INCOME TAX REPORTS (ITR)
Volume 332 : Part 1 (Issue dated 21-3-2011)
SUBJECT INDEX TO CASES REPORTED IN THIS PART
Committee on Disputes --Suggested by Supreme Court--For deciding disputes between entities of State--Outlived its utility-- Electronics Corporation of India Ltd. v. Union of India . . . 58
Legislative powers --Parliament--Extra-territorial jurisdiction--Scope of--Constitution of India, art. 245--Income-tax Act, 1961, s. 9(1)(i), (vii)(b)-- G. V. K. Industries Ltd . v. ITO . . . 130
Assessment --Special audit--No evidence that Assessing Officer had considered accounts and found them complex--Order for special audit and consequent assessment--Not valid--Income-tax Act, 1961, s. 142(2A)-- Alidhara Texpro Engineering P. Ltd . v. Deputy CIT (Guj) . . . 115
Central Board of Direct Taxes --Co-operative bank--Return--Delay in filing return--Condonation of delay--Delay in audit by auditor appointed under Act--Not attributable to assessee--Sufficient cause--Delay to be condoned--Income-tax Act, 1961, s. 119(2)(b)-- Bombay Mercantile Co-operative Bank Ltd. v. CBDT (Bom) . . . 87
Company --Liability of director of private company--Scope of section 179--"Tax" contemplated by section 179 does not include penalty and interest--Income-tax Act, 1961, ss. 2(43), 179-- H. Ebrahim v. Deputy CIT (Karn) . . . 122
----Recovery of tax--Liability of director of private company--Director must prove absence of gross neglect or misfeasance or breach of duty--Company failing to file returns for more than a decade--Amounts due to Commercial Tax Department and banks--Directors liable--Section 179 applicable--Income-tax Act, 1961, s. 179-- H. Ebrahim v. Deputy CIT (Karn) . . . 122
Dividend --Deemed dividend--Loan to shareholder--Exclusion where lending of money constitutes substantial part of business of company--Meaning of "substantial part"--Finding that lending money constituted substantial part of business of company--Loan not assessable as deemed dividend--Income-tax Act, 1961, s. 2(22)(e)(ii)-- CIT v. Parle Plastics Ltd. (Bom) . . . 63
Export --Special deduction--Assessee not entitled to simultaneous deduction under sections 80-IB and 80HHC by virtue of specific exclusion under section 80-IB(13)--Income-tax Act, 1961, ss. 80-IB, 80HHC-- Olam Exports (India) Ltd. v. CIT (Ker) . . . 40
----Special deduction--Computation--Sales made through export houses--Can be included if disclaimer certificate produced--Matter remanded--Income-tax Act, 1961, s. 80HHC-- Olam Exports (India) Ltd. v. CIT (Ker) . . . 40
Industrial undertaking --Export--Special deduction--Assessee entitled to deduction under sections 80HHC and 80-IA--Relief under section 80-IA to be reduced from profits and gains of business before computing relief under section 80HHC--Income-tax Act, 1961, ss. 80HHC, 80-IA(9)-- Great Eastern Exports v. CIT (Delhi) . . . 14
----Special deduction under section 80-IA--Computation of special deduction--Determination of business income--Depreciation not claimed by assessee had to be deducted--Income-tax Act, 1961, ss. 32, 80-IA-- CIT v. Parle Plastics Ltd .(Bom) . . . 63
----Special deduction under section 80-IB --Computation of special deduction--Transport subsidy and interest subsidy--Not profits and gains derived from industrial undertaking--Not includible while computing special deduction--Refund of excise duty--Excise duty has nexus with profits of industrial undertaking--Refund of excise duty to be taken into account while computing special deduction--Income-tax Act, 1961, s. 80-IB-- CIT v. Meghalaya Steels Ltd. (Gau) . . . 91
----Special deduction--Computation--Assessee entitled to deduction under sections 80-IA and 80HHC--For computation of deduction under any section under heading C of Chapter VI-A profits of business not to be reduced by profits of business allowed under section 80-IA(1)--Restriction in section 80-IA(9) relates to allowance of deduction and not to computation of deduction--Income-tax Act, 1961, ss. 80-IA, 80HHC--CBDT Circular No. 772 dated 23-12-1998-- Associated Capsules P. Ltd. v. Deputy CIT (Bom) . . . 42
