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Saturday, May 31, 2014

ITR Volume 364 : Part 1 (Issue dated : 2-6-2014)


 

INCOME TAX REPORTS (ITR)--PRINT AND ONLINE EDITION

ONLINE EDITION

SUBJECT INDEX TO CASES REPORTED

SUPREME COURT

Exemption --Export--Computation of income--Unabsorbed depreciation and unabsorbed investment allowance--Carry forward and set off--Assessee having income other than from export oriented unit--Unabsorbed depreciation and investment allowance partly adjusted against other income to show nil liability--Not permissible--Income-tax Act, 1961, ss. 10B, 32, 32A-- Himatsingka Seide Ltd. v. CIT . . . 467

Income from undisclosed sources --Unexplained investment--Interest on borrowed capital--Deletion of additions by Tribunal reversed by High Court--Supreme Court--No interference-- Narendra Mohan Paliwal v. CIT . . . 468

HIGH COURTS

Assessment --Powers of Assessing Officer--Assessing Officer passing order following direction of Tribunal--Successor-in-office had no jurisdiction to pass another order--Income-tax Act, 1961, s. 254-- Classic Share and Stock Broking Services Ltd. v. Asst. CIT (Bom) . . . 470

Capital gains --Slump sale--Definition--Scheme of arrangement approved by High Court--Does not affect liability to tax on transfer of a capital asset--Consideration received by assessee on transfer of its project finance business and assets based financing business, including its shareholding--Taxable as slump sale--Income-tax Act, 1961, s. 50B-- SREI Infrastructure Finance Ltd. v. ITSC (Delhi) . . . 474

Income --Business income--Remission or cessation of trading liability--Law applicable--Effect of insertion of Explanation 1 to section 41(1)-- Explanation does not have retrospective effect--Unclaimed salaries, credit balances not claimed by suppliers and customers and uncashed cheques--Amounts written back in accounts--Not includible in income of assessee--Income-tax Act, 1961, s. 41(1)-- CIT v. Mohan Meakin Ltd. (Delhi) . . . 434

Penalty --Loan in cash exceeding prescribed limit--Burden on assessee to prove reasonable cause for receiving cash--No such proof was available--Penalty justified--Income-tax Act, 1961, ss. 269SS, 271D-- K. V. George v. CIT (Ker) . . . 445

Precedent --Importance of precedent-- UTI Mutual Fund v. ITO (Bom) . . . 486

Recovery of tax --Stay of proceedings--Strong prima facie case raising serious triable issues--Judgment of High Court relating to prior assessment year favourable to assessee--Stay granted--Income-tax Act, 1961, s. 260-- UTI Mutual Fund v. ITO (Bom) . . . 486

Unexplained investment --Sale of shares at less than market value--Claim that seller acted as trustee--No evidence to disprove claim--No evidence that transaction was not genuine--Difference between sale price and market price not assessable as unexplained investment--Income-tax Act, 1961, s. 69-- CIT v. Associate Techno Plastics P. Ltd. (Delhi) . . . 449

PRINT EDITION

ITR Volume 364 : Part 1 (Issue dated : 2-6-2014)

SUBJECT INDEX TO CASES REPORTED IN THIS PART

SUPREME COURT

Appeal to High Court --Substantial question of law--Binding nature of findings of fact--Court to examine whether question involves merely finding of fact or legal effect of such proven facts or documents--Where question involves legal effect of proven facts or documents--Question of law arises--Income-tax Act, 1961, s. 260A-- CIT v. Dawoodi Bohra Jamat . . . 31

Charitable purpose --Definition--Income-tax Act, 1961, s. 2(15)-- CIT v. Dawoodi Bohra Jamat . . . 31

----Exemption--Exclusion from exemption where trust created for benefit of particular community or caste--General principles--Objects of assessee-trust based on religious tenets--Activities of trust both charitable and religious--Benefits not exclusively meant for particular religious community--Trust not disqualified to claim exemption--Income-tax Act, 1961, ss. 2(15), 11, 12, 12A, 12AA, 13-- CIT v. Dawoodi Bohra Jamat . . . 31

