INCOME TAX REPORTS (ITR)--PRINT AND ONLINE EDITION
SUBJECT INDEX TO CASES REPORTED
Supreme Court --Inherent powers--Curative petition--When entertained--Search and seizure--Block assessment--Undisclosed income--Statement under section 132(4)--Addition made on basis of statement--No case for entertainment of curative petition--Income-tax Act, 1961, s. 132(4)-- Bhagirath Aggarwal v. CIT . . . 377
Capital or revenue expenditure --Current repairs--Expenses on replacement and renovation of a boat--That boat not put to use in year of purchase before repairs were made to it--Not ground to deny deduction of expenditure on repairs--Revenue expenditure--Income-tax Act, 1961, s. 31-- CIT v. Machado Sons (Mad) . . . 385
Income --Computation--Disallowance of expenditure incurred in earning income not forming part of total income--Income earned out of mutual fund investment--Reasonable allocation of expenditure to taxable income and tax exempt income permissible--Tribunal not justified in holding in absence of rule 8D no disallowance can be made under section 14A by proportionate bifurcation of expenditure--Income-tax Rules, 1962, r. 8D--Income-tax Act, 1961, ss. 10(35), 14A-- CIT v. Sintex Industries Ltd. (Guj) . . . 364
----Disallowance of expenditure incurred for earning exempted income--Investments were from interest-free funds available with assessee--Assessee suo motu disallowing certain sum under section 14A--No further disallowance--No finding as to how much administrative expenditure have been incurred to earn exempt income--No disallowance could be made--Income-tax Act, 1961, s. 14A-- CIT v. UTI Bank Ltd. (Guj) . . . 366
Precedent --Effect of Supreme Court decision in GKN Driveshafts (India) Ltd. v. ITO [2003] 259 ITR 19-- SAK Industries Pvt. Ltd. v. Deputy CIT (Delhi) . . . 378
Reassessment --Validity--Order passed without considering objections of assessee--Not valid--Income-tax Act, 1961, s. 147-- SAK Industries Pvt. Ltd. v. Deputy CIT (Delhi) . . . 378
Transfer of case --Co-ordinated investigation--Assessees entities of group and having substantial financial transaction with various group entities--Opportunity of hearing given to assessees and objections raised and considered before passing order of transfer--Agreement between Commissioner at Delhi and Commissioner at Mumbai available--Order indicating due application of mind and transfer of case not mala fide--Order transferring assessee’s case from Mumbai to Delhi valid--Income-tax Act, 1961, s. 127(2)-- Aamby Valley Ltd. v. CIT (Bom) . . . 370
Writ --Existence of alternative remedy--Not an absolute bar for issue of writ--Constitution of India, art. 226--SAK Industries Pvt. Ltd. v. Deputy CIT (Delhi) . . . 378
ITR Volume 363 : Part 2 (Issue dated : 5-5-2014)
SUBJECT INDEX TO CASES REPORTED IN THIS PART
Appeal to Appellate Tribunal --Duty of Tribunal--Duty to give finding of fact--Finding should take into account relevant facts--Finding by Tribunal not taking into account facts found by Assessing Officer and Commissioner (Appeals)--Order set aside and matter remanded--Income-tax Act, 1961, s. 254-- CIT v. Arun Malhotra (Delhi) . . . 195
Appeal to High Court --Issue not raised before or considered by Tribunal--Issue cannot be considered by High Court--Income-tax Act, 1961, s. 260A-- S. Muthukumar v. ITO (Mad) . . . 161
Assessment --General principles--Appeal to Commissioner (Appeals)--Powers of Commissioner (Appeals)--Exemption--Mistake in claim for exemption--Provision wrongly mentioned in e-return--Exemption allowed in the past--Documents in support of claim for exemption filed--Commissioner (Appeals) justified in granting exemption--Income-tax Act, 1961, ss. 10B, 251-- CIT v. Rajasthan Fasteners P. Ltd. (Raj) . . . 271
Business expenditure --Accounting--Real estate business set up--Development expenses whether allowable under Accounting Standards read with section 145/145A--Matter remanded--Income-tax Act, 1961, ss. 145, 145A-- Rangoli Projects P. Ltd. v. CIT (Delhi) . . . 192
----Capital or revenue expenditure--General principles--Hotel business--Amount paid as licence fee for use of courtyard--Revenue expenditure--Income-tax Act, 1961, s. 37-- CIT v. ITC Hotels (Karn) . . . 254
