ITR'S TRIBUNAL TAX REPORTS (ITR (TRIB))--PRINT AND ONLINE EDITION
SUBJECT INDEX TO CASES REPORTED
Income --Disallowance of expenditure incurred in respect of exempt income--Method of disallowance under rule 8D--Assessing Officer must record his non-satisfaction about correctness of claim of assessee before making disallowance under section 14A--Matter remanded for readjudication--Income-tax Act, 1961, s. 14A(2)--Income-tax Rules, 1962, r. 8D-- Videocon Industries Ltd . v . Addl. CIT
(Mumbai) . . . 551
----Dividend income--Disallowance of expenditure incurred in respect of exempt income--Investment in shares and securities not exceeding own funds of assessee--Disallowance on interest not warranted--Income-tax Act, 1961, s. 14A--Income-tax Rules, 1962, r. 8D--Videocon Industries Ltd . v . Addl. CIT
(Mumbai) . . . 551
Income from undisclosed sources --No opportunity provided to rebut evidence in possession of Department--Additions not proper--Matter remanded for readjudication--Income-tax Act, 1961-- Videocon Industries Ltd . v . Addl. CIT
(Mumbai) . . . 551
Interest on borrowed capital --Interest-free loans to sister concern--Interest-free advances far less than own funds of assessee--No disallowance can be made--Income-tax Act, 1961, s. 36(1)(iii)-- Videocon Industries Ltd . v . Addl. CIT
(Mumbai) . . . 551
International transactions --Arm's length price--Assessee advancing loans to its associated enterprises and charging interest at London Interbank Offered Rate--Accepted benchmarking for interest transactions--No additions called for--Income-tax Act, 1961-- Videocon Industries Ltd . v . Addl. CIT (Mumbai) . . . 551
----Arm’s length price--Assessee providing corporate bank guarantee to associated enterprises--No bearing on profits, income, losses or assets of such enterprises--Outside ambit of international transactions--No transfer pricing adjustment can be made--Income-tax Act, 1961, s. 92B-- Videocon Industries Ltd . v . Addl. CIT
(Mumbai) . . . 551
----Transfer Pricing Officer--Export of manufactured finished goods and components of associated enterprises--Exclusion of export incentive received by assessee for benchmarking not proper--Income-tax Act, 1961-- Videocon Industries Ltd . v . Addl. CIT
(Mumbai) . . . 551
Volume 40 : Part 4 (Issue dated : 22-6-2015)
SUBJECT INDEX TO CASES REPORTED IN THIS PART
Appeal to Appellate Tribunal --Right to appeal--Appeal against order of revision--Vested right cannot be taken away except by express provision or by necessary implication--Appeal maintainable--Income-tax Act, 1961, ss. 253, 263-- Garden Reach Shipbuilders and Engineers Ltd . v. CIT (Kolkata) . . . 475
Appeal to Commissioner (Appeals) --Admission of additional evidence--Failure by Commissioner (Appeals) to give opportunity to Assessing Officer before admitting additional evidence--Violation of rule 46A--Assessing Officer to decide afresh--Matter remanded--Income-tax Act, 1961--Income-tax Rules, 1962, r. 46A-- Ciena India P. Ltd . v. Dy. CIT (Delhi) . . . 524
Business expenditure --Deduction only on actual payment--Assessee remitting provident fund contribution of employees belatedly but within due date of filing return of income under section 139(1)--Disallowance not proper--Income-tax Act, 1961, ss. 10A, 36(1)(va), 43B, 139(1)-- Tetra Soft (India) P. Ltd. v. Asst. CIT
(Hyderabad) . . . 470
----Expenditure incurred on foreign travel--Assessee furnishing details about encashment of foreign exchange--No doubt regarding foreign tours undertaken by employees of assessee--Expenditure allowable--Income-tax Act, 1961-- SM Energy Teknik and Electronics Ltd. v. Dy. CIT (Mumbai) . . . 540
Business income --Remission or cessation of liability--Condition for invoking section 41(1)--Allowance or deduction ought to have been made in assessment for any year in respect of loss, expenditure or trading liability incurred by assessee--Income-tax Act, 1961, s. 41(1)--SM Energy Teknik and Electronics Ltd. v. Dy. CIT
(Mumbai) . . . 540
Capital gains --Exemption--Computation--Actual sale consideration to be taken--No necessity to compute stamp duty valuation under section 50C--Assessee entitled to exemption--Income-tax Act, 1961, ss. 50C, 54-- Nand Lal Sharma v. ITO
(Jaipur) . . . 518
----Exemption--Sale of residential property--Condition precedent for exemption--Profits to be used for purchase of residential property or deposited in specified account before due date for furnishing return--Return includes return under section 139(4)--Time of one year from end of assessment year available--Income-tax Act, 1961, ss. 54, 139(4)-- Nand Lal Sharmav. ITO (Jaipur) . . . 518
