INCOME TAX REPORTS (ITR)--PRINT AND ONLINE EDITION
SUBJECT INDEX TO CASES REPORTED IN THIS PART
Exemption --Sum received under early retirement option scheme of bank--Assessee entitled to exemption under section 10(10C)--Income-tax Act, 1961, s. 10(10C)-- S. Palaniappan v.ITO . . . 275
Income-tax --General principles--Rule of consistency--Head of income--Income from other sources or business income--Interest from fixed deposits before business actually commenced treated as business income for preceding three years--No change in circumstances--Income for year in question to be treated similarly--Income-tax Act, 1961, ss. 28, 56-- CIT v. Dalmia Promoters and Devels. (P) Ltd. . . . 277
Deduction of tax at source --Failure to pay tax deducted at source to Government--Interest--Assessment of payee companies completed holding them not liable to pay tax--No interest leviable against assessee for period after that--Income-tax Act, 1961, s. 201(1A)-- CIT v.Labh Construction and Ind. Ltd. (Guj) . . . 261
----Legislative powers--Constitutional validity of provision--Section 234E levying fee for delay in filing statements of tax deducted at source--Default in filing statement would cause problems for Revenue--No hardships for assessee--Power of CBDT to issue general or specific orders--Principles of natural justice not applicable--Section 234E valid--Income-tax Act, 1961, s. 234E--Constitution of India, art. 226-- Lakshminirman Bangalore P. Ltd. v.Deputy CIT (Karn) . . . 279
Interpretation of taxing statutes --Interpretation upholding constitutional validity of provisions-- Lakshminirman Bangalore P. Ltd. v. Deputy CIT (Karn) . . . 279
Penalty --Concealment of income--Furnishing of inaccurate particulars of income--Hospital--Difference between profit and loss account and account books impounded at time of survey--Differential amount not accounted--Explanation that on account of impounding of books, accounts could not be audited and no intentional omission--Explanation rejected on ground assessee's duty to get its accounts audited and time for audit expired long before survey--Finding upheld by Tribunal attained finality--Levy of penalty justified--Income-tax Act, 1961, s. 271(1)(c)-- Manural Huda Trust v. CIT (Ker) . . . 270
ITR Volume 378 : Part 1 (Issue dated : 26-10-2015)
SUBJECT INDEX TO CASES REPORTED IN THIS PART
Charitable purpose --Accumulation of income--Exercise of option--No specific mode--Exercise of option at time of filing return--Sufficient compliance--Income-tax Act, 1961, s. 11-- CIT v. G. R. Govindarajulu and Sons . . .1
----Accumulation of income--Only to extent of 25 per cent. of income not actually applied for charitable purpose--No further deduction for accumulation of income--Income-tax Act, 1961, s. 11-- CIT v. G. R. Govindarajulu and Sons . . .1
Wealth-tax --Valuation of asset--"Price that asset would fetch in market"--Factors to be considered--Land coming under purview of Land Ceiling Act--Proceedings for acquisition initiated and maximum compensation therefor declared at Rs. 2 lakhs though notification not issued--Value for wealth-tax purposes--Cannot be arrived at ignoring pending proceedings under Land Ceiling Act--Reasonable buyer knowing acquisition proceedings in progress would not offer more than Rs. 2 lakhs--Value for wealth-tax purposes cannot be at higher figure--Wealth-tax Act, 1957, s. 7--Urban Land (Ceiling and Regulation) Act, 1976-- S. N. Wadiyar (decd. through L. R.) v. CWT . . . 9
Accounting --Rejection of accounts--Consistent method of accounting followed--Stock register maintained--Reasonable explanation for expenses--Accounts could not be rejected--Income-tax Act, 1961-- CIT v. Navbharat Export (Delhi) . . . 89
Appeal to Appellate Tribunal --Compliance with principles of natural justice--Duty to pass reasoned order--Tribunal copying order of Commissioner (Appeals) verbatim at different places--No independent application of mind--Matter remitted to Tribunal for decision afresh--Income-tax Act, 1961-- Kewal Chaudhary v. CIT (P&H) . . . 52
