Pages

Monday, March 14, 2016

ITR (TRIB) Volume 46 : Part 4 (Issue dated : 14-3-2016)


 

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

ONLINE EDITION

SUBJECT INDEX TO CASES REPORTED

Accounting --Rejection of books of account--Books of account produced before Assessing Officer--Duty of Assessing Officer to check them--Rejection of books without analysing details and explanation filed by assessee--Not justified--Income-tax Act, 1961, s. 145-- ITO v. Krishna Cotton and Ginning Mills (Chandigarh) . . . 209

Appeal to Commissioner (Appeals) --Condonation of delay--Delay of seventeen months in filing appeal--Assessee pursuing rectification bona fide unsuccessfully--Reasonable cause for delay--No mala fide intention or ulterior motive--Delay condoned--Income-tax Act, 1961--Asst. CIT v. Carmelite Charitable Society 
(Amritsar) . . . 193

Charitable purposes --Charitable trust--Exemption--Assessee incurring expenses out of income of current year--No case of accumulation or setting apart of income--Erroneous invocation of section 11(3)(d)--Expenses towards education of fathers serving in schools of assessee--Payment not for a religious purpose but charitable--Assessee entitled to exemption--Income-tax Act, 1961, ss. 11, 11(3)(d), 12A-- Asst. CIT v. Carmelite Charitable Society (Amritsar) . . . 193

Deduction of tax at source --Fee for defaults in furnishing statements--Cannot be levied in course of processing of statement under section 200A--Income-tax Act, 1961, ss. 200A, 234E-- Tanish Industries P. Ltd. v. Deputy CIT (Ahd) . . . 217

 

PRINT EDITION

Volume 46 : Part 4 (Issue dated : 14-3-2016)

SUBJECT INDEX TO CASES REPORTED IN THIS PART

Appeal to Appellate Tribunal --Appealable orders--Appeal against order of assessment read with revisional order--Not maintainable--Commissioner (Appeals) is competent to adjudicate--Income-tax Act, 1961, ss. 246A, 253(1)-- Crompton Greaves Ltd. v. CIT (Mumbai) . . . 465

Business expenditure --Disallowance--Payments for unlawful purpose--Bribe for awarding of contract--Sum deleted in case of recipient and deletion affirmed by High Court--No disallowance--Income-tax Act, 1961, s. 37-- Today Homes and Infrastructure Pvt. Ltd. v. Deputy CIT (Delhi) . . . 586

----Expenditure on purchase of software--Not used by assessee but sold to customers--Expenditure on purchase allowable--Income-tax Act, 1961, s. 37-- Deputy CIT v. E-enable Technologies P. Ltd. (Delhi) . . . 546

----Prior period expenses--Assessing Officer directed to re-examine issue and adjudicate after granting proper opportunity to assessee--Income-tax Act, 1961, s. 37-- J. P. Morgan Services P. Ltd. v. Deputy CIT (OSD) (Mumbai) . . . 561

----Provision for sale and maintenance of software--Annual maintenance contract--Mercantile system of accounting--Part of receipt pertaining to current financial year--Accounting standard consistently followed by assessee--No disallowance--Income-tax Act, 1961, s. 37-- Deputy CIT v. E-enable Technologies P. Ltd. (Delhi) . . . 546

----Real estate development--Commission and brokerage--Properties held as business assets--Factum of incurring of expenditure as well as rendering of services by agents not disputed--Quantum of expenses cannot be examined by Assessing Officer--Allowable--Income-tax Act, 1961, s. 37-- Today Homes and Infrastructure Pvt. Ltd. v. Deputy CIT (Delhi) . . . 586

Business loss --Dealing in land--Advance in course of business--Non-refund of advance business loss incidental to business--Allowable--Income-tax Act, 1961, s. 28-- Today Homes and Infrastructure Pvt. Ltd. v. Deputy CIT (Delhi) . . . 586

Capital gains --Business income--Short-term capital gains--Long-term capital gains--Assessee consistently dealing in shares for several years--Classification of transactions--Gains arising from sale of shares up to one month--Business income--Gains arising from sale of shares held for more than one month and up to twelve months--Short-term capital gains--Income-tax Act, 1961-- Asha Ashar v. ITO
(Mumbai) . . . 492

----Computation--Hindu undivided family--Partition--Family settlement--Assessee acquiring land on distribution of assets in family settlement pursuant to partition--Not transfer--Assessee holding property as beneficial owner since 1963--Period of holding of assets in hands of assessee to be reckoned from 1963--Market value to be adopted on 1-4-1981--Indexation benefit also from that date--Income-tax Act, 1961, ss. 2(42A), 45-- ITO v. P. M. Rungta (HUF) (Mumbai) . . . 579

