INCOME TAX REPORTS (ITR)--PRINT AND ONLINE EDITION
SUBJECT INDEX TO CASES REPORTED
Advance tax --Interest--Interest for default in paying advance tax--Interest mandatory--Income-tax Act, 1961, s. 234B-- Oracle India P. Ltd. v. CIT (Delhi) . . . 302
----Interest--Default in payment of advance tax--Income earned by non-resident--Claim that income was not assessable in India--Assessee changing stand before Commissioner (Appeals) and contending that Indian payer should have deducted tax at source--Principles of equity applicable--Assessee liable to pay interest--Income-tax Act, 1961, ss. 234A, 234B, 234C-- Director of Income-tax, International Taxation v. Alcatel Lucent USA Inc. (Delhi) . . . 276
Business expenditure --Capital or revenue expenditure--General principles--Computer--Assessee entering into agreement of licence for duplicating software and selling it--Amount spent on importing software master copies--Master copies having high obsolescence--Expenditure deductible--Income-tax Act, 1961, s. 37-- Oracle India P. Ltd. v. CIT (Delhi) . . . 302
Charitable purposes --Charitable institution--Exemption--Denial of exemption--Investment or deposit in mode not specified in section 11--Loan to another charitable institution--Not an investment or deposit--Exemption cannot be denied--Income-tax Act, 1961, ss. 11, 13-- CIT v. Kanpur Subhash Shiksha Samiti (All) . . . 271
Exemption --Income from letting out warehouses to facilitate marketing of commodities--Scope of section 10(29)--Income from fumigation and disinfestation--Entitled to exemption--Income-tax Act, 1961, s. 10(29)-- Karnataka State Warehousing Corporation v. Deputy CIT (Karn) . . . 295
Interpretation of taxing statutes --Principles of equity when applicable-- Director of Income-tax, International Taxation v. Alcatel Lucent USA Inc. (Delhi) . . . 276
Precedent --Effect of decision of Supreme Court in Orissa State Warehousing Corporation v. CIT [1999] 237 ITR 589 (SC)-- Karnataka State Warehousing Corporation v. Deputy CIT (Karn) . . . 295
ITR Volume 362 : Part 4 (Issue dated : 14-4-2014)
SUBJECT INDEX TO CASES REPORTED IN THIS PART
Accounting --Rejection of accounts--Estimation of profits--Question of fact--Deductions not allowable on estimated net profit--Income-tax Act, 1961, s. 145-- CIT v. Sahu Construction P. Ltd. (All) . . . 609
Advance tax --Interest--Firm--Partners--Depreciation of a firm cannot be allocated to the benefit of partners personally and it shall revert to firm--Decision of Supreme Court much prior to submission of returns by partners--Returns ought to have been filed showing correct income--Advance tax not paid--Partners liable to pay interest--Income-tax Act, 1961 , s. 234B -- Chief CIT v. George P. Mathews (Ker) . . . 660
Appeal to Appellate Tribunal --Bad debts--Law after 1-4-1989--Tribunal finding not deductible on ground assessee not establishing such advances had become bad--Application for rectification--Apparent mistake of law--Tribunal erred in not rectifying mistake apparent from record--Matter remanded to Tribunal to pass fresh order under section 254(2)--Income-tax Act, 1961, s. 254(2)-- Madhav Marbles and Granites v. ITAT (Raj) . . . 647
Appeal to High Court --Powers of Tribunal--Rectification of mistakes--Rejection of application for rectification--Appeal to High Court not maintainable from such order--Writ petition against such order maintainable--Constitution of India, art. 226--Income-tax Act, 1961, ss. 254(2), 260A-- Madhav Marbles and Granites v. ITAT (Raj) . . . 647
Bad debt --Law after 1-4-1989--Debt need no longer be proved to have turned bad--Merely writing off such advances or debts as bad debts in books of account and debiting in profit and loss account--Sufficient compliance--Income-tax Act, 1961, s. 36(1)(vii)-- Madhav Marbles and Granites v. ITAT (Raj) . . . 647
Business expenditure --Accounting--Lease equalisation charges--Accounting standards of Central Government followed--Lease equalisation charges deductible--Income-tax Act, 1961-- CIT, Large Taxpayers Unit v. Indian Railway Finance Corporation Ltd. (Delhi) . . . 548