Interpretation of taxing statutes --Literal construction-- Great Eastern Exports v. CIT (Delhi) . . . 14
----Literal interpretation-- CWT v. Smt. K. R. Ushasree (Ker) . . . 75
----Purposive construction--Aids to construction-- Great Eastern Exports v. CIT (Delhi) . . . 14
Offences and prosecution --Inordinate delay in proceedings--Complaint dismissed--Code of Criminal Procedure, 1973, s. 482--Constitution of India, art. 227-- Rakoor Industries P. Ltd. v. R. L. Bali, ITO (Delhi) . . . 56
Precedent --Effect of decision of Supreme Court in Liberty India v. CIT [2009] 317 ITR 218-- CIT v. Meghalaya Steels Ltd. (Gau) . . . 91
Revision --Commissioner conceding Assessing Officer making inquiries, eliciting replies before treating expenses as revenue expenditure--Not a case of lack of inquiry--Department accepting accounting practice followed by assessee for past years and future--Revision questioning accounting practice not justified--Income-tax Act, 1961, s. 263-- CIT v. Sunbeam Auto Ltd. (Delhi) . . . 167
----Commissioner--Assessee manufacturing car parts--Periodical replacement of dies in machines to retain accuracy--No new asset comes into existence--Replacement in nature of replacement of part of machinery--Opinion of Assessing Officer treating expenditure as revenue expenditure is plausible--No material before Commissioner to vary that opinion--Order not prejudicial to Revenue--Income-tax Act, 1961, s. 263-- CIT v. Sunbeam Auto Ltd . (Delhi) . . . 167
Transfer of case --Transfer from Assessing Officer subordinate to a Commissioner to another subordinate to a different Commissioner--Condition precedent for transfer--Both Commissioners must agree to transfer--Assessee must be given opportunity to be heard--Reason for transfer must be recorded--Charitable trust assessed by a particular Commissioner and chairman of trust by another--No evidence of interlinking of funds of trust and individual business of chairman--Block assessment of chairman as individual becoming final--Notice of transfer to trust without giving reasons--Order of transfer not valid--Income-tax Act, 1961, ss. 124, 127-- Noorul Islam Educational Trust v. CIT (Mad) . . . 97
Wealth-tax --Assessment--Best judgment assessment--Condition precedent--Notice under section 16(4)--Failure by assessee to file return--Notice under section 17 calling for return--Assessee denying liability to file return--Notice under section 16(4)(i) calling for return--No further necessity for notice under section 16(4)(ii)--Best judgment assessment valid--Wealth-tax Act, 1957, ss. 16(4)(i), (ii), (5), 17-- CWT v. Motor and General Finance Limited (Delhi) . . . 1
----Asset--Law applicable--Effect of amendment w.e.f. 1-4-1992--Cash in hand in excess of Rs. 50,000 of individuals and HUFs--Assessable--Wealth-tax Act, 1957, s. 2(ea)(vi)-- CWT v. Smt. K. R. Ushasree (Ker) . . . 75
----Valuation of property--Provision for opportunity to assessee to be heard by Valuation Officer--No further opportunity to be given before Assessing Officer--Wealth-tax Act, 1957, s. 16A-- CWT v. Vardhman Polytex Ltd . (P&H) . . . 81
Words and phrases --Meaning of "substantial part"-- CIT v. Parle Plastics Ltd. (Bom) . . . 63
Writ --Special audit--Assessment after receipt of report of special auditor--Writ petition filed two months after order of assessment challenging validity of order for special audit--Petition dismissed on account of delay--Income-tax Act, 1961, s. 142(2A)--Constitution of India, art. 226.-- Alidhara Texpro Engineering P. Ltd . v. Deputy CIT (Guj) . . . 115
SECTIONWISE INDEX TO CASES REPORTED IN THIS PART
Code of Criminal Procedure, 1973 :
S. 482 --Offences and prosecution--Inordinate delay in proceedings--Complaint dismissed-- Rakoor Industries P. Ltd. v. R. L. Bali, ITO (Delhi) . . . 56
Art. 226 --Writ--Special audit--Assessment after receipt of report of special auditor--Writ petition filed two months after order of assessment challenging validity of order for special audit--Petition dismissed on account of delay-- Alidhara Texpro Engineering P. Ltd . v. Deputy CIT (Guj) . . . 115