Export --Special deduction--Turnover--Computation--To include sales only of goods dealt in by assessee--Assessee dealing in manufacture and export of stainless steel utensils--Sale of scrap--Proceeds not includible in turnover--Income-tax Act, 1961, s. 80HHC-- CIT v. Punjab Stainless Steel Industries . . . 144

Interpretation of taxing statutes --Meanings of words--Meaning given by body of accountants having statutory recognition--Can be adopted-- CIT v. Punjab Stainless Steel Industries . . . 144

----Provision intended to encourage businessmen in order to bring more foreign exchange to country-- CIT v. Punjab Stainless Steel Industries . . . 144

Words and phrases --“Religious purpose†, meaning of-- CIT v. Dawoodi Bohra Jamat . . . 31

----“Turnover†--Meaning of-- CIT v. Punjab Stainless Steel Industries . . . 144

HIGH COURTS

Accounting --Change in method of accounting--Tickets dispatched to stockists shown as not sold but also not shown as part of stock--Change distorting picture for purposes of taxation--Change not valid--Income-tax Act, 1961-- CIT v. K and Co. (Delhi) . . . 93

Advance tax --Interest--Stock appreciation rights--Employer bound to deduct tax at source--No question of employee paying advance tax--Employee entitled to take into account amount of tax deductible though not actually deducted--Income-tax Act, 1961, ss. 234A, 234B, 234C-- CIT v. Anil Kumar Nehru (Bom) . . . 26

Appeal to Appellate Tribunal --Rectification of order by Tribunal--Application for rectification--Limitation--Starting point for limitation--Actual date of receipt of order of Tribunal--Income-tax Act, 1961, s. 254(2)-- Peterplast Synthetics P. Ltd. v. Asst. CIT (Guj) . . . 16

Business expenditure --Current repairs--Expenditure on replacement of dies and moulds--Allowable as current repairs--Income-tax Act, 1961, s. 31-- CIT v. TVS Motors Ltd. (Mad) . . . 1

----Deduction only on actual payment--Entry tax--Whether adjusted against sales tax in sales tax assessment not relevant--Allowable if paid--Income-tax Act, 1961, s. 43B-- CIT v. TVS Motors Ltd. (Mad) . . . 1

----Scientific research expenditure--Expenditure on work-in-progress--Allowable--Income-tax Act, 1961, s. 35(1)(iv)-- CIT v. TVS Motors Ltd. (Mad) . . . 1

Business income --Income from other sources--Funds placed as margin money in order to obtain bank guarantee required by State Government for carrying on business in sale of lottery tickets--Interest earned on margin money--Business income--Income-tax Act, 1961-- CIT v. K and Co. (Delhi) . . . 93

Capital gains --Long-term capital gains--Short-term capital gains--Shares treated as investment in balance-sheets for several years--No evidence that shares purchased with borrowed funds--Profits from sale to be treated as long-term capital gains--Short duration of holding of shares and lack of clarity in account books--Profits from sale not short-term capital gains but business income--Income-tax Act, 1961-- CIT v. D & M Components Ltd. (Delhi) . . . 179

Capital or revenue receipt --Special capital incentive--Object of assistance under subsidy scheme to enable assessee to set up new unit--Capital receipt--Income-tax Act, 1961-- CIT v. Kirloskar Oil Engines Ltd. (Bom) . . . 88

Cash credits --Share application money--Finding that transaction of share application was not genuine--Addition of amount under section 68--Justified--Income-tax Act, 1961, s. 68-- Onassis Axles P. Ltd. v. CIT (Delhi) . . . 53

Charitable purposes --Charitable institution--Registration--Object of general public utility--Assessee a statutory body controlling activities at a major port for utilising and creating facilities--Activities of assessee for general public utility--Assessee entitled to registration--Income-tax Act, 1961, s. 12AA-- CIT v. Kandla Port Trust (Guj) . . . 164

----Charitable trust--Registration--Trustees given power to amend trust deed--Amendment following conditions laid down in trust deed--Approval of civil court not necessary--Amended trust deed can be relied upon for purpose of registration--Income-tax Act, 1961, s. 12AA-- Director of Income-tax (Exemptions) v. Ramoji Foundation (AP) . . . 85

