INCOME TAX REPORTS (ITR)
INCOME TAX REPORTS
Volume 346 Part 5 (Issue dated 3-9-2012)
SUBJECT INDEX TO CASES REPORTED IN THIS PART
HIGH COURTS
Appeal to High Court --Delay in filing appeal--Condonation of delay--Causes of delay to be examined--Delay can be condoned if there is sufficient cause--Income-tax Act, 1961, s. 260A-- CIT v. Williamson Tea (Assam) Ltd. (Gauhati) . . . 428
----Limitation--Power to condone delay in filing appeal--Law applicable--Effect of insertion of sub-section (2A) of section 260A with retrospective effect from 1-10-1998--Amendment empowering High Court to condone delay--Order of High Court on 16-6-2010 refusing to condone delay--Order not valid--Income-tax Act, 1961, s. 260A-- CIT v . Williamson Tea (Assam) Ltd. (No. 2 ) (Gauhati) . . . 436
Interpretation of taxing statutes --Legal fiction-- CIT v . Williamson Tea (Assam) Ltd . (No. 2 ) (Gauhati) . . . 436
----Reasonable interpretation-- Maheshwari Agro Industries v. Union of India (Raj) . . . 375
Precedent --Effect of decision of Supreme Court in CIT v . Kelvinator of India Ltd . [2010] 320 ITR 561-- NYK Line (India) Ltd. v . Deputy CIT (No. 2) (Bom) . . . 361
Reassessment --Notice--Condition precedent--Tangible material to show escapement of income--Amount kept in separate account not added as income in original account--Details regarding amount disclosed--Similar amount assessed in subsequent year--Not a ground for reopening assessment--Notice of reassessment not valid--Income-tax Act, 1961, ss. 147, 148-- NYK Line (India) Ltd. v . Deputy CIT (No. 2)
(Bom) . . . 361
----Notice--Sanction for notice--Section 151 providing for sanction by Joint Commissioner--Sanction by Commissioner--Notice not valid--Income-tax Act, 1961, ss. 148, 151-- Ghanshyam K. Khabrani v . Asst. CIT (Bom) . . . 443
----Notice--Special deduction--Housing projects--Notice issued on ground that commercial establishment of housing project developed by assessee exceeded statutory limit--Provision disqualifying assessee from claiming benefits under section 80-IB(10) introduced subsequently--Not applicable to assessment year under consideration--Notice to be quashed--Income-tax Act, 1961, ss. 80-IB, 148-- Kalpataru Sthapatya Pvt. Ltd . v. ITO (Guj) . . . 371
----Notice after four years--Validity--Notice on basis of a letter from Additional Director (Investigation) that ten crores of rupees was received by assessee in previous year relevant to assessment year 2003-04--Addition of nearly five crores in assessment year 2003-04--Notice to include balance in assessment year 2004-05--Not valid--Income-tax Act, 1961, ss. 147, 148-- Ghanshyam K. Khabrani v. Asst. CIT
(Bom) . . . 443
----Notice beyond four years--Condition precedent--Failure to disclose material facts necessary for assessment--Assessee disclosing full particulars and disclosure also by statutory auditor--Fact that similar amount was added back in subsequent assessment--Not sufficient--Notice not valid--Income-tax Act, 1961, ss. 147, 148-- NYK Line (India) Ltd. v. Deputy CIT (No. 1) (Bom) . . . 355
Recovery of tax --Stay of recovery proceedings--First appellate authority has inherent power to grant stay--Assessing Officer has discretion under section 220(6) to treat assessee as not in default--Discretion should ordinarily be exercised in favour of assessee--Income-tax Act, 1961, ss. 220(6), 246, 251-- Maheshwari Agro Industries v. Union of India (Raj) . . . 375
AUTHORITY FOR ADVANCE RULINGS
Non-resident --Fees for technical services--Processing of acquired seismic data for UAE company which had contract with ONGC--Provision of technical personnel for analysing data--Services are technical and consultancy services--Services not amounting to a mining or like project or the work of prospecting for extraction or production of mineral oil--Exception not attracted--Income not from Government or an Indian concern and not separately assessable under section 115A or 44DA--Income assessable under section 44BB(1)--Income-tax Act, 1961, ss. 9(1)(vii), Expln. 2 , 44BB-- Spectrum Geo Limited , In re . . . 422