----Disallowance--Deduction only on actual payment--Dues under general provident fund, contributory provident fund and employees’ State insurance--Amounts paid before due date for furnishing income-tax return--Amounts could not be disallowed--Income-tax Act, 1961, ss. 36(1)(va), 43B-- CIT v. Jaipur Vidyut Vitaran Nigam Ltd. (Raj) . . . 307
----Disallowance--Guest house expenses--Not allowable--Income-tax Act, 1961, s. 37(4)-- CIT v. Baghpat Co-operative Sugar Mills Ltd. (All) . . . 319
Capital gains --Long-term capital gains--Short-term capital gains--Transfer--Time of transfer--Agreement for purchase of property under attachment to bank in June 2001--Consideration for sale paid in February 2004--Sale of property to third person in February 2005--Rights under agreement acquired only in February 2004--Gains on sale of property assessable as short-term capital gains--Income-tax Act, 1961, ss. 2, 45-- Lachmandas and Sons v. Deputy CIT (Ker) . . . 315
Capital or revenue expenditure --Hotel--Extensive repairs on ground floor, walls removed walls in rear room and bar constructed--Commissioner (Appeals) carrying out site inspection and holding expenditure was revenue in nature--Justified--Income-tax Act, 1961-- Comfort Living Hotels P. Ltd. v. CIT (Delhi) . . . 182
Cash credits --Amounts claimed to be payments for services--No evidence of payments--Tribunal correct in upholding assessment of amounts under section 68--Tribunal correct in rejecting application for rectification to contend that amounts should be treated as undisclosed turnover--Income-tax Act, 1961, ss. 68, 254-- S. Muthukumar v. ITO (Mad) . . . 161
Charitable purposes --Charitable trust--Exemption--Loans given in violation of section 13--Amount of loans not entitled to exemption--Entire income of trust cannot be denied exemption--Income-tax Act, 1961, ss. 11, 13-- CIT v. Fr. Mullers Charitable Institutions (Karn) . . . 230
----Registration of trust--Committee constituted under State Act constructing hospital--Committee constituting trust to run and operate hospital--Legality of trust--Civil court holding establishment of trust illegal and contrary to law--Section 24 not authorising committee to utilise its properties or monies through device of trusts and societies to engage in indirect commercial activity--Trust not entitled to registration--Delhi Sikh Gurudwara Act, 1971, s. 24--Income-tax Act, 1961, s. 12A-- Director of Income-tax v. Guru Harkishan Medical Trust (Delhi) . . . 186
----Registration of trusts--Delay in application for registration--Agricultural produce marketing committee--Statutory body--Entitled to registration--Income-tax Act, 1961, ss. 12A, 12AA-- CIT v. Krishi Utpadan Mandi Samiti (All) . . . 290
Depreciation --Higher rate of depreciation--Hotel--Roofing--Temporary construction for convenience of workers of assessee--Construction subsequently demolished--Entitled to hundred per cent. depreciation--Income-tax Act, 1961, s. 32-- Comfort Living Hotels P. Ltd. v. CIT (Delhi) . . . 182
Dividend --Deemed dividend--Assessee taking substantial part of loan from a company in which he was a director and having substantial interest--No chance to accumulate profits pertaining to available funds--Failure to establish that substantial part of business of company was money-lending--Amount includible as income of assessee as deemed dividend--Income-tax Act, 1961, s. 2(22)(e)-- Krishna Gopal Maheshwari v. Addl. CIT (All) . . . 280
Hotel --Special deduction under section 80HHD--Computation of special deduction--Special deduction whether to be computed on entire business or in respect of each eligible unit--Income-tax Act, 1961, s. 80HHD-- CIT v. ITC Hotels (Karn) . . . 254
Income from other sources --Business income or income from other sources--Grants and loans received for setting up business--Investment of funds before commencement of business--Investment not connected with business--Interest on investment assessable as income from other sources--Income-tax Act, 1961, ss. 28, 56-- CIT v. Indian Vaccines Corporation Ltd. (Delhi) . . . 295
