CENVAT - Debit Note Disputed. Raise Invoice Instead

---------- Forwarded message ----------
From: Rebecca Andrews <rebecca.andrews88@yahoo.in>
Date: Thu, Jan 20, 2011 at 6:10 AM
Subject: Message from EGroup of SolapurCAs CENVAT - Debit Note Disputed. Raise Invoice Instead
To:

 

Availing credit on debit notes needs govt's clarity  Mr. Monish Bhalla, Founder, www.servicetaxonline.com in his article has highlighted  the difficulties faced by the assessees at the hands of the Department when they refuse to accept Debit Notes as the prescribed document for availing CENVAT credit. His solution is simple : Raise an invoice instead. He has also cited two contrary CESTAT judgements. One allows and the second disallows debit note as the document on which CENVAT can be availed : "Revenue pressures usually start showing in the fag end of the financial years. Like every private or public organisation, government departments too seem to be under revenue collection and target pressures. Government appears to be using two ways of projecting higher revenues. One obviously higher collection and another denying Cenvat credits, very often, the department tries to deny the credit available on grounds which have little importance in legal parlance. Under Cenvat Credit Rules, 2004, Rule 9 states that credit for service tax paid on input service can be availed based on an invoice, a bill or challan issued by a provider of input service. Now, when a person who is providing taxable service, issues the document which has all the particulars as required by statute, but terms it as 'debit note' instead of 'invoice' is not having slightest idea that what repercussions will be there when his client wants to take credit of the same. The scheme of allowing credit of input service tax was introduced to remove the cascading effect of the tax. In 2004, department relaxed many procedural hurdles and promoted self-assessment based on private documents instead of statutory documents. However, it seems that this has not diluted the litigious approach of the department. Recently, there are many cases reported on the issue of denial of legitimate service tax credit availed on the bases of debit notes. The department has taken a stand that debit notes are not a prescribed document for the purpose of availing credit of service tax. For the companies availing credit on the bases of debit notes, this departmental stand has come as a harsh blow as they are compelled to do away with the legitimate credits. Over and above the same, they are supposed to shell out additional service tax from their cash reserves. Many such issues have travelled to the tribunals. Interestingly, divergent views have been taken on this issue of credit on debit notes. Delhi Tribunal in case of Godrej Consumer Products Ltd. (STO 2010 CESTAT 660) held that Rule 9(1) of Cenvat Credit Rules, 2004 deals that which documents are required to avail Cenvat credit and those documents are invoice, challans, supplementary invoice and bills of entry. No other document is permissible to avail Cenvat credit. Hence, denial of Cenvat credit is correct. An opposite and contrast view has been taken by the Ahmedabad bench in the case of Pharmalab Process Equipments Pvt Ltd (STO 2009 CESTAT 1708). Here, the tribunal has taken a liberal view. It was held that as the debit notes issued by the service provider contained the details of service tax payable, description of the taxable service, value of the taxable service, registration no. of the service provider, name and address of the service provider, it meets with all the requirement of the Cenvat credit rules. These are the details which are required as per Rule 9(2) of Cenvat Credit Rules, 2004; thus debit notes are eligible to take credit. This view was supported by South Zonal bench of tribunal in case of Pallipalayam Spinners Pvt. Ltd. (STO 2010 CESTAT 194). As there are decisions, both in favour and against availing credits on debit notes, the ministry should intervene to clarify the issue. To avoid future litigations, assessee should convert their 'debit notes' into 'invoice' to avoid litigations. At the same time, department should take a lenient view. They need to exercise their common sense, too. No law is beyond common sense." Kind regards, Rebecca Andrews

ITR VOL 330 PART 4 AND ITR (TRIB) VOL 7 PART 4

 

INCOME TAX REPORTS (ITR)

Volume 330 : Part 4 (Issue dated 24-1-2011)

SUBJECT INDEX TO CASES REPORTED IN THIS PART

SUPREME COURT

Advance tax --Interest--Company--Minimum alternate tax--Book profits--Interest can be charged on tax calculated on book profits--Income-tax Act, 1961, ss. 115JA, 234B--Circular No. 13 of 2001 dated November 9, 2001-- Joint CIT v. Rolta India Ltd. . . . 470

HIGH COURTS

Business --Business income--Cessation of liability--Condition precedent for application of section 41--Mere change in name in books of account--No actual extinguishment of liability--Amount not taxable under section 41--Income-tax Act, 1961, s. 41-- CIT v. Auto Kashyap India P. Ltd. (Delhi) . . . 435

Charitable purposes --Charitable trust--Registration of trust--Registration does not automatically confer exemption--Assessee trust having imparting education as one of its objects--Assessee running educational institutions--Assessee entitled to registration under section 12A--Income-tax Act, 1961, s. 12A-- Director of Income-tax v. Garden City Educational Trust (Karn) . . . 480

Income --Mercantile system of accounting--Non-banking financial company--Interest on intercorporate deposit not received for more than six months--Assessee bound by Reserve Bank of India directions to treat deposit as non-performing asset--Interest does not accrue--Income-tax Act, 1961, ss. 5, 145(1)--Reserve Bank of India Act, 1934, s. 45Q--Non-Banking Financial Companies Prudential Norms (Reserve Bank) Directions, 1998-- CIT v. Vasisth Chay Vyapar Ltd. (Delhi) . . . 440

Income from undisclosed sources --Addition on account of deposits--Deposits not huge amounts--Explanation of assessee to be accepted--Income-tax Act, 1961-- Sunil Dua v. CIT (Delhi) . . . 413

----Jewellery--Assessee contending that jewellery inherited under a will--Genuineness of will not proved--Inclusion of jewellery proper--Income-tax Act, 1961-- Sunil Dua v. CIT (Delhi) . . . 413

Industrial undertaking --Special deduction--Brought forward unabsorbed loss and deficiencies of earlier years--To be adjusted first before granting special deduction--Income-tax Act, 1961, ss. 80HH, 80-I-- Modi Nagar Paper Mills Ltd. v. Deputy CIT (All) . . . 405

----Special deduction--Interest on deposits--Not allowable--Miscellaneous income--Matter remanded--Income-tax Act, 1961, s. 80-IB-- CIT v. Dresser Rand India P. Ltd . (Bom) . . . 453

----Special deduction--Receipts from freight and insurance, packing charges, sales tax set off and gross service income--90 per cent. to be excluded from profits of business--Income-tax Act, 1961, s. 80HHC-- CIT v. Dresser Rand India P. Ltd.
(Bom) . . . 453

Interest on borrowed capital --Interest on loans obtained by assessee to settle liability of its sister concern--Interest paid to retain business premises of assessee--To be allowed--Income-tax Act, 1961, s. 36(1)(iii)-- CIT v. Neelkanth Synthetics and Chemicals P. Ltd. (Bom) . . . 463