Art. 227 --Offences and prosecution--Inordinate delay in proceedings--Complaint dismissed-- Rakoor Industries P. Ltd. v. R. L. Bali, ITO (Delhi) . . . 56
Art. 245 --Legislative powers--Parliament--Extra-territorial jurisdiction--Scope of-- G. V. K. Industries Ltd . v. ITO SC) . . . 130
S. 2(22)(e)(ii) --Dividend--Deemed dividend--Loan to shareholder--Exclusion where lending of money constitutes substantial part of business of company--Meaning of "substantial part"--Finding that lending money constituted substantial part of business of company--Loan not assessable as deemed dividend-- CIT v. Parle Plastics Ltd. (Bom) . . . 63
S. 2(43) --Company--Liability of director of private company--Scope of section 179 --"Tax" contemplated by section 179 does not include penalty and interest-- H. Ebrahim v. Deputy CIT (Karn) . . . 122
S. 9(1)(i) --Legislative powers--Parliament--Extra-territorial jurisdiction--Scope of-- G. V. K. Industries Ltd . v. ITO (SC) . . . 130
S. 9(1)(vii)(b) --Legislative powers--Parliament--Extra-territorial jurisdiction--Scope of -- G. V. K. Industries Ltd . v. ITO (SC) . . . 130
S. 32 --Industrial undertaking--Special deduction under section 80-IA--Computation of special deduction--Determination of business income--Depreciation not claimed by assessee had to be deducted-- CIT v. Parle Plastics Ltd . (Bom) . . . 63
S. 80HHC --Export--Special deduction--Assessee not entitled to simultaneous deduction under sections 80-IB and 80HHC by virtue of specific exclusion under section 80-IB(13)-- Olam Exports (India) Ltd. v. CIT (Ker) . . . 40
----Export--Special deduction--Computation--Sales made through export houses--Can be included if disclaimer certificate produced--Matter remanded-- Olam Exports (India) Ltd. v. CIT (Ker) . . . 40
----Industrial undertaking--Export--Special deduction--Assessee entitled to deduction under sections 80HHC and 80-IA--Relief under section 80-IA to be reduced from profits and gains of business before computing relief under section 80HHC-- Great Eastern Exports v. CIT (Delhi) . . . 14
----Industrial undertaking--Special deduction--Computation--Assessee entitled to deduction under sections 80-IA and 80HHC--For computation of deduction under any section under heading C of Chapter VI-A profits of business not to be reduced by profits of business allowed under section 80-IA(1)--Restriction in section 80-IA(9) relates to allowance of deduction and not to computation of deduction--CBDT Circular No. 772 dated 23-12-1998-- Associated Capsules P. Ltd. v. Deputy CIT (Bom) . . . 42
S. 80-IA --Industrial undertaking--Special deduction under section 80-IA--Computation of special deduction--Determination of business income--Depreciation not claimed by assessee had to be deducted-- CIT v. Parle Plastics Ltd . (Bom) . . . 63
----Industrial undertaking--Special deduction--Computation--Assessee entitled to deduction under sections 80-IA and 80HHC--For computation of deduction under any section under heading C of Chapter VI-A profits of business not to be reduced by profits of business allowed under section 80-IA(1)--Restriction in section 80-IA(9) relates to allowance of deduction and not to computation of deduction--CBDT Circular No. 772 dated 23-12-1998-- Associated Capsules P. Ltd. v. Deputy CIT (Bom) . . . 42
S. 80-IA(9) --Industrial undertaking--Export--Special deduction--Assessee entitled to deduction under sections 80HHC and 80-IA--Relief under section 80-IA to be reduced from profits and gains of business before computing relief under section 80HHC-- Great Eastern Exports v. CIT (Delhi) . . . 14
S. 80-IB --Export--Special deduction--Assessee not entitled to simultaneous deduction under sections 80-IB and 80HHC by virtue of specific exclusion under section 80-IB(13)-- Olam Exports (India) Ltd. v. CIT (Ker) . . . 40