Income-tax survey --Undisclosed income--Statement recorded on oath admitting undisclosed income--Does not lose its evidentiary value--Statement not sole evidence--No evidence to show statement recorded during middle of night--Explanation in course of assessment that loose paper contained estimate of income prepared by consultant for submission to bank for loan to purchase equipment--Identity of consultant not established--No details of equipment for which loan is required--Explanation an afterthought--No evidence to support claim to cash expenses incurred not recorded in regular books of account--Assessment valid--Income-tax Act, 1961, s. 133A-- Dr. Dinesh Jain v. ITO (Bom) . . . 210
Industrial undertaking --Special deduction--Manufacture or production of article--Article need not be final product--Precured tread rubber--Income from mixing rubber with chemicals on job work basis--Assessee entitled to deduction--Income-tax Act, 1961, s. 80-IB-- CIT v. Midas Polymer Compounds P. Ltd. (Ker) . . . 309
----Special deduction under Chapter VI-A--Special deductions can be granted under more than one provision--Income-tax Act, 1961, Chapter VI-A-- CIT v. Panachayil Industries (Ker) . . . 261
----Special deduction under section 80-IA--Condition precedent--Profits and gains derived from industrial undertaking--Interest on KEB and NSC deposits--Not derived from industrial undertaking--Not entitled to special deduction--Income-tax Act, 1961, s. 80-IA-- CIT v. ITC Hotels (Karn) . . . 254
----Special deduction under section 80-IB--Condition precedent--Assessee should manufacture or produce article not covered by entry 25 in Eleventh Schedule--Assessee manufacturing polyurethane foam which is mentioned in entry 25 of Eleventh Schedule--Assessee not entitled to special deduction under section 80-IB--Income-tax Act, 1961, s. 80-IB-- CIT v. Polyfex (India) P. Ltd. (Karn) . . . 224
----Special deductions under sections 80HH, 80-I and 80-IB--Condition precedent--Production of article--Crushing of granite boulders into small pieces constitutes production--Assessee entitled to special deduction under sections 80HH, 80J and 80-IB--Income-tax Act, 1961, ss. 80HH, 80J, 80-IB-- CIT v. Panachayil Industries (Ker) . . . 261
Precedent --Effect of decision of Supreme Court in Asst. CIT v. Hotel Blue Moon [2010] 321 ITR 362 (SC)-- CIT v. Vasudev Construction (Karn) . . . 247
----Effect of decision of the Supreme Court in Joint CIT v. Mandideep Engg. and Pkg. Ind. P. Ltd. [2007] 292 ITR 1 (SC) and CIT v. N. C. Budharaja and Co. [1993] 204 ITR 412 (SC)-- CIT v. Panachayil Industries (Ker) . . . 261
Reassessment --Notice after four years--Limitation--Extended period of limitation where income escaping assessment exceeds Rs. 1 lakh--Condition precedent for invocation of extended period--Assessing Officer must record in reasons for notice fact that income escaping assessment likely to exceed Rs. 1 lakh--Failure to do so--Sanctioning authority cannot record satisfaction for reassessment in absence thereof--Notice not valid--Income-tax Act, 1961, ss. 148, 149(1)(b), 151(1), prov. -- Mahesh Kumar Gupta v. CIT (All) . . . 300
----Notice--Condition precedent--Reason for reassessment must be recorded before issuing notice--Income-tax Act, 1961, ss. 147, 148-- Gujarat Borosil Ltd. v. Deputy CIT (Guj) . . . 293
----Notice--Return--Not a scrap of paper but sanctity attached to it--Obligation of assessee to file return in terms of notice--Assessee cannot deny obligation on ground in his opinion there is no taxable income--Income-tax Act, 1961, s. 148-- Adobe Systems Software Ireland Ltd. v. Asst. DIT (Delhi) . . . 174
Recovery of tax --Application for stay--Tribunal granting stay and passing interim order for period of one hundred and eighty days in open court in presence of counsel for Revenue--Attachment of amounts in assessee’s bank account on ground concerned Assessing Officer was not intimated--Would amount to overreach of order of Tribunal--Revenue should lift attachment and ensure that amounts recovered are deposited back in assessee’s account--Income-tax Act, 1961, s. 221-- A. T. Kearney India P. Ltd. v. ITO (Delhi) . . . 172
