INCOME TAX REPORTS (ITR)--PRINT AND ONLINE EDITION
SUBJECT INDEX TO CASES REPORTED
Appeal to Appellate Tribunal --Powers of Tribunal--Tribunal has inherent power to direct refund of amount collected illegally--Income-tax Act, 1961--Dy CIT v. ITAT (P&H) . . . 326
----Rectification of mistakes--Application for rectification of mistakes--Appeal from order of Tribunal in appeal merging in order of High Court--Application for rectification thereafter not maintainable--Income-tax Act, 1961, s. 254(2)-- Saroj Ceramics Industries v. ITO (Guj) . . . 350
Appeal to High Court --Appeal to Appellate Tribunal--Powers of Tribunal--Power to remand--Commissioner revising order on ground that no reasons had been given for the order--Tribunal setting aside order of Commissioner and remanding matter to Assessing Officer--No prejudice to assessee--No question of law arose from order of Tribunal--Income-tax Act, 1961, ss. 254, 260A, 263-- Fibres and Fabrics International P. Ltd. v. CIT (Karn) . . . 345
----Competency of appeal--Order of Tribunal rejecting application for rectification of its mistakes--No order on merits--Appeal not competent from such order--Income-tax Act, 1961, ss. 254(2), 260A-- Saroj Ceramics Industries v. ITO (Guj) . . . 350
Cash credits --Amounts shown as loans from directors--Finding that creditworthiness of directors not proved--Addition of amount under section 68--Justified--Income-tax Act, 1961, s. 68-- Classic Products P. Ltd. v. CIT (P&H) . . . 336
Industrial park --Special deduction under section 80-IA--Effect of rule 18C--Approval of industrial park given by Commerce Ministry--Duty of CBDT to notify such industrial park for benefits under section 80-IA--CBDT has no power to conduct inquiry--Income-tax Act, 1961, s. 80-IA--Income-tax Rules, 1962, r. 18C-- Creative Infocity Ltd. v. Under Secretary (ITA-I) (Guj) . . . 322
Recovery of tax --Double Taxation Avoidance Agreement between USA and India--Garnishee proceedings--Proceedings under mutual agreement under Double Taxation Avoidance Agreement--Stay order subject to condition that it would not seek adjournment of appeal before Tribunal--Tribunal adjourning appeal because another appeal by assessee was pending before Special Bench of Tribunal--No violation of condition by assessee--Garnishee proceedings against bank--Not valid--Income-tax Act, 1961--Double Taxation Avoidance Agreement between USA and India-- Dy CIT v. ITAT (P&H) . . . 326
ITR Volume 363 : Part 1 (Issue dated : 28-4-2014)
SUBJECT INDEX TO CASES REPORTED IN THIS PART
Advance tax --Interest--Mandatory--Shortfalls taxable--Levy of interest justified--Income-tax Act, 1961, s. 234B-- South Indian Bank Ltd. v. CIT (Ker) . . . 111
Appeal to Appellate Tribunal --Power to rectify mistakes on record--Tribunal satisfied that assessee’s claim reasonable, but rejecting it relying on decision of court without analysing facts--Tribunal justified in exercising its power under section 254(2)--Income-tax Act, 1961, s. 254(2)-- CIT v. TTG Industries Ltd. (Mad) . . . 44
Appeal to High Court --Powers of High Court--Power to remand--Disallowance of bad debts by Assessing Officer--Order of revision without considering issue of bad debts--Consequent order by Assessing Officer--Appeal against disallowance of bad debts--Disallowance set aside by Commissioner (Appeals) and confirmed by Tribunal--Appeal to High Court--Matter remanded to Commissioner (Appeals)--Income-tax Act, 1961-- CIT v. Canara Bank (Karn) . . . 156
Assessment --Estimate of income--Ginning factory--Gross profit--No rejection of books of account either on ground of difference in invisible loss projected or failure to maintain day-to-day stock book--No evidence to show that gross profit disclosed low--No material to support rejection of explanation of assessee for fall in gross profit--Revenue failing to make verification--Determination of gross profit on basis of figure for preceding year--Not justified--Income-tax Act, 1961-- G. V. D. I. and Co. v. Deputy CIT (Mad) . . . 27
Association of persons --Income or loss of an association of persons not dependent on section 80--Association of persons failing to file return of loss within time--No determination of loss in hands of association of persons--Member cannot claim to carry forward and set of off loss--Income-tax Act, 1961, ss. 67A(2), 80-- N. Jagadeesan v. Asst. CIT (Mad) . . . 140