Appeal to High Court --Substantial question of law--Interest on borrowed capital--Assessee having at its disposal its own and borrowed funds--Loans advanced interest free to sister concerns--To be taken to have come from own funds--Tribunal taking plausible view on facts--No question of law arises--Income-tax Act, 1961, ss. 36(1)(iii), 260A-- CIT v. Modi Rubber Ltd. (Delhi) . . . 128
Business expenditure --Capital or revenue expenditure--Assessee running business owning land in different places--Land in excess of ceiling prescribed--Application for exemption of excess land from acquisition--State Government granting exemption subject to payment of specified amount and construction of certain buildings--Amount paid was for obtaining enduring benefit--Not deductible--Income-tax Act, 1961, s. 37-- Sandvik Asia Ltd. v. Deputy CIT (Bom) . . . 114
----Deduction only on actual payment--Payment to superannuation fund--Scheme of company not providing for payment by employee--No question of disallowing delayed payment--Income-tax Act, 1961, s. 43B-- CIT v. Modi Rubber Ltd. (Delhi) . . . 128
----Interest on borrowed capital--Interest on borrowings used to subscribe to rights issue of closely related company--Whether investments made from borrowings on account of strategic compulsions or linked to earning of dividends--Matter remanded to Assessing Officer for full appraisal of fact situations--Income-tax Act, 1961, ss. 36(1)(iii), 80M-- Eicher Goodearth Ltd. v. CIT (Delhi) . . . 28
Capital gains --Long-term capital gains--Capital asset--Definition--Agricultural land--Exception--Land situated within specified distance from municipality--Measurement of distance from municipality--Distance to be measured from agricultural land to outer limit of municipality by road--Not by straight line or aerial route--Income-tax Act, 1961, s. 2(14)(iii)(b)-- CIT v. Vijay Singh Kadan (Delhi) . . . 71
Capital or revenue expenditure --Current repairs--Import of Banbury mixer--Capital expenditure--Expenditure on reduction gear box for 3 coil calendar--Imported item part of 3 roll calendar--Revenue expenditure--Income-tax Act, 1961-- CIT v. Modi Rubber Ltd. (Delhi) . . . 128
Capital or revenue receipt --Business income--Remission or cessation of trading liability--Waiver of sums by creditors including part of principal--Principal waived not debited into profit and loss account in earlier years or claimed as deduction--Not taxable--Income-tax Act, 1961, s. 41(1)-- CIT v. Pasupati Spinning Weaving Mills Ltd. (Delhi) . . . 80
Central Board of Direct Taxes --Power to relax provisions of section 139--Extension of due date for filing income-tax returns--Policy decision--High Court not to interfere such decision--No prejudice would be caused by extending time for filing income-tax returns--Not a ground to interfere to such decision--Income-tax Act, 1961, ss. 119, 139-- Avinash Gupta v. Union of India (Delhi) . . . 137
Charitable purposes --Exemption under section 11--Assessee granted exemption under section 10(20) as local authority up to assessment year 2002-03--Assessee filing application for registration as a charitable trust on 26-3-2007 with effect from 1-4-2003--Application rejected by Assessing Officer but accepted finally by Tribunal--Claim for exemption under section 11 for assessment year 2005-06--Rejection of application on account of delay in filing necessary forms--Not valid--Income-tax Act, 1961, ss. 11, 12A-- CIT v. Mumbai Metropolitan Regional Iron and Steel Market Committee (Bom) . . . 103
Depreciation --Actual cost--Written down value--Imported hospital equipment--Withdrawal of customs duty exemption--Increase in cost of equipment to extent of customs duty paid--Enhanced cost to be taken into consideration from year in which order for payment of customs duty passed--Assessee entitled to depreciation on enhanced cost from that year and written down value to be computed accordingly--Whether assessee entitled to depreciation on enhanced cost from year of import left open--Income-tax Act, 1961-- CIT v.Noida Medicare Centre Ltd. (Delhi) . . . 65
----Building--Cost of construction--Amount paid to State Government to prevent acquisition of land--Not part of cost of construction--Assessee not entitled to depreciation on such amount--Income-tax Act, 1961, s. 32-- Sandvik Asia Ltd. v. Deputy CIT (Bom) . . . 114