Remuneration from foreign enterprise --Special deduction under section 80-O--Conditions precedent--Services should be rendered outside India--Furnishing of legal opinion to foreign company on matters relating to setting up industry in India--Amount received from foreign enterprise not entitled to special deduction under section 80-O--Income-tax Act, 1961, s. 80-O--Circular No. 700, dated 23-3-1995-- H. Raghavendra Rao v. Deputy CIT (Karn) . . . 238
Revision --Commissioner--Powers--Condition precedent for application of section 263--Order must be erroneous and also prejudicial to Revenue--Prejudice refers to lawful revenue being realised--Income-tax Act, 1961, s. 263-- CIT v. Fr. Mullers Charitable Institutions (Karn) . . . 230
----Commissioner--Powers--Development of infrastructure for shooting locations--Lease rentals earned from land developed for creating film shooting facilities--Assessing Officer capitalising receipt as connected with main activity--Commissioner has no jurisdiction to revise because one of two possible views was taken by Assessing Officer--Income-tax Act, 1961, s. 263-- CIT v. Usha Kiran Movies Ltd. (AP) . . . 165
----Erroneous and prejudicial to Revenue--Assessee making claim under section 80P--Requirement of Assessing Officer to enquire factual situation whether assessee bank conducting business as a primary agriculture credit society or a primary co-operative agricultural and rural development bank--Benefit extended on basis of registration as co-operative society--Order erroneous and prejudicial to interests of Revenue--Income-tax Act, 1961, ss. 80P, 263-- Perinthalmanna Service Co-operative Bank Ltd. v. ITO (Ker) . . . 268
----Order of revision under section 263--Condition precedent--Opportunity to assessee to be heard--No proper notice but assessee actually heard--Order of revision was valid--Income-tax Act, 1961, s. 263-- Ashutosh Bandopadhyay v. CIT (Tripura) . . . 168
Search and seizure --Block assessment--Scope of block assessment--No incriminating material found during search--Difference between cost of construction estimated by District Valuation Officer and cost shown in accounts less than 15 per cent.--Addition to income in block assessment--Not justified--Income-tax Act, 1961, Chapter XIV-B-- CIT v. Vasudev Construction (Karn) . . . 247
----Block assessment--Undisclosed income--No issue of notice under section 143(2)--Block assessment invalid--Income-tax Act, 1961, ss. 143(2), 158BC-- R. Romi v. CIT (Ker) . . . 311
----Block assessment--Undisclosed income--Tribunal deleting addition without considering facts found by Assessing Officer--Matter remanded--Income-tax Act, 1961-- CIT v. Arun Malhotra (Delhi) . . . 195
Transfer of case --Co-ordinated investigation--Reason for such co-ordinated investigation must be given--No notice giving a personal hearing and order passed without recording reasons--Order transferring case of assessee from Mumbai to Bangalore not valid--Income-tax Act, 1961, s. 127(2)-- Sunisha Impex P. Ltd. v. CIT (Bom) . . . 220
Writ --Reassessment--Notice--Validity--Depends on whether assessee had a permanent establishment within jurisdiction of Assessing Officer issuing notice--Existence of jurisdictional fact cannot be examined in writ proceedings--Assessee to resolve disputed questions of fact in alternative remedies--Income-tax Act, 1961, ss. 147, 148-- Adobe Systems Software Ireland Ltd. v. Asst. DIT (Delhi) . . . 174
SECTIONWISE INDEX TO CASES REPORTED IN THIS PART
Delhi Sikh Gurudwara Act, 1971 :
S. 24 --Charitable purposes--Registration of trust--Committee constituted under State Act constructing hospital--Committee constituting trust to run and operate hospital--Legality of trust--Civil court holding establishment of trust illegal and contrary to law--Section 24 not authorising committee to utilise its properties or monies through device of trusts and societies to engage in indirect commercial activity--Trust not entitled to registration-- Director of Income-tax v. Guru Harkishan Medical Trust (Delhi) . . . 186
