INCOME TAX REPORTS (ITR)--PRINT AND ONLINE EDITION
Deduction of tax at source --Non-payment of tax deducted at source--Assessing Officer has power to declare person “assessee in defaultâ€--Income-tax Act, 1961, ss. 200, 200A, 201-- CIT v. Kingfisher Airlines Ltd. (Karn) . . . 106
----Principles of natural justice--Non-payment of tax deducted at source--Person admitting liability but claiming inability to pay amount--No evidence of payment submitted to Assessing Officer or Commissioner (Appeals)--No complaint of denial of opportunity to be heard--No violation of principles of natural justice--Order passed under section 201 valid--Income-tax Act, 1961, s. 201-- CIT v. Kingfisher Airlines Ltd. (Karn) . . . 106
Reassessment --Notice--Housing project--Special deduction--Claim of assessee examined at length--Assessing Officer disallowing substantial portion of claim--Reopening on ground yet another element of claim not gone into--Impermissible--Income-tax Act, 1961, ss. 147, 148-- Sarla Rajkumar Varma v. Asst. CIT (Guj) . . . 95
Unexplained expenditure --Trading in by-products of rice--Onus on assessee to produce material to establish purchase transactions--No material to substantiate payments made by cheque--Goods said to have been transported by a non-existent entity--Addition on account of purchases justified--Income-tax Act, 1961-- Rajesh Kumar v. CIT (P&H) . . . 87
Accounting --Rejection of accounts--Finding that there was no evidence that accounts were not reliable--Rejection of accounts not justified--Income-tax Act, 1961-- CIT v. Nuchem Ltd. (P&H) . . . 164
Amortisation of preliminary expenses --Expenditure on raising share capital--One-tenth of expenditure in assessment years 1994-95 to 1999-2000--Income-tax Act, 1961, s. 35D(2)(c)(iv)-- CIT v. Nuchem Ltd. (P&H) . . . 164
Appeal to Commissioner (Appeals) --Competency of appeal--Appeal maintainable only by aggrieved person--Assessee consenting to assessment--Subsequent penalty cancelled--Assessee was not an aggrieved person--Assessee not competent to appeal--Income-tax Act, 1961, s. 246A-- Deep Kukreti v. CIT (Uttarakhand) . . . 257
Appeal to High Court --Monetary ceiling limits--Exception--Revenue audit objection--No document to support--Tribunal finding appeal not maintainable on ground tax effect much less than prescribed limit--Justified--CBDT Instruction No. 3 of 2011, dated 9-2-2011--Income-tax Act, 1961, s. 268A-- CIT v. Shri Shanthinath Benefit Fund Ltd. (Mad) . . . 271
Business expenditure --Commercial expediency--Royalty payments to foreign principals--Deductible--Income-tax Act, 1961, s. 37(1)-- CIT v. Yum Restaurants India P. Ltd. (Delhi) . . . 139
----Deduction only on actual payment--Contributions to provident fund and employees’ State insurance--Provision that contribution should be paid before due date for filing return applicable to contribution by employees also--Income-tax Act, 1961, s. 43B-- CIT v. Magus Customers Dialog Pvt. Ltd. (Karn) . . . 242
----Delay in deposit of employees’ contribution to PF and ESI--Finding that there was no delay--Disallowance not justified--Income-tax Act, 1961, s. 36(1)(va)-- CIT v. Nuchem Ltd. (P&H) . . . 164
----Firm doing import and export--Foreign travel expenses of persons including a lady--Lady one of the founder partners travelling in that capacity with others--Expenditure incurred wholly and exclusively for the purpose of the business--Allowable deduction--Income-tax Act, 1961, s. 37-- CIT v. Irbaz Shoe Co. (Mad) . . . 215
----Guarantee commission--Deductible--Expenditure on maintenance of accommodation of employees--Deductible--Expenditure on inauguration of new centre--Deductible--Amount paid for market survey--Deductible--Income-tax Act, 1961, s. 37(2A), (3)-- CIT v. Nuchem Ltd. (P&H) . . . 164
----Mercantile system of accounting--Provision made based on past experience--Concurrent finding method not objectionable--Not a contingent liability--Provision allowable--Income-tax Act, 1961, s. 37-- CIT v. Yum Restaurants India P. Ltd. (Delhi) . . . 139