----Transfer--Conversion of capital asset to stock-in-trade--Series of activities, facts and circumstances undertaken by assessee showing land converted into stock-in-trade much before previous year--No development activity by developer--No transfer within meaning of section 2(47)(v)--Section 2(47)(vi) not applicable to assessee being individual--No consideration from developer towards project to be executed--No income accruing to assessee--Capital gains not assessable--Income-tax Act, 1961, s. 2(47)(v), (vi)-- Fardeen Khan v. Asst. CIT (Mumbai) . . . 487
Capital or revenue expenditure --Expenditure incurred towards recruitment and training--Revenue in nature--Income-tax Act, 1961, s. 37-- Ciena India P. Ltd . v. Dy. CIT (Delhi) . . . 524
Charitable purpose --Registration--Condition precedent--Registration under Societies Act not required for registration under section 12AA--No adverse comment on genuineness of charitable activities, aims and objects of assessee--Assessee entitled to registration--Income-tax Act, 1961, s. 12AA-- Paramount Education Charitable Trust v. CIT (Chandigarh) . . . 555
----Registration of trust--Expression “charitable purpose†in section 2(15) to be read with section 10(23C)(iv)--Receipt of income by institution established for charitable purpose does not affect its charitable nature--Primary object of assessee to do charity through advancement of object of general public utility--Assessee to be regarded as institution established for charitable purposes--Assessee entitled to registration under section 12A--Income-tax Act, 1961, ss. 2(15), 10(23C)(iv), 12A-- Water and Land Management Training and Research Institute v. DIT (Exemption)
(Hyderabad) . . . 559
Depreciation --Rate of depreciation--Computer accessories--Uninterrupted power supply--Part and parcel of computer system--Depreciation allowable at 60 per cent.--Income-tax Act, 1961-- Tetra Soft (India) P. Ltd. v. Asst. CIT
(Hyderabad) . . . 470
Exemption --Export--Computation of deduction--Exclusion of travelling expenses from export turnover--Issue not adjudicated before Commissioner (Appeals)--Assessing Officer to examine afresh--Matter remanded--Income-tax Act, 1961, s. 10A-- McAfee Software (India) P. Ltd . v. Dy. CIT (Bangalore) . . . 574
----Export--Export oriented undertaking--Plant and machinery from another company purchased during previous year not exceeding 20 per cent. of total plant and machinery of assessee--Manufacturing activity in earlier financial years by use of new plant and machinery--No prohibition on use of business premises and transfer of employees and customers of other company--Transfer of only small percentage of employees and customers--Formation of assessee not by reconstruction--Exemption allowable--Income-tax Act, 1961, s. 10B-- Jeans Knit P. Ltd. v. Asst. CIT
(Bangalore) . . . 567
Export --Exemption--Computation of deduction--Internet charges and onsite expenses reduced from export turnover to be reduced from total turnover also--Income-tax Act, 1961, s. 10A-- Tetra Soft (India) P. Ltd. v. Asst. CIT
(Hyderabad) . . . 470
Housing project --Special deduction under section 80-IB--Condition precedent--Assessee combining two row houses into one unit in violation of section 80-IB(10)(c)--Deduction cannot be denied in entirety--Assessee entitled to deduction in respect of remaining units constructed in accordance with conditions prescribed under Act--Income-tax Act, 1961, s. 80-IB(10)(c)-- ITO v. Paras Builders (Pune) . . . 507
Income --Expenditure in relation to income not includible in taxable income--Interest--Assessee not showing income under head exempt income under Chapter III against which it claimed expenditure--Conditions not fulfilled to invoke provisions of section 14A--Failure by Assessing Officer to find evidence that interest expenses incurred by assessee not wholly and exclusively for purpose of business--Disallowance under section 14A to be deleted and interest expenditure under section 37 allowable--Income-tax Act, 1961, s. 14A-- SM Energy Teknik and Electronics Ltd . v. Dy. CIT
(Mumbai) . . . 540
Income from undisclosed sources --Cash deposits in bank--Assessee redepositing amount on withdrawal from account and sufficient cash available with bank--Nothing on record to show amount utilised by assessee on withdrawal--Matter remanded for readjudication--Income-tax Act, 1961-- Gurpreet Singh v. ITO
(Chandigarh) . . . 467
Industrial undertaking --Special deduction--Assessee deducting brought forward unabsorbed depreciation from gross total income--Computation of gross total income--Is incorrect and not in conformity with either terms of provisions or scheme of Act--Income-tax Act, 1961, s. 80-IA-- Deepi Arora v. ITO (Mumbai) . . . 597