S. 2 --Capital gains--Long-term capital gains--Short-term capital gains--Transfer--Time of transfer--Agreement for purchase of property under attachment to bank in June 2001--Consideration for sale paid in February 2004--Sale of property to third person in February 2005--Rights under agreement acquired only in February 2004--Gains on sale of property assessable as short-term capital gains-- Lachmandas and Sons v. Deputy CIT (Ker) . . . 315
S. 2(22)(e) --Dividend--Deemed dividend--Assessee taking substantial part of loan from a company in which he was a director and having substantial interest--No chance to accumulate profits pertaining to available funds--Failure to establish that substantial part of business of company was money-lending--Amount includible as income of assessee as deemed dividend-- Krishna Gopal Maheshwari v. Addl. CIT (All) . . . 280
S. 10B --Assessment--General principles--Appeal to Commissioner (Appeals)--Powers of Commissioner (Appeals)--Exemption--Mistake in claim for exemption--Provision wrongly mentioned in e-return--Exemption allowed in the past--Documents in support of claim for exemption filed--Commissioner (Appeals) justified in granting exemption-- CIT v. Rajasthan Fasteners P. Ltd. (Raj) . . . 271
S. 11 --Charitable purposes--Charitable trust--Exemption--Loans given in violation of section 13--Amount of loans not entitled to exemption--Entire income of trust cannot be denied exemption-- CIT v. Fr. Mullers Charitable Institutions (Karn) . . . 230
S. 12A --Charitable purposes--Registration of trust--Committee constituted under State Act constructing hospital--Committee constituting trust to run and operate hospital--Legality of trust--Civil court holding establishment of trust illegal and contrary to law--Section 24 not authorising committee to utilise its properties or monies through device of trusts and societies to engage in indirect commercial activity--Trust not entitled to registration-- Director of Income-tax v. Guru Harkishan Medical Trust (Delhi) . . . 186
----Charitable purposes--Registration of trusts--Delay in application for registration--Agricultural produce marketing committee--Statutory body--Entitled to registration-- CIT v. Krishi Utpadan Mandi Samiti (All) . . . 290
S. 12AA --Charitable purposes--Registration of trusts--Delay in application for registration--Agricultural produce marketing committee--Statutory body--Entitled to registration-- CIT v. Krishi Utpadan Mandi Samiti (All) . . . 290
S. 13 --Charitable purposes--Charitable trust--Exemption--Loans given in violation of section 13--Amount of loans not entitled to exemption--Entire income of trust cannot be denied exemption-- CIT v. Fr. Mullers Charitable Institutions (Karn) . . . 230
S. 28 --Income from other sources--Business income or income from other sources--Grants and loans received for setting up business--Investment of funds before commencement of business--Investment not connected with business--Interest on investment assessable as income from other sources-- CIT v. Indian Vaccines Corporation Ltd. (Delhi) . . . 295
S. 32 --Depreciation--Higher rate of depreciation--Hotel--Roofing--Temporary construction for convenience of workers of assessee--Construction subsequently demolished--Entitled to hundred per cent. depreciation-- Comfort Living Hotels P. Ltd. v. CIT (Delhi) . . . 182
S. 36(1)(va) --Business expenditure--Disallowance--Deduction only on actual payment--Dues under general provident fund, contributory provident fund and employees’ State insurance--Amounts paid before due date for furnishing income-tax return--Amounts could not be disallowed-- CIT v. Jaipur Vidyut Vitaran Nigam Ltd. (Raj) . . . 307
S. 37 --Business expenditure--Capital or revenue expenditure--General principles--Hotel business--Amount paid as licence fee for use of courtyard--Revenue expenditure-- CIT v. ITC Hotels (Karn) . . . 254
S. 37(4) --Business expenditure--Disallowance--Guest house expenses--Not allowable-- CIT v. Baghpat Co-operative Sugar Mills Ltd. (All) . . . 319
S. 43B --Business expenditure--Disallowance--Deduction only on actual payment--Dues under general provident fund, contributory provident fund and employees’ State insurance--Amounts paid before due date for furnishing income-tax return--Amounts could not be disallowed-- CIT v. Jaipur Vidyut Vitaran Nigam Ltd. (Raj) . . . 307
