ITR'S TRIBUNAL TAX REPORTS (ITR (TRIB))--PRINT AND ONLINE EDITION
ONLINE EDITION
SUBJECT INDEX TO CASES REPORTED
Book profit --Computation--Export--Provisions of section 115JB not applicable to income accruing or arising after 1-4-2005 for business carried on in unit located in special economic zone--Income of special economic zone unit of assessee cannot be included while computing book profit under section 115JB--Income-tax Act, 1961, s. 115JB-- Hexagon Nutrition P. Ltd. v . Dy. CIT (Mumbai) . . . 5
Business expenditure --Disallowance--Payments liable to deduction of tax at source--Expenses incurred on advertisement--Assessing Officer to examine whether assessee not required to deduct tax at source for payments--Matter remanded--Income-tax Act, 1961--Hexagon Nutrition P. Ltd. v . Dy. CIT (Mumbai) . . . 5
Exemption --New industrial undertaking in special economic zone--Computation of deduction under section 10A--Deduction to be given at stage when profits and gains of business computed in first instance--Brought forward unabsorbed depreciation of unit cannot be set off against current profit of eligible unit for computing deduction under section 10A--Income-tax Act, 1961, s. 10A-- Hexagon Nutrition P. Ltd. v . Dy. CIT
(Mumbai) . . . 5
----New industrial undertaking in special economic zone--Expenditure disproportionately apportioned among both eligible and non-eligible units--Assessing Officer scientifically allocating expenditure of non-eligible unit to eligible unit on basis of turnover ratio--Allocation of expenditure proper--Allocation of interest expenditure towards eligible unit out of interest expenditure allocated by Assessing Officer from non-eligible unit to eligible unit--Matter remanded--Income-tax Act, 1961, s. 10A-- Hexagon Nutrition P. Ltd. v . Dy. CIT (Mumbai) . . . 5
Rectification of mistakes --Deduction of tax at source--Assessing Officer treating assessee as assessee-in-default for non-deduction of tax at source--Assessing Officer passing rectification order on finding payment of tax by recipient--Assessee not in default of non-deduction of tax at source--Income-tax Act, 1961, ss. 154, 201(1)-- Dy. CIT (TDS) v . Reliance Communications Infrastructure Ltd.
(Mumbai) . . . 1
PRINT EDITION
Volume 41 : Part 2 (Issue dated : 20-7-2015)
SUBJECT INDEX TO CASES REPORTED IN THIS PART
Business expenditure --Disallowance--Income of assessee to be computed under section 11--Disallowance cannot be made under section 40(a)(ia) by applying commercial principles--Income-tax Act, 1961, s. 40(a)(ia)-- ITO (Exemptions)-II v . Kalinga Cultural Trust (Hyd) . . . 147
----Disallowance--Payments liable to deduction of tax at source--Purchase of intellectual property rights--Depreciation cannot be denied for failure to deduct tax at source on payment--Income-tax Act, 1961, ss. 40(a)(i), 195-- SAB Miller India Ltd. v . Addl. CIT(Mumbai) . . . 167
----Disallowance--Payments liable to deduction of tax at source--Sale price discounts--Relationship between assessee and distributors in relation to sale and purchase of product needing examination--Matter remanded--Income-tax Act, 1961, ss. 40(a)(ia), 194H-- SAB Miller India Ltd. v . Addl. CIT (Mumbai) . . . 167
----Disallowance--Payments liable to deduction of tax at source--Trading of film rights--Sale of world negative rights on perpetual and permanent basis--Not a case of payment of royalty--Assessee not required to deduct tax at source--No question of disallowance--Income-tax Act, 1961, ss. 40(a)(ia), 194J-- Dy. CIT v . V. Rama Krishna
(Hyd) . . . 157
----Disallowance--Payments subject to deduction of tax at source--Software charges to enable electronic fund transfer facility-- Explanation 4 to section 9(1)(vi) applicable--Provisions of section 40(a)(i) not applicable on payments hit by prospective amendment--Disallowance not proper--Income-tax Act, 1961, ss. 9(1)(vi), Expln. 4 , 40(a)(ia)-- SAB Miller India Ltd. v . Addl. CIT (Mumbai) . . . 167
----Disallowance--Payments to non-resident--Failure to deduct tax at source--Draft assessment order incorporating additions made by Assessing Officer--Assessee not raising objections to draft assessment order--Assessee cannot raise issue before Tribunal--Income-tax Act, 1961, ss. 40(a)(ia), 144C(8)-- Aptean Software India P. Ltd. v . ITO