Deduction of tax at source --Rent--Scope of expression--Provision of passive infrastructure facilities to mobile operators by assessee--Towers are neutral platform without which mobile operators cannot operate--Dominant intention is use of equipment or plant or machinery--Amounts to renting of plant and machinery--That equipment housed in premises incidental and not a renting of premises--Tax deduction at source to be at rate prescribed in section 194-I(a)--Income-tax Act, 1961, ss. 194C, 194-I, 197-- Indus Towers Ltd. v. CIT (Delhi) . . . 114

Depreciation --Lease of commercial vehicles--Vehicles not having permanent registration--Not relevant--Assessee entitled to depreciation--Income-tax Act, 1961, s. 32-- CIT v. K and Co. (Delhi) . . . 93

----Temporary sheds for parking vehicles--Depreciation allowable at rate applicable to building--Income-tax Act, 1961, s. 32-- CIT v. TVS Motors Ltd. (Mad) . . . 1

Dividend --Deemed dividend--Loan to shareholder--Exception clause--Conditions for exception to apply--Tribunal finding since lender companies did not carry on money-lending business, advances to assessee not in ordinary course of business--Not proper test--Whether lending of money substantial part of business of company not established on facts--Matter remanded--Income-tax Act, 1961, s. 2(22)(e)-- Kishori Lal Agrawal v. CIT (All) . . . 158

Exemption --Interest on money borrowed by industrial undertaking in India from foreign country--Condition precedent for exemption under sub-clause (c) of section 10(15)(iv)--Industrial undertaking should be engaged in mining--Meaning of “engaged in mining†--Money borrowed for purchasing workover rigs for drilling for ONGC--Contract stipulating that work included preparation of well for production--Interest entitled to exemption--Income-tax Act, 1961, s. 10(15)-- Dewan Chand Ram Chandra Industries P. Ltd. v. Union of India (Delhi) . . . 70

Export --Special deduction--Profits of business--Profits from forward contracts owing to fluctuation of foreign exchange--Whether forward contracts made in course of business of export and whether profits earned with reference to particular contract--Matter remanded--Income-tax Act, 1961, ss. 35(1)(iv), 80HHC-- CIT v. TVS Motors Ltd. (Mad) . . . 1

Income --Accrual of income--Time of accrual--Dispatch to agents and sale of lottery tickets--Unsold tickets to be returned one day before draw of lottery--No sale till date of draw of lottery--Accrual of income only at that time--Income-tax Act, 1961-- CIT v. K and Co. (Delhi) . . . 93

----Business income--Recovery of bad debts--Co-operative bank--Provision for bad debts under RBI guidelines--No claim for bad debts--Amounts written back into accounts subsequently--Not assessable under section 41(4)--Income-tax Act, 1961, ss. 41(4), 80P-- CIT v. Jain Co-operative Bank Ltd. (Delhi) . . . 137

Interpretation of taxing statutes --Words--Interpretation with reference to context.-- Dewan Chand Ram Chandra Industries P. Ltd. v. Union of India (Delhi) . . . 70

Kar Vivad Samadhan Scheme --Condition precedent for claiming benefit--Pendency of proceedings--Designated authority not entitled to consider motive of assessee in seeking revision--Designated authority to consider only whether declarant eligible to file declaration in terms of Scheme--No power to reject declaration on ground relief claimed in revision petition not within scope of jurisdiction--Designated authority to process declarations filed by assessees--Finance (No. 2) Act, 1998--Income-tax Act, 1961, s. 264-- Y. V. Chander v. Union of India (AP) . . . 190

Penalty --Concealment of income--Deduction on account of interest claimed knowingly on wrong basis--Furnishing inaccurate particulars to avoid liability to pay tax on that basis--No evidence that inaccurate particulars furnished accidentally or by mistake--Penalty rightly imposed--Income-tax Act, 1961, s. 271(1)(c)-- Gourav Goenka v. Asst. CIT (Cal) . . . 186