----Capital or revenue expenditure--Bond issue expenses--Bonds issued for purposes of business--Expenditure deductible--Income-tax Act, 1961, s. 37-- CIT, Large Taxpayers Unit v. Indian Railway Finance Corporation Ltd. (Delhi) . . . 548
Capital gains --Exemption--Depreciable asset--Gains on transfer of long-term capital asset invested in specified assets--Effect of deeming fiction in section 50--Section 50 does not restrict exemption--Income-tax Act, 1961, ss. 50, 54EC-- CIT v. Aditya Medisales Ltd. (Guj) . . . 600
Charitable purposes --Meaning of--Law applicable--Effect of first proviso to section 2(15) inserted w. e. f. 1-4-2009--Charitable trust carrying on activities for profit--Not entitled to exemption--Incidental income would not disentitle trust to exemption--Trust for breeding and improving quality of cattle--Object charitable--Finding that income was incidental--Trust entitled to exemption--Income-tax Act, 1961, ss. 2(15), 11, 12-- Director of Income-tax (Exemption) v. Sabarmati Ashram Gaushala Trust (Guj) . . . 539
Company --Book profit--Computation of income under section 115JB--Lease equalisation charges cannot be disallowed--Income-tax Act, 1961, s. 115JB-- CIT, Large Taxpayers Unit v. Indian Railway Finance Corporation Ltd. (Delhi) . . . 548
Depreciation --Condition precedent--Ownership of asset--Finding that assessee had acquired possession of asset and was using it for purposes of business--Assessee entitled to depreciation--Income-tax Act, 1961, s. 32-- CIT, Large Taxpayers Unit v. Indian Railway Finance Corporation Ltd. (Delhi) . . . 548
----Condition precedent--Ownership of assets--Ownership for purposes of section 32 does not mean possession of title deeds--Dominion over assets and user as its own would be sufficient--Assets transferred to assessee-trust by State Government--Transfer recorded in books of account of assessee--Use of such assets by assessee in its activities--Assessee entitled to depreciation--Income-tax Act, 1961, s. 32-- CIT v. Jawahar Kala Kendra (Raj) . . . 515
----Ownership of asset--Transfer of business--Transferee put in possession of building, plant and machinery in terms of agreement to sell and running undertaking in its own right--Entitled to depreciation--That legal title conveyed under lease agreement and deed of sale executed in subsequent years not material--Income-tax Act, 1961, s. 32-- CIT v. WEP Peripherals Ltd. (Karn) . . . 508
Income-tax Department --Duty to maintain assessment records properly to ensure accuracy--Records not to be interpolated or changed--Need for proper numbering and indexing of proceedings and order sheets-- BBC World News Ltd. v. Asst. Director of Income-tax (Delhi) . . . 577
Industrial undertaking --Special deduction--Sale of business by sale of building, plant and machinery before expiry of period of exemption--Transferee entitled to deduction for remaining period--Income-tax Act, 1961, s. 80-IB-- CIT v. WEP Peripherals Ltd. (Karn) . . . 508
Investment allowance --Hotel building--Not a plant--Not entitled to investment allowance--Income-tax Act, 1961, s. 32A-- CIT v. SB Properties and Enterprises Ltd. (Raj) . . . 483
Penalty --Concealment of income--Effect of Explanation 1 to section 271(1)(c)--Explanation regarding computation of income found to be false--Income deemed to be concealed--Depreciation claimed on basis of lease--Lease transaction found to be bogus--Levy of penalty--Valid--Income-tax Act, 1961, s. 271(1)(c)-- CIT v. BPL Sanyo Finance Ltd. (Karn) . . . 630
----Loan or deposit in cash exceeding specified limit--Contributions by twelve persons in cash--Audit report and balance sheet of assessee showing outstanding amount as loan received from twelve persons--Imposition of penalty justified--Income-tax Act, 1961, ss. 269SS, 271DD-- Soundarya Textiles v. Asst. CIT (Ker) . . . 488
Precedent --Effect of Supreme Court decision in Mysore Minerals Ltd. v. CIT [1999] 239 ITR 775 (SC)-- CIT v. Jawahar Kala Kendra (Raj) . . . 515
Reassessment --Notice--Audit party--Objection that non-charging of interest on advances resulted in short levy of tax--Assessing Officer not accepting objection but issuing notice solely on basis thereof--Notice not valid--Income-tax Act, 1961, s. 148-- N. K. Roadways P. Ltd. v. ITO (OSD) (Guj) . . . 522