ITR'S TRIBUNAL TAX REPORTS (ITR (TRIB))
Volume 18 : Part 3 (Issue dated : 3-09-2012)
SUBJECT INDEX TO CASES REPORTED IN THIS PART
Appeal to Appellate Tribunal --Delay in filing appeal--Condonation of delay--Reasonable explanation for delay--Delay to be condoned--Income-tax Act, 1961-- Rohtak Co-op. Milk Producer Union Ltd. v. Assistant CIT (Delhi) . . . 310
----Notice--Service of notice--Service of notice mandatory--Failure by Department to serve notice to assessee--Appeal to be dismissed--Income-tax Act, 1961, s. 254-- ITO v. Rachana Constructions and Engineers and Contractors (Pune) . . . 262
----Powers of Tribunal--Power to admit additional evidence--Evidence authentic and necessary for decision--Evidence can be admitted--Income-tax Act, 1961-- Rohtak Co-op. Milk Producer Union Ltd. v. Assistant CIT (Delhi) . . . 310
Capital gains --Full value of consideration--Valuation of property--Land--Circle rate and location of land clarified by Tehsildar and Sub-Registrar--Circle rate lower than rate shown by assessee in purchase deed--Sale registered by stamp valuation authority at value shown by assessee--Onus of proof on Department to show understatement of consideration--Addition on basis of rate adopted by Valuation Officer not permissible--Income-tax Act, 1961, s. 50C-- Assistant CIT v. Anjali Dua (Delhi) . . . 267
Double taxation relief --Assessee resident of India--Having permanent establishments in Oman, Mauritius, Netherlands and Tanzania--Income attributable thereto can be taxed in India--Income-tax Act, 1961, ss. 5, 90-- Telecommunications Consultants India Ltd. v. Additional CIT (Delhi) . . . 368
Export --Special deduction--Indirect expenses attributable to export of trading goods--Method of determination--Apportionment in ratio of export turnover to total turnover--Income-tax Act, 1961, s. 80HHC-- Telecommunications Consultants India Ltd. v. Additional CIT (Delhi) . . . 368
Foreign project --Special deduction--Conditions precedent--Deduction cannot exceed sum placed in reserve--Income-tax Act, 1961, s. 80HHB-- Telecommunications Consultants India Ltd. v. Additional CIT (Delhi) . . . 368
Non-resident --Double Taxation Avoidance Agreement--Hotel in India entering into agreement with U.S. chain of hotels--Consultancy agreements with non-resident companies for making interior and exterior changes--No permanent establishments for non-residents--No transfer of technology--Amounts paid to non-residents not assessable in India--Income-tax Act, 1961, ss. 5, 9, 195, 201--Double Taxation Avoidance Agreement between India and the U. S. A, art. 12--Double Taxation Avoidance Agreement between India and the U. K., arts. 13, 15--Double Taxation Avoidance Agreement between India and the Kingdom of Thailand, arts. 7, 14, 22--Circular Nos. 4 dated 16-7-2002, 10 dated 9-10-2002, 728 dated 30-10-1995, 786 dated 7-2-2000-- Assistant CIT v. Viceroy Hotels Ltd. (Hyderabad) . . . 282
----Double taxation avoidance--General principles--Effect of articles 11 and 12--Interest and royalty can be taxed in source State--Tax cannot exceed 15 per cent. and 10 per cent.--Term “tax†includes surcharge and education cess--Double Taxation Avoidance Agreement between India and Singapore, arts. 2, 11 and 12-- DIC Asia Pacific Pte Ltd. v. Assistant Director of Income-tax (International Taxation) (Kolkata) . . . 358
----Reinsurance broker--Intermediary or advisory services in selecting reinsurer--Not a case of provision of technical services--Payment received from insurance company in India not fees for technical services--Income-tax Act, 1961, s. 9(1)(vii), Expln. 2--Double Taxation Avoidance Agreement between India and the United Kingdom, art. 13(4)-- Guy Carpenter and Co. Ltd. (No. 1) v. Additional Director of Income-tax (International Taxation) (Delhi) . . . 333
Reassessment --Foreign project--Special deduction--Deduction granted in excess of sum placed in reserve--Income deemed to have escaped assessment--Reassessment justified--Income-tax Act, 1961, ss. 80HHB, 148-- Telecommunications Consultants India Ltd. v. Additional CIT (Delhi) . . . 368