----Industrial undertaking--Special deduction under section 80-IB --Computation of special deduction--Transport subsidy and interest subsidy--Not profits and gains derived from industrial undertaking--Not includible while computing special deduction--Refund of excise duty--Excise duty has nexus with profits of industrial undertaking--Refund of excise duty to be taken into account while computing special deduction-- CIT v. Meghalaya Steels Ltd. (Gau) . . . 91
S. 119(2)(b) --Central Board of Direct Taxes--Co-operative bank--Return--Delay in filing return--Condonation of delay--Delay in audit by auditor appointed under Act--Not attributable to assessee--Sufficient cause--Delay to be condoned-- Bombay Mercantile Co-operative Bank Ltd. v. CBDT (Bom) . . . 87
S. 124 --Transfer of case--Transfer from Assessing Officer subordinate to a Commissioner to another subordinate to a different Commissioner--Condition precedent for transfer--Both Commissioners must agree to transfer--Assessee must be given opportunity to be heard--Reason for transfer must be recorded--Charitable trust assessed by a particular Commissioner and chairman of trust by another--No evidence of interlinking of funds of trust and individual business of chairman--Block assessment of chairman as individual becoming final--Notice of transfer to trust without giving reasons--Order of transfer not valid-- Noorul Islam Educational Trust v. CIT (Mad) . . . 97
S. 127 --Transfer of case--Transfer from Assessing Officer subordinate to a Commissioner to another subordinate to a different Commissioner--Condition precedent for transfer--Both Commissioners must agree to transfer--Assessee must be given opportunity to be heard--Reason for transfer must be recorded--Charitable trust assessed by a particular Commissioner and chairman of trust by another--No evidence of interlinking of funds of trust and individual business of chairman--Block assessment of chairman as individual becoming final--Notice of transfer to trust without giving reasons--Order of transfer not valid-- Noorul Islam Educational Trust v. CIT (Mad) . . . 97
S. 142(2A) --Assessment--Special audit--No evidence that Assessing Officer had considered accounts and found them complex--Order for special audit and consequent assessment--Not valid-- Alidhara Texpro Engineering P. Ltd . v. Deputy CIT (Guj) . . . 115
----Writ--Special audit--Assessment after receipt of report of special auditor--Writ petition filed two months after order of assessment challenging validity of order for special audit--Petition dismissed on account of delay-- Alidhara Texpro Engineering P. Ltd . v. Deputy CIT (Guj) . . . 115
S. 179 --Company--Liability of director of private company--Scope of section 179--"Tax" contemplated by section 179 does not include penalty and interest-- H. Ebrahim v. Deputy CIT (Karn) . . . 122
----Company--Recovery of tax--Liability of director of private company--Director must prove absence of gross neglect or misfeasance or breach of duty--Company failing to file returns for more than a decade--Amounts due to Commercial Tax Department and banks--Directors liable--Section 179 applicable-- H. Ebrahim v. Deputy CIT (Karn) . . . 122
S. 263 --Revision--Commissioner conceding Assessing Officer making inquiries, eliciting replies before treating expenses as revenue expenditure--Not a case of lack of inquiry--Department accepting accounting practice followed by assessee for past years and future--Revision questioning accounting practice not justified-- CIT v. Sunbeam Auto Ltd. (Delhi) . . . 167
----Revision--Commissioner--Assessee manufacturing car parts--Periodical replacement of dies in machines to retain accuracy--No new asset comes into existence--Replacement in nature of replacement of part of machinery--Opinion of Assessing Officer treating expenditure as revenue expenditure is plausible--No material before Commissioner to vary that opinion--Order not prejudicial to Revenue-- CIT v. Sunbeam Auto Ltd . (Delhi) . . . 167
S. 2(ea)(vi) --Wealth-tax--Asset--Law applicable--Effect of amendment w.e.f. 1-4-1992--Cash in hand in excess of Rs. 50,000 of individuals and HUFs--Assessable-- CWT v. Smt. K. R. Ushasree (Ker) . . . 75