----Notice--Audit party--Whether asset for which depreciation claimed put to use before September 30 of year under consideration require re-examination--Ground for reopening assessment brought to notice of Assessing Officer by audit party but Assessing Officer on application of mind convinced with reason--Assessing Officer not acting at instance of audit party--No dispute that issue requires reconsideration--Notice valid--Income-tax Act, 1961, s. 148-- N. K. Industries Ltd. v. ITO (OSD) (Guj) . . . 502
----Notice--No limitation on number of times notice can be issued--But subject to limitation of not being permissible on change of opinion--Reassessment notice issued in first instance to bring to tax guaranteed return and bonus on keyman insurance policy--Proceedings dropped--Inference that Assessing Officer took view that addition of sums not sustainable on substantive ground--Second notice to bring same sums to tax--Not permissible--Income-tax Act, 1961, ss. 147, 148-- Kunal Organics P. Ltd. v. Deputy CIT (Guj) . . . 530
----Notice--Not permissible upon mere change of opinion--Profits upon sale of plots of factory land converted into stock-in-trade--Assessment after full enquiry and after calling for explanation of assessee why income should be treated as capital gains and not business income--Communications by assessee in reply to notice--Assessment of income as capital gains--Reopening of assessment to assess income as business income--Not permissible--That assessment order did not record reasons for accepting assessee’s stand not relevant--Income-tax Act, 1961, ss. 28, 45, 147, 148-- Spunpipe and Construction Co. v. Asst. CIT (Guj) . . . 559
----Notice after four years--Failure by assessee to disclose material facts--Assertion of assessee that detailed submissions filed during assessment--That assessment order makes no mention of assessee’s submissions--Not ground to infer assessee did not file them--Assessee’s assertion that it filed submissions to be accepted, on facts--No failure by assessee to disclose--Reassessment invalid--Income-tax Act, 1961, ss. 147, 148-- BBC World News Ltd. v. Asst. Director of Income-tax (Delhi) . . . 577
----Notice after four years--Not permissible on change of opinion--Non-resident--Assessee stating in assessment proceedings that it had incurred loss on worldwide basis and even if income or loss attributable to Indian operations on proportionate basis, net result would be loss--Assessment order reasonably detailed and incorporating assessee’s chart listing out activities carried out in India and outside India--Assessment made at loss figure attributing 20 per cent. of global loss to Indian operations--Assessment made on similar basis for preceding year by same officer--Criteria for computing expenses of Indian operations changed in subsequent years--Not ground for reopening assessment after four years--Income-tax Act, 1961, ss. 147, 148-- BBC World News Ltd. v. Asst. Director of Income-tax (Delhi) . . . 577
Search and seizure --Assessment in search cases--Condition precedent--Assessing Officer making contradictory references to assessee being subjected to search or not--In the absence of search authorisation, Tribunal factually finding assessment orders against assessee invalid--Income-tax Act, 1961, s. 153A-- CIT v. Ramesh D. Patel (Guj) . . . 492
----Assessment in search cases--Undisclosed income--Jewellery business--Estimate slip reflecting actual purchase and sale of gold but sale bill always for lesser quantity than reflected in estimate slip--Presumption as to nature of accounting and assessee’s modus operandi in maintaining records--No requirement that Department to collect information and evidence for each and every one of six previous years--Income-tax Act, 1961, s. 153A-- Sunny Jacob Jewellers and Wedding Centre v. Dy. CIT (Ker). . .664
----Block assessment--Limitation--Starting point for limitation--Date of last authorisation for search to be taken into account--Second warrant of authorisation issued on 27-8-2003--Limitation started from the end of that month--Income-tax Act, 1961, s. 158BE-- CIT (Dy.) v. Rakesh Sarin (Mad) . . . 619