----Loan or deposit in cash exceeding prescribed limit--Several transactions above Rs. 20,000--Defence that person who was in charge of branch not well versed with income-tax law--Assessee expected to know person who maintains day-to-day administration--No consistency in explanation of assessee--Assessee to explain transactions of Rs. 20,000 and above before Assessing Officer--Income-tax Act, 1961, s. 271D-- N. S. S. Karayogam v. CIT (Ker) . . . 81

Precedent --Effect of decision of Supreme Court in CIT v. Bokaro Steel Ltd. [1999] 236 ITR 315 (SC)-- CIT v. K and Co. (Delhi) . . . 93

Reassessment --Deduction of tax at source--Assessee importing raw materials from foreign holding company under “high seas sales†--Order of Dispute Resolution Panel in transfer pricing proceedings not proposing any disallowance of payments made to foreign company under section 40(a)(i)--Reassessment of holding company pursuant to survey--Finding by Dispute Resolution Panel in case of holding company that it could not be taxed in respect of sales made in India through assessee on footing that assessee was its permanent establishment--No income arose or accrued to holding company through its permanent establishment in India in respect of sales made in India--Assessee could not be treated as in default--Payments made by assessee to holding company for goods not tax deductible--Allowable as deduction--Notices issued to assessee under sections 148 and 201(1)/(1A)--Liable to be quashed--Income-tax Act, 1961, ss. 40(a)(i), 148, 195(2), 201(1), (1A)-- Samsung India Electronics Pvt. Ltd. v. Deputy Director of Income-tax (International Taxation) (Delhi) . . . 103

Recovery of tax --Stay of recovery proceedings--Stay of part of demand--Demand based mainly on enhancement of assessment by Commissioner (Appeals)--Prima facie case against enhancement--Stay to be granted in respect of entire demand--Income-tax Act, 1961-- Saipem Triune Engineering P. Ltd. v. Asst. CIT (Delhi) . . . 154

Settlement of cases --Application for settlement--Duty of Settlement Commission--Settlement Commission must consider contentions of assessee and Revenue and reach an objective decision--Rejection of application without considering issues--Not valid--Income-tax Act, 1961, s. 245D-- MARC Bathing Luxuries Ltd. v. ITSC (Delhi) . . . 64

 

SECTIONWISE INDEX TO CASES REPORTED IN THIS PART

Income-tax Act, 1961 :

S. 2(15) --Charitable purpose--Definition-- CIT v. Dawoodi Bohra Jamat (SC). . . 31

----Charitable purpose--Exemption--Exclusion from exemption where trust created for benefit of particular community or caste--General principles--Objects of assessee-trust based on religious tenets--Activities of trust both charitable and religious--Benefits not exclusively meant for particular religious community--Trust not disqualified to claim exemption-- CIT v. Dawoodi Bohra Jamat (SC). . . 31

S. 2(22)(e) --Dividend--Deemed dividend--Loan to shareholder--Exception clause--Conditions for exception to apply--Tribunal finding since lender companies did not carry on money-lending business, advances to assessee not in ordinary course of business--Not proper test--Whether lending of money substantial part of business of company not established on facts--Matter remanded-- Kishori Lal Agrawal v. CIT (All) . . . 158

S. 10(15) --Exemption--Interest on money borrowed by industrial undertaking in India from foreign country--Condition precedent for exemption under sub-clause (c) of section 10(15)(iv)--Industrial undertaking should be engaged in mining--Meaning of “engaged in mining†--Money borrowed for purchasing workover rigs for drilling for ONGC--Contract stipulating that work included preparation of well for production--Interest entitled to exemption-- Dewan Chand Ram Chandra Industries P. Ltd. v. Union of India (Delhi) . . . 70

S. 11 --Charitable purpose--Exemption--Exclusion from exemption where trust created for benefit of particular community or caste--General principles--Objects of assessee-trust based on religious tenets--Activities of trust both charitable and religious--Benefits not exclusively meant for particular religious community--Trust not disqualified to claim exemption-- CIT v. Dawoodi Bohra Jamat (SC). . . 31

