INCOME TAX REPORTS (ITR)--PRINT AND ONLINE EDITION
Appeal to Appellate Tribunal --Powers of Tribunal--Appeal not entertained on ground barred by limitation--Tribunal has no power to consider merits--Income-tax Act, 1961, s. 253-- Centre for Individual and Corporate Action (CICA) v. Asst. CIT (Mad) . . . 35
----Powers of Tribunal--Power to consider new question not raised before Assessing Officer or Commissioner (Appeals)--Question regarding jurisdiction to assess--Tribunal could consider question--Income-tax Act, 1961, s. 254-- CIT v. Gitsons Engineering Co. (Mad) . . . 87
Assessment --Notice--Limitation--Service of notice within prescribed time limit mandatory--Income-tax Act, 1961, s. 143(2)-- CIT v. Gitsons Engineering Co. (Mad) . . . 87
Business expenditure --Expenses laid out or expended wholly and exclusively for purpose of business--General principles--Sales promotion expenditure--Distribution of television channels--Expenditure incurred on advertisement and promotion of associated enterprises--One of the functions of assessee--Amount received by assessee for international transactions accepted by Transfer Pricing Officer--No disallowance could be made--Income-tax Act, 1961, s. 37(1)-- CIT v. Discovery Communication India
(Delhi) . . . 57
(Delhi) . . . 57
Company --Book profits--Definition--Change of law--Effect of amendment w.e.f. 1-4-2008--Prior to 1-4-2008 “book profits†included income and expenditure relating to income to which section 10A or section 10B applied--Income-tax Act, 1961, ss. 10A, 10B, 115JB-- CIT v. ACE Software Exports Ltd. (Guj) . . . 21
Depreciation --Unabsorbed depreciation--Carry forward and set off--Law applicable--Effect of amendment of section 32 by Finance Act of 2001--No time limit for carry forward and set off from 1-4-2002--Income-tax Act, 1961, s. 32-- Synbiotics Ltd. v. Asst. CIT (Guj) . . . 119
Double taxation avoidance --Capital gains arising to resident of UAE from sale of Government securities in India--Not taxable in India--Double Taxation Avoidance Agreement between India and UAE, art. 13-- DIT (International Taxation) v. ICICI Bank Ltd. (Bom) . . . 17
Exemption --Educational institution--Conditions precedent for exemption under section 10(23C)--Meaning of “wholly or substantially financed by the Governmentâ€--Educational institution established entirely with Government support--Annual grants received from Government--Entitled to exemption--Income-tax Act, 1961, s. 10(23C)-- CIT v. Indian Institute of Management (Karn) . . . 81
Housing project --Special deduction--Condition precedent--Housing project does not include commercial premises--Definition of built-up area with effect from 1-4-2005 not retrospective in operation--Super built-up area cannot be equated with built-up area--Tribunal finding area of entire project more than one acre and area of each flat within the limit of 1,500 square feet--Assessee entitled to exemption--Income-tax Act, 1961, s. 80-IB(10)-- CIT v. Hermes Developers (Bom) . . . 38
Income --Accrual of income--Hotels, resorts and clubs--Advance sale of room nights--Customers entitled to surrender room nights and receive not only surrender value but premium thereon--Refundable advance for accommodation--Not assessable--Income-tax Act, 1961-- CIT v. Pancard Clubs Ltd. (Bom) . . . 45
Interest on borrowed capital --No finding by Assessing Officer that assessee borrowed amount on interest and straightaway passed it on to its sister concern--No disallowance of interest can be made--Income-tax Act, 1961-- CIT v. Seven Hills Hospitals P. Ltd. (T & AP) . . . 69
Penalty --Concealment of income--Company--Assessment under section 115JB on book profits basis--Search by excise authorities revealing concealment of income--Additions to income--Tax liability not changing--Penalty could not be imposed--Income-tax Act, 1961, s. 271(1)(c)-- CIT v. CITI Tiles Ltd. (Guj) . . . 127
----Concealment of income--Furnishing inaccurate particulars--Claim of loss on sale of fixed assets in profit and loss account--Claim positively incorrect and contrary to principles of primary accountancy--Revised return not filed voluntarily or before issue of notice for penalty--Order of penalty sustainable--Income-tax Act, 1961, s. 271(1)(c)-- CIT v. NG Technologies Ltd. (Delhi) . . . 7