S. 16(4)(i) --Wealth-tax--Assessment--Best judgment assessment--Condition precedent--Notice under section 16(4)--Failure by assessee to file return--Notice under section 17 calling for return--Assessee denying liability to file return--Notice under section 16(4)(i) calling for return--No further necessity for notice under section 16(4)(ii)--Best judgment assessment valid-- CWT v. Motor and General Finance Limited (Delhi) . . . 1
S. 16(4)(ii) --Wealth-tax--Assessment--Best judgment assessment--Condition precedent--Notice under section 16(4)--Failure by assessee to file return--Notice under section 17 calling for return--Assessee denying liability to file return--Notice under section 16(4)(i) calling for return--No further necessity for notice under section 16(4)(ii)--Best judgment assessment valid-- CWT v. Motor and General Finance Limited (Delhi) . . . 1
S. 16(5) --Wealth-tax--Assessment--Best judgment assessment--Condition prece-dent--Notice under section 16(4)--Failure by assessee to file return--Notice under section 17 calling for return--Assessee denying liability to file return--Notice under section 16(4)(i) calling for return--No further necessity for notice under section 16(4)(ii)--Best judgment assessment valid-- CWT v. Motor and General Finance Limited (Delhi) . . . 1
S. 16A --Wealth-tax--Valuation of property--Provision for opportunity to assessee to be heard by Valuation Officer--No further opportunity to be given before Assessing Officer-- CWT v. Vardhman Polytex Ltd . (P&H) . . . 81
S. 17 --Wealth-tax--Assessment--Best judgment assessment--Condition precedent --Notice under section 16(4)--Failure by assessee to file return--Notice under section 17 calling for return--Assessee denying liability to file return--Notice under section 16(4)(i) calling for return--No further necessity for notice under section 16(4)(ii)--Best judgment assessment valid-- CWT v. Motor and General Finance Limited (Delhi) . . . 1
ITR'S TRIBUNAL TAX REPORTS (ITR (TRIB))
Volume 8 : Part 3 (Issue dated : 21-3-2011)
SUBJECT INDEX TO CASES REPORTED IN THIS PART
Appeal --Interest--Appeal against chargeability of interest--Maintainable-- Asst. CIT v. Smt. Leonie M. Almeida (Mumbai) . . . 293
Assessment --Validity of assessment--Return filed in response to notice under section 148--Assessment under section 143(3) without issuing notice under section 143(2) --Assessment order void--Income-tax Act, 1961, s. 143-- H. Gouthamchand v. Addl. CIT (Bangalore) . . . 269
Business expenditure --Expenditure on advertising--Finding that no expenditure had been incurred--Amount not deductible--Income-tax Act, 1961-- BDPS Software Ltd. v. Deputy CIT (Mumbai) . . . 280
Capital gains or business income --Income from purchase and sale of shares--Factors to be considered--Assessee treating shares as investment in books over 30 years --No funds borrowed for investment in shares--Average period of holding of shares under short-term capital gains category 181 days--Primary purpose of long-term appreciation--Income to be treated as capital gains--Income-tax Act, 1961, ss. 28, 45--Circular No. 4 of 2007 dated June 15, 2007-- Deputy CIT v. Bharat Kunverji Kenia (Mumbai) . . . 325
Deduction of tax at source --Commission--Payment to non-resident agent of artistes in foreign countries in connection with Indian tour--No material to infer that payment actually part of fees paid to performers--Agent not an artiste or entertainer--Payment falling under business profits--No permanent establishment in India--Payments not taxable in India--Income-tax Act, 1961, ss. 90(2), 201--Double Taxation Avoidance Agreement between India and U. K., arts. 7, 18--CBDT Circulars Nos. 17 of 1953, dated July 17, 1953 and 786, dated February 7, 2000-- Asst. Director of Income-tax (International Taxation) v. Wizcraft International Entertainment P. Ltd. (Mumbai) . . . 334
