT v. Gupta Overseas (Agra) . . . 738
Art. 26 --Double taxation avoidance--Provision against discrimination--Specific clauses on discrimination against deductions of payments--Pre-condition of tax withholding for deduction of payments to non-residents not permissible without similar pre-condition for deductibility of payments to residents--Pre-conditions ineffective by virtue of non-discrimination clause in Double Taxation Avoidance Agreements--Not to affect deduction--Provision in Agreement that national of one Contracting State should not be discriminated against “by reason of nationality†--Scope of--Residence not relevant--Comparison between nationals “in same circumstances and similar conditions†--Taxpayer who is resident of Contracting State and one who is not are not in same circumstances--Different pre-conditions for deductibility of payments to residents and non-residents permissible-- Deputy CIT v. Gupta Overseas (Agra) . . . 738
Double Taxation Avoidance Agreement between India and United Kingdom :
Art. 26 --Double taxation avoidance--Provision against discrimination--Specific clauses on discrimination against deductions of payments--Pre-condition of tax withholding for deduction of payments to non-residents not permissible without similar pre-condition for deductibility of payments to residents--Pre-conditions ineffective by virtue of non-discrimination clause in Double Taxation Avoidance Agreements--Not to affect deduction--Provision in Agreement that national of one Contracting State should not be discriminated against “by reason of nationality†--Scope of--Residence not relevant--Comparison between nationals “in same circumstances and similar conditions†--Taxpayer who is resident of Contracting State and one who is not are not in same circumstances--Different pre-conditions for deductibility of payments to residents and non-residents permissible-- Deputy CIT v. Gupta Overseas (Agra) . . . 738
S. 2(15) --Charitable purpose--Definition--Main object of assessee including medical research and informal education and communication on health and nutritional issues for urban slums and rural communities--Assessee carrying out techno-medical research support for research and compilation of data on account of “rota virus†project--Activity constituting education within meaning of section 2(15)--Circular clarifying that purpose of trust or institution is relief to poor, education on medical relief to poor, constitute “charitable purpose†even if it incidentally involves carrying on commercial activity--Assessee entitled to exemption-- ITO (Exemption) v. Society for Essential Health Action and Training (Delhi) . . . 698
S. 11 --Charitable purpose--Definition--Main object of assessee including medical research and informal education and communication on health and nutritional issues for urban slums and rural communities--Assessee carrying out techno-medical research support for research and compilation of data on account of “rota virus†project--Activity constituting education within meaning of section 2(15)--Circular clarifying that purpose of trust or institution is relief to poor, education on medical relief to poor, constitute “charitable purpose†even if it incidentally involves carrying on commercial activity--Assessee entitled to exemption-- ITO (Exemption) v. Society for Essential Health Action and Training (Delhi) . . . 698
S. 12 --Charitable purpose--Definition--Main object of assessee including medical research and informal education and communication on health and nutritional issues for urban slums and rural communities--Assessee carrying out techno-medical research support for research and compilation of data on account of “rota virus†project--Activity constituting education within meaning of section 2(15)--Circular clarifying that purpose of trust or institution is relief to poor, education on medical relief to poor, constitute “charitable purpose†even if it incidentally involves carrying on commercial activity--Assessee entitled to exemption-- ITO (Exemption) v. Society for Essential Health Action and Training (Delhi) . . . 698
S. 37 --Business expenditure--Wastage--Assessee manufacturing wheel nuts--Nut carved out of solid piece and balance usable only as scrap--Wastage to be estimated on reasonable basis--Direction to Assessing Officer to make total addition of on account instead of three additions--Matter remanded-- Asst. CIT v. Smt. Pritam Kaur Kahlon (Chandigarh) . . . 710
S. 40(a)(i) --Business expenditure--Disallowance--Payments to non-residents--Fees for technical services--Failure to withhold tax--Payments for purchase of goods--Vendors not having permanent establishment in India--Business profits not taxable in India--No liability to deduct tax at source--No disallowance under section 40(a)(i)-- Deputy CIT v. Gupta Overseas (Agra) . . . 738
S. 40(a)(ia) --Business expenditure--Disallowance--Payments liable to deduction of tax at source--Deposit of tax deducted after due date--Individuals not required to deduct tax prior to June 1, 2007--Expenditure allowable-- Asst. CIT v. Smt. Pritam Kaur Kahlon (Chandigarh) . . . 710