(Bang) . . . 246
----Factory expenses--Expenses not fully supported by vouchers and bills--Failure by assessee to file detailed submissions against findings of Assessing Officer--Disallowance of one-fifth of expenses proper--Income-tax Act, 1961-- Swastik Industries v . ITO (Ahd) . . . 277
----Interest on borrowed capital--Loans advanced to group companies at lower rate of interest--Whether advances given out of own funds--Matter remanded for verification--Income-tax Act, 1961, s. 36(1)(iii)-- SAB Miller India Ltd. v . Addl. CIT
(Mumbai) . . . 167
Capital or revenue expenditure --Club membership fee--Revenue expenditure--Income-tax Act, 1961-- SAB Miller India Ltd. v. Addl. CIT (Mumbai) . . . 167
Charitable purpose --Exemption--Denial of exemption on ground that assessee receiving money for endorsing products of companies on claiming of health and nutritional benefits--Endorsement cannot be medically or scientifically incorrect--No violation of provisions of section 2(15)--Assessee entitled to exemption--Income-tax Act, 1961, ss. 2(15), 11-- Asst. DIT (Exemptions) v . Indian Medical Association
(Delhi) . . . 222
Depreciation --Goodwill--Payments made to retiring partners for acquiring commercial rights disclosed as goodwill--Assessee entitled to depreciation on goodwill--Income-tax Act, 1961--Swastik Industries v . ITO (Ahd) . . . 277
Exemption --Charitable purpose--Assessee carrying on charitable activity for relief of poor, disabled and persons affected by natural calamities--Assessee modifying objects after registration--Failure by assessee to submit details of work undertaken or amounts spent in places affected by natural calamities--One more opportunity to be given to assessee to submit all details--Assessing Officer to examine change in objects of memorandum of association and date of approval of modified objects by Director of Income-tax (Exemptions)--Matter remanded--Income-tax Act, 1961, s. 11-- Dy. DIT (Exemptions)-III v . Operation Blessing India (Hyd) . . . 176
----Charitable purpose--Assessee constructing temple and letting out function hall--Assessee registered as charitable institution and no change in its aims and objects--Exemption allowed in earlier assessment year--Rule of consistency to be followed--Proviso to section 2(15) cannot be applied to deny exemption under section 11--Income-tax Act, 1961, ss. 2(15), 11-- ITO (Exemptions)-II v . Kalinga Cultural Trust (Hyd) . . . 147
----Undertaking in Special Economic Zone--Computation of deduction--Amount reduced from export turnover required to be proportionately reduced from total turnover--Income-tax Act, 1961, ss. 10A, 10AA-- Dy. CIT v . Timken India Manufacturing P. Ltd. (Bang) . . . 208
Export --Exemption--Telecommunication charges and travelling expenses incurred in foreign currency excluded from export turnover--To be excluded from total turnover--Income-tax Act, 1961, s. 10A-- Aptean Software India P. Ltd. v . ITO
(Bang) . . . 246
Income --Accrual of income--Advance received by actor--Remains advance until crystallising as income on fulfilment of obligation specified in agreement--Not to be treated as income--Income-tax Act, 1961-- R. S. Suriya v . Asst. CIT
(Chennai) . . . 282
----Accrual of income--Payments received by actor from film production companies--Whether already treated as income of assessee for earlier assessment years--Matter remanded--Income-tax Act, 1961-- R. S. Suriya v . Asst. CIT
(Chennai) . . . 282
Income from undisclosed sources --Assessee receiving cement bags without payment of consideration--Assessee to justify his claim--Matter remanded--Income-tax Act, 1961-- R. S. Suriya v . Asst. CIT (Chennai) . . . 282