----Notice after four years--Export--Special deduction--Failure by assessee to furnish working of indirect expenses attributable to export of trading goods--Amounts to failure to disclose facts necessary for assessment--Reassessment proper--Income-tax Act, 1961, ss. 80HHC, 147, 148-- Telecommunications Consultants India Ltd. v. Additional CIT (Delhi) . . . 368
----Notice solely on basis of statement recorded under section 133A--No evidentiary value--Reassessment to be set aside--Income-tax Act, 1961, ss. 133A, 147, 148-- Dr. J. Mohan v. Assistant CIT (Chennai) . . . 363
----Notice within four years--Validity--Some facts not available on record and some facts not brought to notice of Assessing Officer--Notice valid--Income-tax Act, 1961, ss. 147, 148-- Rohtak Co-op. Milk Producer Union Ltd. v. Assistant CIT (Delhi) . . . 310
Revision --Order passed by Assessing Officer on remand by Tribunal--Assessing Officer verifying factum of transfer of discount under direction of Tribunal--Order of Assessing Officer not erroneous--Revision not valid--Income-tax Act, 1961, s. 263-- Surindra Enterprises v. ITO (Chandigarh) . . . 325
SECTIONWISE INDEX TO CASES REPORTED IN THIS PART
Double Taxation Avoidance Agreement between India and Singapore :
Art. 2 --Non-resident--Double taxation avoidance--General principles--Effect of articles 11 and 12--Interest and royalty can be taxed in source State--Tax cannot exceed 15 per cent. and 10 per cent.--Term “tax†includes surcharge and education cess-- DIC Asia Pacific Pte Ltd. v. Assistant Director of Income-tax (International Taxation) (Kolkata) . . . 358
Art. 11 --Non-resident--Double taxation avoidance--General principles--Effect of articles 11 and 12--Interest and royalty can be taxed in source State--Tax cannot exceed 15 per cent. and 10 per cent.--Term “tax†includes surcharge and education cess-- DIC Asia Pacific Pte Ltd. v. Assistant Director of Income-tax (International Taxation) (Kolkata) . . . 358
Art. 12 --Non-resident--Double taxation avoidance--General principles--Effect of articles 11 and 12--Interest and royalty can be taxed in source State--Tax cannot exceed 15 per cent. and 10 per cent.--Term “tax†includes surcharge and education cess-- DIC Asia Pacific Pte Ltd. v. Assistant Director of Income-tax (International Taxation) (Kolkata) . . . 358
Double Taxation Avoidance Agreement between India and the U. K. :
Art. 13 --Non-resident--Double Taxation Avoidance Agreement--Hotel in India entering into agreement with U.S. chain of hotels--Consultancy agreements with non-resident companies for making interior and exterior changes--No permanent establishments for non-residents--No transfer of technology--Amounts paid to non-residents not assessable in India-- Assistant CIT v. Viceroy Hotels Ltd. (Hyderabad) . . . 282
Art. 13(4) --Non-resident--Reinsurance broker--Intermediary or advisory services in selecting reinsurer--Not a case of provision of technical services--Payment received from insurance company in India not fees for technical services-- Guy Carpenter and Co. Ltd. (No. 1) v. Additional Director of Income-tax (International Taxation) (Delhi) . . . 333
Art. 15 --Non-resident--Double Taxation Avoidance Agreement--Hotel in India entering into agreement with U.S. chain of hotels--Consultancy agreements with non-resident companies for making interior and exterior changes--No permanent establishments for non-residents--No transfer of technology--Amounts paid to non-residents not assessable in India-- Assistant CIT v. Viceroy Hotels Ltd. (Hyderabad) . . . 282
Double Taxation Avoidance Agreement between India and the U. S. A :
Art. 12 --Non-resident--Double Taxation Avoidance Agreement--Hotel in India entering into agreement with U.S. chain of hotels--Consultancy agreements with non-resident companies for making interior and exterior changes--No permanent establishments for non-residents--No transfer of technology--Amounts paid to non-residents not assessable in India-- Assistant CIT v. Viceroy Hotels Ltd. (Hyderabad) . . . 282