----Loan or deposit in cash exceeding specified limit--Book adjustment of funds by assessee to its sister concern--Not loan or deposit--No identification of loanee or depositor--Penalty could not be imposed--Income-tax Act, 1961, ss. 269SS, 269T, 271D, 271E-- Gururaj Mini Roller Flour Mills v. Addl. CIT (T & AP) . . . 50
Reassessment --Directions regarding reassessment--Income-tax Act, 1961, ss. 147, 148-- Sahkari Khand Udyog Mandal Ltd. v. Asst. CIT (Guj) . . . 107
----Notice--Validity--Charitable trust--Accumulation of income--Accumulation accepted in scrutiny assessment--Subsequent notice on ground that accumulation not valid--Mere change of opinion--Notice not valid--Income-tax Act, 1961, ss. 11, 147, 148-- Friends of WWB, India v. Deputy CIT (Exemption) (Guj) . . . 26
----Notice--Validity--Depreciation--Notice contrary to decision of jurisdictional High Court--Notice not valid--Income-tax Act, 1961, ss. 32, 147, 148-- Sahkari Khand Udyog Mandal Ltd. v. Asst. CIT (Guj) . . . 107
----Notice--Validity--Income from lease of building, machinery and plant assessed from 1980 as business income--Notice bring it to tax as income from other sources--Mere change of opinion--Notice not valid--Income-tax Act, 1961, ss. 147, 148-- CIT v. Mysore Wine Products Ltd. (Karn) . . . 102
----Notice--Validity--Reassessment proceedings taken after four years for assessment year 2005-06 set aside by High Court as not valid on ground there was no failure to disclose material facts necessary for assessment--Notice for assessment years 2006-07 and 2007-08 for the same reason--Not valid--Income-tax Act, 1961, ss. 147, 148-- Charotar Nagrik Sahakari Bank Ltd. (in liquidation) v. Deputy CIT (Guj) . . . 30
----Notice--Validity--Scrutiny assessment for assessment year 2008-09 granting set off of unabsorbed depreciation--Notice of reassessment on ground that set off barred by limitation--Erroneous view of Assessing Officer--Notice not valid--Income-tax Act, 1961, ss. 32, 147, 148-- Synbiotics Ltd. v. Asst. CIT (Guj) . . . 119
----Notice after four years--Validity--Failure to disclose material facts necessary for assessment--Claim for deduction of royalty considered and partly allowed in original assessment--Reassessment proceedings to disallow entire expenditure--Not valid--Income-tax Act, 1961, ss. 147, 148-- Oracle India P. Ltd. v. Deputy CIT (Delhi) . . . 91
----Notice after four years--Validity--Failure to disclose material facts necessary for assessment--Expenditure on advertisement allowed in scrutiny assessment--Notice after four years to withdraw allowance--No failure to disclose material facts necessary for assessment--Notice not valid--Income-tax Act, 1961, ss. 147, 148-- TAO Publishing Pvt. Ltd. v. Deputy CIT (Bom) . . . 135
Revision --Commissioner--Erroneous and prejudicial to Revenue--Amount received in the form of loans--Applicability of section 68--Assessment order showing non-application of mind by Assessing Officer--Assessment order erroneous and prejudicial to the interests of Revenue--Revision valid--Income-tax Act, 1961, s. 263-- CIT v. Anand Kumar Jain (All) . . . 140
Settlement of cases --Power of Settlement Commission--Right to information--Access to information with respect to disposal and pendency of matters before Settlement Commission--Officers designated under Right to Information Act passing orders--Settlement Commission has no power by an administrative order to declare such orders as being void ab initio--Remedy is to file appeal before Central Information Commission--Right to Information Act, 2005, s. 18(1)(f)--Income-tax Act, 1961-- R. K. Jain v. Chairman, ITSC (Delhi) . . . 1
Speculative transaction --Business income--Loss--Set-off--Meaning of speculative transaction--Effect of proviso to section 43(5)--Contract by member of stock exchange in the nature of jobbing and arbitrage--Not speculative--Loss can be set off against business income--Income-tax Act, 1961, ss. 43(5), 73-- CIT v. First Securities P. Ltd. (Karn) . . . 72
