ITR'S TRIBUNAL TAX REPORTS (ITR (TRIB)) -- PRINT AND ONLINE EDITION
SUBJECT INDEX TO CASES REPORTED
Business expenditure --Financial corporation--Earnings from lease, hire charges, interest on deposits and interest on long-term finance--Whether income under purview of Explanation (e) to section 36(1)(viii)--Matter remanded for re-examination in terms of agreement between assessee and State--Income-tax Act, 1961, s. 36(1)(viii)-- Tamilnadu Power Finance and Infrastructure Development Corporation Ltd. v. Asst. CIT (Chennai) . . . 390
----Financial corporation--Interest on short term deposits not eligible for deduction--Income-tax Act, 1961, s. 36(1)(viii)-- Tamilnadu Power Finance and Infrastructure Development Corporation Ltd. v. Asst. CIT (Chennai) . . . 390
Company --Book profits--Computation--Provision for diminution in value of stock-in-trade--Law applicable--Direct loss in valuation of stock-in-trade cannot be considered as “provision†--No need for adjustment of loss incurred by assessee in its trading activity--Income-tax Act, 1961, s. 115JB-- Esquire P. Ltd. v. Deputy CIT (Mumbai) . . . 411
Income --Accrual--Interest--Non-banking financial companies--Obligatory under norms issued by Reserve Bank to classify loans on which interest not received for a period exceeding six months, as non-performing assets--Interest cannot be charged--Income-tax Act, 1961--Reserve Bank of India Act, 1934-- Tamilnadu Power Finance and Infrastructure Development Corporation Ltd. v. Asst. CIT (Chennai) . . . 390
----Computation--Expenditure related to income not forming part of total income--Scope of section 14A--Assessing Officer not examining accounts under section 14A(2)--Assessing Officer to examine nature of interest expenditure for earning dividend--Matter remanded--Income-tax Act, 1961, s. 14A-- Esquire P. Ltd. v. Deputy CIT (Mumbai) . . . 411
----Disallowance of expenditure in earning tax free dividend income--Assessing Officer not considering various factors--Alternate plea by assessee that disallowance to be restricted to figure lower than that made by Assessing Officer--Assessing Officer to calculate afresh--Matter remanded--Income-tax Act, 1961, s. 14A-- Manish D. Innani v. Asst. CIT (Mumbai) . . . 404
Refund --Interest on excess refund--Leviable only for assessments completed after 1-6-2003--Matter remanded--Income-tax Act, 1961, s. 234D-- Tamilnadu Power Finance and Infrastructure Development Corporation Ltd. v. Asst. CIT (Chennai) . . . 390
Securities transaction tax --No restriction under section 88E for allowing rebate till positive income filed--Assessing Officer to decide applicability of section 87(2)--Matter remanded--Income-tax Act, 1961, ss. 87(2), 88E-- Manish D. Innani v. Asst. CIT (Mumbai) . . . 404
PRINT EDITION
Volume 31 : Part 1 (Issue dated : 14-4-2014)
SUBJECT INDEX TO CASES REPORTED
Appeal to Appellate Tribunal --Tax effect below prescribed limit--Appeal not maintainable-- ITO v. Raj Kumar Kukreja (Lucknow) . . . 98
Assessment --Assessment in name of deceased person non est and void ab initio--Income-tax Act, 1961, s. 143(2)-- ITO v. Raj Kumar Kukreja (Lucknow) . . . 98
Business expenditure --Commission and brokerage on renewal of leave and licence agreement--Brokerage paid in current year and to be allowed in current year only--Expenses not to be apportioned over period of lease--Income-tax Act, 1961-- Asst. CIT v. Nagase India P. Ltd. (Mumbai) . . . 133
----Disallowance--Payments liable to deduction of tax at source--Employees deputed to assessee by non-resident holding company--Gross salary of two directors in deputation inclusive of salary paid by parent company reimbursed by assessee--Assessee deducting tax on entire salary including salary reimbursed--No tax deductible on reimbursement and hence no disallowance warranted--Income-tax Act, 1961, ss. 40(a)(i), (iii), 192-- Asst. CIT v. Nagase India P. Ltd. (Mumbai) . . . 133
----Disallowance--Sums liable to deduction of tax at source--Nature of expenses sample charges, meeting and hotel expenses not covered under provisions of sections 192 to 194LA--No requirement of withholding tax--Income-tax Act, 1961-- Asst. CIT v. Nagase India P. Ltd. (Mumbai) . . . 133
----Disallowance--Sums liable to deduction of tax at source--Professional fees for providing recruitment services for parent company--Assessee deducting tax at source and depositing prior to date of filing of return--Disallowance not proper--Income-tax Act, 1961-- Asst. CIT v. Nagase India P. Ltd. (Mumbai) . . . 133