S. 45 --Capital gains--Long-term capital gains--Short-term capital gains--Transfer--Time of transfer--Agreement for purchase of property under attachment to bank in June 2001--Consideration for sale paid in February 2004--Sale of property to third person in February 2005--Rights under agreement acquired only in February 2004--Gains on sale of property assessable as short-term capital gains-- Lachmandas and Sons v. Deputy CIT (Ker) . . . 315
S. 56 --Income from other sources--Business income or income from other sources--Grants and loans received for setting up business--Investment of funds before commencement of business--Investment not connected with business--Interest on investment assessable as income from other sources-- CIT v. Indian Vaccines Corporation Ltd. (Delhi) . . . 295
S. 68 --Cash credits--Amounts claimed to be payments for services--No evidence of payments--Tribunal correct in upholding assessment of amounts under section 68--Tribunal correct in rejecting application for rectification to contend that amounts should be treated as undisclosed turnover-- S. Muthukumar v. ITO (Mad) . . . 161
S. 80HH --Industrial undertaking--Special deductions under sections 80HH, 80-I and 80-IB--Condition precedent--Production of article--Crushing of granite boulders into small pieces constitutes production--Assessee entitled to special deduction under sections 80HH, 80J and 80-IB-- CIT v. Panachayil Industries (Ker) . . . 261
S. 80HHD --Hotel--Special deduction under section 80HHD--Computation of special deduction--Special deduction whether to be computed on entire business or in respect of each eligible unit-- CIT v. ITC Hotels (Karn) . . . 254
S. 80-IA --Industrial undertaking--Special deduction under section 80-IA--Condition precedent--Profits and gains derived from industrial undertaking--Interest on KEB and NSC deposits--Not derived from industrial undertaking--Not entitled to special deduction-- CIT v. ITC Hotels (Karn) . . . 254
S. 80-IB --Industrial undertaking--Special deduction--Manufacture or production of article--Article need not be final product--Precured tread rubber--Income from mixing rubber with chemicals on job work basis--Assessee entitled to deduction-- CIT v. Midas Polymer Compounds P. Ltd. (Ker) . . . 309
----Industrial undertaking--Special deductions under sections 80HH, 80-I and 80-IB--Condition precedent--Production of article--Crushing of granite boulders into small pieces constitutes production--Assessee entitled to special deduction under sections 80HH, 80J and 80-IB-- CIT v. Panachayil Industries (Ker) . . . 261
----Industrial undertaking--Special deduction under section 80-IB--Condition precedent--Assessee should manufacture or produce article not covered by entry 25 in Eleventh Schedule--Assessee manufacturing polyurethane foam which is mentioned in entry 25 of Eleventh Schedule--Assessee not entitled to special deduction under section 80-IB-- CIT v. Polyfex (India) P. Ltd. (Karn) . . . 224
S. 80J --Industrial undertaking--Special deductions under sections 80HH, 80-I and 80-IB--Condition precedent--Production of article--Crushing of granite boulders into small pieces constitutes production--Assessee entitled to special deduction under sections 80HH, 80J and 80-IB-- CIT v. Panachayil Industries (Ker) . . . 261
S. 80-O --Remuneration from foreign enterprise--Special deduction under section 80-O--Conditions precedent--Services should be rendered outside India--Furnishing of legal opinion to foreign company on matters relating to setting up industry in India--Amount received from foreign enterprise not entitled to special deduction under section 80-O-- H. Raghavendra Rao v. Deputy CIT (Karn) . . . 238
S. 80P --Revision--Erroneous and prejudicial to Revenue--Assessee making claim under section 80P--Requirement of Assessing Officer to enquire factual situation whether assessee bank conducting business as a primary agriculture credit society or a primary co-operative agricultural and rural development bank--Benefit extended on basis of registration as co-operative society--Order erroneous and prejudicial to interests of Revenue-- Perinthalmanna Service Co-operative Bank Ltd. v. ITO (Ker) . . . 268