Penalty --Compulsory audit of accounts--Law applicable--Requirement of filing audit report along with return--Only w.e.f. 1-7-1995--Failure for earlier years--Penalty cannot be imposed--Income-tax Act, 1961, ss. 44AB, 271B-- S. V. Pathak and Company v. N. C. Tewari, CIT (Bom) . . . 410

Precedent --Supreme Court--Decision of Delhi High Court in Ansal Properties and Industries Ltd. v. Appropriate Authority [1999] 236 ITR 793 not completely overruled in DLF Universal Ltd. v. Appropriate Authority [2000] 243 ITR 730 (SC)-- R. N. Soin and Sons P. Ltd. v. Appropriate Authority (Delhi) . . . 455

Purchase of immovable property by Central Government --Allocation of residential plot--Assignee of letter of allocation entering into agreement with builder for development of plot--Form 37-I filed after plot developed--Appropriate Authority--Valuation--Whether as on date of agreement with original allottee or with assignee or as on date of determination--Matter remanded--Income-tax Act, 1961, s. 269UD(1)--Constitution of India, art. 226-- R. N. Soin and Sons P. Ltd. v. Appropriate Authority (Delhi) . . . 455

Reassessment --Notice--Notice issued on presumption that bogus payment made by assessee to a loss making company--Finding that company not a loss making company and payment made for services rendered to assessee--Payee showing the amount in its return and paying tax--Proceedings quashed--Income-tax Act, 1961, s. 147-- CIT v. Rainee Singh (Delhi) . . . 417

Search and seizure --Block assessment--Undisclosed income--Concurrent finding by authorities that amount disclosed in audit reports, balance-sheets and regular returns of income--Finding of fact--Cannot be interfered with--Income-tax Act, 1961, s. 132-- CIT v. Modern Engineering Works (Delhi) . . . 416

----Undisclosed income--Investment in hundis--Tribunal finding investments not belonging to assessee but to family members as well--Findings of fact--Income-tax Act, 1961-- CIT v. Chandulal Chhugani (Chhattisgarh) . . . 467

----Warrant--Additional Director competent to issue warrant of authorization--Notification No. S. O. 3862, dated November 6, 1979--Income-tax Act, 1961, s. 132-- Sunil Dua v. CIT (Delhi) . . . 413

Settlement of cases --Order passed by Settlement Commission is conclusive--Settlement of case after search operation--Order of Settlement Commission not challenged--No allegation of fraud or misrepresentation before Settlement Commission--Notice under section 142(1) based on material discovered during search operation--Notice not valid--Income-tax Act, 1961, ss. 245D, 245F, 245-I-- Smt. Neeru Agarwal v. Union of India (All) . . . 422

SECTIONWISE INDEX TO CASES REPORTED IN THIS PART

Constitution of India : 

Art. 226 --Purchase of immovable property by Central Government--Allocation of residential plot--Assignee of letter of allocation entering into agreement with builder for development of plot--Form 37-I filed after plot developed--Appropriate Authority--Valuation--Whether as on date of agreement with original allottee or with assignee or as on date of determination--Matter remanded-- R. N. Soin and Sons P. Ltd. v. Appropriate Authority (Delhi) . . . 455

Income-tax Act, 1961 : 

S. 5 --Income--Mercantile system of accounting--Non-banking financial company--Interest on intercorporate deposit not received for more than six months--Assessee bound by Reserve Bank of India directions to treat deposit as non-performing asset--Interest does not accrue--Non-Banking Financial Companies Prudential Norms (Reserve Bank) Directions, 1998-- CIT v. Vasisth Chay Vyapar Ltd. (Delhi) . . . 440

S. 12A --Charitable purposes--Charitable trust--Registration of trust--Registration does not automatically confer exemption--Assessee trust having imparting education as one of its objects--Assessee running educational institutions--Assessee entitled to registration under section 12A-- Director of Income-tax v. Garden City Educational Trust (Karn) . . . 480

S. 36(1)(iii) --Interest on borrowed capital--Interest on loans obtained by assessee to settle liability of its sister concern--Interest paid to retain business premises of assessee--To be allowed-- CIT v. Neelkanth Synthetics and Chemicals P. Ltd.
(Bom) . . . 463

S. 41 --Business--Business income--Cessation of liability--Condition precedent for application of section 41--Mere change in name in books of account--No actual extinguishment of liability--Amount not taxable under section 41-- CIT v. Auto Kashyap India P. Ltd. (Delhi) . . . 435

S. 44AB --Penalty--Compulsory audit of accounts--Law applicable--Requirement of filing audit report along with return--Only w.e.f. 1-7-1995--Failure for earlier years--Penalty cannot be imposed-- S. V. Pathak and Company v. N. C. Tewari, CIT
(Bom) . . . 410

S. 80HH --Industrial undertaking--Special deduction--Brought forward unabsorbed loss and deficiencies of earlier years--To be adjusted first before granting special deduction-- Modi Nagar Paper Mills Ltd. v. Deputy CIT (All) . . . 405
S. 80HHC --Industrial undertaking--Special deduction--Receipts from freight and insurance, packing charges, sales tax set off and gross service income--90 per cent. to be excluded from profits of business-- CIT v. Dresser Rand India P. Ltd.
(Bom) . . . 453

S. 80-I --Industrial undertaking--Special deduction--Brought forward unabsorbed loss and deficiencies of earlier years--To be adjusted first before granting special deduction-- Modi Nagar Paper Mills Ltd. v. Deputy CIT (All) . . . 405
S. 80-IB --Industrial undertaking--Special deduction--Interest on deposits--Not allowable--Miscellaneous income--Matter remanded-- CIT v. Dresser Rand India P. Ltd . (Bom) . . . 453

S. 115JA --Advance tax--Interest--Company--Minimum alternate tax--Book profits--Interest can be charged on tax calculated on book profits--Circular No. 13 of 2001 dated November 9, 2001-- Joint CIT v. Rolta India Ltd. (SC) . . . 470

S. 132 --Search and seizure--Block assessment--Undisclosed income--Concurrent finding by authorities that amount disclosed in audit reports, balance-sheets and regular returns of income--Finding of fact--Cannot be interfered with-- CIT v. Modern Engineering Works (Delhi) . . . 416

----Search and seizure--Warrant--Additional Director competent to issue warrant of authorization--Notification No. S. O. 3862, dated November 6, 1979-- Sunil Dua v. CIT (Delhi) . . . 413

S. 145(1) --Income--Mercantile system of accounting--Non-banking financial company--Interest on intercorporate deposit not received for more than six months--Assessee bound by Reserve Bank of India directions to treat deposit as non-performing asset--Interest does not accrue--Non-Banking Financial Companies Prudential Norms (Reserve Bank) Directions, 1998-- CIT v. Vasisth Chay Vyapar Ltd. (Delhi) . . . 440