Income --Computation of income--Exempted income--Disallowance of expenditure incurred in earning exempted income--Meaning of expression "does not form part of the total income" in section 14A--No income exempt from tax received or receivable in relevant previous year--No disallowance could be made under section 14A--Income-tax Act, 1961, s. 14A--Cheminvest Ltd. v. CIT (Delhi) . . . 33
----Disallowance of expenditure in relation to exempt income--Higher disallowance agreed to before Assessing Officer during course of assessment--Assessee could not be bound by such offer--Restriction of disallowance justified--Income-tax Act, 1961, s. 14A-- CIT v.Everest Kento Cylinders Ltd. (Bom) . . . 57
International transactions --Transfer pricing--Arm's length price--Determination--Assessee issuing corporate guarantee in respect of borrowings by its associated enterprise--Distinction between corporate guarantee and bank guarantee--No transfer pricing adjustment could be made in respect of guarantee commission on basis of bank rate--Income-tax Act, 1961, s. 92B-- CIT v. Everest Kento Cylinders Ltd. (Bom) . . . 57
Offences and prosecution --Failure to produce accounts or documents--Finding that accounts had been submitted when criminal complaint was issued--Sanction for prosecution not valid--Income-tax Act, 1961, s. 276D--Criminal Procedure Code, 1973, s. 482-- Shravan Gupta v. Asst. CIT (Delhi) . . . 95
Reassessment --Notice--Creditor in a settlement agreeing to convert a portion of interest into shares--Original assessment accepting conversion as actual payment of interest within meaning of section 43B--Reassessment on ground that conversion of portion of outstanding interest into shares will not amount to actual payment of interest--Change of opinion--Reassessment impermissible--Income-tax Act, 1961, ss. 43B, 147, 148-- CIT v. Rathi Graphics Technologies Ltd. (Delhi) . . . 107
Return --E-filing of income-tax returns for assessment year 2015-16--Due date for filing returns--Forms not available on first day of assessment year--No satisfactory explanation or justification for not prescribing relevant forms--Plea that only minor changes in forms--Not justified--Period required for e-filing of returns not reasonable--Extension of date up to 31-10-2015--Income-tax Act, 1961, ss. 119, 139, 139C, 139D-- Vishal Garg v. Union of India (P & H) . . . 145
----Prescription of due date for e-filing returns--Duty of Central Board of Direct Taxes to provide necessary utility and forms at beginning of assessment year--Delay in providing utility and forms--Curtailment of substantial period--Difficulty in collecting necessary datas in notified forms--Direction to extend from 30-9-2015 to 31-10-2015--Income-tax Act, 1961, ss. 119, 139-- All Gujarat Federation of Tax Consultants v. CBDT (Guj) . . . 160
----Prescription of due date for filing e-filing returns--Period of 183 days available to collect necessary information if forms notified on first of April of assessment year--Delay in notifying forms restricting time to 55 to 61 days--Difficulty facing by chartered accountants and tax practitioners to comply with all requirements in notified forms--Extension of due date to two States--Discrimination to assessees in other States--Effect of non-filing of returns--Central Board of Direct Taxes directed to extend due date as extended in two States--Income-tax Act, 1961, ss. 119, 139-- Chamber of Tax Consultants v. Union of India (Bom) . . . 188
----Time for filing--No provision mandating time of one hundred eighty days--Completion of audit not dependent on prescription of forms for filing returns--No cause of action or infringement of fundamental rights--Forms prescribed on 29-7-2015/7-8-2015--Time to 30-9-2015 sufficient for filing income-tax returns and audit report--Central Board of Direct Taxes directed to make available forms for audit report and filing returns on April 1 of assessment year--Income-tax Act, 1961, s. 139-- Avinash Gupta v. Union of India (Delhi) . . . 137
Revision --Commissioner--Condition precedent--Most appropriate method of accounting to correctly reflect the true financial statement is debatable issue--Assessee consistently following project completion method--That method cannot be rejected because another method is preferable--Revision not valid--Income-tax Act, 1961, s. 263-- CIT v. Aditya Builders (Bom) . . . 75