Art. 13 --Double taxation avoidance--Capital gains arising to resident of UAE from sale of Government securities in India--Not taxable in India-- DIT (International Taxation) v. ICICI Bank Ltd. (Bom) . . . 17
S. 10(23C) --Exemption--Educational institution--Conditions precedent for exemption under section 10(23C)--Meaning of “wholly or substantially financed by the Governmentâ€--Educational institution established entirely with Government support--Annual grants received from Government--Entitled to exemption-- CIT v. Indian Institute of Management (Karn) . . . 81
S. 10A --Company--Book profits--Definition--Change of law--Effect of amendment w.e.f. 1-4-2008--Prior to 1-4-2008 “book profits†included income and expenditure relating to income to which section 10A or section 10B applied-- CIT v. ACE Software Exports Ltd. (Guj) . . . 21
S. 10B --Company--Book profits--Definition--Change of law--Effect of amendment w.e.f. 1-4-2008--Prior to 1-4-2008 “book profits†included income and expenditure relating to income to which section 10A or section 10B applied-- CIT v. ACE Software Exports Ltd. (Guj) . . . 21
S. 11 --Reassessment--Notice--Validity--Charitable trust--Accumulation of income--Accumulation accepted in scrutiny assessment--Subsequent notice on ground that accumulation not valid--Mere change of opinion--Notice not valid-- Friends of WWB, India v. Deputy CIT (Exemption) (Guj) . . . 26
S. 32 --Depreciation--Unabsorbed depreciation--Carry forward and set off--Law applicable--Effect of amendment of section 32 by Finance Act of 2001--No time limit for carry forward and set off from 1-4-2002-- Synbiotics Ltd. v. Asst. CIT (Guj) . . . 119
----Reassessment--Notice--Validity--Depreciation--Notice contrary to decision of jurisdictional High Court--Notice not valid-- Sahkari Khand Udyog Mandal Ltd. v. Asst. CIT (Guj) . . . 107
----Reassessment--Notice--Validity--Scrutiny assessment for assessment year 2008-09 granting set off of unabsorbed depreciation--Notice of reassessment on ground that set off barred by limitation--Erroneous view of Assessing Officer--Notice not valid-- Synbiotics Ltd. v. Asst. CIT (Guj) . . . 119
S. 37(1) --Business expenditure--Expenses laid out or expended wholly and exclusively for purpose of business--General principles--Sales promotion expenditure--Distribution of television channels--Expenditure incurred on advertisement and promotion of associated enterprises--One of the functions of assessee--Amount received by assessee for international transactions accepted by Transfer Pricing Officer--No disallowance could be made-- CIT v. Discovery Communication India (Delhi) . . . 57
S. 43(5) --Speculative transaction--Business income--Loss--Set-off--Meaning of speculative transaction--Effect of proviso to section 43(5)--Contract by member of stock exchange in the nature of jobbing and arbitrage--Not speculative--Loss can be set off against business income-- CIT v. First Securities P. Ltd. (Karn) . . . 72
S. 73 --Speculative transaction--Business income--Loss--Set-off--Meaning of speculative transaction--Effect of proviso to section 43(5)--Contract by member of stock exchange in the nature of jobbing and arbitrage--Not speculative--Loss can be set off against business income-- CIT v. First Securities P. Ltd. (Karn) . . . 72
S. 80-IB(10) --Housing project--Special deduction--Condition precedent--Housing project does not include commercial premises--Definition of built-up area with effect from 1-4-2005 not retrospective in operation--Super built-up area cannot be equated with built-up area--Tribunal finding area of entire project more than one acre and area of each flat within the limit of 1,500 square feet--Assessee entitled to exemption-- CIT v. Hermes Developers (Bom) . . . 38
S. 115JB --Company--Book profits--Definition--Change of law--Effect of amendment w.e.f. 1-4-2008--Prior to 1-4-2008 “book profits†included income and expenditure relating to income to which section 10A or section 10B applied-- CIT v. ACE Software Exports Ltd. (Guj) . . . 21