Double Taxation Avoidance Agreement between India and the Kingdom of Thailand :
Art. 7 --Non-resident--Double Taxation Avoidance Agreement--Hotel in India entering into agreement with U.S. chain of hotels--Consultancy agreements with non-resident companies for making interior and exterior changes--No permanent establishments for non-residents--No transfer of technology--Amounts paid to non-residents not assessable in India-- Assistant CIT v. Viceroy Hotels Ltd. (Hyderabad) . . . 282
Art. 14 --Non-resident--Double Taxation Avoidance Agreement--Hotel in India entering into agreement with U.S. chain of hotels--Consultancy agreements with non-resident companies for making interior and exterior changes--No permanent establishments for non-residents--No transfer of technology--Amounts paid to non-residents not assessable in India-- Assistant CIT v. Viceroy Hotels Ltd. (Hyderabad) . . . 282
Art. 22 --Non-resident--Double Taxation Avoidance Agreement--Hotel in India entering into agreement with U.S. chain of hotels--Consultancy agreements with non-resident companies for making interior and exterior changes--No permanent establishments for non-residents--No transfer of technology--Amounts paid to non-residents not assessable in India-- Assistant CIT v. Viceroy Hotels Ltd. (Hyderabad) . . . 282
Income-tax Act, 1961 :
S. 5 --Double taxation relief--Assessee resident of India--Having permanent establishments in Oman, Mauritius, Netherlands and Tanzania--Income attributable thereto can be taxed in India-- Telecommunications Consultants India Ltd. v. Additional CIT (Delhi) . . . 368
----Non-resident--Double Taxation Avoidance Agreement--Hotel in India entering into agreement with U.S. chain of hotels--Consultancy agreements with non-resident companies for making interior and exterior changes--No permanent establishments for non-residents--No transfer of technology--Amounts paid to non-residents not assessable in India-- Assistant CIT v. Viceroy Hotels Ltd. (Hyderabad) . . . 282
S. 9 --Non-resident--Double Taxation Avoidance Agreement--Hotel in India entering into agreement with U.S. chain of hotels--Consultancy agreements with non-resident companies for making interior and exterior changes--No permanent establishments for non-residents--No transfer of technology--Amounts paid to non-residents not assessable in India-- Assistant CIT v. Viceroy Hotels Ltd. (Hyderabad) . . . 282
S. 9(1)(vii), Expln. 2 --Non-resident--Reinsurance broker--Intermediary or advisory services in selecting reinsurer--Not a case of provision of technical services--Payment received from insurance company in India not fees for technical services---- Guy Carpenter and Co. Ltd. (No. 1) v. Additional Director of Income-tax (International Taxation) (Delhi) . . . 333
S. 50C --Capital gains--Full value of consideration--Valuation of property--Land--Circle rate and location of land clarified by Tehsildar and Sub-Registrar--Circle rate lower than rate shown by assessee in purchase deed--Sale registered by stamp valuation authority at value shown by assessee--Onus of proof on Department to show understatement of consideration--Addition on basis of rate adopted by Valuation Officer not permissible-- Assistant CIT v. Anjali Dua (Delhi) . . . 267
S. 80HHB --Foreign project--Special deduction--Conditions precedent--Deduction cannot exceed sum placed in reserve-- Telecommunications Consultants India Ltd. v. Additional CIT (Delhi) . . . 368
----Reassessment--Foreign project--Special deduction--Deduction granted in excess of sum placed in reserve--Income deemed to have escaped assessment--Reassessment justified-- Telecommunications Consultants India Ltd. v. Additional CIT (Delhi) . . . 368
S. 80HHC --Export--Special deduction--Indirect expenses attributable to export of trading goods--Method of determination--Apportionment in ratio of export turnover to total turnover-- Telecommunications Consultants India Ltd. v. Additional CIT (Delhi) . . . 368