Search and seizure --Assessment of third person--Condition precedent--Satisfaction of Assessing Officer that seized articles belonged to third person--No connection between seized documents and third person--Assessment of third person not valid--Income-tax Act, 1961, s. 153C-- CIT v. Sinhgad Technical Education Society (Bom) . . . 84
----Block assessment--Undisclosed income--Document found during search disclosing loan agreement--Agreement providing for interest on loan--No evidence that interest was not received--No regular books of account maintained--No scope for assessee to claim that it was following cash system of accounting--Interest assessable as undisclosed income--Income-tax Act, 1961, ss. 132, 153BC-- Paras Shantilal Shah v. Deputy CIT (Bom) . . . 41
----Block assessment--Undisclosed income--Jewellery found during search--Statement on oath accepting ownership of jewellery--Subsequent explanation regarding jewellery--Statement not retracted--Value of jewellery assessable as undisclosed income--Income-tax Act, 1961, ss. 132, 153BC-- Paras Shantilal Shah v. Deputy CIT (Bom) . . . 41
SECTIONWISE INDEX TO CASES REPORTED IN THIS PART
Criminal Procedure Code, 1973 :
S. 482 --Offences and prosecution--Failure to produce accounts or documents--Finding that accounts had been submitted when criminal complaint was issued--Sanction for prosecution not valid-- Shravan Gupta v. Asst. CIT (Delhi) . . . 95
S. 2(14)(iii)(b) --Capital gains--Long-term capital gains--Capital asset--Definition--Agricultural land--Exception--Land situated within specified distance from municipality--Measurement of distance from municipality--Distance to be measured from agricultural land to outer limit of municipality by road--Not by straight line or aerial route-- CIT v. Vijay Singh Kadan (Delhi) . . . 71
S. 11 --Charitable purpose--Accumulation of income--Exercise of option--No specific mode--Exercise of option at time of filing return--Sufficient compliance-- CIT v. G. R. Govindarajulu and Sons (SC). . .1
----Charitable purpose--Accumulation of income--Only to extent of 25 per cent. of income not actually applied for charitable purpose--No further deduction for accumulation of income--CIT v. G. R. Govindarajulu and Sons (SC) . . . 1
----Charitable purposes--Exemption under section 11--Assessee granted exemption under section 10(20) as local authority up to assessment year 2002-03--Assessee filing application for registration as a charitable trust on 26-3-2007 with effect from 1-4-2003--Application rejected by Assessing Officer but accepted finally by Tribunal--Claim for exemption under section 11 for assessment year 2005-06--Rejection of application on account of delay in filing necessary forms--Not valid-- CIT v. Mumbai Metropolitan Regional Iron and Steel Market Committee (Bom) . . . 103
S. 12A --Charitable purposes--Exemption under section 11--Assessee granted exemption under section 10(20) as local authority up to assessment year 2002-03--Assessee filing application for registration as a charitable trust on 26-3-2007 with effect from 1-4-2003--Application rejected by Assessing Officer but accepted finally by Tribunal--Claim for exemption under section 11 for assessment year 2005-06--Rejection of application on account of delay in filing necessary forms--Not valid-- CIT v. Mumbai Metropolitan Regional Iron and Steel Market Committee (Bom) . . . 103
S. 14A --Income--Computation of income--Exempted income--Disallowance of expenditure incurred in earning exempted income--Meaning of expression "does not form part of the total income" in section 14A--No income exempt from tax received or receivable in relevant previous year--No disallowance could be made under section 14A-- Cheminvest Ltd. v. CIT(Delhi) . . . 33
----Income--Disallowance of expenditure in relation to exempt income--Higher disallowance agreed to before Assessing Officer during course of assessment--Assessee could not be bound by such offer--Restriction of disallowance justified-- CIT v. Everest Kento Cylinders Ltd. (Bom) . . . 57