S. 143(2) --Assessment--Notice--Limitation--Service of notice within prescribed time limit mandatory-- CIT v. Gitsons Engineering Co. (Mad) . . . 87
S. 147 --Reassessment--Directions regarding reassessment-- Sahkari Khand Udyog Mandal Ltd. v. Asst. CIT (Guj) . . . 107
----Reassessment--Notice--Validity--Charitable trust--Accumulation of income--Accumulation accepted in scrutiny assessment--Subsequent notice on ground that accumulation not valid--Mere change of opinion--Notice not valid-- Friends of WWB, India v. Deputy CIT (Exemption) (Guj) . . . 26
----Reassessment--Notice--Validity--Depreciation--Notice contrary to decision of jurisdictional High Court--Notice not valid-- Sahkari Khand Udyog Mandal Ltd. v. Asst. CIT (Guj) . . . 107
----Reassessment--Notice--Validity--Income from lease of building, machinery and plant assessed from 1980 as business income--Notice bring it to tax as income from other sources--Mere change of opinion--Notice not valid-- CIT v. Mysore Wine Products Ltd. (Karn) . . . 102
----Reassessment--Notice--Validity--Reassessment proceedings taken after four years for assessment year 2005-06 set aside by High Court as not valid on ground there was no failure to disclose material facts necessary for assessment--Notice for assessment years 2006-07 and 2007-08 for the same reason--Not valid-- Charotar Nagrik Sahakari Bank Ltd. (in liquidation) v. Deputy CIT (Guj) . . . 30
----Reassessment--Notice--Validity--Scrutiny assessment for assessment year 2008-09 granting set off of unabsorbed depreciation--Notice of reassessment on ground that set off barred by limitation--Erroneous view of Assessing Officer--Notice not valid-- Synbiotics Ltd. v. Asst. CIT (Guj) . . . 119
----Reassessment--Notice after four years--Validity--Failure to disclose material facts necessary for assessment--Claim for deduction of royalty considered and partly allowed in original assessment--Reassessment proceedings to disallow entire expenditure--Not valid-- Oracle India P. Ltd. v. Deputy CIT (Delhi) . . . 91
----Reassessment--Notice after four years--Validity--Failure to disclose material facts necessary for assessment--Expenditure on advertisement allowed in scrutiny assessment--Notice after four years to withdraw allowance--No failure to disclose material facts necessary for assessment--Notice not valid-- TAO Publishing Pvt. Ltd. v. Deputy CIT (Bom) . . . 135
S. 148 --Reassessment--Directions regarding reassessment-- Sahkari Khand Udyog Mandal Ltd. v. Asst. CIT (Guj) . . . 107
----Reassessment--Notice--Validity--Charitable trust--Accumulation of income--Accumulation accepted in scrutiny assessment--Subsequent notice on ground that accumulation not valid--Mere change of opinion--Notice not valid-- Friends of WWB, India v. Deputy CIT (Exemption) (Guj) . . . 26
----Reassessment--Notice--Validity--Depreciation--Notice contrary to decision of jurisdictional High Court--Notice not valid-- Sahkari Khand Udyog Mandal Ltd. v. Asst. CIT (Guj) . . . 107
----Reassessment--Notice--Validity--Income from lease of building, machinery and plant assessed from 1980 as business income--Notice bring it to tax as income from other sources--Mere change of opinion--Notice not valid-- CIT v. Mysore Wine Products Ltd. (Karn) . . . 102
----Reassessment--Notice--Validity--Reassessment proceedings taken after four years for assessment year 2005-06 set aside by High Court as not valid on ground there was no failure to disclose material facts necessary for assessment--Notice for assessment years 2006-07 and 2007-08 for the same reason--Not valid-- Charotar Nagrik Sahakari Bank Ltd. (in liquidation) v. Deputy CIT (Guj) . . . 30
----Reassessment--Notice--Validity--Scrutiny assessment for assessment year 2008-09 granting set off of unabsorbed depreciation--Notice of reassessment on ground that set off barred by limitation--Erroneous view of Assessing Officer--Notice not valid-- Synbiotics Ltd. v. Asst. CIT (Guj) . . . 119