----Business expenditure--Disallowance--Payments liable to deduction of tax at source--Payments to non-residents--View of Special Bench of Tribunal in Merilyn Shipping and Transports v. Addl. CIT [2014] 16 ITR (Trib) 1 (Vishakapatnam) [SB] that disallowance attracted only to amounts remaining payable at year end--High Court in CIT v. Vector Shipping Services P. Ltd. [2013] 357 ITR 642 (All) refusing to consider question of law but observation approving Tribunal’s view--CBDT Circular expounding Department’s view to include amounts paid within year in scope of disallowance but to abide by High Court’s view in territories within court’s jurisdiction--Effect-- Deputy CIT v. Gupta Overseas (Agra) . . . 738
----Business expenditure--Disallowance--Payments to non-residents--Allowance of deduction subject to deduction of tax at source--Effect of failure to withhold tax--Disallowance attracted only when assessee had liability withhold tax, i.e., when income embedded in payment liable to tax in India-- Deputy CIT v. Gupta Overseas (Agra) . . . 738
----Business expenditure--Disallowance--Payments to non-residents--Failure to withhold tax--Payments towards development costs--Reimbursement of costs incurred by non-resident in development of product range of assessee--No income embedded in payment--No obligation on assessee to deduct tax at source--No disallowance-- Deputy CIT v. Gupta Overseas (Agra) . . . 738
----Business expenditure--Disallowance--Payments to non-residents--Fees for technical services--Failure to withhold tax--Payments of “design and development expenses†--Payments for purchase of goods--Recipients not having permanent establishment in India--Transactions not taxable in India--No obligation on assessee not to withhold tax--No disallowance under section 40(a)(i)-- Deputy CIT v. Gupta Overseas (Agra) . . . 738
----Business expenditure--Disallowance--Payments to non-residents--Fees for technical services--Failure to withhold tax--Payment to non-resident entity for professional services--That entity to which payment made owned by individual would not take payment outside ambit of fees for technical services--Provisions relating to individuals not applicable--Assessee bound to deduct tax from payments--Failure to do so attracts disallowance of payment-- Deputy CIT v. Gupta Overseas (Agra) . . . 738
----Business expenditure--Disallowance--Payments to non-residents--Fees for technical services--Failure to withhold tax--Payments to residents of Ireland, Denmark and Austria--Provisions of deduction neutrality non-discrimination attracted--Disallowance under section 40(a)(i) not permissible--Taxability of these payments in India not considered-- Deputy CIT v. Gupta Overseas (Agra) . . . 738
----Business expenditure--Disallowance--Payments to non-residents--Fees for technical services--Failure to withhold tax--Supply of samples and sketches to assessee to enable it to seek information in respect of fashion trends in Europe--Professional services rendered by individual--No fixed base in India--Payments not taxable as income under “independent personal services†--No disallowance-- Deputy CIT v. Gupta Overseas (Agra) . . . 738
----Double taxation avoidance--Protocol integral part of Agreement--To be given effect in same manner as other substantive parts of Agreement--Protocol providing for most favoured nation clause--Restricted scope of taxation of fees for technical services--Effect--Non-discrimination clause for harsher pre-conditions for eligibility to deduction not applicable--Payments disallowable for failure to withhold tax-- Deputy CIT v. Gupta Overseas (Agra) . . . 738
S. 80G(5)(vi) --Charitable purpose--Special deduction--Donation for charitable purposes--Approval of trust for purposes of section 80G--Provision in trust deed authorising trustees to make donations to other institutions--Donations made to established organisations and genuineness not in doubt--Direction to competent authority to consider grant of approval under section 80G(5)(vi)--Entitlement of trust to exemption under section 11 to be considered at time of assessment, not at time of approval for purpose of section 80G-- Tewari Charitable Trust v. Director of Income-tax (Exemption) (Mumbai) . . . 705
S. 158BFA(2) --Search and seizure--Block assessment--Penalty--Limitation--Scope of section 158BFA--Failure to complete penalty proceedings within statutory time frame--Order set aside-- Smt. G. Akila v. Deputy CIT (Chennai) . . . 732
S. 194C --Business expenditure--Disallowance--Payments liable to deduction of tax at source--Deposit of tax deducted after due date--Individuals not required to deduct tax prior to June 1, 2007--Expenditure allowable-- Asst. CIT v. Smt. Pritam Kaur Kahlon (Chandigarh) . . . 710
S. 253(4) --Appeal to Appellate Tribunal--Right of respondent to support order appealed against “on any ground†decided against him--Scope of--Distinct from right to file cross appeal or cross-objections in appeal--Ground raised by assessee rejected by Commissioner (Appeals) but issue ultimately held in favour of assessee--Assessee can seek decision on ground as respondent before Tribunal--But other party must be put on notice-- Deputy CIT v. Gupta Overseas (Agra) . . . 738
Income-tax (Appellate Tribunal) Rules, 1963 :
R. 27 --Appeal to Appellate Tribunal--Right of respondent to support order appealed against “on any ground†decided against him--Scope of--Distinct from right to file cross appeal or cross-objections in appeal--Ground raised by assessee rejected by Commissioner (Appeals) but issue ultimately held in favour of assessee--Assessee can seek decision on ground as respondent before Tribunal--But other party must be put on notice-- Deputy CIT v. Gupta Overseas (Agra) . . . 738
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