S. 147 --Reassessment--Notice--Notice issued on presumption that bogus payment made by assessee to a loss making company--Finding that company not a loss making company and payment made for services rendered to assessee--Payee showing the amount in its return and paying tax--Proceedings quashed-- CIT v. Rainee Singh
(Delhi) . . . 417

S. 234B --Advance tax--Interest--Company--Minimum alternate tax--Book profits--Interest can be charged on tax calculated on book profits--Circular No. 13 of 2001 dated November 9, 2001-- Joint CIT v. Rolta India Ltd. (SC) . . . 470

S. 245D --Settlement of cases--Order passed by Settlement Commission is conclusive--Settlement of case after search operation--Order of Settlement Commission not challenged--No allegation of fraud or misrepresentation before Settlement Commission--Notice under section 142(1) based on material discovered during search operation--Notice not valid-- Smt. Neeru Agarwal v. Union of India (All) . . . 422

S. 245F --Settlement of cases--Order passed by Settlement Commission is conclusive--Settlement of case after search operation--Order of Settlement Commission not challenged--No allegation of fraud or misrepresentation before Settlement Commission--Notice under section 142(1) based on material discovered during search operation--Notice not valid-- Smt. Neeru Agarwal v. Union of India (All) . . . 422

S. 245-I --Settlement of cases--Order passed by Settlement Commission is conclusive--Settlement of case after search operation--Order of Settlement Commission not challenged--No allegation of fraud or misrepresentation before Settlement Commission--Notice under section 142(1) based on material discovered during search operation--Notice not valid-- Smt. Neeru Agarwal v. Union of India (All) . . . 422

S. 269UD(1) --Purchase of immovable property by Central Government--Allocation of residential plot--Assignee of letter of allocation entering into agreement with builder for development of plot--Form 37-I filed after plot developed--Appropriate Authority--Valuation--Whether as on date of agreement with original allottee or with assignee or as on date of determination--Matter remanded-- R. N. Soin and Sons P. Ltd. v. Appropriate Authority (Delhi) . . . 455

S. 271B --Penalty--Compulsory audit of accounts--Law applicable--Requirement of filing audit report along with return--Only w.e.f. 1-7-1995--Failure for earlier years--Penalty cannot be imposed-- S. V. Pathak and Company v. N. C. Tewari, CIT
(Bom) . . . 410

Reserve Bank of India Act, 1934 :

S. 45Q --Income--Mercantile system of accounting--Non-banking financial company--Interest on intercorporate deposit not received for more than six months--Assessee bound by Reserve Bank of India directions to treat deposit as non-performing asset--Interest does not accrue--Non-Banking Financial Companies Prudential Norms (Reserve Bank) Directions, 1998-- CIT v. Vasisth Chay Vyapar Ltd. (Delhi) . . . 440

 ITR'S TRIBUNAL TAX REPORTS (ITR (TRIB))

Volume 7 : Part 4 (Issue dated : 24-1-2011)

SUBJECT INDEX TO CASES REPORTED IN THIS PART

Appeal to Appellate Tribunal --Additional ground regarding block assessment barred by limitation not raised before Assessing Officer or Commissioner (Appeals)--No specific plea in appeal filed before Tribunal also--Ground raised after conclusion of hearing on issue cannot be entertained--Income-tax Act, 1961-- Kanjibhai Naranbhai Waghela v. Asst. CIT (Ahmedabad) . . . 331

Assessment --Best judgment assessment--Income-tax Officer (HQ) calling for return of income under section 142(1)--Assessee having already filed return with its Assessing Officer--Completion of assessment by Income-tax Officer (HQ) without serving notice under section 143(2)--Income-tax Officer (HQ) has no jurisdiction to issue notice--Assessment null and void--Income-tax Act, 1961, ss. 142(1), 143(2), 144-- Pravin Balubhai Zala v. ITO (Mumbai) . . . 375

Business expenditure --Accounting--Return of loss--Opening work-in-progress--Percentage completion method--Closing work-in-progress offered to tax--Expenditure incurred in preceding year relating to project--Accumulation of income on year to year basis till completion of project--No requirement of return for benefit of carry forward of loss--Completion of small percentage of total work in preceding year--Income need not be offered to tax--Opening work-in-progress allowable--Income-tax Act, 1961, ss. 37, 139(3)-- Deputy Director of Income-tax v. Stork Engineers and Contractors B. V. (Mumbai) . . . 365

----Disallowance--Expenses on film production by way of advertisement--Allowable on basis of outcome of assessee's earlier case--Income-tax Act, 1961, s. 37-- Deputy CIT v. Bayer (India) Ltd. (Mumbai) . . . 381

----Expenditure on repair of plant and machinery--No new asset brought into existence--Replacement of parts of machinery for maintenance--Allowable--Income-tax Act, 1961, s. 37-- Deputy CIT v. Bayer (India) Ltd. (Mumbai) . . . 381

----Non-resident company engaged in business of engineering, procurement and construction activities--Expenditure incurred during period intervening between grant of approval to set up project office in India and commencement of actual work--Not prior period expenditure--Deduction allowable--Man-hour cost allowed in subsequent year --Allowable--Income-tax Act, 1961, s. 37-- Deputy Director of Income-tax v. Stork Engineers and Contractors B. V. (Mumbai) . . . 365

----Provision for leave encashment of employees--Change in method of accounting from cash to mercantile--Liability for earlier year cannot be allowed in current year--Incremental liability pertaining to assessment year alone allowable--Income-tax Act, 1961, ss. 37, 145-- Deputy CIT v. Bayer (India) Ltd. (Mumbai) . . . 381

Capital or revenue receipt --Consideration received for transfer of marketing network of pharmaceutical products to subsidiary of proprietor/licensor of trade marks subsequent to termination of trade mark licence agreement--Profit making structure of assessee not impaired by termination--Assessee deemed to carry on manufacture of pharma products and related activities--Amount received incidental to assessee's business--Revenue receipt--Income-tax Act, 1961, s. 28-- Deputy CIT v. Bayer (India) Ltd. (Mumbai) . . . 381

Export --Exemption--Income received in foreign exchange--Assessee engaged in software development and having branch outside India--Export proceeds retained outside India in accordance with Reserve Bank guidelines and utilised on computer software development on-site at client's place outside India and on expenses of branch--Not to be excluded from export turnover--Income-tax Act, 1961, ss. 9(1)(vii), Expln. 2, 10B--Circular No. 621 dated December 19, 1991--Circular No. 694 dated November 23, 1994-- Zylog Systems Limited v. ITO [SB] (Chennai) . . . 348