----Block assessment--Undisclosed income--Admission that apart from business in rectified spirits no other business was carried on--Claim to set off part of undisclosed income against miscellaneous receipts recorded in books--No evidence to support claim--Amount could not be reduced from undisclosed income--Income-tax Act, 1961, s. 158BC-- CIT v. Sri Lakshmi Narasimha Distilleries P. Ltd. (Karn) . . . 573
Unexplained investment --Purchase of land--Agreements claimed to be cancelled by executors found during search--No evidence to show that assessee paid on-money for purchase of land--Nothing on record to show that agreements were acted upon--No trace of cash payment in excess of amount shown in registered documents--Addition on basis of agreements not sustainable--Income-tax Act, 1961, s. 69B-- CIT v. Fairdeal Textile Park P. Ltd. (Guj) . . . 497
SECTIONWISE INDEX TO CASES REPORTED IN THIS PART
Art. 226 --Appeal to High Court--Powers of Tribunal--Rectification of mistakes--Rejection of application for rectification--Appeal to High Court not maintainable from such order--Writ petition against such order maintainable-- Madhav Marbles and Granites v. ITAT (Raj) . . . 647
S. 2(15) --Charitable purposes--Meaning of--Law applicable--Effect of first proviso to section 2(15) inserted w. e. f. 1-4-2009--Charitable trust carrying on activities for profit--Not entitled to exemption--Incidental income would not disentitle trust to exemption--Trust for breeding and improving quality of cattle--Object charitable--Finding that income was incidental--Trust entitled to exemption-- Director of Income-tax (Exemption) v. Sabarmati Ashram Gaushala Trust (Guj) . . . 539
S. 11 --Charitable purposes--Meaning of--Law applicable--Effect of first proviso to section 2(15) inserted w. e. f. 1-4-2009--Charitable trust carrying on activities for profit--Not entitled to exemption--Incidental income would not disentitle trust to exemption--Trust for breeding and improving quality of cattle--Object charitable--Finding that income was incidental--Trust entitled to exemption-- Director of Income-tax (Exemption) v. Sabarmati Ashram Gaushala Trust (Guj) . . . 539
S. 12 --Charitable purposes--Meaning of--Law applicable--Effect of first proviso to section 2(15) inserted w. e. f. 1-4-2009--Charitable trust carrying on activities for profit--Not entitled to exemption--Incidental income would not disentitle trust to exemption--Trust for breeding and improving quality of cattle--Object charitable--Finding that income was incidental--Trust entitled to exemption-- Director of Income-tax (Exemption) v. Sabarmati Ashram Gaushala Trust (Guj) . . . 539
S. 28 --Reassessment--Notice--Not permissible upon mere change of opinion--Profits upon sale of plots of factory land converted into stock-in-trade--Assessment after full enquiry and after calling for explanation of assessee why income should be treated as capital gains and not business income--Communications by assessee in reply to notice--Assessment of income as capital gains--Reopening of assessment to assess income as business income--Not permissible--That assessment order did not record reasons for accepting assessee’s stand not relevant-- Spunpipe and Construction Co. v. Asst. CIT (Guj) . . . 559
S. 32 --Depreciation--Condition precedent--Ownership of asset--Finding that assessee had acquired possession of asset and was using it for purposes of business--Assessee entitled to depreciation-- CIT, Large Taxpayers Unit v. Indian Railway Finance Corporation Ltd. (Delhi) . . . 548
----Depreciation--Condition precedent--Ownership of assets--Ownership for purposes of section 32 does not mean possession of title deeds--Dominion over assets and user as its own would be sufficient--Assets transferred to assessee-trust by State Government--Transfer recorded in books of account of assessee--Use of such assets by assessee in its activities--Assessee entitled to depreciation-- CIT v. Jawahar Kala Kendra (Raj) . . . 515