S. 12 --Charitable purpose--Exemption--Exclusion from exemption where trust created for benefit of particular community or caste--General principles--Objects of assessee-trust based on religious tenets--Activities of trust both charitable and religious--Benefits not exclusively meant for particular religious community--Trust not disqualified to claim exemption-- CIT v. Dawoodi Bohra Jamat (SC). . . 31

S. 12A --Charitable purpose--Exemption--Exclusion from exemption where trust created for benefit of particular community or caste--General principles--Objects of assessee-trust based on religious tenets--Activities of trust both charitable and religious--Benefits not exclusively meant for particular religious community--Trust not disqualified to claim exemption-- CIT v. Dawoodi Bohra Jamat (SC). . . 31

S. 12AA --Charitable purposes--Charitable institution--Registration--Object of general public utility--Assessee a statutory body controlling activities at a major port for utilising and creating facilities--Activities of assessee for general public utility--Assessee entitled to registration-- CIT v. Kandla Port Trust (Guj) . . . 164

----Charitable purposes--Charitable trust--Registration--Trustees given power to amend trust deed--Amendment following conditions laid down in trust deed--Approval of civil court not necessary--Amended trust deed can be relied upon for purpose of registration-- Director of Income-tax (Exemptions) v. Ramoji Foundation (AP) . . . 85

----Charitable purpose--Exemption--Exclusion from exemption where trust created for benefit of particular community or caste--General principles--Objects of assessee-trust based on religious tenets--Activities of trust both charitable and religious--Benefits not exclusively meant for particular religious community--Trust not disqualified to claim exemption-- CIT v. Dawoodi Bohra Jamat (SC). . . 31

S. 13 --Charitable purpose--Exemption--Exclusion from exemption where trust created for benefit of particular community or caste--General principles--Objects of assessee-trust based on religious tenets--Activities of trust both charitable and religious--Benefits not exclusively meant for particular religious community--Trust not disqualified to claim exemption-- CIT v. Dawoodi Bohra Jamat (SC). . . 31

S. 31 --Business expenditure--Current repairs--Expenditure on replacement of dies and moulds--Allowable as current repairs-- CIT v. TVS Motors Ltd. (Mad) . . . 1

S. 32 --Depreciation--Lease of commercial vehicles--Vehicles not having permanent registration--Not relevant--Assessee entitled to depreciation-- CIT v. K and Co. (Delhi) . . . 93

----Depreciation--Temporary sheds for parking vehicles--Depreciation allowable at rate applicable to building-- CIT v. TVS Motors Ltd. (Mad) . . . 1

S. 35(1)(iv) --Business expenditure--Scientific research expenditure--Expenditure on work-in-progress--Allowable-- CIT v. TVS Motors Ltd. (Mad) . . . 1

----Export--Special deduction--Profits of business--Profits from forward contracts owing to fluctuation of foreign exchange--Whether forward contracts made in course of business of export and whether profits earned with reference to particular contract--Matter remanded-- CIT v. TVS Motors Ltd. (Mad) . . . 1

S. 40(a)(i) --Reassessment--Deduction of tax at source--Assessee importing raw materials from foreign holding company under “high seas sales†--Order of Dispute Resolution Panel in transfer pricing proceedings not proposing any disallowance of payments made to foreign company under section 40(a)(i)--Reassessment of holding company pursuant to survey--Finding by Dispute Resolution Panel in case of holding company that it could not be taxed in respect of sales made in India through assessee on footing that assessee was its permanent establishment--No income arose or accrued to holding company through its permanent establishment in India in respect of sales made in India--Assessee could not be treated as in default--Payments made by assessee to holding company for goods not tax deductible--Allowable as deduction--Notices issued to assessee under sections 148 and 201(1)/(1A)--Liable to be quashed-- Samsung India Electronics Pvt. Ltd. v. Deputy Director of Income-tax (International Taxation) (Delhi) . . . 103

S. 41(4) --Income--Business income--Recovery of bad debts--Co-operative bank--Provision for bad debts under RBI guidelines--No claim for bad debts--Amounts written back into accounts subsequently--Not assessable under section 41(4)-- CIT v. Jain Co-operative Bank Ltd. (Delhi) . . . 137