Bad debt --Non-banking finance company--Loans and advances --Non-performing assets--Diminution in value of investments--Assessing Officer directed to reconsider claim in light of decisions of Supreme Court--Income-tax Act, 1961, s. 36(1)(vii)-- CIT v. Amrutanjan Finance Ltd. (Mad) . . . 135
Business expenditure --Deduction only on actual payment--Contributions to provident and other funds--Exclusion from disallowance--Law applicable--Effect of amendment of section 43B w.e.f 1-4-2004--Amendment has retrospective effect--Contributions paid after due dates under respective Acts but before due date for filing of return--Amounts could not be disallowed--Income-tax Act, 1961, ss. 36, 43B-- CIT v. State Bank of Bikaner and Jaipur (Raj) . . . 70
----Deduction only on actual payment--Provision for leave encashment--Claim enclosed with original return as well as revised return--No inadvertent mistake in not claiming it--Revised return filed after due date as provided under section 139(5)--Disallowable--Income-tax Act, 1961, s. 43B(f)-- South Indian Bank Ltd. v. CIT (Ker) . . . 111
----Disallowance--Payments to non-resident--Failure to deduct tax at source--Assessee’s agents had their own offices in foreign country--Agreement for procuring orders not involving any managerial services-- Explanation to section 9(2) not applicable--No disallowance of commission payments can be made--Income-tax Act, 1961, ss. 9(1)(vii), 40(a)(i), 195-- CIT v. Model Exims (All) . . . 66
----Disallowance--Payments to non-resident--Failure to deduct tax at source--Circular in force during relevant year not obliging assessee to deduct tax at source--Circular issued later withdrawing earlier circulars operative only from date of issue--Circular binding on Department--No obligation to deduct tax at source on commission paid to non-resident agents--Expenditure allowable--Income-tax Act, 1961, ss. 9(1)(vii), 40(a)(i), 195-- CIT v. Allied Exims (All) . . . 62
Capital gains --Short-term or long-term capital gains--Allotment of flat to assessee and payment of first instalment--Allottee obtains a right to hold property and period of holding to be reckoned from this date--Identification of a particular flat and delivery of possession consequential acts--Sale of flat three years after date of allotment letter and payment of first instalment--Amount received from sale of flat--Long-term capital gains--Income-tax Act, 1961-- Mrs. Madhu Kaul v. CIT (P&H) . . . 54
----Short-term or long-term capital gains--Assessee acquiring possession of plot in 2005 and selling it in 2008--Date of execution of conveyance deed in favour of assessee not relevant--Date of allotment of plot to assessee to be considered for purposes of capital gains--Income-tax Act, 1961, s. 54EC-- CIT v. K. Ramakrishnan (Delhi) . . . 59
Capital or revenue expenditure --Share issue expenses--Directly related to expansion of capital base--Capital expenditure--Not deductible--Income-tax Act, 1961-- South Indian Bank Ltd. v. CIT (Ker) . . . 111
Capital or revenue receipt --Subsidy--Power tariff concession--Not given upon establishment of unit but for facilitating business operations--Revenue receipt-- Brakes India Ltd. v. Joint CIT (Mad) . . . 13
Company --Book profits--Computation--Effect of section 115J--Provision does not affect carry forward of losses, unabsorbed depreciation, etc.--Income-tax Act, 1961, s. 115J-- Deccan Cements Ltd. v. CIT (AP) . . . 100
Depreciation --Higher rate of depreciation--Renewal energy devices--Wind mill--Generator sets would alone qualify for hundred per cent. depreciation--Drilling machines--Boring machines--Lathe machines--Entitled to depreciation at twenty-five per cent.--Income-tax Rules, 1962, Appx. I, r. 5, cl. (10A)(xviii)--Income-tax Act, 1961, s. 32-- CIT v. TTG Industries Ltd. (Mad) . . . 44
----Rate of depreciation--Partitions and structures--Temporary wooden structure and partition for running computer centres--Entitled to hundred per cent. depreciation--Income-tax Act, 1961, s. 32-- CIT v. Amrutanjan Finance Ltd. (Mad) . . . 135