----Special deduction under section 80HHC--Manufacture of viscose staple fibre from wood pulp--Amount received on export--Assessee complying with all conditions prescribed under section 80HHC--Assessee entitled to deduction--Income-tax Act, 1961, s. 80HHC-- Grasim Industries Ltd. v. Asst. CIT (Mumbai) . . . 407

Reassessment --Return processed under section 143(1)--Assessee showing long-term capital gain instead of short-term capital gain--Reopening not a result of change of opinion--Initiation and dropping of proceedings under section 154 cannot be equated with passing of an assessment order--Reassessment valid--Income-tax Act, 1961, ss. 143, 147-- Raj Woolen Industries v. Asst. CIT (Delhi) . . . 339

Search and seizure --Block assessment--Undisclosed income--Jurisdiction--All cases under control of Assessing Officer after search--Assessing Officer has jurisdiction --Income-tax Act, 1961, ss. 132, 158BD-- Kanjibhai Naranbhai Waghela v. Asst. CIT (Ahmedabad) . . . 331

Short-term capital gains --Sale of depreciable assets--Assessee showing land and building figure in a composite manner and claiming depreciation for previous years--Amount realised to be adjusted against written down value of concerned block of assets --Income-tax Act, 1961, ss. 50, 54EC-- Raj Woolen Industries v. Asst. CIT (Delhi) . . . 339

Unexplained investment --Assessee failing to prove source of investment in flat--Addition of amount as unexplained investment--Proper--Income-tax Act, 1961, ss. 69, 158BD-- Kanjibhai Naranbhai Waghela v. Asst. CIT (Ahmedabad) . . . 331

 

SECTIONWISE INDEX TO CASES REPORTED IN THIS PART

Income-tax Act, 1961 :

S. 9(1)(vii), Expln. 2 --Export--Exemption--Income received in foreign exchange--Assessee engaged in software development and having branch outside India--Export proceeds retained outside India in accordance with Reserve Bank guidelines and utilised on computer software development on-site at client's place outside India and on expenses of branch--Not to be excluded from export turnover--Circular No. 621 dated December 19, 1991--Circular No. 694 dated November 23, 1994-- Zylog Systems Limited v. ITO [SB] (Chennai) . . . 348

S. 10B --Export--Exemption--Income received in foreign exchange--Assessee engaged in software development and having branch outside India--Export proceeds retained outside India in accordance with Reserve Bank guidelines and utilised on computer software development on-site at client's place outside India and on expenses of branch--Not to be excluded from export turnover--Circular No. 621 dated December 19, 1991--Circular No. 694 dated November 23, 1994-- Zylog Systems Limited v. ITO [SB] (Chennai) . . . 348

S. 28 --Capital or revenue receipt--Consideration received for transfer of marketing network of pharmaceutical products to subsidiary of proprietor/licensor of trade marks subsequent to termination of trade mark licence agreement--Profit making structure of assessee not impaired by termination--Assessee deemed to carry on manufacture of pharma products and related activities--Amount received incidental to assessee's business--Revenue receipt-- Deputy CIT v. Bayer (India) Ltd. (Mumbai) . . . 381

S. 37 --Business expenditure--Accounting--Return of loss--Opening work-in-progress--Percentage completion method--Closing work-in-progress offered to tax--Expenditure incurred in preceding year relating to project--Accumulation of income on year to year basis till completion of project--No requirement of return for benefit of carry forward of loss--Completion of small percentage of total work in preceding year--Income need not be offered to tax--Opening work-in-progress allowable-- Deputy Director of Income-tax v. Stork Engineers and Contractors B. V. (Mumbai) . . . 365

----Business expenditure--Disallowance--Expenses on film production by way of advertisement--Allowable on basis of outcome of assessee's earlier case-- Deputy CIT v. Bayer (India) Ltd. (Mumbai) . . . 381

----Business expenditure--Expenditure on repair of plant and machinery--No new asset brought into existence--Replacement of parts of machinery for maintenance--Allowable-- Deputy CIT v. Bayer (India) Ltd. (Mumbai) . . . 381

----Business expenditure--Non-resident company engaged in business of engineering, procurement and construction activities--Expenditure incurred during period intervening between grant of approval to set up project office in India and commencement of actual work--Not prior period expenditure--Deduction allowable--Man-hour cost allowed in subsequent year--Allowable-- Deputy Director of Income-tax v. Stork Engineers and Contractors B. V. (Mumbai) . . . 365

----Business expenditure--Provision for leave encashment of employees--Change in method of accounting from cash to mercantile--Liability for earlier year cannot be allowed in current year--Incremental liability pertaining to assessment year alone allowable-- Deputy CIT v. Bayer (India) Ltd. (Mumbai) . . . 381

S. 50 --Short-term capital gains--Sale of depreciable assets--Assessee showing land and building figure in a composite manner and claiming depreciation for previous years--Amount realised to be adjusted against written down value of concerned block of assets-- Raj Woolen Industries v. Asst. CIT (Delhi) . . . 339

S. 54EC --Short-term capital gains--Sale of depreciable assets--Assessee showing land and building figure in a composite manner and claiming depreciation for previous years--Amount realised to be adjusted against written down value of concerned block of assets-- Raj Woolen Industries v. Asst. CIT (Delhi) . . . 339

S. 69 --Unexplained investment--Assessee failing to prove source of investment in flat--Addition of amount as unexplained investment--Proper-- Kanjibhai Naranbhai Waghela v. Asst. CIT (Ahmedabad) . . . 331

S. 80HHC --Export--Special deduction under section 80HHC--Manufacture of viscose staple fibre from wood pulp--Amount received on export--Assessee complying with all conditions prescribed under section 80HHC--Assessee entitled to deduction-- Grasim Industries Ltd. v. Asst. CIT (Mumbai) . . . 407

S. 132 --Search and seizure--Block assessment--Undisclosed income--Jurisdiction--All cases under control of Assessing Officer after search--Assessing Officer has jurisdiction-- Kanjibhai Naranbhai Waghela v. Asst. CIT (Ahmedabad) . . . 331

S. 139(3) --Business expenditure--Accounting--Return of loss--Opening work-in-progress--Percentage completion method--Closing work-in-progress offered to tax--Expenditure incurred in preceding year relating to project--Accumulation of income on year to year basis till completion of project--No requirement of return for benefit of carry forward of loss--Completion of small percentage of total work in preceding year--Income need not be offered to tax--Opening work-in-progress allowable-- Deputy Director of Income-tax v. Stork Engineers and Contractors B. V. (Mumbai) . . . 365

S. 142(1) --Assessment--Best judgment assessment--Income-tax Officer (HQ) calling for return of income under section 142(1)--Assessee having already filed return with its Assessing Officer--Completion of assessment by Income-tax Officer (HQ) without serving notice under section 143(2)--Income-tax Officer (HQ) has no jurisdiction to issue notice--Assessment null and void-- Pravin Balubhai Zala v. ITO (Mumbai) . . . 375