International transactions --Arm’s length price--Determination--Selection of comparables--Assessee providing software development services--Turnover less than Rs. 200 crores--Companies with turnover exceeding Rs. 200 crores to be excluded from list of comparables--Functionally dissimilar companies and companies engaged in development of software products and services not comparable, to be excluded--Income-tax Act, 1961, s. 92CA-- McAfee Software (India) P. Ltd. v. Dy. CIT
(Bangalore) . . . 574
----Transfer pricing--Arm’s length price--Determination--Marketing support services--Selection of comparables--Marketing support services cannot be equated with testing services--Companies providing testing services, companies whose nature of activities distinct from that of assessee and companies maintaining accounts on entity level cannot be taken as comparable--Income-tax Act, 1961-- Ciena India P. Ltd . v. Dy. CIT (Delhi) . . . 524
----Transfer pricing--Arm’s length price--Determination--Software development services--Selection of comparables--Assessee not owning branded products--Not comparable with company having brand name and earning brand related profits--Assessee not comparable with company engaged in developing products where separate segmental information of software development not available--Company which undergoes mergers cannot be considered comparable--Income-tax Act, 1961-- Ciena India P. Ltd. v. Dy. CIT (Delhi) . . . 524
Penalty --Concealment of income or furnishing inaccurate particulars--Difference of opinion amongst authorities whether sum allowable as bad debt or business loss--Penalty cannot be levied--Income-tax Act, 1961, s. 271(1)(c)-- Hungry Jacks Fast Food P. Ltd . v. ITO(Mumbai) . . . 607
Revision --Commissioner--Business income--Goods in transit--Transit stock not included in purchase consistently and consequently value not debited in profit and loss account--Assessing Officer considering inventories, allowing stores in transit--Assessment order neither erroneous nor prejudicial to interests of Revenue--Order under section 263 not sustainable--Income-tax Act, 1961, s. 263-- Garden Reach Shipbuilders and Engineers Ltd.v. CIT (Kolkata) . . . 475
----Commissioner--Deduction only on actual payment--Unpaid excise duty pertaining to earlier years disallowed under section 43B--No claim of excise duty for relevant assessment year--Disallowance not permissible--Assessment order neither erroneous nor prejudicial to interests of Revenue--Commissioner erred in revising assessment under section 263--Income-tax Act, 1961, ss. 43B, 263-- Garden Reach Shipbuilders and Engineers Ltd . v. CIT(Kolkata) . . . 475
Special deduction --Donation to charitable institution--Trustees empowered to make amendment to trust deed and approval of civil court not required--Approval not to be denied for want of approval of civil court for amendment of trust deed--Income-tax Act, 1961, s. 80G(5)(vi)-- Heal A Child Foundation v. DIT (Exemptions)
(Hyderabad) . . . 550
Valuation of stock --Diminution of value of inventories of work-in-progress--Assessee revaluing inventory being unable to export or sell in local market due to recession--Failure by Assessing Officer to carry out enquiries--Assessing Officer to verify realised value of inventory--Claim of assessee allowable if goods sold at price shown by assessee as on last date of accounting year or lower price--Matter remanded--Income-tax Act, 1961-- SM Energy Teknik and Electronics Ltd. v. Dy. CIT (Mumbai) . . . 540
SECTIONWISE INDEX TO CASES REPORTED IN THIS PART
S. 2(15) --Charitable purposes--Registration of trust--Expression “charitable purpose†in section 2(15) to be read with section 10(23C)(iv)--Receipt of income by institution established for charitable purpose does not affect its charitable nature--Primary object of assessee to do charity through advancement of object of general public utility--Assessee to be regarded as institution established for charitable purposes--Assessee entitled to registration under section 12A-- Water and Land Management Training and Research Institute v. DIT (Exemption) (Hyderabad) . . . 559
S. 2(47)(v), (vi) --Capital gains--Transfer--Conversion of capital asset to stock-in-trade--Series of activities, facts and circumstances undertaken by assessee showing land converted into stock-in-trade much before previous year--No development activity by developer--No transfer within meaning of section 2(47)(v)--Section 2(47)(vi) not applicable to assessee being individual--No consideration from developer towards project to be executed--No income accruing to assessee--Capital gains not assessable-- Fardeen Khan v. Asst. CIT(Mumbai) . . . 487
S. 10A --Business expenditure--Deduction only on actual payment--Assessee remitting provident fund contribution of employees belatedly but within due date of filing return of income under section 139(1)--Disallowance not proper-- Tetra Soft (India) P. Ltd. v. Asst. CIT (Hyderabad) . . . 470
