INCOME TAX REPORTS (ITR)--PRINT AND ONLINE EDITION
ITR Volume 370 : Part 4 (Issue dated : 26-1-2015)
SUBJECT INDEX TO CASES REPORTED IN THIS PART
Appeal to Appellate Tribunal --Tribunal’s decision based on documents and evidence not presented to Assessing Officer or Commissioner (Appeals)--Matter remanded to Assessing Officer--Income-tax Act, 1961--CIT v. Muthoot General Finance (Ker) . . . 543
Best judgment assessment --Best judgment assessment based on documents seized by CBI--Documents not returned to assessee--Principles of natural justice violated--Best judgment assessment was not valid--Income-tax Act, 1961 s. 147-- Mridul Kumar Laskar v.Union of India (Gauhati) . . . 593
Business expenditure --Disallowance--Payments subject to deduction of tax at source--Transportation of coal--Agreement between assessee and non-resident--Sums must be chargeable under Income-tax Act--Payments to non-resident--Director of Income-tax holding amount not assessable in India--Payments to non-resident not liable to deduction of tax at source--Disallowance not justified--Income-tax Act, 1961, ss. 40, 44B, 195-- Anand Transport P. Ltd. v. Asst. CIT (Mad) . . . 524
Capital gains --Long-term capital gains--Exemption--Investment falling under two financial years--Exemption could not be restricted--Income-tax Act, 1961, s. 54EC-- CIT v.Coromandel Industries Ltd. (Mad) . . . 586
----Long-term capital gains--Exemption--Sale of residential property and investment of gains in residential property and bonds--Time of six months from date of transfer for investment--Assessee entitled to exemption in respect of investment Rs. 50 lakhs each in two different financial years within time limit--Income-tax Act, 1961, s. 54EC-- CIT v. C. Jaichander (Mad) . . . 579
Charitable purpose --Charitable trust--Registration--Trust yet to obtain registration--Provision requiring furnishing of report of audited accounts has no application--No subjective satisfaction recorded--Registration denied on ground trust spent low quantum towards charitable activities--Reasons for declining registration unsustainable--Income-tax Rules, 1962 r. 17A, 17B--Income-tax Act, 1961, s. 12AA-- DIT (Exemptions) v. R. J. B. V. Vasudevan Educational and Charitable Trust (Mad) . . . 517
----Exemption--Accumulation of income--Condition precedent--Specification of purpose of accumulation--Whether and in which cases purpose of accumulation declared by assessee to be treated as sufficient--Pure finding of fact--Scheme floated by assessee to work for welfare of its members--Accumulation for further utilisation for objectives of assessee--Finding that purpose was neither vague nor unspecified--No disallowance on account of accumulation of income--Income-tax Act, 1961, s. 11(2)-- DIT (Exemption) v. NBIE Welfare Society (Delhi) . . . 490
Educational institution --Exemption--Capital expenditure incurred for attainment of object of institution--Entitled to exemption--Income-tax Act, 1961, s. 11-- CIT v. Silicon Institute of Technology (Orissa) . . . 567
Exemption --Bank employee--Exit option scheme--Employee serving for more than ten years and at time of retirement more than forty years of age--Second exit option scheme for overall reduction of employees--Employee declaring he had not accepted any commercial employment in any company belonging to same management--Scheme fulfilling conditions in rule 2BA--Ex gratia amount entitled to exemption--Income-tax Rules, 1962, r. 2BA--Income-tax Act, 1961, s. 10(10C)-- CIT v. Appasaheb Baburao Kamble (Karn) . . . 499
----Educational institution--Consideration received on account relinquishment of right in firm--Appellate authorities finding not a transfer and no capital gains tax leviable--Whether it is independent of exemption--Matter remanded--Income-tax Act, 1961, s. 10(23C)(via)-- CIT v.Medical Relief Society of South Kanara (Karn) . . . 497
Industrial undertaking --Special deduction--Condition for entitlement--Assessee should be an industrial undertaking in notified backward area--Whether it is manufacturing or producing or processing--Immaterial--Assessee granted deductions for prior years--Denial of deduction on ground no process of manufacturing involved in relevant assessment year--Not justified--Income-tax Act, 1961, ss. 80HH, 80-I-- CIT v. Shree Processors P. Ltd. (T & AP) . . . 511
Intercorporate dividend --Special deduction--Contract to sell shares not specifically performed--Assessee obtaining dividends and selling shares at reduced price--Alteration of contract permissible--Deduction in respect of dividend allowable--Income-tax Act, 1961, s. 80M-- Maud Tea and Seed Co. Ltd. v. CIT (Cal) . . . 603