----Depreciation--Ownership of asset--Transfer of business--Transferee put in possession of building, plant and machinery in terms of agreement to sell and running undertaking in its own right--Entitled to depreciation--That legal title conveyed under lease agreement and deed of sale executed in subsequent years not material-- CIT v. WEP Peripherals Ltd. (Karn) . . . 508
S. 32A --Investment allowance--Hotel building--Not a plant--Not entitled to investment allowance-- CIT v. SB Properties and Enterprises Ltd. (Raj) . . . 483
S. 36(1)(vii) --Bad debt--Law after 1-4-1989--Debt need no longer be proved to have turned bad--Merely writing off such advances or debts as bad debts in books of account and debiting in profit and loss account--Sufficient compliance-- Madhav Marbles and Granites v. ITAT (Raj) . . . 647
S. 37 --Business expenditure--Capital or revenue expenditure--Bond issue expenses--Bonds issued for purposes of business--Expenditure deductible-- CIT, Large Taxpayers Unit v. Indian Railway Finance Corporation Ltd. (Delhi) . . . 548
S. 45 --Reassessment--Notice--Not permissible upon mere change of opinion--Profits upon sale of plots of factory land converted into stock-in-trade--Assessment after full enquiry and after calling for explanation of assessee why income should be treated as capital gains and not business income--Communications by assessee in reply to notice--Assessment of income as capital gains--Reopening of assessment to assess income as business income--Not permissible--That assessment order did not record reasons for accepting assessee’s stand not relevant-- Spunpipe and Construction Co. v. Asst. CIT (Guj) . . . 559
S. 50 --Capital gains--Exemption--Depreciable asset--Gains on transfer of long-term capital asset invested in specified assets--Effect of deeming fiction in section 50--Section 50 does not restrict exemption-- CIT v. Aditya Medisales Ltd. (Guj) . . . 600
S. 54EC --Capital gains--Exemption--Depreciable asset--Gains on transfer of long-term capital asset invested in specified assets--Effect of deeming fiction in section 50--Section 50 does not restrict exemption-- CIT v. Aditya Medisales Ltd. (Guj) . . . 600
S. 69B --Unexplained investment--Purchase of land--Agreements claimed to be cancelled by executors found during search--No evidence to show that assessee paid on-money for purchase of land--Nothing on record to show that agreements were acted upon--No trace of cash payment in excess of amount shown in registered documents--Addition on basis of agreements not sustainable-- CIT v. Fairdeal Textile Park P. Ltd. (Guj) . . . 497
S. 80-IB --Industrial undertaking--Special deduction--Sale of business by sale of building, plant and machinery before expiry of period of exemption--Transferee entitled to deduction for remaining period-- CIT v. WEP Peripherals Ltd. (Karn) . . . 508
S. 115JB --Company--Book profit--Computation of income under section 115JB--Lease equalisation charges cannot be disallowed-- CIT, Large Taxpayers Unit v. Indian Railway Finance Corporation Ltd. (Delhi) . . . 548
S. 145 --Accounting--Rejection of accounts--Estimation of profits--Question of fact--Deductions not allowable on estimated net profit-- CIT v. Sahu Construction P. Ltd. (All) . . . 609
S. 147 --Reassessment--Notice--No limitation on number of times notice can be issued--But subject to limitation of not being permissible on change of opinion--Reassessment notice issued in first instance to bring to tax guaranteed return and bonus on keyman insurance policy--Proceedings dropped--Inference that Assessing Officer took view that addition of sums not sustainable on substantive ground--Second notice to bring same sums to tax--Not permissible-- Kunal Organics P. Ltd. v. Deputy CIT (Guj) . . . 530
----Reassessment--Notice--Not permissible upon mere change of opinion--Profits upon sale of plots of factory land converted into stock-in-trade--Assessment after full enquiry and after calling for explanation of assessee why income should be treated as capital gains and not business income--Communications by assessee in reply to notice--Assessment of income as capital gains--Reopening of assessment to assess income as business income--Not permissible--That assessment order did not record reasons for accepting assessee’s stand not relevant-- Spunpipe and Construction Co. v. Asst. CIT (Guj) . . . 559