S. 143 --Reassessment--Return processed under section 143(1)--Assessee showing long-term capital gain instead of short-term capital gain--Reopening not a result of change of opinion--Initiation and dropping of proceedings under section 154 cannot be equated with passing of an assessment order--Reassessment valid-- Raj Woolen Industries v. Asst. CIT (Delhi) . . . 339

S. 143(2) --Assessment--Best judgment assessment--Income-tax Officer (HQ) calling for return of income under section 142(1)--Assessee having already filed return with its Assessing Officer--Completion of assessment by Income-tax Officer (HQ) without serving notice under section 143(2)--Income-tax Officer (HQ) has no jurisdiction to issue notice--Assessment null and void-- Pravin Balubhai Zala v. ITO (Mumbai) . . . 375

S. 144 --Assessment--Best judgment assessment--Income-tax Officer (HQ) calling for return of income under section 142(1)--Assessee having already filed return with its Assessing Officer--Completion of assessment by Income-tax Officer (HQ) without serving notice under section 143(2)--Income-tax Officer (HQ) has no jurisdiction to issue notice--Assessment null and void-- Pravin Balubhai Zala v. ITO (Mumbai) . . . 375

S. 145 --Business expenditure--Provision for leave encashment of employees--Change in method of accounting from cash to mercantile--Liability for earlier year cannot be allowed in current year--Incremental liability pertaining to assessment year alone allowable-- Deputy CIT v. Bayer (India) Ltd. (Mumbai) . . . 381

S. 147 --Reassessment--Return processed under section 143(1)--Assessee showing long-term capital gain instead of short-term capital gain--Reopening not a result of change of opinion--Initiation and dropping of proceedings under section 154 cannot be equated with passing of an assessment order--Reassessment valid-- Raj Woolen Industries v. Asst. CIT (Delhi) . . . 339

S. 158BD --Search and seizure--Block assessment--Undisclosed income--Jurisdiction--All cases under control of Assessing Officer after search--Assessing Officer has jurisdiction-- Kanjibhai Naranbhai Waghela v. Asst. CIT (Ahmedabad) . . . 331

----Unexplained investment--Assessee failing to prove source of investment in flat--Addition of amount as unexplained investment--Proper-- Kanjibhai Naranbhai Waghela v. Asst. CIT (Ahmedabad) . . . 331

CA.RAJU SHAH

VAT Cir - 2T of 2011 - Amendments to Central Sales Tax Act, 1956

---------- Forwarded message ----------
From: Naresh Dharia <naresh-007@hotmail.com>
Date: Wed, Jan 19, 2011 at 4:25 PM
Subject: {jalgaoncas} VAT Cir - 2T of 2011 - Amendments to Central Sales Tax Act, 1956
To: Jalgaon CA <jalgaoncas@googlegroups.com>

TRADE CIRCULAR

Date: 17.01.2011

No. DC(A&R)CST Act/2009 /27/Adm-6

Trade Cir. No. 2T of 2011

 

Sub:	Amendments to Central Sales Tax Act, 1956
Ref:	The Finance Act No. 14 of 2010 dt. 10.5.2010.

 

 

Gentlemen/Sir/Madam,

 

The Central Sales Tax Act, 1956 has been amended by the Finance Act No. 14 of 2010 dated 10.5.2010. These amendments relate to provisions of section 6A i.e. inter state transfer otherwise than by way of sale and appeals arising thereof. The salient features of the amendment Act are as follows:

 

1.	(a)      An amendment has been made to sub-section (2) of section 6A of the Central Sales Tax Act, 1956 (hereinafter referred to as "the Act"). It allows the assessing authority to satisfy himself that no inter-State sale has been effected, apart from verifying the correctness of particulars furnished in Form F before allowing claims of Branch Transfer.
	(b)       Earlier section 6A of the Act provided that once the assessing authority in the originating State has determined that an inter-State transfer of goods is not by way of sale, then no review, revision or reassessment was provided for. Now new sub-section (3) has been added which provides that such cases can be reopened in the event of discovery of new facts for re-assessment by the assessing authority or for revision by higher authority on the ground that findings of the assessing authority are contrary to the law.
2.	(a)      New Chapter VA has been inserted. Section 18A of this chapter allows a person aggrieved by an order made u/s 6A (2) or (3) by the assessing authority or higher authority to appeal to the highest appellate authority of the State against such an order. This highest appellate authority of the State is the Maharashtra Sales Tax Tribunal in our State. This would provide relief to the assessees as it would reduce multiple tiers he has to approach at present. Incidental issues relating to rate of tax, computation of assessable turnover and penalty may also be raised in such appeal to the Tribunal.
	(b)      The appeal as above has to be filed within 60 days of the date of communication of the order. A proviso to sub-section (2) of section 18A provides that if any appeal was forwarded by the Tribunal to the first appellate authority under proviso to sub-section (2) of section 25 and is pending before such authority before the appointed day then such appeals are to be transferred to the Maharashtra Sales Tax Tribunal. The Central Government has notified 1st June 2010 as appointed day. All the first appellate authorities are to transfer such appeals, if any, pending before them to the Tribunal.
3.	The sub-section (1) of section 20 has been amended to provide for appeal to the Central Sales Tax Appellate Authority against the Tribunal order in respect of issues relating to stock transfer or consignment of goods in so far as it involves a dispute of inter-state nature.
4.	Sub-section (1A) of section 22 has been amended to substitute the word 'deposit' for the word   pre-deposit'. This allows filing of appeal to the appellate authority under C.S.T. Act, 1956 without pre-deposit of amount that was required under earlier provisions. Further, new sub-section (1B) is inserted in section 22 after sub-section (1B). It empowers the Central Sales Tax Appellate Authority to issue directions for refund of tax not due to that State or alternatively direct the state to transfer refundable amount to the State to which CST is due. This would provide relief to the assessee and would resolve the problem of the inter-State transfer of funds involved in such disputes.
5.	Proviso to sub-section (2) of section 25 is deleted. By this proviso, the highest appellate authority in State could forward cases to first appellate authority, where it finds that appellant has not availed the opportunity of filing first appeal. After deletion, the highest appellate authority shall not forward the cases to first appellate authority. If any such cases were earlier transferred to the first appellate authority under this proviso, the same are required to be sent back to the highest appellate authority in the State i.e. Tribunal as per proviso to sub-section (2) of section 18A of CST Act, 1956 .
6.	This circular cannot be made use of for legal interpretation of provisions of law as it is clarificatory in nature. If any member of the trade has any doubt, he may refer the matter to this office for further clarification.
7.	You are requested to bring contents of this circular to the notice of the members of your association.

