Pages

Thursday, July 2, 2015

ITR (TRIB) Volume 40 : Part 5 (Issue dated : 29-6-2015)

 

ITR'S TRIBUNAL TAX REPORTS (ITR (TRIB))--PRINT AND ONLINE EDITION

PRINT EDITION

Volume 40 : Part 5 (Issue dated : 29-6-2015)

SUBJECT INDEX TO CASES REPORTED IN THIS PART

Appeal to Appellate Tribunal --Competency of appeal--Monetary ceiling limit--Instruction No. 5 of 2014 revising monetary limits--Applicable to pending cases--Tax effect less than prescribed limit--Appeal not maintainable--Instruction No. 5 of 2014 dated 10-7-2014--Income-tax Act, 1961, s. 268A-- ITO v. Bhupendra Singh Monga
(Delhi) . . . 749

Bad debts --Law after 1989--Assessee writing off debts in its books of account--Sufficient--Not necessary for assessee to establish debt became irrecoverable--Income-tax Act, 1961, ss. 36(1)(vii), (2)-- Asst. CIT v. Living Media India Ltd . 
(Delhi) . . . 610

Business expenditure --Interest on borrowed capital--Assessee making interest-free advances and investments to group concerns--Whether assessee entered into collaboration agreement due to restrictions imposed by Land Acquisition Act--No disallowance if amount advanced to group concerns for business expediency--Assessing Officer to examine issue afresh--Matter remanded--Income-tax Act, 1961, s. 36(1)(iii)-- DD Township Ltd . v. Dy. CIT(Delhi) . . . 642

Cash credits --Unexplained cash credits--Commissioner (Appeals) deleting addition based on documentary evidence produced by assessee--No infirmity in order of Commissioner (Appeals)--Income-tax Act, 1961, s. 68-- ITO v. Neelkanth Finbuild Ltd . 
(Delhi) . . . 665

Charitable purpose --Educational institution--Exemption--Grant of loan by assessee-society to sister-trust--Failure by Assessing Officer to show how assessee violated provisions of Act warranting rejection of exemption under section 10(23C)(iiiad)--Order set aside--Income-tax Act, 1961, s. 10(23C)(iiiad)-- Vairams Kindergarten Society v. CIT (Appeals) (Chennai) . . . 694

----Exemption--Assessee incurring development expenses on land gifted by trustees to trust by hiba (oral gift)--Subsequently land transferred to trust by way of gift deed--Trustees not beneficiaries and no violation under section 13(1)(c)--Trust entitled to exemption--Income-tax Act, 1961, s. 13(1)(c)(ii)-- Dy. DIT (Exemptions) III v. A. R. Rahman Foundation (Chennai) . . . 726

Charitable trust --Charitable purpose--Exemption--Assessee providing diagnostic services at minimum cost--No diversion of funds--Charging fees cannot be reason to deny exemption--Diagnostic services can be treated as medical relief--Entitled to deduction under section 11--Income-tax Act, 1961, ss. 2(15), 11, 12AA-- Lions Club of Anna Nagar Charitable Trust v.Dy. DIT (Exemptions-III) (Chennai) . . . 746

Exemption --Charitable purpose--Meaning of “charitable purpose†--Society set up by Government of India and disbursing subsidies--Society charging fees for processing subsidy applications--Not business activity--Society’s activities do not cease to be charitable--Society entitled to exemption--Income-tax Act, 1961, ss. 2(15), 10(23C)(iv)-- National Horticulture Board v. Asst. CIT (Delhi) . . . 710

Income --Expenditure in relation to income not includible in taxable income--Dividend--Computation of disallowance under section 14A read with rule 8D--Assessing Officer including investments on which no dividend received by assessee--Failure by Assessing Officer and Commissioner (Appeals) to consider facts of assessee’s case in right perspective--Assessing Officer to decide afresh--Matter remanded--Income-tax Act, 1961, s. 14A--Income-tax Rules, 1962, r. 8D-- Asst. CIT v. Living Media India Ltd. (Delhi) . . . 610

Interest on borrowed capital --Failure to establish that assessee advanced loan to sister concern only out of interest-bearing funds--Assessee furnishing details of interest-free funds and utilisation of entire secured loan for business purposes--Department cannot dictate assessee to conduct business affairs in particular manner--Disallowance not proper--Income-tax Act, 1961, s. 36(1)(iii)-- Dy. CIT v. Alliance Retreat P. Ltd. 
(Chennai) . . . 661