Chapter VI-A --Industrial undertaking--Special deduction under Chapter VI-A--Special deductions can be granted under more than one provision-- CIT v. Panachayil Industries (Ker) . . . 261
S. 127(2) --Transfer of case--Co-ordinated investigation--Reason for such co-ordinated investigation must be given--No notice giving a personal hearing and order passed without recording reasons--Order transferring case of assessee from Mumbai to Bangalore not valid-- Sunisha Impex P. Ltd. v. CIT (Bom) . . . 220
S. 133A --Income-tax survey--Undisclosed income--Statement recorded on oath admitting undisclosed income--Does not lose its evidentiary value--Statement not sole evidence--No evidence to show statement recorded during middle of night--Explanation in course of assessment that loose paper contained estimate of income prepared by consultant for submission to bank for loan to purchase equipment--Identity of consultant not established--No details of equipment for which loan is required--Explanation an afterthought--No evidence to support claim to cash expenses incurred not recorded in regular books of account--Assessment valid-- Dr. Dinesh Jain v. ITO (Bom) . . . 210
S. 143(2) --Search and seizure--Block assessment--Undisclosed income--No issue of notice under section 143(2)--Block assessment invalid-- R. Romi v. CIT (Ker) . . . 311
S. 145 --Business expenditure--Accounting--Real estate business set up--Development expenses whether allowable under Accounting Standards read with section 145/145A--Matter remanded-- Rangoli Projects P. Ltd. v. CIT (Delhi) . . . 192
S. 145A --Business expenditure--Accounting--Real estate business set up--Development expenses whether allowable under Accounting Standards read with section 145/145A--Matter remanded-- Rangoli Projects P. Ltd. v. CIT (Delhi) . . . 192
S. 147 --Reassessment--Notice--Condition precedent--Reason for reassessment must be recorded before issuing notice-- Gujarat Borosil Ltd. v. Deputy CIT (Guj) . . . 293
----Writ--Reassessment--Notice--Validity--Depends on whether assessee had a permanent establishment within jurisdiction of Assessing Officer issuing notice--Existence of jurisdictional fact cannot be examined in writ proceedings--Assessee to resolve disputed questions of fact in alternative remedies-- Adobe Systems Software Ireland Ltd. v. Asst. DIT (Delhi) . . . 174
S. 148 --Reassessment--Notice--Condition precedent--Reason for reassessment must be recorded before issuing notice-- Gujarat Borosil Ltd. v. Deputy CIT (Guj) . . . 293
----Reassessment--Notice--Return--Not a scrap of paper but sanctity attached to it--Obligation of assessee to file return in terms of notice--Assessee cannot deny obligation on ground in his opinion there is no taxable income-- Adobe Systems Software Ireland Ltd. v. Asst. DIT (Delhi) . . . 174
----Reassessment--Notice after four years--Limitation--Extended period of limitation where income escaping assessment exceeds Rs. 1 lakh--Condition precedent for invocation of extended period--Assessing Officer must record in reasons for notice fact that income escaping assessment likely to exceed Rs. 1 lakh--Failure to do so--Sanctioning authority cannot record satisfaction for reassessment in absence thereof--Notice not valid-- Mahesh Kumar Gupta v. CIT (All) . . . 300
----Writ--Reassessment--Notice--Validity--Depends on whether assessee had a permanent establishment within jurisdiction of Assessing Officer issuing notice--Existence of jurisdictional fact cannot be examined in writ proceedings--Assessee to resolve disputed questions of fact in alternative remedies-- Adobe Systems Software Ireland Ltd. v. Asst. DIT (Delhi) . . . 174
S. 149(1)(b) --Reassessment--Notice after four years--Limitation--Extended period of limitation where income escaping assessment exceeds Rs. 1 lakh--Condition precedent for invocation of extended period--Assessing Officer must record in reasons for notice fact that income escaping assessment likely to exceed Rs. 1 lakh--Failure to do so--Sanctioning authority cannot record satisfaction for reassessment in absence thereof--Notice not valid-- Mahesh Kumar Gupta v. CIT (All) . . . 300