----Non-resident--International artistes coming to perform in India--Reimbursement of expenses not chargeable as income--Payments not liable to deduction of tax at source-- Assistant Director of Income-tax (International Taxation) v. Wizcraft International Entertainment P. Ltd. (Mumbai) . . . 334
Depreciation --Finding that there had been no purchase of assets--Depreciation not allowable--Income-tax Act, 1961, s. 32-- BDPS Software Ltd. v. Deputy CIT (Mumbai) . . . 280
Exemption --Income of venture capital company--Law applicable--Amendment of section 10(23FB) by Finance Act, 2007--Amendment not retrospective--Interest in FDRs earned in accounting year relevant to assessment year 2002-03--Entitled to exemption--Income-tax Act, 1961, s. 10(23FB)-- India Value Fund v. Asst. CIT (Mumbai) . . . 246
Income --Interest--Interest amount earned on infrastructure development fund--Held not an income of assessee in previous year--Addition to be deleted--Income-tax Act, 1961-- Saharanpur Development Authority v. Asst. CIT (Delhi) . . . 263
Income from house property --Deductions--Maintenance charges recovered from tenant and paid to society--Charges for facilities of generator, lift, lighting, common area sweeping--Not covered by 30 per cent. deduction--Allowable--Interest on housing loan--Subsequent loan taken to repay loan taken for house property--Interest allowable--Income-tax Act, 1961, ss. 23, 24--CBDT Circular No. 28 dated August 20, 1969 (F. No. 8/8/69-IT(AL))-- Asst. CIT v. Sunil Kumar Agarwal (Lucknow) . . . 304
Income from other sources --Deduction--Interest--Interest earned on amount advanced directly correlated to interest spent on amount borrowed--Assessee entitled to deduction of interest expenditure under section 57(iii)--Income-tax Act, 1961, ss. 56, 57(iii)-- ITO v. Beam Estates P. Ltd. (Delhi) . . . 300
Income-tax --General principles--Rule of consistency-- Deputy CIT v. Bharat Kunverji Kenia (Mumbai) . . . 325
Loss --Carry forward and set off--Provision providing for lower rate of tax on short-term capital gains arising on transactions suffering securities transaction tax--Computation--Choice of setting off of short-term capital loss suffered after cut-off date against short-term capital gain earned prior to cut-off date--Computation of capital gain prescribed under section 48 cannot be confused with rate of tax under sections 111A and 115D--Income-tax Act 1961, ss. 48, 70, 111A, 115D-- First State Investments (Hongkong) Ltd. v. Asst. Director of Income-tax (International Taxation) (Mumbai) . . . 315
Recovery of tax --Interest--Settlement of cases--Settlement Commission--Jurisdiction--With effect from date of admission of application for settlement not from date of application for settlement--Assessment order passed before date of admission of application by Settlement Commission--Interest on demand under assessment order leviable up to date of admission of settlement application--Income-tax Act, 1961, ss. 220(2), 245D(1)-- Asst. CIT v. Smt. Leonie M. Almeida (Mumbai) . . . 293
Registration --Assessee applying under section 12AA on June 1, 2007 for registration with retrospective effect--Change of law --Not applicable in respect of any application for registration filed on or after June 1, 2007--Income-tax Act, 1961, ss. 12A, 12AA-- Saharanpur Development Authority v. Asst. CIT (Delhi) . . . 263
SECTIONWISE INDEX TO CASES REPORTED IN THIS PART
Double Taxation Avoidance Agreement between India and U. K. :
Arts. 7, 18 --Deduction of tax at source--Commission--Payment to non-resident agent of artistes in foreign countries in connection with Indian tour--No material to infer that payment actually part of fees paid to performers--Agent not an artiste or entertainer--Payment falling under business profits--No permanent establishment in India--Payments not taxable in India--CBDT Circulars Nos. 17 of 1953, dated July 17, 1953 and 786, dated February 7, 2000-- Asst. Director of Income-tax (International Taxation) v. Wizcraft International Entertainment P. Ltd. (Mumbai) . . . 334