S. 32 --Depreciation--Building--Cost of construction--Amount paid to State Government to prevent acquisition of land--Not part of cost of construction--Assessee not entitled to depreciation on such amount-- Sandvik Asia Ltd. v. Deputy CIT (Bom) . . . 114
S. 36(1)(iii) --Appeal to High Court--Substantial question of law--Interest on borrowed capital--Assessee having at its disposal its own and borrowed funds--Loans advanced interest free to sister concerns--To be taken to have come from own funds--Tribunal taking plausible view on facts--No question of law arises-- CIT v. Modi Rubber Ltd. (Delhi) . . . 128
----Business expenditure--Interest on borrowed capital--Interest on borrowings used to subscribe to rights issue of closely related company--Whether investments made from borrowings on account of strategic compulsions or linked to earning of dividends--Matter remanded to Assessing Officer for full appraisal of fact situations-- Eicher Goodearth Ltd. v.CIT (Delhi) . . . 28
S. 37 --Business expenditure--Capital or revenue expenditure--Assessee running business owning land in different places--Land in excess of ceiling prescribed--Application for exemption of excess land from acquisition--State Government granting exemption subject to payment of specified amount and construction of certain buildings--Amount paid was for obtaining enduring benefit--Not deductible-- Sandvik Asia Ltd. v. Deputy CIT (Bom) . . . 114
S. 41(1) --Capital or revenue receipt--Business income--Remission or cessation of trading liability--Waiver of sums by creditors including part of principal--Principal waived not debited into profit and loss account in earlier years or claimed as deduction--Not taxable-- CIT v.Pasupati Spinning Weaving Mills Ltd. (Delhi) . . . 80
S. 43B --Business expenditure--Deduction only on actual payment--Payment to superannuation fund--Scheme of company not providing for payment by employee--No question of disallowing delayed payment-- CIT v. Modi Rubber Ltd. (Delhi) . . . 128
----Reassessment--Notice--Creditor in a settlement agreeing to convert a portion of interest into shares--Original assessment accepting conversion as actual payment of interest within meaning of section 43B--Reassessment on ground that conversion of portion of outstanding interest into shares will not amount to actual payment of interest--Change of opinion--Reassessment impermissible-- CIT v. Rathi Graphics Technologies Ltd. (Delhi) . . . 107
S. 80M --Business expenditure--Interest on borrowed capital--Interest on borrowings used to subscribe to rights issue of closely related company--Whether investments made from borrowings on account of strategic compulsions or linked to earning of dividends--Matter remanded to Assessing Officer for full appraisal of fact situations-- Eicher Goodearth Ltd. v.CIT (Delhi) . . . 28
S. 92B --International transactions--Transfer pricing--Arm's length price--Determination--Assessee issuing corporate guarantee in respect of borrowings by its associated enterprise--Distinction between corporate guarantee and bank guarantee--No transfer pricing adjustment could be made in respect of guarantee commission on basis of bank rate--CIT v. Everest Kento Cylinders Ltd. (Bom) . . . 57
S. 119 --Central Board of Direct Taxes--Power to relax provisions of section 139--Extension of due date for filing income-tax returns--Policy decision--High Court not to interfere such decision--No prejudice would be caused by extending time for filing income-tax returns--Not a ground to interfere to such decision-- Avinash Gupta v. Union of India (Delhi) . . . 137
----Return--E-filing of income-tax returns for assessment year 2015-16--Due date for filing returns--Forms not available on first day of assessment year--No satisfactory explanation or justification for not prescribing relevant forms--Plea that only minor changes in forms--Not justified--Period required for e-filing of returns not reasonable--Extension of date up to 31-10-2015-- Vishal Garg v. Union of India (P & H) . . . 145