----Reassessment--Notice after four years--Validity--Failure to disclose material facts necessary for assessment--Claim for deduction of royalty considered and partly allowed in original assessment--Reassessment proceedings to disallow entire expenditure--Not valid-- Oracle India P. Ltd. v. Deputy CIT (Delhi) . . . 91
----Reassessment--Notice after four years--Validity--Failure to disclose material facts necessary for assessment--Expenditure on advertisement allowed in scrutiny assessment--Notice after four years to withdraw allowance--No failure to disclose material facts necessary for assessment--Notice not valid-- TAO Publishing Pvt. Ltd. v. Deputy CIT (Bom) . . . 135
S. 253 --Appeal to Appellate Tribunal--Powers of Tribunal--Appeal not entertained on ground barred by limitation--Tribunal has no power to consider merits-- Centre for Individual and Corporate Action (CICA) v. Asst. CIT (Mad) . . . 35
S. 254 --Appeal to Appellate Tribunal--Powers of Tribunal--Power to consider new question not raised before Assessing Officer or Commissioner (Appeals)--Question regarding jurisdiction to assess--Tribunal could consider question-- CIT v. Gitsons Engineering Co. (Mad) . . . 87
S. 263 --Revision--Commissioner--Erroneous and prejudicial to Revenue--Amount received in the form of loans--Applicability of section 68--Assessment order showing non-application of mind by Assessing Officer--Assessment order erroneous and prejudicial to the interests of Revenue--Revision valid-- CIT v. Anand Kumar Jain (All) . . . 140
S. 269SS --Penalty--Loan or deposit in cash exceeding specified limit--Book adjustment of funds by assessee to its sister concern--Not loan or deposit--No identification of loanee or depositor--Penalty could not be imposed-- Gururaj Mini Roller Flour Mills v. Addl. CIT (T & AP) . . . 50
S. 269T --Penalty--Loan or deposit in cash exceeding specified limit--Book adjustment of funds by assessee to its sister concern--Not loan or deposit--No identification of loanee or depositor--Penalty could not be imposed-- Gururaj Mini Roller Flour Mills v. Addl. CIT (T & AP) . . . 50
S. 271(1)(c) --Penalty--Concealment of income--Company--Assessment under section 115JB on book profits basis--Search by excise authorities revealing concealment of income--Additions to income--Tax liability not changing--Penalty could not be imposed-- CIT v. Citi Tiles Ltd. (Guj) . . . 127
----Penalty--Concealment of income--Furnishing inaccurate particulars--Claim of loss on sale of fixed assets in profit and loss account--Claim positively incorrect and contrary to principles of primary accountancy--Revised return not filed voluntarily or before issue of notice for penalty--Order of penalty sustainable-- CIT v. NG Technologies Ltd. (Delhi) . . . 7
S. 271D --Penalty--Loan or deposit in cash exceeding specified limit--Book adjustment of funds by assessee to its sister concern--Not loan or deposit--No identification of loanee or depositor--Penalty could not be imposed-- Gururaj Mini Roller Flour Mills v. Addl. CIT (T & AP) . . . 50
S. 271E --Penalty--Loan or deposit in cash exceeding specified limit--Book adjustment of funds by assessee to its sister concern--Not loan or deposit--No identification of loanee or depositor--Penalty could not be imposed-- Gururaj Mini Roller Flour Mills v. Addl. CIT (T & AP) . . . 50
S. 18(1)(f) --Settlement of cases--Power of Settlement Commission--Right to information--Access to information with respect to disposal and pendency of matters before Settlement Commission--Officers designated under Right to Information Act passing orders--Settlement Commission has no power by an administrative order to declare such orders as being void ab initio--Remedy is to file appeal before Central Information Commission-- R. K. Jain v. Chairman, ITSC (Delhi) . . . 1
GOODS AND SERVICE TAX REPORTS (GSTR) HIGHLIGHTS
F Department has authority to levy penalty under repealed section 3A of 1944 Act : Bharat Steel Rolling Mills v. CCE (Mad) p. 1
F Recipient of material neither filing refund application nor order not passed against it has no locus standi to file appeal against order of rejection of refund : Gujarat Petrosynthese Ltd. v. UOI (Guj) p. 6