Exemption --Warehousing corporation--Condition precedent for grant of exemption--Income from house property, bank receipts, income on loans and advances to staff, interest on bank deposits and dividend, not derived from activities enumerated in section 10(29)--Not eligible for exemption--Supervision charges, fumigation service charges, weighbridge receipts, income from sale of tender forms and interest on belated refund of advances--Income from activities incidental to warehousing of produce for storage, processing or facilitating the marketing of commodities--Eligible for exemption--Income-tax Act, 1961, s. 10(29)-- Tamilnadu Warehousing Corporation v. ITO (OSD) (Mad) . . . 1
Export --Special deduction--Total turnover--Scrap sales--Not to be included--Income-tax Act, 1961, s. 80HHC-- Brakes India Ltd. v. Joint CIT (Mad) . . . 13
Income --Disallowance of expenditure in relation to exempt income--Method for determining quantum of such expenditure--Expenditure for earning interest on tax free bonds and dividends exempted under section 10--Disallowable--Income-tax Act, 1961, s. 14A--Income-tax Rules, 1962, r. 8D-- South Indian Bank Ltd. v. CIT (Ker) . . .111
----Principle of mutuality--Conditions for application--Chit funds scheme--Assessee participating in a scheme offered by third party wherein others also joined--Principle of mutuality does not arise--Dividend received over and above what was contributed by assessee--Assessable as income--Income-tax Act, 1961, s. 28(iii)-- V. Rajkumar v. CIT (Mad) . . . 21
----Trading receipt--Excess cash received by branches of bank--Amounts refundible on demand to customers--Includible in total income of bank--Income-tax Act, 1961-- South Indian Bank Ltd. v. CIT (Ker) . . . 111
Precedent --Effect of decision of Supreme Court in Karnataka Small Scale Industries Development Corpn. v. CIT [2002] 258 ITR 770 (SC)-- Deccan Cements Ltd. v. CIT (AP) . . . 100
----Effect of Supreme Court decision in CIT v. Alom Extrusions [2009] 319 ITR 306 (SC)-- CIT v. State Bank of Bikaner and Jaipur (Raj) . . . 70
Revision --Commissioner--Powers--Assessee not challenging jurisdiction of Commissioner but only absence of word “erroneous†in notice--Assessment treating proceeds of sale of immovable property sale proceeds as long-term capital gains instead of short-term capital gains prejudicial to interests of Revenue--Expression “resulted into an order which is prejudicial to the interests of the Revenue--Sufficient compliance for issuing notice--Income-tax Act, 1961, s. 263-- Hemanth Kumar Bothra v. CIT (Mad) . . . 33
Search and seizure --Block assessment--Assessment of third person--Assessment based on materials gathered in course of search conducted in case of two other assessees residing in same premises as assessee--Assessee understanding this and participating in assessment--Assessment not invalid on ground no search conducted against assessee--Income-tax Act, 1961, ss. 158BC, 158BD-- Kailash Sarda v. CIT (Mad) . . . 36
----Block assessment--Meaning of undisclosed income--Law applicable--Amendment of section 158B with retrospective effect from 1-7-1995--Inclusion of amount representing false claim for deduction--Meaning of “false†--Claim for depreciation on building given on rent--False claim--Amount of claim assessable as undisclosed income--Income-tax Act, 1961, s. 158B-- Medical Land v. CIT (Appeals) (Ker) . . . 81
----Block assessment--Penalty--Return filed under section 158BC--No provision for filing revised return--Revised return filed disclosing additional undisclosed income--Penalty imposable on such additional undisclosed income--Income-tax Act, 1961, Chapter XIV-B, ss. 158BC, 158BFA-- CIT v. Hitech Chemical P. Ltd. (Jharkhand) . . . 145
----Block assessment--Undisclosed income--Addition based on admission by assessee--Valid--Income-tax Act, 1961, s. 158B-- Medical Land v. CIT (Appeals) (Ker) . . . 81
----Block assessment--Undisclosed income--No evidence to show amount sent by assessee’s mother and brothers--No material to indicate source of income of donors--Amount assessable as undisclosed income of block period--Income-tax Act, 1961, s. 69-- Mrs. Kumari Kanagam v. CIT (Mad) . . . 105