S. 43B --Business expenditure--Deduction only on actual payment--Entry tax--Whether adjusted against sales tax in sales tax assessment not relevant--Allowable if paid-- CIT v. TVS Motors Ltd. (Mad) . . . 1

S. 68 --Cash credits--Share application money--Finding that transaction of share application was not genuine--Addition of amount under section 68--Justified-- Onassis Axles P. Ltd. v. CIT (Delhi) . . . 53

S. 80HHC --Export--Special deduction--Profits of business--Profits from forward contracts owing to fluctuation of foreign exchange--Whether forward contracts made in course of business of export and whether profits earned with reference to particular contract--Matter remanded-- CIT v. TVS Motors Ltd. (Mad) . . . 1

----Export--Special deduction--Turnover--Computation--To include sales only of goods dealt in by assessee--Assessee dealing in manufacture and export of stainless steel utensils--Sale of scrap--Proceeds not includible in turnover-- CIT v. Punjab Stainless Steel Industries (SC). . . 144

S. 80P --Income--Business income--Recovery of bad debts--Co-operative bank--Provision for bad debts under RBI guidelines--No claim for bad debts--Amounts written back into accounts subsequently--Not assessable under section 41(4)-- CIT v. Jain Co-operative Bank Ltd. (Delhi) . . . 137

S. 148 --Reassessment--Deduction of tax at source--Assessee importing raw materials from foreign holding company under “high seas sales†--Order of Dispute Resolution Panel in transfer pricing proceedings not proposing any disallowance of payments made to foreign company under section 40(a)(i)--Reassessment of holding company pursuant to survey--Finding by Dispute Resolution Panel in case of holding company that it could not be taxed in respect of sales made in India through assessee on footing that assessee was its permanent establishment--No income arose or accrued to holding company through its permanent establishment in India in respect of sales made in India--Assessee could not be treated as in default--Payments made by assessee to holding company for goods not tax deductible--Allowable as deduction--Notices issued to assessee under sections 148 and 201(1)/(1A)--Liable to be quashed-- Samsung India Electronics Pvt. Ltd. v. Deputy Director of Income-tax (International Taxation) (Delhi) . . . 103

S. 194C --Deduction of tax at source--Rent--Scope of expression--Provision of passive infrastructure facilities to mobile operators by assessee--Towers are neutral platform without which mobile operators cannot operate--Dominant intention is use of equipment or plant or machinery--Amounts to renting of plant and machinery--That equipment housed in premises incidental and not a renting of premises--Tax deduction at source to be at rate prescribed in section 194-I(a)-- Indus Towers Ltd. v. CIT (Delhi) . . . 114

S. 194-I --Deduction of tax at source--Rent--Scope of expression--Provision of passive infrastructure facilities to mobile operators by assessee--Towers are neutral platform without which mobile operators cannot operate--Dominant intention is use of equipment or plant or machinery--Amounts to renting of plant and machinery--That equipment housed in premises incidental and not a renting of premises--Tax deduction at source to be at rate prescribed in section 194-I(a)-- Indus Towers Ltd. v. CIT (Delhi) . . . 114

S. 195(2) --Reassessment--Deduction of tax at source--Assessee importing raw materials from foreign holding company under “high seas sales†--Order of Dispute Resolution Panel in transfer pricing proceedings not proposing any disallowance of payments made to foreign company under section 40(a)(i)--Reassessment of holding company pursuant to survey--Finding by Dispute Resolution Panel in case of holding company that it could not be taxed in respect of sales made in India through assessee on footing that assessee was its permanent establishment--No income arose or accrued to holding company through its permanent establishment in India in respect of sales made in India--Assessee could not be treated as in default--Payments made by assessee to holding company for goods not tax deductible--Allowable as deduction--Notices issued to assessee under sections 148 and 201(1)/(1A)--Liable to be quashed-- Samsung India Electronics Pvt. Ltd. v. Deputy Director of Income-tax (International Taxation) (Delhi) . . . 103