 

 

 

Yours faithfully,

 

 

(SANJAY BHATIA)

Commissioner of Sales Tax,

Maharashtra   State, Mumbai.

 

 

Recent judgement on disallowance u/s. 40 (a ) ( ia ) will be useful to many of us

---------- Forwarded message ----------
From: dharam sankhala <dksdharam@yahoo.co.in>
Date: Wed, Jan 19, 2011 at 11:31 AM
Subject: {jalgaoncas} recent judgement on disallowance u/s. 40 (a ) ( ia ) will be useful to many of us

https://docs.google.com/viewer?a=v&pid=explorer&chrome=true&srcid=1iMeVjL7QV0kmks-ZcsxBi0taclHnylnmNbm0Bg_iIL13R96izj2wYhQ01Tiu&hl=en&authkey=CLqPj40P

 

 

Pls find copy CA Dharam Sankhala 9422277458

Renting-Supreme Court & Delhi High Court : Latest

My senior Mr. Rakesh Chitkara, Advocate in Delhi High Court has forwarded the text below : "Peeved at the one-sided presentation to the Bench in Supreme Court by the Govt. Counsel of the contents of the interim orders by Delhi High Court given on 14.12.2010, resulting in vacation of the stay granted to the main litigant M/s Home Solutions Retail Ltd.by the SC, it has now filed an application before Delhi High Court urging them to pass final orders on their petition filed in May, 2010 [CWP 3398/2010]. Regardless of the main issue still pending before the Hon'ble Supreme Court arising out of WPC 1659/2008 decided by the Division Bench of Delhi High Court on 18-4-2009, M/s. Home Solutions have now stated that they are prepared and willing to argue the main issue (whether renting is a service)  and the secondary issue (validation of retrospectivity) before Delhi High Court on 25.1.2010. The petitioner has taken a calculated gamble realising that the earlier final order by the 2-member division bench of the same co-ordinate court will have a binding precedent value on the present 2-member division bench. Let us now await what happens on 20th in Supreme Court when the matter is listed : whether it modifies its orders of 10th Jan. or decides to finally pronounce its judgement by fixing early hearings." Kind regards, Rebecca Andrews

PANEL FOR UCB & CREDIT CO-OP. SOCIETIES- UPDATE

Dear Members,

The Chairman WIRC has given following updates in relation to Panel for Urban Co-op. Banks and Credit Co-op. Societies (Patsanstha) in his communication (WIRC Newsletter January, 2011)

We had a useful meeting with the officials of the Co-operation Department at Pune on 5th January, 2011 with regards to the co-operative audit in Maharashtra. We have been requested to formulate a programme in respect of processes and other matters for educating the Office-bearers and Administrative staff of the Co-operative Banks. This training shall be imparted from our Branches across Maharashtra. At the same time, there will also be change in the panels being formed for the audits of UCBs and other co-operative societies. Instead of having two separate panel, the Co-operative Department now desires that a single panel be formed for both categories. This will entail obtaining further information from members and firms. On receiving a formal communication from the Department we will make an announcement with all details on the website. We request members to visit the website on a regular basis for updates. We are hopeful that the measures adopted till date lead to a more transparent empanelement and allotment process. It would be worthwhile to note that the Department has also proposed issuing of audit allotment orders through the medium of our website.

Regards,
-------
CA.C.V.PAWAR

ITR VOL 330 PART 3

 

INCOME TAX REPORTS (ITR)

Volume 330 : Part 3 (Issue dated 17-1-2011)

SUBJECT INDEX TO CASES REPORTED IN THIS PART

SUPREME COURT

Adjudication --Natural justice--Duty of disclosure--Extent and scope-- Kanwar Natwar Singh v. Directorate of Enforcement . . . 374

Company --Book profits--Computation--Reduction of net profit by amount withdrawn from revaluation reserve--Only if amount added back in year of creation of revaluation reserve--Income-tax Act, 1961, s. 115JB-- Indo Rama Synthetics (I.) Ltd. v. CIT . . . 363

Foreign exchange --Adjudication--Notice to show cause why enquiry should not be conducted--Noticee not entitled to copies of documents not relied on by adjudicating authority--Foreign Exchange Management Act, 1999, s. 16--Foreign Exchange Management (Adjudication Proceedings and Appeal) Rules, 2000, r. 4(1)-- Kanwar Natwar Singh v. Directorate of Enforcement . . . 374

HIGH COURTS

Advance tax --Interest--Waiver of interest--Grounds for waiver of interest under section 234A different from grounds for waiver of interest under sections 234B and 234C--Compensation received by assessee on surrender of tenancy rights--Position of tax liability not clear--Non-payment of advance tax--Interest liability fixed at Rs. 1 lakh under sections 234B and 234C--Income-tax Act, 1961, ss. 234A, 234B, 234C--Notification No. 400/234/95/IT dated May 23, 1996-- Chief CIT v. Jimmichan M. Varicatt (Ker) . . . 338

Appeal to Appellate Tribunal --New plea--No such plea taken before lower authorities--Rejection of additional plea--Proper--Income-tax Act, 1961-- CIT v. Hindustan Tin Works Ltd. (Delhi) . . . 350

Appeal to High Court --Findings of fact by Tribunal--Findings cannot be set aside unless perverse--Income-tax Act, 1961, s. 260A-- CIT v. D. S. Promoters and Developers Pvt. Ltd. (Delhi) . . . 291

----Maintainability--Provision empowering CBDT to prescribe monetary limits for litigation by Revenue--Instruction of CBDT binding on Revenue--Tax effect less than prescribed in Instruction--Appeal barred--Income-tax Act, 1961, ss. 260A, 268A-- CIT v. Kironmoy Roy Choudhury (Gauhati) . . . 316

Business expenditure --Initial expenditure for commencement of business and for opening branches amortized--Closure of one branch--Unabsorbed expenditure of closed branch to be apportioned equally amongst head office and other branches--Income-tax Act, 1961, s. 37-- Victoria Gold Gallery v. CIT (Ker) . . . 330

Business loss --Purchase and redemption of units of mutual fund--Disallowance on ground that transaction collusive and accommodation entry--Finding by Commissioner (Appeals) as well as Tribunal that transaction genuine and deleting addition--Findings of fact--Income-tax Act, 1961-- CIT v. Hindustan Tin Works Ltd . Delhi) . . . 350

Capital gains --Acquisition of land--Enhanced compensation--Introduction of section 45(5)(b) w.e.f. 1-4-1988--Land acquired on 4-2-1972 and enhanced compensation received on 28-5-1984--No return filed for 1972-73--Rectification cannot be made under section 155(7A)--Enhanced compensation not taxable either in year of receipt or in year of acquisition--Income-tax Act, 1961, ss. 45(5)(b), 155(7A)-- CIT v. Smt. Parkash Kaur (P&H) . . . 332