----Block assessment--Unexplained investment--Assessee a person not ordinarily resident in India--Onus on assessee to prove that income accruing outside India not from business controlled or a profession set up in India--Mere claim will not suffice--No proof that income accrued or arisen outside India not on account of any business interest or trade in India--Proviso to section 5(1)(c) not applicable--Income-tax Act, 1961, s. 5(1)(c)-- Mrs. Kumari Kanagam v. CIT (Mad) . . . 105
Writ --High Court--Alternative remedy--Revision--Show-cause notice under section 263--Assessee to submit his reply to notice and raise all contentions available before authority--Constitution of India, art. 226--Income-tax Act, 1961, s. 263-- Hemanth Kumar Bothra v. CIT (Mad) . . . 33
SECTIONWISE INDEX TO CASES REPORTED IN THIS PART
Art. 226 --Writ--High Court--Alternative remedy--Revision--Show-cause notice under section 263--Assessee to submit his reply to notice and raise all contentions available before authority-- Hemanth Kumar Bothra v. CIT (Mad) . . . 33
S. 5(1)(c) --Search and seizure--Block assessment--Unexplained investment--Assessee a person not ordinarily resident in India--Onus on assessee to prove that income accruing outside India not from business controlled or a profession set up in India--Mere claim will not suffice--No proof that income accrued or arisen outside India not on account of any business interest or trade in India--Proviso to section 5(1)(c) not applicable-- Mrs. Kumari Kanagam v. CIT (Mad) . . . 105
S. 9(1)(vii) --Business expenditure--Disallowance--Payments to non-resident--Failure to deduct tax at source--Assessee’s agents had their own offices in foreign country--Agreement for procuring orders not involving any managerial services-- Explanation to section 9(2) not applicable--No disallowance of commission payments can be made-- CIT v. Model Exims (All) . . . 66
----Business expenditure--Disallowance--Payments to non-resident--Failure to deduct tax at source--Circular in force during relevant year not obliging assessee to deduct tax at source--Circular issued later withdrawing earlier circulars operative only from date of issue--Circular binding on Department--No obligation to deduct tax at source on commission paid to non-resident agents--Expenditure allowable-- CIT v. Allied Exims (All) . . . 62
S. 10(29) --Exemption--Warehousing corporation--Condition precedent for grant of exemption--Income from house property, bank receipts, income on loans and advances to staff, interest on bank deposits and dividend, not derived from activities enumerated in section 10(29)--Not eligible for exemption--Supervision charges, fumigation service charges, weighbridge receipts, income from sale of tender forms and interest on belated refund of advances--Income from activities incidental to warehousing of produce for storage, processing or facilitating the marketing of commodities--Eligible for exemption-- Tamilnadu Warehousing Corporation v. ITO (OSD) (Mad) . . . 1
S. 14A --Income--Disallowance of expenditure in relation to exempt income--Method for determining quantum of such expenditure--Expenditure for earning interest on tax free bonds and dividends exempted under section 10--Disallowable-- South Indian Bank Ltd. v. CIT (Ker) . . .111
S. 28(iii) --Income--Principle of mutuality--Conditions for application--Chit funds scheme--Assessee participating in a scheme offered by third party wherein others also joined--Principle of mutuality does not arise--Dividend received over and above what was contributed by assessee--Assessable as income-- V. Rajkumar v. CIT (Mad) . . . 21
S. 32 --Depreciation--Higher rate of depreciation--Renewal energy devices--Wind mill--Generator sets would alone qualify for hundred per cent. depreciation--Drilling machines--Boring machines--Lathe machines--Entitled to depreciation at twenty-five per cent.-- CIT v. TTG Industries Ltd. (Mad) . . . 44
----Depreciation--Rate of depreciation--Partitions and structures--Temporary wooden structure and partition for running computer centres--Entitled to hundred per cent. depreciation-- CIT v. Amrutanjan Finance Ltd. (Mad) . . . 135
S. 36 --Business expenditure--Deduction only on actual payment--Contributions to provident and other funds--Exclusion from disallowance--Law applicable--Effect of amendment of section 43B w.e.f 1-4-2004--Amendment has retrospective effect--Contributions paid after due dates under respective Acts but before due date for filing of return--Amounts could not be disallowed-- CIT v. State Bank of Bikaner and Jaipur (Raj) . . . 70