International transactions --Arm’s length price--Advertisement and marketing--Failure by Transfer Pricing Officer to carry out study with reference to functions performed by comparables selected by him regarding functions performed by assessee with regard to its marketing and distribution activities--Discount and sales commission directly attributable to selling activities of assessee to be excluded from components selected by Transfer Pricing Officer--Expenses in connection with sponsorship and sales promotion to be examined by Transfer Pricing Officer--Transfer Pricing Officer to carry out detailed functional analysis of comparables--Matter remanded--Income-tax Act, 1961-- Zimmer India P. Ltd. v . Dy. CIT(Delhi) . . . 188
----Arm’s length price--Determination--Software development services--Transactional net margin method--Selection of comparables--Companies having enormous turnover and functionally dissimilar cannot be treated as comparables--Income-tax Act, 1961, s. 92CA--Aptean Software India P. Ltd. v . ITO (Bang) . . . 246
Interpretation of statutes --Interpretation of law as it exists and not as it ought to be in light of value notions-- Addl. DIT (International Taxation) v . Baker Hughes Singapore Pte. Ltd.(Delhi) . . . 212
Judicial discipline --Advance tax--Interest--Tribunal bound by decision of jurisdictional High Court--Interest under section 234B cannot be levied--Income-tax Act, 1961, s. 234B-- Addl. DIT (International Taxation) v . Baker Hughes Singapore Pte. Ltd. (Delhi) . . . 212
Non-resident --Presumptive tax--Computation--Whether unpaid invoices includible in gross revenues for purposes of computing presumptive income--No factual findings--Matter remanded--Income-tax Act, 1961, s. 44BB-- Addl. DIT (International Taxation) v . Baker Hughes Singapore Pte. Ltd. (Delhi) . . . 212
----Taxability in India--Payments for educational and consultancy services to Indian entities--Failure by authorities to examine nature of services actually provided by assessee--Tribunal consistently deciding issues in favour of assessee in earlier years that fees for advisory services not taxable in India--Direction to delete addition of all receipts--Income-tax Act, 1961-- Partners Harvard Medical International Inc. v . Asst. DIT (International Taxation)(Mumbai) . . . 183
Presumptive tax --Non-resident--Prospecting for, or extraction or production of mineral oils--Income of assessee liable to tax at 10 per cent. under section 44BB on basis of binding decision of co-ordinate Bench--Income-tax Act, 1961, ss. 44BB, 44DA-- Addl. DIT (International Taxation) v . Baker Hughes Singapore Pte. Ltd.
(Delhi) . . . 212
Unexplained investment --Gold jewellery--Assessee’s father eminent personality in profession of acting for nearly 40 years--Failure by Assessing Officer to take into consideration financial status of assessee--Additions to be deleted--Income-tax Act, 1961, s. 69-- R. S. Suriya v . Asst. CIT (Chennai) . . . 282
SECTIONWISE INDEX TO CASES REPORTED IN THIS PART
Income-tax Act, 1961
s. 2(15) --Charitable purpose--Exemption--Denial of exemption on ground that assessee receiving money for endorsing products of companies on claiming of health and nutritional benefits--Endorsement cannot be medically or scientifically incorrect--No violation of provisions of section 2(15)--Assessee entitled to exemption-- Asst. DIT (Exemptions) v . Indian Medical Association (Delhi) . . . 222
----Exemption--Charitable purpose--Assessee constructing temple and letting out function hall--Assessee registered as charitable institution and no change in its aims and objects--Exemption allowed in earlier assessment year--Rule of consistency to be followed--Proviso to section 2(15) cannot be applied to deny exemption under section 11-- ITO (Exemptions)-IIv . Kalinga Cultural Trust (Hyd) . . . 147
s. 9(1)(vi), Expln. 4 --Business expenditure--Disallowance--Payments subject to deduction of tax at source--Software charges to enable electronic fund transfer facility-- Explanation 4to section 9(1)(vi) applicable--Provisions of section 40(a)(i) not applicable on payments hit by prospective amendment--Disallowance not proper-- SAB Miller India Ltd. v . Addl. CIT(Mumbai) . . . 167
s. 10A --Exemption--Undertaking in Special Economic Zone--Computation of deduction--Amount reduced from export turnover required to be proportionately reduced from total turnover-- Dy. CIT v . Timken India Manufacturing P. Ltd.