----Expenditure on technical know-how--Payment for assisting assessee in manufacture of specialised machinery--Section 35AB not applicable--Expenditure allowable--Income-tax Act, 1961, s. 35AB-- Asst. CIT v. Chemfab Welders Ltd. (Chennai) . . . 114
----Foreign travel expenses--Foreign travel for indenting for business purpose--Allowable--Income-tax Act, 1961-- Asst. CIT v. Nagase India P. Ltd. (Mumbai) . . . 133
Charitable purpose --Charitable trust--Exemption--Registration--Establishment of trust for purpose of providing medical relief--Proviso to section 2(15) not applicable--No doubt as to genuineness of activities--Withdrawal of registration under section 12AA(3) and recognition granted under section 80G not proper--Income-tax Act, 1961, ss. 2(15), 12AA, 12AA(3), 80G-- Vivekanand General Hospital v. CIT (Bangalore) . . . 125
Company --Book profits--Minimum alternate tax--Advance tax--Interest--Period prior to decision of Supreme Court in Rolta India Ltd. --Law governed by decision of Supreme Court in Kwality Biscuits Ltd .--Interest not leviable--Income-tax Act, 1961, ss. 115JB, 234B, 234C-- Rockline Developers P. Ltd. v. ITO (Mumbai) . . . 123
----Book profits--Minimum alternate tax--Advance tax--Interest--Period prior to decision of Supreme Court in Rolta India Ltd .--Settled law--No advance tax payable by companies assessed on basis of book profits computed under section 115JB--Interest cannot be levied under sections 234B and 234C--Income-tax Act, 1961, ss. 115JB, 234B, 234C-- Charbhuja Industries P. Ltd. v. Addl. CIT (Mumbai) . . . 89
Depreciation --Rate of depreciation--Medical diagnostic imaging equipment using positron emission tomography useful in detecting and treating cancer, heart disease and neurological diseases--Is life saving medical equipment entitled to higher rate of depreciation at forty per cent.--Income-tax Act, 1961, s. 32-- Asst. CIT v. Bharat Scans P. Ltd. (Chennai) . . . 103
Exemption --Non-resident (external) account--Amount in non-resident (external) account exempted from tax--Income-tax Act, 1961, s. 10(4)(ii)-- Arvind Singh Chauhan v. ITO (Agra) . . . 105
Industrial undertaking --Special deduction--Apportionment of labour charges--Unit merely supplying manufactured products and no role in fabrication work undertaken in site--Not necessary to allocate expenses incurred by assessee in making payment to unit--Income-tax Act, 1961-- Asst. CIT v. Chemfab Welders Ltd. (Chennai) . . . 114
----Special deduction--Assessee establishing new industrial unit in addition to old industrial units--Finding that technical know-how fee was income of new unit and no portion could be apportioned to old units--Assessee entitled to special deduction under section 80-IA without any reduction--Income-tax Act, 1961, s. 80-IA-- Asst. CIT v. Chemfab Welders Ltd. (Chennai) . . . 114
International transactions --Arm’s length price--Selection of comparables--Companies having abnormally high profit--Whether to be excluded solely on that ground--Factors to be considered-- Maersk Global Centres (India) P. Ltd. v. Asst. CIT (Mumbai) [SB] . . . 1
----Arm’s length price--Selection of comparables--Transactional net margin method--Comparability analysis--General principles--Information technology enabled services--Scope of functionality--Whether can further be bifurcated into business process outsourcing services and knowledge process outsourcing services--Low-end services and high-end services--Assessee providing low-end services and comparable companies providing high-end services--Comparison not proper--Income-tax Act, 1961, s. 92C(2)--Income-tax Rules, 1962, r. 10B(3)-- Maersk Global Centres (India) P. Ltd. v. Asst. CIT (Mumbai) [SB] . . . 1
Non-resident --Individual--Taxability in India--Receiving pension from erstwhile employer in India and interest on bank accounts in India--Taxability of such income not by virtue of “resident†status--Salary received from present employment outside India--Not taxable in India--Accrual of salary outside India and remission of amount to India will not constitute receipt of salary in India to trigger taxability--Income-tax Act, 1961, ss. 5(2)(a), 6(5)-- Arvind Singh Chauhan v. ITO (Agra) . . . 105
Penalty --Failure to comply with notice--Notice calling for information in accordance with annexures--No annexure sent along with notice--No specification in notice regarding compliance expected from assessee--Notice vague--Assessee not liable for penalty--Income-tax Act, 1961, s. 271(1)(b)-- Harvinder Singh Jaggi v. Asst. CIT (Delhi) . . . 101
Reassessment --Condition precedent--Notice under section 143(2)--Assessment completed without issue of notice under section 143(2) invalid--Income-tax Act, 1961, ss. 143(2), 147, 148-- Mohinder Kumar Chhabra v. ITO (Delhi) . . . 93