International transactions --Arm’s length price--Determination--Assessee adopting resale price method for determining arm’s length price for earlier years--Assessing Officer to adopt resale price method in line with earlier assessment years--Matter remanded--Income-tax Act, 1961, s. 92CA-- Granules India Ltd. v. Dy. CIT 
(Hyderabad) . . . 737

----Transfer pricing--Arm’s length price--Determination--Comparable uncontrolled price method--Condition precedent--Comparables must be brought on to benchmark price charged by assessee--Failure by Transfer Pricing Officer to find comparable under comparable uncontrolled price method--Price charged by assessee to be accepted--Adjustment made by Transfer Pricing Officer to be deleted--Income-tax Act, 1961, s. 92C--Income-tax Rules, 1962, r. 10B(1)(a)-- Triniti Advanced Software Labs P. Ltd. v. ITO (Hyderabad) . . . 701

Non-resident --Taxability in India--Double taxation avoidance--Provisions of Act or agreement more beneficial to assessee, applicable--Double taxation avoidance agreement providing for lower tax rate than prescribed under section 206AA of Act--Assessing Officer cannot invoke section 206AA of Act to insist tax be deducted at 20 per cent. on payment to non-resident--Income-tax Act, 1961, ss. 90(2), 206AA-- Dy. DIT (International Taxation-II) v.Serum Institute of India Ltd. (Pune) . . . 684

Penalty --Concealment of income--Assessing Officer initiating proceedings for concealing particulars of income and levying penalty for furnishing inaccurate particulars of income--Initiating proceedings for one default and levying penalty for another default not sustainable--Income-tax Act, 1961, s. 271(1)(c)-- Dharni Developers v. Asst. CIT 
(Mumbai) . . . 720

----Self-assessment tax--Non-payment of tax within stipulated period--Failure by Department to prove assessee had sufficient cash or bank balance to meet tax demand and whether any funds were diverted for non-business purposes--Penalty to be deleted--Income-tax Act, 1961, s. 221(1)-- Dy. CIT v. Aanjaneya Life Care Ltd. 
(Mumbai) . . . 691

Revision --Commissioner--Assessee furnishing various details regarding irrecoverable claims--Assessing Officer accepting claim of bad debts considering submissions and evidence produced by assessee--Not a case of lack of enquiry--Commissioner cannot invoke jurisdiction under section 263 to revise assessment order--Income-tax Act, 1961, s. 263-- SPB Projects and Consultancy Ltd. v. CIT (Chennai) . . . 648

----Commissioner--Charitable purpose--Exemption--Association of apex governing body of State road transport undertakings created by Government of India--Carrrying out test laboratory services and consultancy--Activities carried out with charitable purpose--No object to earn profits--Assessing Officer making reasonable inquiry--Notice under section 263 not sustainable--Exemption allowable on receipts from test laboratory charges and consultancy charges--Income-tax Act, 1961, ss. 2(15), 11, 263-- Association of State Road Transport Undertakings v. CIT (Delhi) . . . 622

 

SECTIONWISE INDEX TO CASES REPORTED IN THIS PART

Income-tax Act, 1961 :

S. 2(15) --Charitable trust--Charitable purpose--Exemption--Assessee providing diagnostic services at minimum cost--No diversion of funds--Charging fees cannot be reason to deny exemption--Diagnostic services can be treated as medical relief--Entitled to deduction under section 11-- Lions Club of Anna Nagar Charitable Trust v. Dy. DIT (Exemptions-III)(Chennai) . . . 746

----Exemption--Charitable purpose--Meaning of “charitable purpose†--Society set up by Government of India and disbursing subsidies--Society charging fees for processing subsidy applications--Not business activity--Society’s activities do not cease to be charitable--Society entitled to exemption-- National Horticulture Board v. Asst. CIT (Delhi) . . . 710

----Revision--Commissioner--Charitable purpose--Exemption--Association of apex governing body of State road transport undertakings created by Government of India--Carrrying out test laboratory services and consultancy--Activities carried out with charitable purpose--No object to earn profits--Assessing Officer making reasonable inquiry--Notice under section 263 not sustainable--Exemption allowable on receipts from test laboratory charges and consultancy charges-- Association of State Road Transport Undertakings v. CIT (Delhi) . . . 622