----Reassessment--Notice after four years--Failure by assessee to disclose material facts--Assertion of assessee that detailed submissions filed during assessment--That assessment order makes no mention of assessee’s submissions--Not ground to infer assessee did not file them--Assessee’s assertion that it filed submissions to be accepted, on facts--No failure by assessee to disclose--Reassessment invalid-- BBC World News Ltd. v. Asst. Director of Income-tax (Delhi) . . . 577
----Reassessment--Notice after four years--Not permissible on change of opinion--Non-resident--Assessee stating in assessment proceedings that it had incurred loss on worldwide basis and even if income or loss attributable to Indian operations on proportionate basis, net result would be loss--Assessment order reasonably detailed and incorporating assessee’s chart listing out activities carried out in India and outside India--Assessment made at loss figure attributing 20 per cent. of global loss to Indian operations--Assessment made on similar basis for preceding year by same officer--Criteria for computing expenses of Indian operations changed in subsequent years--Not ground for reopening assessment after four years-- BBC World News Ltd. v. Asst. Director of Income-tax (Delhi) . . . 577
S. 148 --Reassessment--Notice--Audit party--Objection that non-charging of interest on advances resulted in short levy of tax--Assessing Officer not accepting objection but issuing notice solely on basis thereof--Notice not valid-- N. K. Roadways P. Ltd. v. ITO (OSD) (Guj) . . . 522
----Reassessment--Notice--Audit party--Whether asset for which depreciation claimed put to use before September 30 of year under consideration require re-examination--Ground for reopening assessment brought to notice of Assessing Officer by audit party but Assessing Officer on application of mind convinced with reason--Assessing Officer not acting at instance of audit party--No dispute that issue requires reconsideration--Notice valid-- N. K. Industries Ltd. v. ITO (OSD) (Guj) . . . 502
----Reassessment--Notice--No limitation on number of times notice can be issued--But subject to limitation of not being permissible on change of opinion--Reassessment notice issued in first instance to bring to tax guaranteed return and bonus on keyman insurance policy--Proceedings dropped--Inference that Assessing Officer took view that addition of sums not sustainable on substantive ground--Second notice to bring same sums to tax--Not permissible-- Kunal Organics P. Ltd. v. Deputy CIT (Guj) . . . 530
----Reassessment--Notice--Not permissible upon mere change of opinion--Profits upon sale of plots of factory land converted into stock-in-trade--Assessment after full enquiry and after calling for explanation of assessee why income should be treated as capital gains and not business income--Communications by assessee in reply to notice--Assessment of income as capital gains--Reopening of assessment to assess income as business income--Not permissible--That assessment order did not record reasons for accepting assessee’s stand not relevant-- Spunpipe and Construction Co. v. Asst. CIT (Guj) . . . 559
----Reassessment--Notice after four years--Failure by assessee to disclose material facts--Assertion of assessee that detailed submissions filed during assessment--That assessment order makes no mention of assessee’s submissions--Not ground to infer assessee did not file them--Assessee’s assertion that it filed submissions to be accepted, on facts--No failure by assessee to disclose--Reassessment invalid-- BBC World News Ltd. v. Asst. Director of Income-tax (Delhi) . . . 577
----Reassessment--Notice after four years--Not permissible on change of opinion--Non-resident--Assessee stating in assessment proceedings that it had incurred loss on worldwide basis and even if income or loss attributable to Indian operations on proportionate basis, net result would be loss--Assessment order reasonably detailed and incorporating assessee’s chart listing out activities carried out in India and outside India--Assessment made at loss figure attributing 20 per cent. of global loss to Indian operations--Assessment made on similar basis for preceding year by same officer--Criteria for computing expenses of Indian operations changed in subsequent years--Not ground for reopening assessment after four years-- BBC World News Ltd. v. Asst. Director of Income-tax (Delhi) . . . 577
