INCOME TAX REPORTS (ITR)
ONLINE EDITION
SUBJECT INDEX TO CASES REPORTED IN THIS PART
Business income --Capital gains--Long-term capital gains--Short-term capital gains--Gains from share transactions--Assessable as short-term and long-term capital gains--Income-tax Act, 1961-- CIT v. Nita Madhu Patel (Guj) . . . 107
Capital or revenue expenditure --Expenditure incurred on filling up pond--Advantage for the enduring benefit of business of assessee--Capital expenditure--Income-tax Act, 1961--Budge Budge Co. Ltd. v. CIT (Cal) . . . 101
Depreciation --Suspension of work--Lock-out--No malice in suspension of work--Plant lying ready for use--Assessee entitled to depreciation--Income-tax Act, 1961, s. 32-- Budge Budge Co. Ltd. v. CIT (Cal) . . . 101
Search and seizure --Assessment in search cases--Undisclosed income--Voluntary offer on account of suppression of professional receipts--Payment made to third party outside books of account--Assessee trying to correlate transaction with surplus balance of cash available--No direct presumption that assessee made investment to that extent from available cash balance--Addition to that extent justified--Income-tax Act, 1961, s. 153A-- Prakash K. Kankariya v. Joint CIT (Bom) . . . 110
ITR Volume 376 : Part 1 (Issue dated : 10-8-2015)
SUBJECT INDEX TO CASES REPORTED IN THIS PART
Appeal to Appellate Tribunal --Powers--Power to extend stay of demand beyond period of three hundred and sixty-five days--Tribunal to pass speaking order on each application and record satisfaction--If Revenue aggrieved by such extension in a particular case--Revenue can challenge before High Court--Income-tax Act, 1961, s. 254(2A)-- Deputy CIT (TDS) v.Vodafone Essar Gujarat Ltd. (Guj) . . . 23
----Powers of Tribunal--Constitutional validity of provisions--Power to grant stay of proceedings--Amendment of section 245 by Finance Act, 2008, empowering Tribunal to grant stay beyond 365 days even if delay not attributable to assessee--Provision violative of article 14 of Constitution--Provision struck down--Tribunal has power to grant extension of stay beyond 365 days in deserving cases--Income-tax Act, 1961, s. 254--Constitution of India, art. 14-- Pepsi Foods P. Ltd. v. Asst. CIT (Delhi) . . . 87
----Power of Tribunal to grant stay--Limited to total period of three hundred and sixty-five days from date of initial stay--Assessee’s appeal listed for hearing but not taken up for reasons not attributable to assessee--Stay continued till disposal of appeal--Tribunal directed to expedite disposal of appeal--Income-tax Act, 1961, s. 254(2A)-- New Delhi Television Ltd.v. Deputy CIT (Delhi) . . . 51
----Rectification of mistakes--Powers--Power to rectify any mistake apparent from record and make amendments--Order of Tribunal challenged in higher court--No bar either on assessee or on Revenue to invoke power of rectification--Principle of judicial propriety has no application--Income-tax Act, 1961, s. 254(2)-- R. W. Promotions P. Ltd. v. ITAT (Bom) . . . 126
----Remand--Entire matter relating to assessments considered by Assessing Officer and Dispute Resolution Panel--Remand to be made to Dispute Resolution Panel and not Assessing Officer--Income-tax Act, 1961, s. 254-- Shanghai Electric Group Co. Ltd. v. Director of Income-tax (Delhi) . . . 46
Assessment --Additional tax--Adjustment made by assessee correct according to law on date of filing return--Subsequent Supreme Court decision not permitting adjustment--Additional tax not automatic--Additional tax could not be levied--Income-tax Act, 1961, s. 143(1)(a), (1A)-- Deputy CIT (Assessment) v. Surat Electricity Company Ltd. (Guj) . . . 121
Business --Business income--Cessation of liability--Amount claimed to be loan--Forfeiture of loan--No deduction of such amount--Amount not assessable under section 41(1)--Income-tax Act, 1961, s. 41(1)-- CIT v. Velocient Technologies Ltd. (Delhi) . . . 131
Cash credits --Amount shown as loan--Burden of proof on assessee to prove genuineness of transaction--No evidence that amount received as loan--Addition of amount to income under section 68--Justified--Income-tax Act, 1961, s. 68-- CIT v. Velocient Technologies Ltd. (Delhi) . . . 131
Exemption --Educational institution--One of objects clauses providing trust could run business--No finding recorded that predominant object of trust to do business--Trust entitled to exemption--Income-tax Act, 1961, s. 10(23C)(vi)-- Harf Charitable Trust (Regd.), Malerkotla v. Chief CIT (P&H) . . . 110