Cash credit --Accommodation entries--Assessee one of conduit companies of entry provider--Settlement Commission in the case entry provider holding cash deposited in bank account of various companies cannot be treated as unexplained cash credit in the hands of conduit companies--Order of Commission attaining finality--Order binding on Department--Refusal to follow order of Commission on ground all facts might not have been produced before Commission--Incorrect--No evidence that specific facts not placed before Commission--No addition could be made in hands of assessee on account of unexplained cash credit--Income-tax Act, 1961, s. 68-- Omni Farms Pvt. Ltd. v. Deputy CIT (Delhi) . . . 505

----Ongoing negotiation regarding acquisition of property--Memorandum of understanding--Cash returned to assessee and entry in books and surrendered as part of total surrender--No dispute in facts--Credit cannot be treated as unexplained--Income-tax Act, 1961, s. 68--Today Homes and Infrastructure Pvt. Ltd. v. Deputy CIT
(Delhi) . . . 586

Collection of tax at source --Scrap--Definition--Sale of cotton waste, maize husk and de-oiled cake--By-products not scrap or waste--No liability on seller to collect tax at source on sale thereof--Income-tax Act, 1961, s. 206C-- Deputy CIT v. Gujarat Ambuja Exports Ltd.(Ahd) . . . 519

Company --Book profits--Computation--Income of unit in special economic zone--Excludible--Income-tax Act, 1961, s. 115JB-- Deputy CIT v. Gebbs Healthcare Solutions P. Ltd.(Mumbai) . . . 551

----Book profits--Computation according to Schedule VII to Companies Act and not under provisions of Income-tax Act--Companies Act, 1956, Sch. VII--Income-tax Act, 1961, s. 115JB-- J. P. Morgan Services P. Ltd. v. Deputy CIT (OSD)
(Mumbai) . . . 561

Deduction of tax at source --Payments to contractors--Port charges to clearing and forwarding agents--Independent contractors--Port charges not professional charges--Tax deductible at source under section 194C and not under section 194J--Income-tax Act, 1961, ss. 194C, 194J-- Deputy CIT v. Gujarat Ambuja Exports Ltd.
(Ahd) . . . 519

Dividend --Deemed dividend--Common shareholders in both companies not ground to treat amount as deemed dividend--No evidence to show assessee a beneficial shareholder or even a shareholder of company from which assessee received advance--Amount not deemed dividend--Income-tax Act, 1961, s. 2(22)(e)-- Deputy CIT v. Gebbs Healthcare Solutions P. Ltd. (Mumbai) . . . 551

Exemption --Export of computer software--Computation of profits--Interest on deposits--Part of business income--Includible for determining amount of total turnover--Income-tax Act, 1961, s. 10A-- J. P. Morgan Services P. Ltd. v. Deputy CIT (OSD) (Mumbai) . . . 561

----Export of computer software--Information technology enabled services--Computation of profits--Deduction allowable before setting of brought forward unabsorbed depreciation--Income-tax Act, 1961, s. 10A-- J. P. Morgan Services P. Ltd. v. Deputy CIT (OSD) (Mumbai) . . . 561

Export oriented undertaking --Exemption--Business process outsourcing--Assessee allowed deduction in earlier years--Facts materially identical in assessment year in question--Assessee entitled to exemption--Income-tax Act, 1961, s. 10B-- Deputy CIT v. Gebbs Healthcare Solutions P. Ltd. (Mumbai) . . . 551

Income from house property --Society maintenance charges--Assessee stating it is obligation of lessee and including charges in rent received--Entitled to deduction apart from standard deduction--Matter remanded to verify claim of deduction--Income-tax Act, 1961, ss. 23, 24(a)-- Asha Ashar v. ITO (Mumbai) . . . 492

Revision --Commissioner--Amalgamation of companies--Effect--Amalgamating company ceases to exist--Order of revision on amalgamating company--Not valid--Provision curing defect not applicable to revision proceedings--Income-tax Act, 1961, ss. 263, 292BB--Emerald Co. Ltd. v. ITO (Kolkata) . . . 619

----Commissioner--Powers-- Explanation 2 that order passed by Assessing Officer without enquiry or verification shall be considered erroneous and prejudicial to interests of Revenue--Declaratory in nature--Provision for warranty, sales tax, excise and liquidated damages--Assessing Officer failing to make relevant and meaningful enquiry whether liability had crystallised to extent deduction claimed in return--Audited account showing amount reflected under head "provisions and contingent liabilities"--Revision valid--Income-tax Act, 1961, s. 263-- Crompton Greaves Ltd. v. CIT
(Mumbai) . . . 465

Transfer pricing --International transactions--Arm's length price--Mutual agreement procedure--Transactions with associated enterprise--Margin determined for ninety-six per cent. of transactions under mutual agreement procedure--No distinction in facts or nature of transactions between these transactions and remaining transactions--Same margin should be adopted for remaining four per cent. of transactions--Double Taxation Avoidance Agreement between India and the U. S. A., art. 27--Income-tax Act, 1961, s. 92C-- J. P. Morgan Services P. Ltd. v. Deputy CIT (OSD)
(Mumbai) . . . 561

 

SECTIONWISE INDEX TO CASES REPORTED IN THIS PART

Companies Act, 1956

Sch. VII --Company--Book profits--Computation according to Schedule VII to Companies Act and not under provisions of Income-tax Act-- J. P. Morgan Services P. Ltd. v . Deputy CIT (OSD) (Mumbai) . . . 561

Double Taxation Avoidance Agreement between India and the U. S. A.