S. 10(23FB) --Exemption--Income of venture capital company--Law applicable--Amendment of section 10(23FB) by Finance Act, 2007--Amendment not retrospective--Interest in FDRs earned in accounting year relevant to assessment year 2002-03--Entitled to exemption-- India Value Fund v. Asst. CIT (Mumbai) . . . 246
S. 12A --Registration--Assessee applying under section 12AA on June 1, 2007 for registration with retrospective effect--Change of law--Not applicable in respect of any application for registration filed on or after June 1, 2007-- Saharanpur Development Authority v. Asst. CIT (Delhi) . . . 263
S. 12AA --Registration--Assessee applying under section 12AA on June 1, 2007 for registration with retrospective effect--Change of law--Not applicable in respect of any application for registration filed on or after June 1, 2007-- Saharanpur Development Authority v. Asst. CIT (Delhi) . . . 263
S. 23 --Income from house property--Deductions--Maintenance charges recovered from tenant and paid to society--Charges for facilities of generator, lift, lighting, common area sweeping--Not covered by 30 per cent. deduction--Allowable--Interest on housing loan--Subsequent loan taken to repay loan taken for house property--Interest allowable--CBDT Circular No. 28 dated August 20, 1969 (F. No. 8/8/69-IT(AL))-- Asst. CIT v. Sunil Kumar Agarwal (Lucknow) . . . 304
S. 24 --Income from house property--Deductions--Maintenance charges recovered from tenant and paid to society--Charges for facilities of generator, lift, lighting, common area sweeping--Not covered by 30 per cent. deduction--Allowable--Interest on housing loan--Subsequent loan taken to repay loan taken for house property--Interest allowable--CBDT Circular No. 28 dated August 20, 1969 (F. No. 8/8/69-IT(AL))-- Asst. CIT v. Sunil Kumar Agarwal (Lucknow) . . . 304
S. 28 --Capital gains or business income--Income from purchase and sale of shares--Factors to be considered--Assessee treating shares as investment in books over 30 years--No funds borrowed for investment in shares--Average period of holding of shares under short-term capital gains category 181 days--Primary purpose of long-term appreciation--Income to be treated as capital gains--Circular No. 4 of 2007 dated June 15, 2007-- Deputy CIT v. Bharat Kunverji Kenia (Mumbai) . . . 325
S. 32 --Depreciation--Finding that there had been no purchase of assets--Depreciation not allowable-- BDPS Software Ltd. v. Deputy CIT (Mumbai) . . . 280
S. 45 --Capital gains or business income--Income from purchase and sale of shares --Factors to be considered--Assessee treating shares as investment in books over 30 years--No funds borrowed for investment in shares--Average period of holding of shares under short-term capital gains category 181 days--Primary purpose of long-term appreciation--Income to be treated as capital gains--Circular No. 4 of 2007 dated June 15, 2007-- Deputy CIT v. Bharat Kunverji Kenia (Mumbai) . . . 325
S. 48 --Loss--Carry forward and set off--Provision providing for lower rate of tax on short-term capital gains arising on transactions suffering securities transaction tax--Computation--Choice of setting off of short-term capital loss suffered after cut-off date against short-term capital gain earned prior to cut-off date--Computation of capital gain prescribed under section 48 cannot be confused with rate of tax under sections 111A and 115D-- First State Investments (Hongkong) Ltd. v. Asst. Director of Income-tax (International Taxation) (Mumbai) . . . 315
S. 56 --Income from other sources--Deduction--Interest--Interest earned on amount advanced directly correlated to interest spent on amount borrowed--Assessee entitled to deduction of interest expenditure under section 57(iii)-- ITO v. Beam Estates P. Ltd. (Delhi) . . . 300
S. 57(iii) --Income from other sources--Deduction--Interest--Interest earned on amount advanced directly correlated to interest spent on amount borrowed--Assessee entitled to deduction of interest expenditure under section 57(iii)-- ITO v. Beam Estates P. Ltd. (Delhi) . . . 300