----Return--Prescription of due date for e-filing returns--Duty of Central Board of Direct Taxes to provide necessary utility and forms at beginning of assessment year--Delay in providing utility and forms--Curtailment of substantial period--Difficulty in collecting necessary datas in notified forms--Direction to extend from 30-9-2015 to 31-10-2015-- All Gujarat Federation of Tax Consultants v. CBDT (Guj) . . . 160
----Return--Prescription of due date for filing e-filing returns--Period of 183 days available to collect necessary information if forms notified on first of April of assessment year--Delay in notifying forms restricting time to 55 to 61 days--Difficulty facing by chartered accountants and tax practitioners to comply with all requirements in notified forms--Extension of due date to two States--Discrimination to assessees in other States--Effect of non-filing of returns--Central Board of Direct Taxes directed to extend due date as extended in two States--Chamber of Tax Consultants v. Union of India (Bom) . . . 188
S. 132 --Search and seizure--Block assessment--Undisclosed income--Document found during search disclosing loan agreement--Agreement providing for interest on loan--No evidence that interest was not received--No regular books of account maintained--No scope for assessee to claim that it was following cash system of accounting--Interest assessable as undisclosed income-- Paras Shantilal Shah v. Deputy CIT (Bom) . . . 41
----Search and seizure--Block assessment--Undisclosed income--Jewellery found during search--Statement on oath accepting ownership of jewellery--Subsequent explanation regarding jewellery--Statement not retracted--Value of jewellery assessable as undisclosed income-- Paras Shantilal Shah v. Deputy CIT (Bom) . . . 41
S. 139 --Central Board of Direct Taxes--Power to relax provisions of section 139--Extension of due date for filing income-tax returns--Policy decision--High Court not to interfere such decision--No prejudice would be caused by extending time for filing income-tax returns--Not a ground to interfere to such decision-- Avinash Gupta v. Union of India (Delhi) . . . 137
----Return--E-filing of income-tax returns for assessment year 2015-16--Due date for filing returns--Forms not available on first day of assessment year--No satisfactory explanation or justification for not prescribing relevant forms--Plea that only minor changes in forms--Not justified--Period required for e-filing of returns not reasonable--Extension of date up to 31-10-2015-- Vishal Garg v. Union of India (P & H) . . . 145
----Return--Prescription of due date for e-filing returns--Duty of Central Board of Direct Taxes to provide necessary utility and forms at beginning of assessment year--Delay in providing utility and forms--Curtailment of substantial period--Difficulty in collecting necessary datas in notified forms--Direction to extend from 30-9-2015 to 31-10-2015-- All Gujarat Federation of Tax Consultants v. CBDT (Guj) . . . 160
----Return--Prescription of due date for filing e-filing returns--Period of 183 days available to collect necessary information if forms notified on first of April of assessment year--Delay in notifying forms restricting time to 55 to 61 days--Difficulty facing by chartered accountants and tax practitioners to comply with all requirements in notified forms--Extension of due date to two States--Discrimination to assessees in other States--Effect of non-filing of returns--Central Board of Direct Taxes directed to extend due date as extended in two States--Chamber of Tax Consultants v. Union of India (Bom) . . . 188
----Return--Time for filing--No provision mandating time of one hundred eighty days--Completion of audit not dependent on prescription of forms for filing returns--No cause of action or infringement of fundamental rights--Forms prescribed on 29-7-2015/7-8-2015--Time to 30-9-2015 sufficient for filing income-tax returns and audit report--Central Board of Direct Taxes directed to make available forms for audit report and filing returns on April 1 of assessment year-- Avinash Gupta v. Union of India (Delhi) . . . 137
S. 139C --Return--E-filing of income-tax returns for assessment year 2015-16--Due date for filing returns--Forms not available on first day of assessment year--No satisfactory explanation or justification for not prescribing relevant forms--Plea that only minor changes in forms--Not justified--Period required for e-filing of returns not reasonable--Extension of date up to 31-10-2015-- Vishal Garg v. Union of India (P & H) . . . 145