S. 153A --Search and seizure--Assessment in search cases--Condition precedent--Assessing Officer making contradictory references to assessee being subjected to search or not--In the absence of search authorisation, Tribunal factually finding assessment orders against assessee invalid-- CIT v. Ramesh D. Patel (Guj) . . . 492
----Search and seizure--Assessment in search cases--Undisclosed income--Jewellery business--Estimate slip reflecting actual purchase and sale of gold but sale bill always for lesser quantity than reflected in estimate slip--Presumption as to nature of accounting and assessee’s modus operandi in maintaining records--No requirement that Department to collect information and evidence for each and every one of six previous years-- Sunny Jacob Jewellers and Wedding Centre v. Dy. CIT (Ker). . .664
S. 158BC --Search and seizure--Block assessment--Undisclosed income--Admission that apart from business in rectified spirits no other business was carried on--Claim to set off part of undisclosed income against miscellaneous receipts recorded in books--No evidence to support claim--Amount could not be reduced from undisclosed income-- CIT v. Sri Lakshmi Narasimha Distilleries P. Ltd. (Karn) . . . 573
S. 158BE --Search and seizure--Block assessment--Limitation--Starting point for limitation--Date of last authorisation for search to be taken into account--Second warrant of authorisation issued on 27-8-2003--Limitation started from the end of that month-- Dy. CIT v. Rakesh Sarin (Mad) . . . 619
S. 234B --Advance tax--Interest--Firm--Partners--Depreciation of a firm cannot be allocated to the benefit of partners personally and it shall revert to firm--Decision of Supreme Court much prior to submission of returns by partners--Returns ought to have been filed showing correct income--Advance tax not paid--Partners liable to pay interest-- Chief CIT v. George P. Mathews (Ker) . . . 660
S. 254(2) --Appeal to Appellate Tribunal--Bad debts--Law after 1-4-1989--Tribunal finding not deductible on ground assessee not establishing such advances had become bad--Application for rectification--Apparent mistake of law--Tribunal erred in not rectifying mistake apparent from record--Matter remanded to Tribunal to pass fresh order under section 254(2)-- Madhav Marbles and Granites v. ITAT (Raj) . . . 647
----Appeal to High Court--Powers of Tribunal--Rectification of mistakes--Rejection of application for rectification--Appeal to High Court not maintainable from such order--Writ petition against such order maintainable-- Madhav Marbles and Granites v. ITAT (Raj) . . . 647
S. 260A --Appeal to High Court--Powers of Tribunal--Rectification of mistakes--Rejection of application for rectification--Appeal to High Court not maintainable from such order--Writ petition against such order maintainable-- Madhav Marbles and Granites v. ITAT (Raj) . . . 647
S. 269SS --Penalty--Loan or deposit in cash exceeding specified limit--Contributions by twelve persons in cash--Audit report and balance-sheet of assessee showing outstanding amount as loan received from twelve persons--Imposition of penalty justified-- Soundarya Textiles v. Asst. CIT (Ker) . . . 488
S. 271(1)(c) --Penalty--Concealment of income--Effect of Explanation 1 to section 271(1)(c)--Explanation regarding computation of income found to be false--Income deemed to be concealed--Depreciation claimed on basis of lease--Lease transaction found to be bogus--Levy of penalty--Valid-- CIT v. BPL Sanyo Finance Ltd. (Karn) . . . 630
S. 271DD --Penalty--Loan or deposit in cash exceeding specified limit--Contributions by twelve persons in cash--Audit report and balance sheet of assessee showing outstanding amount as loan received from twelve persons--Imposition of penalty justified-- Soundarya Textiles v. Asst. CIT (Ker) . . . 488
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