S. 70 --Loss--Carry forward and set off--Provision providing for lower rate of tax on short-term capital gains arising on transactions suffering securities transaction tax--Computation--Choice of setting off of short-term capital loss suffered after cut-off date against short-term capital gain earned prior to cut-off date--Computation of capital gain prescribed under section 48 cannot be confused with rate of tax under sections 111A and 115D-- First State Investments (Hongkong) Ltd. v. Asst. Director of Income-tax (International Taxation) (Mumbai) . . . 315
S. 90(2) --Deduction of tax at source--Commission--Payment to non-resident agent of artistes in foreign countries in connection with Indian tour--No material to infer that payment actually part of fees paid to performers--Agent not an artiste or entertainer--Payment falling under business profits--No permanent establishment in India--Payments not taxable in India--CBDT Circulars Nos. 17 of 1953, dated July 17, 1953 and 786, dated February 7, 2000-- Asst. Director of Income-tax (International Taxation) v. Wizcraft International Entertainment P. Ltd. (Mumbai) . . . 334
S. 111A --Loss--Carry forward and set off--Provision providing for lower rate of tax on short-term capital gains arising on transactions suffering securities transaction tax--Computation--Choice of setting off of short-term capital loss suffered after cut-off date against short-term capital gain earned prior to cut-off date--Computation of capital gain prescribed under section 48 cannot be confused with rate of tax under sections 111A and 115D-- First State Investments (Hongkong) Ltd. v. Asst. Director of Income-tax (International Taxation) (Mumbai) . . . 315
S. 115D --Loss--Carry forward and set off--Provision providing for lower rate of tax on short-term capital gains arising on transactions suffering securities transaction tax--Computation--Choice of setting off of short-term capital loss suffered after cut-off date against short-term capital gain earned prior to cut-off date--Computation of capital gain prescribed under section 48 cannot be confused with rate of tax under sections 111A and 115D-- First State Investments (Hongkong) Ltd. v. Asst. Director of Income-tax (International Taxation) (Mumbai) . . . 315
S. 143 --Assessment--Validity of assessment--Return filed in response to notice under section 148--Assessment under section 143(3) without issuing notice under section 143(2)--Assessment order void-- H. Gouthamchand v. Addl. CIT (Bangalore) . . . 269
S. 201 --Deduction of tax at source--Commission--Payment to non-resident agent of artistes in foreign countries in connection with Indian tour--No material to infer that payment actually part of fees paid to performers--Agent not an artiste or entertainer--Payment falling under business profits--No permanent establishment in India--Payments not taxable in India--CBDT Circulars Nos. 17 of 1953, dated July 17, 1953 and 786, dated February 7, 2000-- Asst. Director of Income-tax (International Taxation) v. Wizcraft International Entertainment P. Ltd. (Mumbai) . . . 334
S. 220(2) --Recovery of tax--Interest--Settlement of cases--Settlement Commission--Jurisdiction--With effect from date of admission of application for settlement not from date of application for settlement--Assessment order passed before date of admission of application by Settlement Commission--Interest on demand under assessment order leviable up to date of admission of settlement application-- Asst. CIT v. Smt. Leonie M. Almeida (Mumbai) . . . 293
S. 245D(1) --Recovery of tax--Interest--Settlement of cases--Settlement Commission--Jurisdiction--With effect from date of admission of application for settlement not from date of application for settlement--Assessment order passed before date of admission of application by Settlement Commission--Interest on demand under assessment order leviable up to date of admission of settlement application-- Asst. CIT v. Smt. Leonie M. Almeida (Mumbai) . . . 293
CA.RAJU SHAH