S. 36(1)(vii) --Bad debt--Non-banking finance company--Loans and advances--Non-performing assets--Diminution in value of investments--Assessing Officer directed to reconsider claim in light of decisions of Supreme Court-- CIT v. Amrutanjan Finance Ltd. (Mad) . . . 135
S. 40(a)(i) --Business expenditure--Disallowance--Payments to non-resident--Failure to deduct tax at source--Assessee’s agents had their own offices in foreign country--Agreement for procuring orders not involving any managerial services-- Explanation to section 9(2) not applicable--No disallowance of commission payments can be made-- CIT v. Model Exims (All) . . . 66
----Business expenditure--Disallowance--Payments to non-resident--Failure to deduct tax at source--Circular in force during relevant year not obliging assessee to deduct tax at source--Circular issued later withdrawing earlier circulars operative only from date of issue--Circular binding on Department--No obligation to deduct tax at source on commission paid to non-resident agents--Expenditure allowable-- CIT v. Allied Exims (All) . . . 62
S. 43B --Business expenditure--Deduction only on actual payment--Contributions to provident and other funds--Exclusion from disallowance--Law applicable--Effect of amendment of section 43B w.e.f 1-4-2004--Amendment has retrospective effect--Contributions paid after due dates under respective Acts but before due date for filing of return--Amounts could not be disallowed-- CIT v. State Bank of Bikaner and Jaipur (Raj) . . . 70
S. 43B(f) --Business expenditure--Deduction only on actual payment--Provision for leave encashment--Claim enclosed with original return as well as revised return--No inadvertent mistake in not claiming it--Revised return filed after due date as provided under section 139(5)--Disallowable-- South Indian Bank Ltd. v. CIT (Ker) . . . 111
S. 54EC --Capital gains--Short-term or long-term capital gains--Assessee acquiring possession of plot in 2005 and selling it in 2008--Date of execution of conveyance deed in favour of assessee not relevant--Date of allotment of plot to assessee to be considered for purposes of capital gains-- CIT v. K. Ramakrishnan (Delhi) . . . 59
S. 67A(2) --Association of persons--Income or loss of an association of persons not dependent on section 80--Association of persons failing to file return of loss within time--No determination of loss in hands of association of persons--Member cannot claim to carry forward and set off of loss-- N. Jagadeesan v. Asst. CIT (Mad) . . . 140
S. 69 --Search and seizure--Block assessment--Undisclosed income--No evidence to show amount sent by assessee’s mother and brothers--No material to indicate source of income of donors--Amount assessable as undisclosed income of block period-- Mrs. Kumari Kanagam v. CIT (Mad) . . . 105
S. 80 --Association of persons--Income or loss of an association of persons not dependent on section 80--Association of persons failing to file return of loss within time--No determination of loss in hands of association of persons--Member cannot claim to carry forward and set off of loss-- N. Jagadeesan v. Asst. CIT (Mad) . . . 140
S. 80HHC --Export--Special deduction--Total turnover--Scrap sales--Not to be included-- Brakes India Ltd. v. Joint CIT (Mad) . . . 13
S. 115J --Company--Book profits--Computation--Effect of section 115J--Provision does not affect carry forward of losses, unabsorbed depreciation, etc.-- Deccan Cements Ltd. v. CIT (AP) . . . 100
Chapter XIV-B --Search and seizure--Block assessment--Penalty--Return filed under section 158BC--No provision for filing revised return--Revised return filed disclosing additional undisclosed income--Penalty imposable on such additional undisclosed income-- CIT v. Hitech Chemical P. Ltd. (Jharkhand) . . . 145
S. 158B --Search and seizure--Block assessment--Meaning of undisclosed income--Law applicable--Amendment of section 158B with retrospective effect from 1-7-1995--Inclusion of amount representing false claim for deduction--Meaning of “false†--Claim for depreciation on building given on rent--False claim--Amount of claim assessable as undisclosed income-- Medical Land v. CIT (Appeals) (Ker) . . . 81