Precedent --Effect of Supreme Court decision in GE India Technology Centre P. Ltd. v. CIT[2010] 327 ITR 456 (SC)-- Anand Transport P. Ltd. v. Asst. CIT (Mad) . . . 524
Reassessment --Notice after four years--Conditions precedent--Failure on part of assessee to disclose fully and truly all material facts necessary for assessment, for that assessment year--Reasons for reopening based on assessment records--Reopening of assessment contrary to law--Income-tax Act, 1961, ss. 147, 148-- ACI Oils P. Ltd. v. Deputy CIT (All) . . . 561
Refund --Self-assessment--Interest on refund--Refund of tax paid on self-assessment--Interest payable on such refund--Income-tax Act, 1961, ss. 140A, 244A-- CIT v. Punjab Chemical and Crop Protection Limited (P & H) . . . 481
Revision --Commissioner--Powers--Capital or revenue receipt--Capital gains--Business income--Agency business--Termination of agency business--Assessing Officer wrongly treating receipt as capital gains and applying section 54EC to grant exemption--Consideration for transfer of goodwill received in nature of compensation--Taxable under head “Profits and gains of business or profession†--Revision applying section 28(ii)(c) valid--Income-tax Act, 1961, ss. 28(ii)(c), 45, 263-- Chakiat Agencies Pvt. Ltd. v. Asst. CIT (Mad) . . . 502
----Commissioner--Powers--Nature of transaction in immovable property in Mumbai--Acquisition of three flats--Agreement for sale conferring enforceable right and such right statutorily recognised--Commissioner exercising revisional power on ground agreement for sale confers no title in immovable property--Not valid--Commissioner finding separate indexation needed for two separate sets of agreement, original agreement to sale and deed of rectification--Mere change of opinion--Revision not valid--Income-tax Act, 1961, s. 263--CIT v. Ms. Bina Indrakumar (Bom) . . . 552
Search and seizure --Block assessment--Undisclosed income--Retraction of statement--Relevant documents shown to assessee and assessee not only admitting genuineness of documents but also admitting unaccounted income mentioned therein--Assessee cannot disown statement--Block assessment not based on exclusively upon statement but supported by other documents seized during search--Block assessment valid--Income-tax Act, 1961, s. 158BC-- Y. Ramachandra Reddy v. Addl. CIT (Assessment) (T & AP) . . . 557
Speculative transaction --Stock and share broker--Hedging transactions--Loss due to price of shares continuing to rise--Not speculative loss--Transaction within ambit of exception--Not disallowable--Income-tax Act, 1961, s. 43(5), proviso -- Maud Tea and Seed Co. Ltd. v. CIT(Cal) . . . 603
Transfer of case --Transfer based on document found during search--Assessee denying any dealings with group subjected to search--Assessee not furnished copy of document--Assessee not given opportunity to be heard--Order of transfer not valid--Income-tax Act, 1961, s. 127-- Sachin Joshi v. CIT (Bom) . . . 598
Writ --High Court--Existence of alternative remedy--Not an absolute bar to issue of writ--Constitution of India, art. 226-- Anand Transport P. Ltd. v. Asst. CIT (Mad) . . . 524
SECTIONWISE INDEX TO CASES REPORTED IN THIS PART
Art. 226 --Writ--High Court--Existence of alternative remedy--Not an absolute bar to issue of writ-- Anand Transport P. Ltd. v. Asst. CIT (Mad) . . . 524
S. 10(10C) --Exemption--Bank employee--Exit option scheme--Employee serving for more than ten years and at time of retirement more than forty years of age--Second exit option scheme for overall reduction of employees--Employee declaring he had not accepted any commercial employment in any company belonging to same management--Scheme fulfilling conditions in rule 2BA--Ex gratia amount entitled to exemption-- CIT v. Appasaheb Baburao Kamble (Karn) . . . 499
S. 10(23C)(via) --Exemption--Educational institution--Consideration received on account relinquishment of right in firm--Appellate authorities finding not a transfer and no capital gains tax leviable--Whether it is independent of exemption--Matter remanded-- CIT v. Medical Relief Society of South Kanara (Karn) . . . 497
S. 11 --Educational institution--Exemption--Capital expenditure incurred for attainment of object of institution--Entitled to exemption-- CIT v. Silicon Institute of Technology (Orissa) . . . 567
S. 11(2) --Charitable purpose--Exemption--Accumulation of income--Condition precedent--Specification of purpose of accumulation--Whether and in which cases purpose of accumulation declared by assessee to be treated as sufficient--Pure finding of fact--Scheme floated by assessee to work for welfare of its members--Accumulation for further utilisation for objectives of assessee--Finding that purpose was neither vague nor unspecified--No disallowance on account of accumulation of income-- DIT (Exemption) v. NBIE Welfare Society (Delhi) . . . 490