----Exemption--Investment in residential house--Assessee selling agricultural land and claiming purchase of a flat--Finding that most of instalments for flat paid prior to sale--Flat not in name of assessee-HUF but in joint names of individual and his mother--Assessee not entitled to claim benefit of section 54F--Income-tax Act, 1961, s. 54F-- Vipin Malik (HUF) v. CIT (Delhi) . . . 309

----Transfer of goodwill--Sale of entire business, including all assets and liabilities, as a going concern--Not possible to bifurcate consideration received on account of transfer--Transfer does not give rise to capital gains--Income-tax Act, 1961-- Asst. CIT v. Patel Specific Family Trust (Guj) . . . 397

Cash credits --Burden of proof--Initial burden on assessee to prove identity of creditors--Burden then shifts to Revenue to prove credits were not genuine--Identity of applicants for shares and their PAN numbers furnished--Amounts received through account payee cheques--Inability to find a few applicants--Not sufficient to invoke section 68--Income-tax Act, 1961, s. 68-- CIT v. Dwarkadhish Investment P. Ltd .(Delhi) . . . 298

Company --Book profit--Assessing Officer not entitled to go into profit and loss account prepared by assessee as per Companies Act--Book profit arrived at to be the basis for taxation--Companies Act, 1956--Income-tax Act, 1961, ss. 80HHC, 115JA-- AVT Natural Products Ltd. v. Deputy CIT (Mad) . . . 360

Firm --Registration--Continuance of registration--Delay in filing declaration in Form 12--Rejection of application without affording opportunity to be heard--Not valid--Income-tax Act, 1961, s. 184(7)-- Bharat Construction Company v. CIT (All) . . . 285

Income or capital --Assessee founder member and secretary of educational society and working voluntarily as headmaster of school run by society--Amount received for relinquishment of life membership and secretaryship of society--Income receipt--Assessable under income from other sources--Income-tax Act, 1961-- CIT v. H. S. Ramachandra Rao (Karn) . . . 322

Interest --Acquisition of land--Enhanced compensation--No record to suggest that assessee declaring interest income on yearly accrual basis--Assessee following cash system--Interest received taxable--Income-tax Act, 1961-- CIT v. Smt. Parkash Kaur (P&H) . . . 332

Other sources --Business--Income from property owned by assessee on property taken on lease--Finding based on facts that income from business--Income was assessable as business income--Income-tax Act, 1961, ss. 28, 56-- CIT v. D. S. Promoters and Developers Pvt. Ltd . (Delhi) . . . 291

Reassessment --Assessing Officer under section 143(1)(a) admitting claim of assessee in respect of incentive bonus and additional conveyance allowance--Disallowance of claim in reassessment proceedings--Reassessment valid--Income-tax Act, 1961, s. 147-- Ramesh Chander Singla v. CIT (P&H) . . . 288

----Notice--Income escaping assessment--Wrong claim treating interest receipt as export incentive--Assessing Officer having reason to believe that income has escaped assessment--Reassessment proceedings cannot be quashed--Writ petition not maintainable--Income-tax Act, 1961, ss. 147, 148-- Tamil Nadu Petroproducts Ltd. v. CIT
(Mad) . . . 342

Refund --Claim for refund--Claim withdrawn on ground beyond time specified under section 239--Assessing Officer failing to raise any issue with regard to plea under section 239 at appropriate stage--Commissioner (Appeals) passing order of refund on appeal--Revenue liable to make refund--Income-tax Act, 1961, ss. 239, 240-- Hind Samachar Limited v. Union of India (P&H) . . . 266

----Interest on refund--Assessee deducting and depositing TDS on time but filing TDS certificates during assessment proceedings--Interest under section 244A cannot be denied--Income-tax Act, 1961, s. 244A-- CIT v. Larsen and Toubro Ltd.
(Bom) . . . 340

Return --Company--Rectification of mistakes--Return of company not signed by managing director but by person authorised by board resolution--Defect curable under section 292B--Income-tax Act, 1961, ss. 140, 154, 239, 240, 292B-- Hind Samachar Limited v. Union of India (P&H) . . . 266
 
SECTIONWISE INDEX TO CASES REPORTED IN THIS PART

Foreign Exchange Management (Adjudication Proceedings and Appeal) Rules, 2000 :
R. 4(1) --Foreign exchange--Adjudication--Notice to show cause why enquiry should not be conducted--Noticee not entitled to copies of documents not relied on by adjudicating authority-- Kanwar Natwar Singh v. Directorate of Enforcement (SC) . . . 374

Foreign Exchange Management Act, 1999 : 

S. 16 --Foreign exchange--Adjudication--Notice to show cause why enquiry should not be conducted--Noticee not entitled to copies of documents not relied on by adjudicating authority-- Kanwar Natwar Singh v. Directorate of Enforcement (SC) . . . 374

Income-tax Act, 1961 : 

S. 28 --Other sources--Business--Income from property owned by assessee on property taken on lease--Finding based on facts that income from business--Income was assessable as business income-- CIT v. D. S. Promoters and Developers Pvt. Ltd .(Delhi) . . . 291

S. 37 --Business expenditure--Initial expenditure for commencement of business and for opening branches amortized--Closure of one branch--Unabsorbed expenditure of closed branch to be apportioned equally amongst head office and other branches-- Victoria Gold Gallery v. CIT (Ker) . . . 330

S. 45(5)(b) --Capital gains--Acquisition of land--Enhanced compensation--Introduction of section 45(5)(b) w.e.f. 1-4-1988--Land acquired on 4-2-1972 and enhanced compensation received on 28-5-1984--No return filed for 1972-73--Rectification cannot be made under section 155(7A)--Enhanced compensation not taxable either in year of receipt or in year of acquisition-- CIT v. Smt. Parkash Kaur (P&H) . . . 332

S. 54F --Capital gains--Exemption--Investment in residential house--Assessee selling agricultural land and claiming purchase of a flat--Finding that most of instalments for flat paid prior to sale--Flat not in name of assessee-HUF but in joint names of individual and his mother--Assessee not entitled to claim benefit of section 54F-- Vipin Malik (HUF) v. CIT (Delhi) . . . 309

S. 56 --Other sources--Business--Income from property owned by assessee on property taken on lease--Finding based on facts that income from business--Income was assessable as business income-- CIT v. D. S. Promoters and Developers Pvt. Ltd .(Delhi) . . . 291

S. 68 --Cash credits--Burden of proof--Initial burden on assessee to prove identity of creditors--Burden then shifts to Revenue to prove credits were not genuine--Identity of applicants for shares and their PAN numbers furnished--Amounts received through account payee cheques--Inability to find a few applicants--Not sufficient to invoke section 68-- CIT v. Dwarkadhish Investment P. Ltd . (Delhi) . . . 298