Art. 27 --Transfer pricing--International transactions--Arm's length price--Mutual agreement procedure--Transactions with associated enterprise--Margin determined for ninety-six per cent. of transactions under mutual agreement procedure--No distinction in facts or nature of transactions between these transactions and remaining transactions--Same margin should be adopted for remaining four per cent. of transactions-- J. P. Morgan Services P. Ltd. v. Deputy CIT (OSD) (Mumbai) . . . 561

Income-tax Act, 1961

S. 2(22)(e) --Dividend--Deemed dividend--Common shareholders in both companies not ground to treat amount as deemed dividend--No evidence to show assessee a beneficial shareholder or even a shareholder of company from which assessee received advance--Amount not deemed dividend-- Deputy CIT v. Gebbs Healthcare Solutions P. Ltd. (Mumbai) . . . 551

S. 2(42A) --Capital gains--Computation--Hindu undivided family--Partition--Family settlement--Assessee acquiring land on distribution of assets in family settlement pursuant to partition--Not transfer--Assessee holding property as beneficial owner since 1963--Period of holding of assets in hands of assessee to be reckoned from 1963--Market value to be adopted on 1-4-1981--Indexation benefit also from that date-- ITO v. P. M. Rungta (HUF) (Mumbai) . . . 579

S. 10A --Exemption--Export of computer software--Computation of profits--Interest on deposits--Part of business income--Includible for determining amount of total turnover-- J. P. Morgan Services P. Ltd. v. Deputy CIT (OSD)
(Mumbai) . . . 561

----Exemption--Export of computer software--Information technology enabled services--Computation of profits--Deduction allowable before setting of brought forward unabsorbed depreciation-- J. P. Morgan Services P. Ltd. v. Deputy CIT (OSD)
(Mumbai) . . . 561

S. 10B --Export oriented undertaking--Exemption--Business process outsourcing--Assessee allowed deduction in earlier years--Facts materially identical in assessment year in question--Assessee entitled to exemption-- Deputy CIT v. Gebbs Healthcare Solutions P. Ltd.(Mumbai) . . . 551

S. 23 --Income from house property--Society maintenance charges--Assessee stating it is obligation of lessee and including charges in rent received--Entitled to deduction apart from standard deduction--Matter remanded to verify claim of deduction-- Asha Ashar v. ITO(Mumbai) . . . 492

S. 24(a) --Income from house property--Society maintenance charges--Assessee stating it is obligation of lessee and including charges in rent received--Entitled to deduction apart from standard deduction--Matter remanded to verify claim of deduction-- Asha Ashar v. ITO(Mumbai) . . . 492

S. 28 --Business loss--Dealing in land--Advance in course of business--Non-refund of advance business loss incidental to business--Allowable-- Today Homes and Infrastructure Pvt. Ltd. v. Deputy CIT (Delhi) . . . 586

S. 37 --Business expenditure--Disallowance--Payments for unlawful purpose--Bribe for awarding of contract--Sum deleted in case of recipient and deletion affirmed by High Court--No disallowance-- Today Homes and Infrastructure Pvt. Ltd. v. Deputy CIT (Delhi) . . . 586

----Business expenditure--Expenditure on purchase of software--Not used by assessee but sold to customers--Expenditure on purchase allowable-- Deputy CIT v. E-enable Technologies P. Ltd. (Delhi) . . . 546

----Business expenditure--Prior period expenses--Assessing Officer directed to re-examine issue and adjudicate after granting proper opportunity to assessee-- J. P. Morgan Services P. Ltd. v. Deputy CIT (OSD) (Mumbai) . . . 561

----Business expenditure--Provision for sale and maintenance of software--Annual maintenance contract--Mercantile system of accounting--Part of receipt pertaining to current financial year--Accounting standard consistently followed by assessee--No disallowance--Deputy CIT v. E-enable Technologies P. Ltd. (Delhi) . . . 546

----Business expenditure--Real estate development--Commission and brokerage--Properties held as business assets--Factum of incurring of expenditure as well as rendering of services by agents not disputed--Quantum of expenses cannot be examined by Assessing Officer--Allowable-- Today Homes and Infrastructure Pvt. Ltd. v. Deputy CIT (Delhi) . . . 586