----Reassessment--Notice after four years--Export--Special deduction--Failure by assessee to furnish working of indirect expenses attributable to export of trading goods--Amounts to failure to disclose facts necessary for assessment--Reassessment proper-- Telecommunications Consultants India Ltd. v. Additional CIT (Delhi) . . . 368
S. 90 --Double taxation relief--Assessee resident of India--Having permanent establishments in Oman, Mauritius, Netherlands and Tanzania--Income attributable thereto can be taxed in India-- Telecommunications Consultants India Ltd. v. Additional CIT (Delhi) . . . 368
S. 133A --Reassessment--Notice solely on basis of statement recorded under section 133A--No evidentiary value--Reassessment to be set aside-- Dr. J. Mohan v. Assistant CIT (Chennai) . . . 363
S. 147 --Reassessment--Notice after four years--Export--Special deduction--Failure by assessee to furnish working of indirect expenses attributable to export of trading goods--Amounts to failure to disclose facts necessary for assessment--Reassessment proper-- Telecommunications Consultants India Ltd. v. Additional CIT (Delhi) . . . 368
----Reassessment--Notice solely on basis of statement recorded under section 133A--No evidentiary value--Reassessment to be set aside-- Dr. J. Mohan v. Assistant CIT (Chennai) . . . 363
----Reassessment--Notice within four years--Validity--Some facts not available on record and some facts not brought to notice of Assessing Officer--Notice valid-- Rohtak Co-op. Milk Producer Union Ltd. v. Assistant CIT (Delhi) . . . 310
S. 148 --Reassessment--Foreign project--Special deduction--Deduction granted in excess of sum placed in reserve--Income deemed to have escaped assessment--Reassessment justified-- Telecommunications Consultants India Ltd. v. Additional CIT (Delhi) . . . 368
----Reassessment--Notice after four years--Export--Special deduction--Failure by assessee to furnish working of indirect expenses attributable to export of trading goods--Amounts to failure to disclose facts necessary for assessment--Reassessment proper-- Telecommunications Consultants India Ltd. v. Additional CIT (Delhi) . . . 368
----Reassessment--Notice solely on basis of statement recorded under section 133A--No evidentiary value--Reassessment to be set aside-- Dr. J. Mohan v. Assistant CIT (Chennai) . . . 363
----Reassessment--Notice within four years--Validity--Some facts not available on record and some facts not brought to notice of Assessing Officer--Notice valid-- Rohtak Co-op. Milk Producer Union Ltd. v. Assistant CIT (Delhi) . . . 310
S. 195 --Non-resident--Double Taxation Avoidance Agreement--Hotel in India entering into agreement with U.S. chain of hotels--Consultancy agreements with non-resident companies for making interior and exterior changes--No permanent establishments for non-residents--No transfer of technology--Amounts paid to non-residents not assessable in India-- Assistant CIT v. Viceroy Hotels Ltd. (Hyderabad) . . . 282
S. 201 --Non-resident--Double Taxation Avoidance Agreement--Hotel in India entering into agreement with U.S. chain of hotels--Consultancy agreements with non-resident companies for making interior and exterior changes--No permanent establishments for non-residents--No transfer of technology--Amounts paid to non-residents not assessable in India-- Assistant CIT v. Viceroy Hotels Ltd. (Hyderabad) . . . 282
S. 254 --Appeal to Appellate Tribunal--Notice--Service of notice--Service of notice mandatory--Failure by Department to serve notice to assessee--Appeal to be dismissed-- ITO v. Rachana Constructions and Engineers and Contractors (Pune) . . . 262
S. 263 --Revision--Order passed by Assessing Officer on remand by Tribunal--Assessing Officer verifying factum of transfer of discount under direction of Tribunal--Order of Assessing Officer not erroneous--Revision not valid-- Surindra Enterprises v. ITO (Chandigarh) . . . 325