SECTIONWISE INDEX TO CASES REPORTED IN THIS PART
S. 2(15) --Charitable purpose--Charitable trust--Exemption--Registration--Establishment of trust for purpose of providing medical relief--Proviso to section 2(15) not applicable--No doubt as to genuineness of activities--Withdrawal of registration under section 12AA(3) and recognition granted under section 80G not proper-- Vivekanand General Hospital v. CIT (Bangalore) . . . 125
S. 5(2)(a) --Non-resident--Individual--Taxability in India--Receiving pension from erstwhile employer in India and interest on bank accounts in India--Taxability of such income not by virtue of “resident†status--Salary received from present employment outside India--Not taxable in India--Accrual of salary outside India and remission of amount to India will not constitute receipt of salary in India to trigger taxability-- Arvind Singh Chauhan v. ITO (Agra) . . . 105
S. 6(5) --Non-resident--Individual--Taxability in India--Receiving pension from erstwhile employer in India and interest on bank accounts in India--Taxability of such income not by virtue of “resident†status--Salary received from present employment outside India--Not taxable in India--Accrual of salary outside India and remission of amount to India will not constitute receipt of salary in India to trigger taxability-- Arvind Singh Chauhan v. ITO (Agra) . . . 105
S. 10(4)(ii) --Exemption--Non-resident (external) account--Amount in non-resident (external) account exempted from tax-- Arvind Singh Chauhan v. ITO (Agra) . . . 105
S. 12AA --Charitable purpose--Charitable trust--Exemption--Registration--Establishment of trust for purpose of providing medical relief--Proviso to section 2(15) not applicable--No doubt as to genuineness of activities--Withdrawal of registration under section 12AA(3) and recognition granted under section 80G not proper-- Vivekanand General Hospital v. CIT (Bangalore) . . . 125
S. 12AA(3) --Charitable purpose--Charitable trust--Exemption--Registration--Establishment of trust for purpose of providing medical relief--Proviso to section 2(15) not applicable--No doubt as to genuineness of activities--Withdrawal of registration under section 12AA(3) and recognition granted under section 80G not proper-- Vivekanand General Hospital v. CIT (Bangalore) . . . 125
S. 32 --Depreciation--Rate of depreciation--Medical diagnostic imaging equipment using positron emission tomography useful in detecting and treating cancer, heart disease and neurological diseases--Is life saving medical equipment entitled to higher rate of depreciation at forty per cent.-- Asst. CIT v. Bharat Scans P. Ltd. (Chennai) . . . 103
S. 35AB --Business expenditure--Expenditure on technical know-how--Payment for assisting assessee in manufacture of specialised machinery--Section 35AB not applicable--Expenditure allowable-- Asst. CIT v. Chemfab Welders Ltd. (Chennai) . . . 114
S. 40(a)(i) --Business expenditure--Disallowance--Payments liable to deduction of tax at source--Employees deputed to assessee by non-resident holding company--Gross salary of two directors in deputation inclusive of salary paid by parent company reimbursed by assessee--Assessee deducting tax on entire salary including salary reimbursed--No tax deductible on reimbursement and hence no disallowance warranted-- Asst. CIT v. Nagase India P. Ltd. (Mumbai) . . . 133
S. 40(a)(iii) --Business expenditure--Disallowance--Payments liable to deduction of tax at source--Employees deputed to assessee by non-resident holding company--Gross salary of two directors in deputation inclusive of salary paid by parent company reimbursed by assessee--Assessee deducting tax on entire salary including salary reimbursed--No tax deductible on reimbursement and hence no disallowance warranted-- Asst. CIT v. Nagase India P. Ltd. (Mumbai) . . . 133
S. 80G --Charitable purpose--Charitable trust--Exemption--Registration--Establishment of trust for purpose of providing medical relief--Proviso to section 2(15) not applicable--No doubt as to genuineness of activities--Withdrawal of registration under section 12AA(3) and recognition granted under section 80G not proper-- Vivekanand General Hospital v. CIT (Bangalore) . . . 125
S. 80-IA --Industrial undertaking--Special deduction--Assessee establishing new industrial unit in addition to old industrial units--Finding that technical know-how fee was income of new unit and no portion could be apportioned to old units--Assessee entitled to special deduction under section 80-IA without any reduction-- Asst. CIT v. Chemfab Welders Ltd. (Chennai) . . . 114