S. 10(23C)(iiiad) --Charitable purpose--Educational institution--Exemption--Grant of loan by assessee-society to sister-trust--Failure by Assessing Officer to show how assessee violated provisions of Act warranting rejection of exemption under section 10(23C)(iiiad)--Order set aside-- Vairams Kindergarten Society v. CIT (Appeals)
(Chennai) . . . 694

S. 10(23C)(iv) --Exemption--Charitable purpose--Meaning of “charitable purpose†--Society set up by Government of India and disbursing subsidies--Society charging fees for processing subsidy applications--Not business activity--Society’s activities do not cease to be charitable--Society entitled to exemption-- National Horticulture Board v. Asst. CIT(Delhi) . . . 710

S. 11 --Charitable trust--Charitable purpose--Exemption--Assessee providing diagnostic services at minimum cost--No diversion of funds--Charging fees cannot be reason to deny exemption--Diagnostic services can be treated as medical relief--Entitled to deduction under section 11-- Lions Club of Anna Nagar Charitable Trust v. Dy. DIT (Exemptions-III)(Chennai) . . . 746

----Revision--Commissioner--Charitable purpose--Exemption--Association of apex governing body of State road transport undertakings created by Government of India--Carrrying out test laboratory services and consultancy--Activities carried out with charitable purpose--No object to earn profits--Assessing Officer making reasonable inquiry--Notice under section 263 not sustainable--Exemption allowable on receipts from test laboratory charges and consultancy charges-- Association of State Road Transport Undertakings v. CIT (Delhi) . . . 622

S. 12AA --Charitable trust--Charitable purpose--Exemption--Assessee providing diagnostic services at minimum cost--No diversion of funds--Charging fees cannot be reason to deny exemption--Diagnostic services can be treated as medical relief--Entitled to deduction under section 11-- Lions Club of Anna Nagar Charitable Trust v. Dy. DIT (Exemptions-III)(Chennai) . . . 746

S. 13(1)(c)(ii) --Charitable purpose--Exemption--Assessee incurring development expenses on land gifted by trustees to trust by hiba (oral gift)--Subsequently land transferred to trust by way of gift deed--Trustees not beneficiaries and no violation under section 13(1)(c)--Trust entitled to exemption-- Dy. DIT (Exemptions) III v. A. R. Rahman Foundation (Chennai) . . . 726

S. 14A --Income--Expenditure in relation to income not includible in taxable income--Dividend--Computation of disallowance under section 14A read with rule 8D--Assessing Officer including investments on which no dividend received by assessee--Failure by Assessing Officer and Commissioner (Appeals) to consider facts of assessee’s case in right perspective--Assessing Officer to decide afresh--Matter remanded-- Asst. CIT v. Living Media India Ltd . (Delhi) . . . 610

S. 36(1)(iii) --Business expenditure--Interest on borrowed capital--Assessee making interest-free advances and investments to group concerns--Whether assessee entered into collaboration agreement due to restrictions imposed by Land Acquisition Act--No disallowance if amount advanced to group concerns for business expediency--Assessing Officer to examine issue afresh--Matter remanded-- DD Township Ltd. v. Dy. CIT 
(Delhi) . . . 642

----Interest on borrowed capital--Failure to establish that assessee advanced loan to sister concern only out of interest-bearing funds--Assessee furnishing details of interest-free funds and utilisation of entire secured loan for business purposes--Department cannot dictate assessee to conduct business affairs in particular manner--Disallowance not proper-- Dy. CIT v. Alliance Retreat P. Ltd. (Chennai) . . . 661

S. 36(1)(vii) --Bad debts--Law after 1989--Assessee writing off debts in its books of account--Sufficient--Not necessary for assessee to establish debt became irrecoverable--Asst. CIT v. Living Media India Ltd. (Delhi) . . . 610

S. 36(2) --Bad debts--Law after 1989--Assessee writing off debts in its books of account--Sufficient--Not necessary for assessee to establish debt became irrecoverable-- Asst. CITv. Living Media India Ltd. (Delhi) . . . 610

S. 68 --Cash credits--Unexplained cash credits--Commissioner (Appeals) deleting addition based on documentary evidence produced by assessee--No infirmity in order of Commissioner (Appeals)-- ITO v. Neelkanth Finbuild Ltd. (Delhi) . . . 665