F Excise duty to have first charge on assessee's property even if mortgaged to financial institution : Gujarat Industrial Investment Corp. Ltd. v. Union of India (Guj) p. 12
F Public notice or Gazette notification not precondition for initiation of sunset inquiry to review need for continued imposition of anti-dumping duty on imports : Kumho Petrochemicals Co. Ltd. v. Union of India (Delhi) p. 25
F Extension of anti-dumping duty levy by sunset review period to be done before expiration of the original period : Where levy of anti-dumping duty ending on 1-1-2014, with lapse of original notification, levy of duty through later notification of 23-1-2014 without authority of law : Kumho Petrochemicals Co. Ltd. v. Union of India (Delhi) p. 25
F Bills :
Constitution (One Hundred and Twenty-second Amendment) Bill, 2014 p. 1
F C. B. E. C. Circulars :
Circular No. 11/2014-Customs, dated 14th November, 2014-Method of calculation of safeguard duty leviable vide Notification No. 4/2012-Customs (SG), dated 5-10-2012 on import of carbon black under advance authorisation Scheme-Regarding p. 37
Circular No. 12/2014-Customs, dated 17th November, 2014-Valuation/assessment practice in respect of export of iron ore p. 40
Circular No. 13/2014-Customs, dated 18th November, 2014-All Industry Rates of Duty Drawback effective 22-11-2014-Regarding p. 42
Circular No. 14/2014-Customs, dated 11th December, 2014 p. 45
Circular No. 15/2014-Customs, dated 18th December, 2014-Norms for execution of Bank Guarantee in respect of advance license/export promotion capital goods (EPCG) Schemes-Regarding p. 46
Circular No. 18/2014-Customs, dated 22nd December, 2014-Review of accredited clients programme (ACP)-Regarding p. 47
Circular No. 181/7/2014-Service Tax, dated 10th December, 2014-Audit of the Service Tax assessees by the officers of Service Tax and Central Excise Commissionerates-Regarding p. 33
Circular No. 989/13/2014-CX.-3, dated 7th November, 2014-Excisability of odoriferous compound/agarbathi mix arising during the course of manufacture of agarbathi-Regarding p. 35
Circular No. 990/14/2014-CX-8, dated 19th November, 2014-Clarification regarding availment of Cenvat credit after six months-Regarding p. 36
F Rules :
Customs, Central Excise Duties and Service Tax Drawback (Amendment) Rules, 2014 p. 32
Service Tax (Third Amendment) Rules, 2014 p. 32
F Notifications :
Central Excise Act, 1944 : Notification under section 5A(1) : Concessional rate of duty on specified goods : Amendments p. 17, 19
Exemption to goods required for Intensified Malaria Control Project funded by GFATM p. 22
Customs Act, 1962 : Notification under section 4(1) : Appointment of common adjudicating authority : Amendments p. 13
Appointment of officers to be Commissioner (Appeals) : Amendments p. 12
Appointment of special adjudicators : Amendments p. 13
Appointment of specified adjudicators : Amendments p. 12
Appointments of officers p. 14
Area falling within jurisdictionof Principal Commissioner of Customs or Commissioner of Customs : Amendments p. 11
Notification under section 6 : Sashastra Seema Bal officers as customs officers p. 10
Notification under section 14 : Exchange rate of foreign currency for import/export of goods with effect from December 5, 2014 p. 30
Exchange rate of foreign currency for import/export of goods with effect from November 21, 2014 p. 14
Notification under section 14(2) : Rates of basic duty on specified goods : Amendments p. 16
Notification under section 25(1) : Effective rates of basic duties for specified goods : Amendments p. 20
Exemption to goods required for Intensified Malaria Control Project funded by GFATM p. 23
Customs Tariff Act, 1975 : Notification under section 9A(1) and (5) : Anti-dumping duty on import of diclofenac sodium from China : Amendments p. 24
Anti-dumping duty on import of DVD-R and DVD-RW from China, Hong Kong and Chinese Taipei : Amendments p. 27
Customs Tariff (Determination of Origin of Goods under the Preferential Trade Agreement between the Governments of the Republic of India and the Republic of Korea) Rules, 2009 : Corrigendum p. 22
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