S. 92C(2) --International transactions--Arm’s length price--Selection of comparables--Transactional net margin method--Comparability analysis--General principles--Information technology enabled services--Scope of functionality--Whether can further be bifurcated into business process outsourcing services and knowledge process outsourcing services--Low-end services and high-end services--Assessee providing low-end services and comparable companies providing high-end services--Comparison not proper-- Maersk Global Centres (India) P. Ltd. v. Asst. CIT (Mumbai) [SB] . . . 1
S. 115JB --Company--Book profits--Minimum alternate tax--Advance tax--Interest--Period prior to decision of Supreme Court in Rolta India Ltd .--Law governed by decision of Supreme Court in Kwality Biscuits Ltd. --Interest not leviable-- Rockline Developers P. Ltd. v. ITO (Mumbai) . . . 123
----Company--Book profits--Minimum alternate tax--Advance tax--Interest--Period prior to decision of Supreme Court in Rolta India Ltd. --Settled law--No advance tax payable by companies assessed on basis of book profits computed under section 115JB--Interest cannot be levied under sections 234B and 234C-- Charbhuja Industries P. Ltd. v. Addl. CIT (Mumbai) . . . 89
S. 143(2) --Assessment--Assessment in name of deceased person non est and void ab initio-- ITO v. Raj Kumar Kukreja (Lucknow) . . . 98
----Reassessment--Condition precedent--Notice under section 143(2)--Assessment completed without issue of notice under section 143(2) invalid-- Mohinder Kumar Chhabra v. ITO (Delhi) . . . 93
S. 147 --Reassessment--Condition precedent--Notice under section 143(2)--Assessment completed without issue of notice under section 143(2) invalid-- Mohinder Kumar Chhabra v. ITO (Delhi) . . . 93
S. 148 --Reassessment--Condition precedent--Notice under section 143(2)--Assessment completed without issue of notice under section 143(2) invalid-- Mohinder Kumar Chhabra v. ITO (Delhi) . . . 93
S. 192 --Business expenditure--Disallowance--Payments liable to deduction of tax at source--Employees deputed to assessee by non-resident holding company--Gross salary of two directors in deputation inclusive of salary paid by parent company reimbursed by assessee--Assessee deducting tax on entire salary including salary reimbursed--No tax deductible on reimbursement and hence no disallowance warranted-- Asst. CIT v. Nagase India P. Ltd. (Mumbai) . . . 133
S. 234B --Company--Book profits--Minimum alternate tax--Advance tax--Interest--Period prior to decision of Supreme Court in Rolta India Ltd. --Law governed by decision of Supreme Court in Kwality Biscuits Ltd. --Interest not leviable-- Rockline Developers P. Ltd. v. ITO (Mumbai) . . . 123
----Company--Book profits--Minimum alternate tax--Advance tax--Interest--Period prior to decision of Supreme Court in Rolta India Ltd. --Settled law--No advance tax payable by companies assessed on basis of book profits computed under section 115JB--Interest cannot be levied under sections 234B and 234C-- Charbhuja Industries P. Ltd. v. Addl. CIT (Mumbai) . . . 89
S. 234C --Company--Book profits--Minimum alternate tax--Advance tax--Interest--Period prior to decision of Supreme Court in Rolta India Ltd. --Law governed by decision of Supreme Court in Kwality Biscuits Ltd. --Interest not leviable-- Rockline Developers P. Ltd. v. ITO (Mumbai) . . . 123
----Company--Book profits--Minimum alternate tax--Advance tax--Interest--Period prior to decision of Supreme Court in Rolta India Ltd. --Settled law--No advance tax payable by companies assessed on basis of book profits computed under section 115JB--Interest cannot be levied under sections 234B and 234C-- Charbhuja Industries P. Ltd. v. Addl. CIT (Mumbai) . . . 89
S. 271(1)(b) --Penalty--Failure to comply with notice--Notice calling for information in accordance with annexures--No annexure sent along with notice--No specification in notice regarding compliance expected from assessee--Notice vague--Assessee not liable for penalty-- Harvinder Singh Jaggi v. Asst. CIT (Delhi) . . . 101
R. 10B(3) --International transactions--Arm’s length price--Selection of comparables--Transactional net margin method--Comparability analysis--General principles--Information technology enabled services--Scope of functionality--Whether can further be bifurcated into business process outsourcing services and knowledge process outsourcing services--Low-end services and high-end services--Assessee providing low-end services and comparable companies providing high-end services--Comparison not proper-- Maersk Global Centres (India) P. Ltd. v. Asst. CIT (Mumbai) [SB] . . . 1
No comments:
Post a Comment