Export --Special deduction--Assessee investing for a short period funds not immediately needed in regular business of export --Interest earned from such investment--No direct and proximate nexus--Assessable as “Income from other sources†--Income-tax Act, 1961, s. 80HHC-- Reliance Trading Corporation v. ITO [FB] (Raj) . . . 53
----Special deduction--Earning of income convertible from foreign exchange by way of interest--Not a test for determining whether deduction is allowable in respect of income derived from profits retained for export business--Income-tax Act, 1961, s. 80HHC--Reliance Trading Corporation v. ITO [FB] (Raj) . . . 53
----Special deduction--Insertion of sub-section (4B) excluding interest for purposes of section 80HHC--Will affect deduction of interest under section 80HHC for period prior to amendment--Income-tax Act, 1961, s. 80HHC-- Reliance Trading Corporation v. ITO [FB] (Raj) . . . 53
Loss --Business loss--Loss on sale of debentures--Finding that transactions of purchase and sale of debentures genuine--Loss deductible--Income-tax Act, 1961-- CIT v.Abhinandan Investment Ltd. (Delhi) . . . 153
Penalty --Concealment of income--Furnishing inaccurate particulars of income--Seized record showing assessee making payment to U. P. Distillers Association--Omission on part of assessee to answer question as regards payment--Presumption of concealment of income--Assessee disclosing additional income only after investigation by Director of Income-tax with certain evidence--Levy of penalty justified--Income-tax Act, 1961, s. 271(1)(c)-- CIT v.Balarampur Chini Mills Ltd. (Cal) . . .1
Reassessment --Grounds for reassessment--Failure to disclose material facts necessary for assessment--Failure to disclose details of transaction during assessment proceedings--Reassessment proceedings valid--Income-tax Act, 1961, ss. 147, 148-- CIT v. Velocient Technologies Ltd. (Delhi) . . . 131
----Notice--Validity--Restructuring arrangement between assessee-company and its subsidiary--Unexpired value of contracts transferred to subsidiary in exchange for shares--Assessment of income subsequent to transaction after enquiry by Assessing Officer and Dispute Resolution Panel--Subsequent reassessment proceedings on ground that transaction gave rise to capital gains--Change of opinion--Reassessment proceedings not valid--Income-tax Act, 1961, ss. 147, 148-- Lahmeyer Holding GmbH v. Deputy DIT (Delhi) . . . 70
SECTIONWISE INDEX TO CASES REPORTED IN THIS PART
Art. 14 --Appeal to Appellate Tribunal--Powers of Tribunal--Constitutional validity of provisions--Power to grant stay of proceedings--Amendment of section 245 by Finance Act, 2008, empowering Tribunal to grant stay beyond 365 days even if delay not attributable to assessee--Provision violative of article 14 of Constitution--Provision struck down--Tribunal has power to grant extension of stay beyond 365 days in deserving cases-- Pepsi Foods P. Ltd. v. Asst. CIT (Delhi) . . . 87
S. 10(23C)(vi) --Exemption--Educational institution--One of objects clauses providing trust could run business--No finding recorded that predominant object of trust to do business--Trust entitled to exemption-- Harf Charitable Trust (Regd.), Malerkotla v. Chief CIT (P&H) . . . 110
S. 41(1) --Business--Business income--Cessation of liability--Amount claimed to be loan--Forfeiture of loan--No deduction of such amount--Amount not assessable under section 41(1)-- CIT v. Velocient Technologies Ltd. (Delhi) . . . 131
S. 68 --Cash credits--Amount shown as loan--Burden of proof on assessee to prove genuineness of transaction--No evidence that amount received as loan--Addition of amount to income under section 68--Justified-- CIT v. Velocient Technologies Ltd. (Delhi) . . . 131
S. 80HHC --Export--Special deduction--Assessee investing for a short period funds not immediately needed in regular business of export --Interest earned from such investment--No direct and proximate nexus--Assessable as “Income from other sources†-- Reliance Trading Corporation v. ITO [FB] (Raj) . . . 53
----Export--Special deduction--Earning of income convertible from foreign exchange by way of interest--Not a test for determining whether deduction is allowable in respect of income derived from profits retained for export business-- Reliance Trading Corporation v. ITO [FB] (Raj) . . . 53