----Search and seizure--Block assessment--Undisclosed income--Addition based on admission by assessee--Valid-- Medical Land v. CIT (Appeals) (Ker) . . . 81
S. 158BC --Search and seizure--Block assessment--Assessment of third person--Assessment based on materials gathered in course of search conducted in case of two other assessees residing in same premises as assessee--Assessee understanding this and participating in assessment--Assessment not invalid on ground no search conducted against assessee-- Kailash Sarda v. CIT (Mad) . . . 36
----Search and seizure--Block assessment--Penalty--Return filed under section 158BC--No provision for filing revised return--Revised return filed disclosing additional undisclosed income--Penalty imposable on such additional undisclosed income-- CIT v. Hitech Chemical P. Ltd. (Jharkhand) . . . 145
S. 158BD --Search and seizure--Block assessment--Assessment of third person--Assessment based on materials gathered in course of search conducted in case of two other assessees residing in same premises as assessee--Assessee understanding this and participating in assessment--Assessment not invalid on ground no search conducted against assessee-- Kailash Sarda v. CIT (Mad) . . . 36
S. 158BFA --Search and seizure--Block assessment--Penalty--Return filed under section 158BC--No provision for filing revised return--Revised return filed disclosing additional undisclosed income--Penalty imposable on such additional undisclosed income-- CIT v. Hitech Chemical P. Ltd. (Jharkhand) . . . 145
S. 195 --Business expenditure--Disallowance--Payments to non-resident--Failure to deduct tax at source--Assessee’s agents had their own offices in foreign country--Agreement for procuring orders not involving any managerial services-- Explanation to section 9(2) not applicable--No disallowance of commission payments can be made-- CIT v. Model Exims (All) . . . 66
----Business expenditure--Disallowance--Payments to non-resident--Failure to deduct tax at source--Circular in force during relevant year not obliging assessee to deduct tax at source--Circular issued later withdrawing earlier circulars operative only from date of issue--Circular binding on Department--No obligation to deduct tax at source on commission paid to non-resident agents--Expenditure allowable-- CIT v. Allied Exims (All) . . . 62
S. 234B --Advance tax--Interest--Mandatory--Shortfalls taxable--Levy of interest justified-- South Indian Bank Ltd. v. CIT (Ker) . . . 111
S. 254(2) --Appeal to Appellate Tribunal--Power to rectify mistakes on record--Tribunal satisfied that assessee’s claim reasonable, but rejecting it relying on decision of court without analysing facts--Tribunal justified in exercising its power under section 254(2)-- CIT v. TTG Industries Ltd. (Mad) . . . 44
S. 263 --Revision--Commissioner--Powers--Assessee not challenging jurisdiction of Commissioner but only absence of word “erroneous†in notice--Assessment treating proceeds of sale of immovable property sale proceeds as long-term capital gains instead of short-term capital gains prejudicial to interests of Revenue--Expression “resulted into an order which is prejudicial to the interests of the Revenue--Sufficient compliance for issuing notice-- Hemanth Kumar Bothra v. CIT (Mad) . . . 33
----Writ--High Court--Alternative remedy--Revision--Show-cause notice under section 263--Assessee to submit his reply to notice and raise all contentions available before authority-- Hemanth Kumar Bothra v. CIT (Mad) . . . 33
R. 8D --Income--Disallowance of expenditure in relation to exempt income--Method for determining quantum of such expenditure--Expenditure for earning interest on tax free bonds and dividends exempted under section 10--Disallowable-- South Indian Bank Ltd. v. CIT (Ker) . . .111
Appx. I, r. 5, cl. (10A)(xviii) --Depreciation--Higher rate of depreciation--Renewal energy devices--Wind mill--Generator sets would alone qualify for hundred per cent. depreciation--Drilling machines--Boring machines--Lathe machines--Entitled to depreciation at twenty-five per cent.-- CIT v. TTG Industries Ltd. (Mad) . . . 44
No comments:
Post a Comment