(Bang) . . . 208
----Export--Exemption--Telecommunication charges and travelling expenses incurred in foreign currency excluded from export turnover--To be excluded from total turnover-- Aptean Software India P. Ltd. v . ITO (Bang) . . . 246
s. 10AA --Exemption--Undertaking in Special Economic Zone--Computation of deduction--Amount reduced from export turnover required to be proportionately reduced from total turnover-- Dy. CIT v . Timken India Manufacturing P. Ltd.
(Bang) . . . 208
s. 11 --Exemption--Charitable purpose--Assessee carrying on charitable activity for relief of poor, disabled and persons affected by natural calamities--Assessee modifying objects after registration--Failure by assessee to submit details of work undertaken or amounts spent in places affected by natural calamities--One more opportunity to be given to assessee to submit all details--Assessing Officer to examine change in objects of memorandum of association and date of approval of modified objects by Director of Income-tax (Exemptions)--Matter remanded-- Dy. DIT (Exemptions)-III v . Operation Blessing India (Hyd) . . . 176
----Exemption--Charitable purpose--Assessee constructing temple and letting out function hall--Assessee registered as charitable institution and no change in its aims and objects--Exemption allowed in earlier assessment year--Rule of consistency to be followed--Proviso to section 2(15) cannot be applied to deny exemption under section 11-- ITO (Exemptions)-IIv . Kalinga Cultural Trust (Hyd) . . . 147
----Charitable purpose--Exemption--Denial of exemption on ground that assessee receiving money for endorsing products of companies on claiming of health and nutritional benefits--Endorsement cannot be medically or scientifically incorrect--No violation of provisions of section 2(15)--Assessee entitled to exemption-- Asst. DIT (Exemptions) v . Indian Medical Association (Delhi) . . . 222
s. 36(1)(iii) --Business expenditure--Interest on borrowed capital--Loans advanced to group companies at lower rate of interest--Whether advances given out of own funds--Matter remanded for verification-- SAB Miller India Ltd. v . Addl. CIT
(Mumbai) . . . 167
s. 40(a)(i) --Business expenditure--Disallowance--Payments liable to deduction of tax at source--Purchase of intellectual property rights--Depreciation cannot be denied for failure to deduct tax at source on payment-- SAB Miller India Ltd. v . Addl. CIT
(Mumbai) . . . 167
s. 40(a)(ia) --Business expenditure--Disallowance--Income of assessee to be computed under section 11--Disallowance cannot be made under section 40(a)(ia) by applying commercial principles-- ITO (Exemptions)-II v . Kalinga Cultural Trust
(Hyd) . . . 147
----Business expenditure--Disallowance--Payments liable to deduction of tax at source--Sale price discounts--Relationship between assessee and distributors in relation to sale and purchase of product needing examination--Matter remanded-- SAB Miller India Ltd. v . Addl. CIT (Mumbai) . . . 167
----Business expenditure--Disallowance--Payments liable to deduction of tax at source--Trading of film rights--Sale of world negative rights on perpetual and permanent basis--Not a case of payment of royalty--Assessee not required to deduct tax at source--No question of disallowance-- Dy. CIT v . V. Rama Krishna
(Hyd) . . . 157
----Business expenditure--Disallowance--Payments subject to deduction of tax at source--Software charges to enable electronic fund transfer facility-- Explanation 4 to section 9(1)(vi) applicable--Provisions of section 40(a)(i) not applicable on payments hit by prospective amendment--Disallowance not proper-- SAB Miller India Ltd. v . Addl. CIT (Mumbai) . . . 167