----Export--Special deduction--Insertion of sub-section (4B) excluding interest for purposes of section 80HHC--Will affect deduction of interest under section 80HHC for period prior to amendment--Reliance Trading Corporation v. ITO [FB] (Raj) . . . 53
S. 143(1)(a), (1A) --Assessment--Additional tax--Adjustment made by assessee correct according to law on date of filing return--Subsequent Supreme Court decision not permitting adjustment--Additional tax not automatic--Additional tax could not be levied-- Deputy CIT (Assessment) v. Surat Electricity Company Ltd. (Guj) . . . 121
S. 147 --Reassessment--Grounds for reassessment--Failure to disclose material facts necessary for assessment--Failure to disclose details of transaction during assessment proceedings--Reassessment proceedings valid-- CIT v. Velocient Technologies Ltd. (Delhi) . . . 131
----Reassessment--Notice--Validity--Restructuring arrangement between assessee-company and its subsidiary--Unexpired value of contracts transferred to subsidiary in exchange for shares--Assessment of income subsequent to transaction after enquiry by Assessing Officer and Dispute Resolution Panel--Subsequent reassessment proceedings on ground that transaction gave rise to capital gains--Change of opinion--Reassessment proceedings not valid-- Lahmeyer Holding GmbH v. Deputy DIT (Delhi) . . . 70
S. 148 --Reassessment--Grounds for reassessment--Failure to disclose material facts necessary for assessment--Failure to disclose details of transaction during assessment proceedings--Reassessment proceedings valid-- CIT v. Velocient Technologies Ltd. (Delhi) . . . 131
----Reassessment--Notice--Validity--Restructuring arrangement between assessee-company and its subsidiary--Unexpired value of contracts transferred to subsidiary in exchange for shares--Assessment of income subsequent to transaction after enquiry by Assessing Officer and Dispute Resolution Panel--Subsequent reassessment proceedings on ground that transaction gave rise to capital gains--Change of opinion--Reassessment proceedings not valid-- Lahmeyer Holding GmbH v. Deputy DIT (Delhi) . . . 70
S. 254 --Appeal to Appellate Tribunal--Powers of Tribunal--Constitutional validity of provisions--Power to grant stay of proceedings--Amendment of section 245 by Finance Act, 2008, empowering Tribunal to grant stay beyond 365 days even if delay not attributable to assessee--Provision violative of article 14 of Constitution--Provision struck down--Tribunal has power to grant extension of stay beyond 365 days in deserving cases-- Pepsi Foods P. Ltd. v. Asst. CIT (Delhi) . . . 87
----Appeal to Appellate Tribunal--Remand--Entire matter relating to assessments considered by Assessing Officer and Dispute Resolution Panel--Remand to be made to Dispute Resolution Panel and not Assessing Officer-- Shanghai Electric Group Co. Ltd. v. Director of Income-tax (Delhi) . . . 46
S. 254(2) --Appeal to Appellate Tribunal--Rectification of mistakes--Powers--Power to rectify any mistake apparent from record and make amendments--Order of Tribunal challenged in higher court--No bar either on assessee or on Revenue to invoke power of rectification--Principle of judicial propriety has no application-- R. W. Promotions P. Ltd. v. ITAT (Bom) . . . 126
S. 254(2A) --Appeal to Appellate Tribunal--Power of Tribunal to grant stay--Limited to total period of three hundred and sixty-five days from date of initial stay--Assessee’s appeal listed for hearing but not taken up for reasons not attributable to assessee--Stay continued till disposal of appeal--Tribunal directed to expedite disposal of appeal-- New Delhi Television Ltd. v. Deputy CIT (Delhi) . . . 51
----Appeal to Appellate Tribunal--Powers--Power to extend stay of demand beyond period of three hundred and sixty-five days--Tribunal to pass speaking order on each application and record satisfaction--If Revenue aggrieved by such extension in a particular case--Revenue can challenge before High Court-- Deputy CIT (TDS) v. Vodafone Essar Gujarat Ltd. (Guj) . . . 23
S. 271(1)(c) --Penalty--Concealment of income--Furnishing inaccurate particulars of income--Seized record showing assessee making payment to U. P. Distillers Association--Omission on part of assessee to answer question as regards payment--Presumption of concealment of income--Assessee disclosing additional income only after investigation by Director of Income-tax with certain evidence--Levy of penalty justified-- CIT v. Balarampur Chini Mills Ltd. (Cal) . . .1
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