----Exemption--Export--Computation of deduction--Exclusion of travelling expenses from export turnover--Issue not adjudicated before Commissioner (Appeals)--Assessing Officer to examine afresh--Matter remanded-- McAfee Software (India) P. Ltd. v. Dy. CIT (Bangalore) . . . 574
----Export--Exemption--Computation of deduction--Internet charges and onsite expenses reduced from export turnover to be reduced from total turnover also-- Tetra Soft (India) P. Ltd. v. Asst. CIT (Hyderabad) . . . 470
S. 10B --Exemption--Export--Export oriented undertaking--Plant and machinery from another company purchased during previous year not exceeding 20 per cent. of total plant and machinery of assessee--Manufacturing activity in earlier financial years by use of new plant and machinery--No prohibition on use of business premises and transfer of employees and customers of other company--Transfer of only small percentage of employees and customers--Formation of assessee not by reconstruction--Exemption allowable-- Jeans Knit P. Ltd. v. Asst. CIT (Bangalore) . . . 567
S. 10(23C)(iv) --Charitable purposes--Registration of trust--Expression “charitable purpose†in section 2(15) to be read with section 10(23C)(iv)--Receipt of income by institution established for charitable purpose does not affect its charitable nature--Primary object of assessee to do charity through advancement of object of general public utility--Assessee to be regarded as institution established for charitable purposes--Assessee entitled to registration under section 12A-- Water and Land Management Training and Research Institute v. DIT (Exemption)
(Hyderabad) . . . 559
S. 12A --Charitable purposes--Registration of trust--Expression “charitable purpose†in section 2(15) to be read with section 10(23C)(iv)--Receipt of income by institution established for charitable purpose does not affect its charitable nature--Primary object of assessee to do charity through advancement of object of general public utility--Assessee to be regarded as institution established for charitable purposes--Assessee entitled to registration under section 12A-- Water and Land Management Training and Research Institute v. DIT (Exemption) (Hyderabad) . . . 559
S. 12AA --Charitable purpose--Registration--Condition precedent--Registration under Societies Act not required for registration under section 12AA--No adverse comment on genuineness of charitable activities, aims and objects of assessee--Assessee entitled to registration-- Paramount Education Charitable Trust v. CIT
(Chandigarh) . . . 555
S. 14A --Income--Expenditure in relation to income not includible in taxable income--Interest--Assessee not showing income under head exempt income under Chapter III against which it claimed expenditure--Conditions not fulfilled to invoke provisions of section 14A--Failure by Assessing Officer to find evidence that interest expenses incurred by assessee not wholly and exclusively for purpose of business--Disallowance under section 14A to be deleted and interest expenditure under section 37 allowable-- SM Energy Teknik and Electronics Ltd. v.Dy. CIT
(Mumbai) . . . 540
S. 36(1)(va) --Business expenditure--Deduction only on actual payment--Assessee remitting provident fund contribution of employees belatedly but within due date of filing return of income under section 139(1)--Disallowance not proper-- Tetra Soft (India) P. Ltd. v. Asst. CIT (Hyderabad) . . . 470
S. 37 --Capital or revenue expenditure--Expenditure incurred towards recruitment and training--Revenue in nature-- Ciena India P. Ltd. v. Dy. CIT
(Delhi) . . . 524
S. 41(1) --Business income--Remission or cessation of liability--Condition for invoking section 41(1)--Allowance or deduction ought to have been made in assessment for any year in respect of loss, expenditure or trading liability incurred by assessee-- SM Energy Teknik and Electronics Ltd. v. Dy. CIT (Mumbai) . . . 540
S. 43B --Business expenditure--Deduction only on actual payment--Assessee remitting provident fund contribution of employees belatedly but within due date of filing return of income under section 139(1)--Disallowance not proper-- Tetra Soft (India) P. Ltd. v. Asst. CIT (Hyderabad) . . . 470
----Revision--Commissioner--Deduction only on actual payment--Unpaid excise duty pertaining to earlier years disallowed under section 43B--No claim of excise duty for relevant assessment year--Disallowance not permissible--Assessment order neither erroneous nor prejudicial to interests of Revenue--Commissioner erred in revising assessment under section 263-- Garden Reach Shipbuilders and Engineers Ltd. v. CIT (Kolkata) . . . 475
S. 50C --Capital gains--Exemption--Computation--Actual sale consideration to be taken--No necessity to compute stamp duty valuation under section 50C--Assessee entitled to exemption-- Nand Lal Sharma v. ITO (Jaipur) . . . 518