S. 139D --Return--E-filing of income-tax returns for assessment year 2015-16--Due date for filing returns--Forms not available on first day of assessment year--No satisfactory explanation or justification for not prescribing relevant forms--Plea that only minor changes in forms--Not justified--Period required for e-filing of returns not reasonable--Extension of date up to 31-10-2015-- Vishal Garg v. Union of India (P & H) . . . 145
S. 147 --Reassessment--Notice--Creditor in a settlement agreeing to convert a portion of interest into shares--Original assessment accepting conversion as actual payment of interest within meaning of section 43B--Reassessment on ground that conversion of portion of outstanding interest into shares will not amount to actual payment of interest--Change of opinion--Reassessment impermissible-- CIT v. Rathi Graphics Technologies Ltd. (Delhi) . . . 107
S. 148 --Reassessment--Notice--Creditor in a settlement agreeing to convert a portion of interest into shares--Original assessment accepting conversion as actual payment of interest within meaning of section 43B--Reassessment on ground that conversion of portion of outstanding interest into shares will not amount to actual payment of interest--Change of opinion--Reassessment impermissible-- CIT v. Rathi Graphics Technologies Ltd. (Delhi) . . . 107
S. 153BC --Search and seizure--Block assessment--Undisclosed income--Document found during search disclosing loan agreement--Agreement providing for interest on loan--No evidence that interest was not received--No regular books of account maintained--No scope for assessee to claim that it was following cash system of accounting--Interest assessable as undisclosed income-- Paras Shantilal Shah v. Deputy CIT (Bom) . . . 41
----Search and seizure--Block assessment--Undisclosed income--Jewellery found during search--Statement on oath accepting ownership of jewellery--Subsequent explanation regarding jewellery--Statement not retracted--Value of jewellery assessable as undisclosed income-- Paras Shantilal Shah v. Deputy CIT (Bom) . . . 41
S. 153C --Search and seizure--Assessment of third person--Condition precedent--Satisfaction of Assessing Officer that seized articles belonged to third person--No connection between seized documents and third person--Assessment of third person not valid-- CIT v. Sinhgad Technical Education Society (Bom) . . . 84
S. 260A --Appeal to High Court--Substantial question of law--Interest on borrowed capital--Assessee having at its disposal its own and borrowed funds--Loans advanced interest free to sister concerns--To be taken to have come from own funds--Tribunal taking plausible view on facts--No question of law arises-- CIT v. Modi Rubber Ltd. (Delhi) . . . 128
S. 263 --Revision--Commissioner--Condition precedent--Most appropriate method of accounting to correctly reflect the true financial statement is debatable issue--Assessee consistently following project completion method--That method cannot be rejected because another method is preferable--Revision not valid-- CIT v. Aditya Builders (Bom) . . . 75
S. 276D --Offences and prosecution--Failure to produce accounts or documents--Finding that accounts had been submitted when criminal complaint was issued--Sanction for prosecution not valid-- Shravan Gupta v. Asst. CIT (Delhi) . . . 95
S. 7 --Wealth-tax--Valuation of asset--"Price that asset would fetch in market"--Factors to be considered--Land coming under purview of Land Ceiling Act--Proceedings for acquisition initiated and maximum compensation therefor declared at Rs. 2 lakhs though notification not issued--Value for wealth-tax purposes--Cannot be arrived at ignoring pending proceedings under Land Ceiling Act--Reasonable buyer knowing acquisition proceedings in progress would not offer more than Rs. 2 lakhs--Value for wealth-tax purposes cannot be at higher figure-- S. N. Wadiyar (decd. through L. R.) v. CWT (SC) . . . 9
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