S. 12AA --Charitable purpose--Charitable trust--Registration--Trust yet to obtain registration--Provision requiring furnishing of report of audited accounts has no application--No subjective satisfaction recorded--Registration denied on ground trust spent low quantum towards charitable activities--Reasons for declining registration unsustainable-- DIT (Exemptions) v.R. J. B. V. Vasudevan Educational and Charitable Trust (Mad) . . . 517
S. 28(ii)(c) --Revision--Commissioner--Powers--Capital or revenue receipt --Capital gains--Business income--Agency business--Termination of agency business--Assessing Officer wrongly treating receipt as capital gains and applying section 54EC to grant exemption--Consideration for transfer of goodwill received in nature of compensation--Taxable under head “Profits and gains of business or profession†--Revision applying section 28(ii)(c) valid-- Chakiat Agencies Pvt. Ltd. v. Asst. CIT (Mad) . . . 502
S. 40 --Business expenditure--Disallowance--Payments subject to deduction of tax at source--Transportation of coal--Agreement between assessee and non-resident--Sums must be chargeable under Income-tax Act--Payments to non-resident--Director of Income-tax holding amount not assessable in India--Payments to non-resident not liable to deduction of tax at source--Disallowance not justified-- Anand Transport P. Ltd. v. Asst. CIT (Mad) . . . 524
S. 43(5), proviso --Speculative transaction--Stock and share broker--Hedging transactions--Loss due to price of shares continuing to rise--Not speculative loss--Transaction within ambit of exception--Not disallowable-- Maud Tea and Seed Co. Ltd. v. CIT (Cal) . . . 603
S. 44B --Business expenditure--Disallowance--Payments subject to deduction of tax at source--Transportation of coal--Agreement between assessee and non-resident--Sums must be chargeable under Income-tax Act--Payments to non-resident--Director of Income-tax holding amount not assessable in India--Payments to non-resident not liable to deduction of tax at source--Disallowance not justified-- Anand Transport P. Ltd. v. Asst. CIT (Mad) . . . 524
S. 45 --Revision--Commissioner--Powers--Capital or revenue receipt --Capital gains--Business income--Agency business--Termination of agency business--Assessing Officer wrongly treating receipt as capital gains and applying section 54EC to grant exemption--Consideration for transfer of goodwill received in nature of compensation--Taxable under head “Profits and gains of business or profession†--Revision applying section 28(ii)(c) valid-- Chakiat Agencies Pvt. Ltd. v. Asst. CIT (Mad) . . . 502
S. 54EC --Capital gains--Long-term capital gains--Exemption--Investment falling under two financial years--Exemption could not be restricted-- CIT v. Coromandel Industries Ltd. (Mad) . . . 586
----Capital gains--Long-term capital gains--Exemption--Sale of residential property and investment of gains in residential property and bonds--Time of six months from date of transfer for investment--Assessee entitled to exemption in respect of investment Rs. 50 lakhs each in two different financial years within time limit-- CIT v. C. Jaichander (Mad) . . . 579
S. 80HH --Industrial undertaking--Special deduction--Condition for entitlement--Assessee should be an industrial undertaking in notified backward area--Whether it is manufacturing or producing or processing--Immaterial--Assessee granted deductions for prior years--Denial of deduction on ground no process of manufacturing involved in relevant assessment year--Not justified-- CIT v. Shree Processors P. Ltd. (T & AP) . . . 511
S. 80-I --Industrial undertaking--Special deduction--Condition for entitlement--Assessee should be an industrial undertaking in notified backward area--Whether it is manufacturing or producing or processing--Immaterial--Assessee granted deductions for prior years--Denial of deduction on ground no process of manufacturing involved in relevant assessment year--Not justified-- CIT v. Shree Processors P. Ltd. (T & AP) . . . 511
S. 80M --Intercorporate dividend--Special deduction--Contract to sell shares not specifically performed--Assessee obtaining dividends and selling shares at reduced price--Alteration of contract permissible--Deduction in respect of dividend allowable-- Maud Tea and Seed Co. Ltd. v. CIT (Cal) . . . 603
S. 127 --Transfer of case--Transfer based on document found during search--Assessee denying any dealings with group subjected to search--Assessee not furnished copy of document--Assessee not given opportunity to be heard--Order of transfer not valid-- Sachin Joshi v. CIT (Bom) . . . 598