S. 197 --Deduction of tax at source--Rent--Scope of expression--Provision of passive infrastructure facilities to mobile operators by assessee--Towers are neutral platform without which mobile operators cannot operate--Dominant intention is use of equipment or plant or machinery--Amounts to renting of plant and machinery--That equipment housed in premises incidental and not a renting of premises--Tax deduction at source to be at rate prescribed in section 194-I(a)-- Indus Towers Ltd. v. CIT (Delhi) . . . 114

S. 201(1), (1A) --Reassessment--Deduction of tax at source--Assessee importing raw materials from foreign holding company under “high seas sales†--Order of Dispute Resolution Panel in transfer pricing proceedings not proposing any disallowance of payments made to foreign company under section 40(a)(i)--Reassessment of holding company pursuant to survey--Finding by Dispute Resolution Panel in case of holding company that it could not be taxed in respect of sales made in India through assessee on footing that assessee was its permanent establishment--No income arose or accrued to holding company through its permanent establishment in India in respect of sales made in India--Assessee could not be treated as in default--Payments made by assessee to holding company for goods not tax deductible--Allowable as deduction--Notices issued to assessee under sections 148 and 201(1)/(1A)--Liable to be quashed-- Samsung India Electronics Pvt. Ltd. v. Deputy Director of Income-tax (International Taxation) (Delhi) . . . 103

S. 234A --Advance tax--Interest--Stock appreciation rights--Employer bound to deduct tax at source--No question of employee paying advance tax--Employee entitled to take into account amount of tax deductible though not actually deducted-- CIT v. Anil Kumar Nehru (Bom) . . . 26

S. 234B --Advance tax--Interest--Stock appreciation rights--Employer bound to deduct tax at source--No question of employee paying advance tax--Employee entitled to take into account amount of tax deductible though not actually deducted-- CIT v. Anil Kumar Nehru (Bom) . . . 26

S. 234C --Advance tax--Interest--Stock appreciation rights--Employer bound to deduct tax at source--No question of employee paying advance tax--Employee entitled to take into account amount of tax deductible though not actually deducted-- CIT v. Anil Kumar Nehru (Bom) . . . 26

S. 245D --Settlement of cases--Application for settlement--Duty of Settlement Commission--Settlement Commission must consider contentions of assessee and Revenue and reach an objective decision--Rejection of application without considering issues--Not valid-- MARC Bathing Luxuries Ltd. v. ITSC (Delhi) . . . 64

S. 254(2) --Appeal to Appellate Tribunal--Rectification of order by Tribunal--Application for rectification--Limitation--Starting point for limitation--Actual date of receipt of order of Tribunal-- Peterplast Synthetics P. Ltd. v. Asst. CIT (Guj) . . . 16

S. 260A --Appeal to High Court--Substantial question of law--Binding nature of findings of fact--Court to examine whether question involves merely finding of fact or legal effect of such proven facts or documents--Where question involves legal effect of proven facts or documents--Question of law arises-- CIT v. Dawoodi Bohra Jamat (SC). . . 31

S. 264 --Kar Vivad Samadhan Scheme--Condition precedent for claiming benefit--Pendency of proceedings--Designated authority not entitled to consider motive of assessee in seeking revision--Designated authority to consider only whether declarant eligible to file declaration in terms of Scheme--No power to reject declaration on ground relief claimed in revision petition not within scope of jurisdiction--Designated authority to process declarations filed by assessees-- Y. V. Chander v. Union of India (AP) . . . 190

S. 271(1)(c) --Penalty--Concealment of income--Deduction on account of interest claimed knowingly on wrong basis--Furnishing inaccurate particulars to avoid liability to pay tax on that basis--No evidence that inaccurate particulars furnished accidentally or by mistake--Penalty rightly imposed-- Gourav Goenka v. Asst. CIT (Cal) . . . 186

S. 271D --Penalty--Loan or deposit in cash exceeding prescribed limit--Several transactions above Rs. 20,000--Defence that person who was in charge of branch not well versed with income-tax law--Assessee expected to know person who maintains day-to-day administration--No consistency in explanation of assessee--Assessee to explain transactions of Rs. 20,000 and above before Assessing Officer-- N. S. S. Karayogam v. CIT (Ker) . . . 81

 


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