S. 151(1), prov. --Reassessment--Notice after four years--Limitation--Extended period of limitation where income escaping assessment exceeds Rs. 1 lakh--Condition precedent for invocation of extended period--Assessing Officer must record in reasons for notice fact that income escaping assessment likely to exceed Rs. 1 lakh--Failure to do so--Sanctioning authority cannot record satisfaction for reassessment in absence thereof--Notice not valid-- Mahesh Kumar Gupta v. CIT (All) . . . 300
S. 158BC --Search and seizure--Block assessment--Undisclosed income--No issue of notice under section 143(2)--Block assessment invalid-- R. Romi v. CIT (Ker) . . . 311
Chapter XIV-B --Search and seizure--Block assessment--Scope of block assessment--No incriminating material found during search--Difference between cost of construction estimated by District Valuation Officer and cost shown in accounts less than 15 per cent.--Addition to income in block assessment--Not justified-- CIT v. Vasudev Construction (Karn) . . . 247
S. 221 --Recovery of tax--Application for stay--Tribunal granting stay and passing interim order for period of one hundred and eighty days in open court in presence of counsel for Revenue--Attachment of amounts in assessee’s bank account on ground concerned Assessing Officer was not intimated--Would amount to overreach of order of Tribunal--Revenue should lift attachment and ensure that amounts recovered are deposited back in assessee’s account-- A. T. Kearney India P. Ltd. v. ITO (Delhi) . . . 172
S. 251 --Assessment--General principles--Appeal to Commissioner (Appeals)--Powers of Commissioner (Appeals)--Exemption--Mistake in claim for exemption--Provision wrongly mentioned in e-return--Exemption allowed in the past--Documents in support of claim for exemption filed--Commissioner (Appeals) justified in granting exemption-- CIT v. Rajasthan Fasteners P. Ltd. (Raj) . . . 271
S. 254 --Appeal to Appellate Tribunal--Duty of Tribunal--Duty to give finding of fact--Finding should take into account relevant facts--Finding by Tribunal not taking into account facts found by Assessing Officer and Commissioner (Appeals)--Order set aside and matter remanded-- CIT v. Arun Malhotra (Delhi) . . . 195
----Cash credits--Amounts claimed to be payments for services--No evidence of payments--Tribunal correct in upholding assessment of amounts under section 68--Tribunal correct in rejecting application for rectification to contend that amounts should be treated as undisclosed turnover-- S. Muthukumar v. ITO (Mad) . . . 161
S. 260A --Appeal to High Court--Issue not raised before or considered by Tribunal--Issue cannot be considered by High Court-- S. Muthukumar v. ITO (Mad) . . . 161
S. 263 --Revision--Commissioner--Powers--Condition precedent for application of section 263--Order must be erroneous and also prejudicial to Revenue--Prejudice refers to lawful revenue being realised-- CIT v. Fr. Mullers Charitable Institutions (Karn) . . . 230
----Revision--Commissioner--Powers--Development of infrastructure for shooting locations--Lease rentals earned from land developed for creating film shooting facilities--Assessing Officer capitalising receipt as connected with main activity--Commissioner has no jurisdiction to revise because one of two possible views was taken by Assessing Officer-- CIT v. Usha Kiran Movies Ltd. (AP) . . . 165
----Revision--Erroneous and prejudicial to Revenue--Assessee making claim under section 80P--Requirement of Assessing Officer to enquire factual situation whether assessee bank conducting business as a primary agriculture credit society or a primary co-operative agricultural and rural development bank--Benefit extended on basis of registration as co-operative society--Order erroneous and prejudicial to interests of Revenue-- Perinthalmanna Service Co-operative Bank Ltd. v. ITO (Ker) . . . 268
----Revision--Order of revision under section 263--Condition precedent--Opportunity to assessee to be heard--No proper notice but assessee actually heard--Order of revision was valid-- Ashutosh Bandopadhyay v. CIT (Tripura) . . . 168
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