S. 90(2) --Non-resident--Taxability in India--Double taxation avoidance--Provisions of Act or agreement more beneficial to assessee, applicable--Double taxation avoidance agreement providing for lower tax rate than prescribed under section 206AA of Act--Assessing Officer cannot invoke section 206AA of Act to insist tax be deducted at 20 per cent. on payment to non-resident-- Dy. DIT (International Taxation-II) v. Serum Institute of India Ltd. (Pune) . . . 684

S. 92C --International transactions--Transfer pricing--Arm’s length price--Determination--Comparable uncontrolled price method--Condition precedent--Comparables must be brought on to benchmark price charged by assessee--Failure by Transfer Pricing Officer to find comparable under comparable uncontrolled price method--Price charged by assessee to be accepted--Adjustment made by Transfer Pricing Officer to be deleted-- Triniti Advanced Software Labs P. Ltd. v. ITO
(Hyderabad) . . . 701

S. 92CA --International transactions--Arm’s length price--Determination--Assessee adopting resale price method for determining arm’s length price for earlier years--Assessing Officer to adopt resale price method in line with earlier assessment years--Matter remanded-- Granules India Ltd . v. Dy. CIT (Hyderabad) . . . 737

S. 206AA --Non-resident--Taxability in India--Double taxation avoidance--Provisions of Act or agreement more beneficial to assessee, applicable--Double taxation avoidance agreement providing for lower tax rate than prescribed under section 206AA of Act--Assessing Officer cannot invoke section 206AA of Act to insist tax be deducted at 20 per cent. on payment to non-resident-- Dy. DIT (International Taxation-II) v. Serum Institute of India Ltd. (Pune) . . . 684

S. 221(1) --Penalty--Self-assessment tax--Non-payment of tax within stipulated period--Failure by Department to prove assessee had sufficient cash or bank balance to meet tax demand and whether any funds were diverted for non-business purposes--Penalty to be deleted-- Dy. CIT v. Aanjaneya Life Care Ltd. (Mumbai) . . . 691

S. 263 --Revision--Commissioner--Assessee furnishing various details regarding irrecoverable claims--Assessing Officer accepting claim of bad debts considering submissions and evidence produced by assessee--Not a case of lack of enquiry--Commissioner cannot invoke jurisdiction under section 263 to revise assessment order-- SPB Projects and Consultancy Ltd. v. CIT (Chennai) . . . 648

----Revision--Commissioner--Charitable purpose--Exemption--Association of apex governing body of State road transport undertakings created by Government of India--Carrrying out test laboratory services and consultancy--Activities carried out with charitable purpose--No object to earn profits--Assessing Officer making reasonable inquiry--Notice under section 263 not sustainable--Exemption allowable on receipts from test laboratory charges and consultancy charges-- Association of State Road Transport Undertakings v. CIT (Delhi) . . . 622

S. 268A --Appeal to Appellate Tribunal--Competency of appeal--Monetary ceiling limit--Instruction No. 5 of 2014 revising monetary limits--Applicable to pending cases--Tax effect less than prescribed limit--Appeal not maintainable--Instruction No. 5 of 2014 dated 10-7-2014-- ITO v. Bhupendra Singh Monga (Delhi) . . . 749

S. 271(1)(c) --Penalty--Concealment of income--Assessing Officer initiating proceedings for concealing particulars of income and levying penalty for furnishing inaccurate particulars of income--Initiating proceedings for one default and levying for another default not sustainable-- Dharni Developers v. Asst. CIT
(Mumbai) . . . 720

Income-tax Rules, 1962 :

R. 8D --Income--Expenditure in relation to income not includible in taxable income--Dividend--Computation of disallowance under section 14A read with rule 8D--Assessing Officer including investments on which no dividend received by assessee--Failure by Assessing Officer and Commissioner (Appeals) to consider facts of assessee’s case in right perspective--Assessing Officer to decide afresh--Matter remanded-- Asst. CIT v. Living Media India Ltd . (Delhi) . . . 610

R. 10B(1)(a) --International transactions--Transfer pricing--Arm’s length price--Determination--Comparable uncontrolled price method--Condition precedent--Comparables must be brought on to benchmark price charged by assessee--Failure by Transfer Pricing Officer to find comparable under comparable uncontrolled price method--Price charged by assessee to be accepted--Adjustment made by Transfer Pricing Officer to be deleted--Triniti Advanced Software Labs P. Ltd. v. ITO 
(Hyderabad) . . . 701

 

__._,_.___

No comments:

Post a Comment