S. 54 --Capital gains--Exemption--Computation--Actual sale consideration to be taken--No necessity to compute stamp duty valuation under section 50C--Assessee entitled to exemption-- Nand Lal Sharma v. ITO (Jaipur) . . . 518
----Capital gains--Exemption--Sale of residential property--Condition precedent for exemption--Profits to be used for purchase of residential property or deposited in specified account before due date for furnishing return--Return includes return under section 139(4)--Time of one year from end of assessment year available-- Nand Lal Sharma v. ITO (Jaipur) . . . 518
S. 80-IA --Industrial undertaking--Special deduction--Assessee deducting brought forward unabsorbed depreciation from gross total income--Computation of gross total income--Is incorrect and not in conformity with either terms of provisions or scheme of Act-- Deepi Arora v. ITO (Mumbai) . . . 597
S. 80-IB(10)(c) --Housing project--Special deduction under section 80-IB--Condition precedent--Assessee combining two row houses into one unit in violation of section 80-IB(10)(c)--Deduction cannot be denied in entirety--Assessee entitled to deduction in respect of remaining units constructed in accordance with conditions prescribed under Act-- ITO v.Paras Builders (Pune) . . . 507
S. 80G(5)(vi) --Special deduction--Donation to charitable institution--Trustees empowered to make amendment to trust deed and approval of civil court not required--Approval not to be denied for want of approval of civil court for amendment of trust deed-- Heal A Child Foundation v. DIT (Exemptions)
(Hyderabad) . . . 550
S. 92CA --International transactions--Arm’s length price--Determination--Selection of comparables--Assessee providing software development services--Turnover less than Rs. 200 crores--Companies with turnover exceeding Rs. 200 crores to be excluded from list of comparables--Functionally dissimilar companies and companies engaged in development of software products and services not comparable, to be excluded-- McAfee Software (India) P. Ltd. v. Dy. CIT (Bangalore) . . . 574
S. 139(1) --Business expenditure--Deduction only on actual payment--Assessee remitting provident fund contribution of employees belatedly but within due date of filing return of income under section 139(1)--Disallowance not proper-- Tetra Soft (India) P. Ltd. v. Asst. CIT (Hyderabad) . . . 470
S. 139(4) --Capital gains--Exemption--Sale of residential property--Condition precedent for exemption--Profits to be used for purchase of residential property or deposited in specified account before due date for furnishing return--Return includes return under section 139(4)--Time of one year from end of assessment year available-- Nand Lal Sharma v. ITO (Jaipur) . . . 518
S. 253 --Appeal to Appellate Tribunal--Right to appeal--Appeal against order of revision--Vested right cannot be taken away except by express provision or by necessary implication--Appeal maintainable-- Garden Reach Shipbuilders and Engineers Ltd. v. CIT (Kolkata) . . . 475
S. 263 --Appeal to Appellate Tribunal--Right to appeal--Appeal against order of revision--Vested right cannot be taken away except by express provision or by necessary implication--Appeal maintainable-- Garden Reach Shipbuilders and Engineers Ltd. v. CIT (Kolkata) . . . 475
----Revision--Commissioner--Business income--Goods in transit--Transit stock not included in purchase consistently and consequently value not debited in profit and loss account--Assessing Officer considering inventories, allowing stores in transit--Assessment order neither erroneous nor prejudicial to interests of Revenue--Order under section 263 not sustainable-- Garden Reach Shipbuilders and Engineers Ltd. v. CIT (Kolkata) . . . 475
----Revision--Commissioner--Deduction only on actual payment--Unpaid excise duty pertaining to earlier years disallowed under section 43B--No claim of excise duty for relevant assessment year--Disallowance not permissible--Assessment order neither erroneous nor prejudicial to interests of Revenue--Commissioner erred in revising assessment under section 263-- Garden Reach Shipbuilders and Engineers Ltd. v. CIT (Kolkata) . . . 475
S. 271(1)(c) --Penalty--Concealment of income or furnishing inaccurate particulars--Difference of opinion amongst authorities whether sum allowable as bad debt or business loss--Penalty cannot be levied-- Hungry Jacks Fast Food P. Ltd. v. ITO
(Mumbai) . . . 607
R. 46A --Appeal to Commissioner (Appeals)--Admission of additional evidence--Failure by Commissioner (Appeals) to give opportunity to Assessing Officer before admitting additional evidence--Violation of rule 46A--Assessing Officer to decide afresh--Matter remanded--Ciena India P. Ltd. v. Dy. CIT (Delhi) . . . 524
No comments:
Post a Comment