S. 80HHC --Company--Book profit--Assessing Officer not entitled to go into profit and loss account prepared by assessee as per Companies Act--Book profit arrived at to be the basis for taxation-- AVT Natural Products Ltd. v. Deputy CIT (Mad) . . . 360

S. 115JA --Company--Book profit--Assessing Officer not entitled to go into profit and loss account prepared by assessee as per Companies Act--Book profit arrived at to be the basis for taxation-- AVT Natural Products Ltd. v. Deputy CIT (Mad) . . . 360

S. 115JB --Company--Book profits--Computation--Reduction of net profit by amount withdrawn from revaluation reserve--Only if amount added back in year of creation of revaluation reserve-- Indo Rama Synthetics (I.) Ltd. v. CIT
(SC) . . . 363
S. 140 --Return--Company--Rectification of mistakes--Return of company not signed by managing director but by person authorised by board resolution--Defect curable under section 292B-- Hind Samachar Limited v. Union of India (P&H) . . . 266

S. 147 --Reassessment--Assessing Officer under section 143(1)(a) admitting claim of assessee in respect of incentive bonus and additional conveyance allowance--Disallowance of claim in reassessment proceedings--Reassessment valid-- Ramesh Chander Singla v. CIT (P&H) . . . 288

----Reassessment--Notice--Income escaping assessment--Wrong claim treating interest receipt as export incentive--Assessing Officer having reason to believe that income has escaped assessment--Reassessment proceedings cannot be quashed--Writ petition not maintainable-- Tamil Nadu Petroproducts Ltd. v. CIT (Mad) . . . 342

S. 148 --Reassessment--Notice--Income escaping assessment--Wrong claim treating interest receipt as export incentive--Assessing Officer having reason to believe that income has escaped assessment--Reassessment proceedings cannot be quashed--Writ petition not maintainable-- Tamil Nadu Petroproducts Ltd. v. CIT (Mad) . . . 342

S. 154 --Return--Company--Rectification of mistakes--Return of company not signed by managing director but by person authorised by board resolution--Defect curable under section 292B-- Hind Samachar Limited v. Union of India (P&H) . . . 266

S. 155(7A) --Capital gains--Acquisition of land--Enhanced compensation--Introduction of section 45(5)(b) w.e.f. 1-4-1988--Land acquired on 4-2-1972 and enhanced compensation received on 28-5-1984--No return filed for 1972-73--Rectification cannot be made under section 155(7A)--Enhanced compensation not taxable either in year of receipt or in year of acquisition-- CIT v. Smt. Parkash Kaur (P&H) . . . 332

S. 184(7) --Firm--Registration--Continuance of registration--Delay in filing declaration in Form 12--Rejection of application without affording opportunity to be heard--Not valid-- Bharat Construction Company v. CIT (All) . . . 285

S. 234A --Advance tax--Interest--Waiver of interest--Grounds for waiver of interest under section 234A different from grounds for waiver of interest under sections 234B and 234C--Compensation received by assessee on surrender of tenancy rights--Position of tax liability not clear--Non-payment of advance tax--Interest liability fixed at Rs. 1 lakh under sections 234B and 234C--Notification No. 400/234/95/IT dated May 23, 1996-- Chief CIT v. Jimmichan M. Varicatt (Ker) . . . 338

S. 234B --Advance tax--Interest--Waiver of interest--Grounds for waiver of interest under section 234A different from grounds for waiver of interest under sections 234B and 234C--Compensation received by assessee on surrender of tenancy rights--Position of tax liability not clear--Non-payment of advance tax--Interest liability fixed at Rs. 1 lakh under sections 234B and 234C--Notification No. 400/234/95/IT dated May 23, 1996-- Chief CIT v. Jimmichan M. Varicatt (Ker) . . . 338

S. 234C --Advance tax--Interest--Waiver of interest--Grounds for waiver of interest under section 234A different from grounds for waiver of interest under sections 234B and 234C--Compensation received by assessee on surrender of tenancy rights--Position of tax liability not clear--Non-payment of advance tax--Interest liability fixed at Rs. 1 lakh under sections 234B and 234C--Notification No. 400/234/95/IT dated May 23, 1996-- Chief CIT v. Jimmichan M. Varicatt (Ker) . . . 338

S. 239 --Refund--Claim for refund--Claim withdrawn on ground beyond time specified under section 239--Assessing Officer failing to raise any issue with regard to plea under section 239 at appropriate stage--Commissioner (Appeals) passing order of refund on appeal--Revenue liable to make refund-- Hind Samachar Limited v. Union of India (P&H) . . . 266

----Return--Company--Rectification of mistakes--Return of company not signed by managing director but by person authorised by board resolution--Defect curable under section 292B-- Hind Samachar Limited v. Union of India (P&H) . . . 266

S. 240 --Refund--Claim for refund--Claim withdrawn on ground beyond time specified under section 239--Assessing Officer failing to raise any issue with regard to plea under section 239 at appropriate stage--Commissioner (Appeals) passing order of refund on appeal--Revenue liable to make refund-- Hind Samachar Limited v. Union of India (P&H) . . . 266

----Return--Company--Rectification of mistakes--Return of company not signed by managing director but by person authorised by board resolution--Defect curable under section 292B-- Hind Samachar Limited v. Union of India (P&H) . . . 266

S. 244A --Refund--Interest on refund--Assessee deducting and depositing TDS on time but filing TDS certificates during assessment proceedings--Interest under section 244A cannot be denied-- CIT v. Larsen and Toubro Ltd. (Bom) . . . 340

S. 260A --Appeal to High Court--Findings of fact by Tribunal--Findings cannot be set aside unless perverse-- CIT v. D. S. Promoters and Developers Pvt. Ltd. (Delhi) . . . 291

----Appeal to High Court--Maintainability--Provision empowering CBDT to prescribe monetary limits for litigation by Revenue--Instruction of CBDT binding on Revenue--Tax effect less than prescribed in Instruction--Appeal barred-- CIT v. Kironmoy Roy Choudhury (Gauhati) . . . 316

S. 268A --Appeal to High Court--Maintainability--Provision empowering CBDT to prescribe monetary limits for litigation by Revenue--Instruction of CBDT binding on Revenue--Tax effect less than prescribed in Instruction--Appeal barred-- CIT v. Kironmoy Roy Choudhury (Gauhati) . . . 316

S. 292B --Return--Company--Rectification of mistakes--Return of company not signed by managing director but by person authorised by board resolution--Defect curable under section 292B-- Hind Samachar Limited v. Union of India (P&H) . . . 266

-CA.RAJU SHAH