----Business expenditure--Disallowance--Payments to non-resident--Failure to deduct tax at source--Draft assessment order incorporating additions made by Assessing Officer--Assessee not raising objections to draft assessment order--Assessee cannot raise issue before Tribunal-- Aptean Software India P. Ltd. v . ITO
(Bang) . . . 246
s. 44BB --Non-resident--Presumptive tax--Computation--Whether unpaid invoices includible in gross revenues for purposes of computing presumptive income--No factual findings--Matter remanded-- Addl. DIT (International Taxation) v . Baker Hughes Singapore Pte. Ltd. (Delhi) . . . 212
----Presumptive tax--Non-resident--Prospecting for, or extraction or production of mineral oils--Income of assessee liable to tax at 10 per cent. under section 44BB on basis of binding decision of co-ordinate Bench-- Addl. DIT (International Taxation) v . Baker Hughes Singapore Pte. Ltd. (Delhi) . . . 212
s. 44DA --Presumptive tax--Non-resident--Prospecting for, or extraction or production of mineral oils--Income of assessee liable to tax at 10 per cent. under section 44BB on basis of binding decision of co-ordinate Bench-- Addl. DIT (International Taxation) v . Baker Hughes Singapore Pte. Ltd. (Delhi) . . . 212
s. 69 --Unexplained investment--Gold jewellery--Assessee’s father eminent personality in profession of acting for nearly 40 years--Failure by Assessing Officer to take into consideration financial status of assessee--Addition to be deleted-- R. S. Suriya v . Asst. CIT(Chennai) . . . 282
s. 92CA --International transactions--Arm’s length price--Determination--Software development services--Transactional net margin method--Selection of comparables--Companies having enormous turnover and functionally dissimilar cannot be treated as comparables-- Aptean Software India P. Ltd. v . ITO (Bang) . . . 246
s. 144C(8) --Business expenditure--Disallowance--Payments to non-resident--Failure to deduct tax at source--Draft assessment order incorporating additions made by Assessing Officer--Assessee not raising objections to draft assessment order--Assessee cannot raise issue before Tribunal-- Aptean Software India P. Ltd. v . ITO
(Bang) . . . 246
s. 194H --Business expenditure--Disallowance--Payments liable to deduction of tax at source--Sale price discounts--Relationship between assessee and distributors in relation to sale and purchase of product needing examination--Matter remanded-- SAB Miller India Ltd.v . Addl. CIT (Mumbai) . . . 167
s. 194J --Business expenditure--Disallowance--Payments liable to deduction of tax at source--Trading of film rights--Sale of world negative rights on perpetual and permanent basis--Not a case of payment of royalty--Assessee not required to deduct tax at source--No question of disallowance-- Dy. CIT v . V. Rama Krishna
(Hyd) . . . 157
s. 195 --Business expenditure--Disallowance--Payments liable to deduction of tax at source--Purchase of intellectual property rights--Depreciation cannot be denied for failure to deduct tax at source on payment-- SAB Miller India Ltd. v . Addl. CIT
(Mumbai) . . . 167
s. 234B --Judicial discipline--Advance tax--Interest--Tribunal bound by decision of jurisdictional High Court--Interest under section 234B cannot be levied-- Addl. DIT (International Taxation) v . Baker Hughes Singapore Pte. Ltd.
(Delhi) . . . 212
No comments:
Post a Comment