S. 140A --Refund--Self-assessment--Interest on refund--Refund of tax paid on self-assessment--Interest payable on such refund-- CIT v. Punjab Chemical and Crop Protection Limited (P & H) . . . 481
S. 147 --Best judgment assessment--Best judgment assessment based on documents seized by CBI--Documents not returned to assessee--Principles of natural justice violated--Best judgment assessment was not valid-- Mridul Kumar Laskar v. Union of India (Gauhati) . . . 593
----Reassessment--Notice after four years--Conditions precedent--Failure on part of assessee to disclose fully and truly all material facts necessary for assessment, for that assessment year--Reasons for reopening based on assessment records--Reopening of assessment contrary to law-- ACI Oils P. Ltd. v. Deputy CIT (All) . . . 561
S. 148 --Reassessment--Notice after four years--Conditions precedent--Failure on part of assessee to disclose fully and truly all material facts necessary for assessment, for that assessment year--Reasons for reopening based on assessment records--Reopening of assessment contrary to law-- ACI Oils P. Ltd. v. Deputy CIT (All) . . . 561
S. 158BC --Search and seizure--Block assessment--Undisclosed income--Retraction of statement--Relevant documents shown to assessee and assessee not only admitting genuineness of documents but also admitting unaccounted income mentioned therein--Assessee cannot disown statement--Block assessment not based on exclusively upon statement but supported by other documents seized during search--Block assessment valid--Y. Ramachandra Reddy v. Addl. CIT (Assessment) (T & AP) . . . 557
S. 195 --Business expenditure--Disallowance--Payments subject to deduction of tax at source--Transportation of coal--Agreement between assessee and non-resident--Sums must be chargeable under Income-tax Act--Payments to non-resident--Director of Income-tax holding amount not assessable in India--Payments to non-resident not liable to deduction of tax at source--Disallowance not justified-- Anand Transport P. Ltd. v. Asst. CIT (Mad) . . . 524
S. 244A --Refund--Self-assessment--Interest on refund--Refund of tax paid on self-assessment--Interest payable on such refund-- CIT v. Punjab Chemical and Crop Protection Limited (P & H) . . . 481
S. 263 --Revision--Commissioner--Powers--Capital or revenue receipt--Capital gains--Business income--Agency business--Termination of agency business--Assessing Officer wrongly treating receipt as capital gains and applying section 54EC to grant exemption--Consideration for transfer of goodwill received in nature of compensation--Taxable under head “Profits and gains of business or profession†--Revision applying section 28(ii)(c) valid-- Chakiat Agencies Pvt. Ltd. v. Asst. CIT (Mad) . . . 502
----Revision--Commissioner--Powers--Nature of transaction in immovable property in Mumbai--Acquisition of three flats--Agreement for sale conferring enforceable right and such right statutorily recognised--Commissioner exercising revisional power on ground agreement for sale confers no title in immovable property--Not valid--Commissioner finding separate indexation needed for two separate sets of agreement, original agreement to sale and deed of rectification--Mere change of opinion--Revision not valid-- CIT v. Ms. Bina Indrakumar(Bom) . . . 552
R. 2BA --Exemption--Bank employee--Exit option scheme--Employee serving for more than ten years and at time of retirement more than forty years of age--Second exit option scheme for overall reduction of employees--Employee declaring he had not accepted any commercial employment in any company belonging to same management--Scheme fulfilling conditions in rule 2BA--Ex gratia amount entitled to exemption-- CIT v. Appasaheb Baburao Kamble(Karn) . . . 499
R. 17A --Charitable purpose--Charitable trust--Registration--Trust yet to obtain registration--Provision requiring furnishing of report of audited accounts has no application--No subjective satisfaction recorded--Registration denied on ground trust spent low quantum towards charitable activities--Reasons for declining registration unsustainable-- DIT (Exemptions) v.R. J. B. V. Vasudevan Educational and Charitable Trust (Mad) . . . 517
R. 17B --Charitable purpose--Charitable trust--Registration--Trust yet to obtain registration--Provision requiring furnishing of report of audited accounts has no application--No subjective satisfaction recorded--Registration denied on ground trust spent low quantum towards charitable activities--Reasons for declining registration unsustainable-- DIT (Exemptions) v.R. J. B. V. Vasudevan Educational and Charitable Trust (Mad) . . . 517
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