S. 45 --Capital gains--Computation--Hindu undivided family--Partition--Family settlement--Assessee acquiring land on distribution of assets in family settlement pursuant to partition--Not transfer--Assessee holding property as beneficial owner since 1963--Period of holding of assets in hands of assessee to be reckoned from 1963--Market value to be adopted on 1-4-1981--Indexation benefit also from that date-- ITO v. P. M. Rungta (HUF) (Mumbai) . . . 579

S. 68 --Cash credit--Accommodation entries--Assessee one of conduit companies of entry provider--Settlement Commission in the case entry provider holding cash deposited in bank account of various companies cannot be treated as unexplained cash credit in the hands of conduit companies--Order of Commission attaining finality--Order binding on Department--Refusal to follow order of Commission on ground all facts might not have been produced before Commission--Incorrect--No evidence that specific facts not placed before Commission--No addition could be made in hands of assessee on account of unexplained cash credit-- Omni Farms Pvt. Ltd. v. Deputy CIT
(Delhi) . . . 505

----Cash credit--Ongoing negotiation regarding acquisition of property--Memorandum of understanding--Cash returned to assessee and entry in books and surrendered as part of total surrender--No dispute in facts--Credit cannot be treated as unexplained-- Today Homes and Infrastructure Pvt. Ltd. v. Deputy CIT
(Delhi) . . . 586

S. 92C --Transfer pricing--International transactions--Arm's length price--Mutual agreement procedure--Transactions with associated enterprise--Margin determined for ninety-six per cent. of transactions under mutual agreement procedure--No distinction in facts or nature of transactions between these transactions and remaining transactions--Same margin should be adopted for remaining four per cent. of transactions-- J. P. Morgan Services P. Ltd. v. Deputy CIT (OSD) (Mumbai) . . . 561

S. 115JB --Company--Book profits--Computation--Income of unit in special economic zone--Excludible-- Deputy CIT v. Gebbs Healthcare Solutions P. Ltd.
(Mumbai) . . . 551

----Company--Book profits--Computation according to Schedule VII to Companies Act and not under provisions of Income-tax Act-- J. P. Morgan Services P. Ltd. v. Deputy CIT (OSD)(Mumbai) . . . 561

S. 194C --Deduction of tax at source--Payments to contractors--Port charges to clearing and forwarding agents--Independent contractors--Port charges not professional charges--Tax deductible at source under section 194C and not under section 194J-- Deputy CIT v. Gujarat Ambuja Exports Ltd. (Ahd) . . . 519

S. 194J --Deduction of tax at source--Payments to contractors--Port charges to clearing and forwarding agents--Independent contractors--Port charges not professional charges--Tax deductible at source under section 194C and not under section 194J-- Deputy CIT v. Gujarat Ambuja Exports Ltd. (Ahd) . . . 519

S. 206C --Collection of tax at source--Scrap--Definition--Sale of cotton waste, maize husk and de-oiled cake--By-products not scrap or waste--No liability on seller to collect tax at source on sale thereof-- Deputy CIT v. Gujarat Ambuja Exports Ltd.
(Ahd) . . . 519

S. 246A --Appeal to Appellate Tribunal--Appealable orders--Appeal against order of assessment read with revisional order--Not maintainable--Commissioner (Appeals) is competent to adjudicate-- Crompton Greaves Ltd. v. CIT (Mumbai) . . . 465

S. 253(1) --Appeal to Appellate Tribunal--Appealable orders--Appeal against order of assessment read with revisional order--Not maintainable--Commissioner (Appeals) is competent to adjudicate-- Crompton Greaves Ltd. v. CIT (Mumbai) . . . 465

S. 263 --Revision--Commissioner--Amalgamation of companies--Effect--Amalgamating company ceases to exist--Order of revision on amalgamating company--Not valid--Provision curing defect not applicable to revision proceedings-- Emerald Co. Ltd. v. ITO (Kolkata) . . . 619

----Revision--Commissioner--Powers-- Explanation 2 that order passed by Assessing Officer without enquiry or verification shall be considered erroneous and prejudicial to interests of Revenue--Declaratory in nature--Provision for warranty, sales tax, excise and liquidated damages--Assessing Officer failing to make relevant and meaningful enquiry whether liability had crystallised to extent deduction claimed in return--Audited account showing amount reflected under head "provisions and contingent liabilities"--Revision valid--Crompton Greaves Ltd. v. CIT (Mumbai) . . . 465

S. 292BB --Revision--Commissioner--Amalgamation of companies--Effect--Amalgamating company ceases to exist--Order of revision on amalgamating company--Not valid--Provision curing defect not applicable to revision proceedings-- Emerald Co. Ltd. v. ITO (Kolkata) . . . 619

 

__._,_.___

No comments:

Post a Comment