----Subsidiary company of assessee--Administrative expenses--Final effect is revenue-neutral--No allocation or apportionment of expenses could be made--Income-tax Act, 1961, s. 37(1)-- CIT v. Yum Restaurants India P. Ltd. (Delhi) . . . 139
Business income --Income from other sources--Assessee entering into franchise agreements with various entities to operate pizza and chicken restaurants--Services provided by assessee constituting a systematic organised activity conducted with a special purpose--Income therefrom is business income--Income-tax Act, 1961-- CIT v. Yum Restaurants India P. Ltd. (Delhi) . . . 139
Capital gains --Difference between short-term and long-term capital gains--Land held on lease for more than three years--Conversion into freehold and transfer thereafter--Gains assessable as long-term capital gains--Income-tax Act, 1961, s. 45-- Amar Nath Agrawal v. CIT (All) . . . 183
Capital or revenue expenditure --Restaurant business--Developing new recipes to develop clientele--Expenses for food tasting and trials--Revenue expenditure--Income-tax Act, 1961-- CIT v. Yum Restaurants India P. Ltd. (Delhi) . . . 139
Charitable purposes --Charitable trust--Registration of trust--Cancellation of registration--Finding that trust was running several educational institutions and had not violated any of the conditions for claiming exemption--Assessee entitled to registration--Income-tax Act, 1961, ss. 11, 12, 12A-- CIT v. Karnataka Lingayat Education Society (Karn) . . . 249
Depreciation --Assessee purchasing assets for its employees’ benefit--Assessee as part of its emolument policy reimbursing expenses incurred by employees--Reimbursement only to extent of employees’ entitlement--Individual identity of asset lost in block--Expenses not personal to assessee’s employees--Entitled to depreciation--Income-tax Act, 1961-- CIT v. Yum Restaurants India P. Ltd. (Delhi) . . . 139
----Rate of depreciation--Broadcasting/exhibition rights and satellite rights in feature films amount to distribution rights--Assessee entitled to 100 per cent. depreciation--Income-tax Act, 1961, s. 32--Income-tax Rules, 1962, r. 9B-- CIT v. Smt. Achila Sabharwal (Delhi) . . . 219
Estimation of income --Application of net profit rate--Tribunal upholding exercise undertaken by Assessing Officer and Commissioner (Appeals) and rejecting assessee’s complaint--Tribunal after referring to comparable cases applying net profit at 8 per cent.--Pure finding of fact--Income-tax Act, 1961-- CIT v. Ratansingh M. Rathod (Bom) . . . 135
Industrial undertaking --Special deduction--Computation--Depreciation allowance and development rebate for past assessment years fully set off against total income for those assessment years--Not to be notionally carried forward and set off against income of current year--Income-tax Act, 1961, s. 80-I-- Carborundum Universal Ltd. v. Joint CIT (Mad) . . . 275
Penalty --Concealment of income--No satisfactory explanation as regards failure by assessee to disclose in original return gifts from non-resident Indians--Disclosure in revised return only after survey operation in business premises--Genuineness of gifts not proved--Levy of penalty justified--Income-tax Act, 1961, s. 271(1), Expln. 1(B) -- R. Padmanabhan v. Deputy CIT (Mad) . . . 211
Reassessment --Notice--Limitation--Notice after four years but before six years--Condition precedent--Satisfaction of Assessing Officer that income escaping assessment was likely to exceed one lakh rupees--No recording of such satisfaction--Notice barred by limitation--Income-tax Act, 1961, ss. 148, 149-- Amar Nath Agrawal v. CIT (All) . . . 183
----Notice--Validity--Notice based on audit objection--Notice not valid--Income-tax Act, 1961, ss. 147, 148-- Raajratna Metal Industries Ltd. v. Asst. CIT (Guj) . . . 222
----Notice--Validity--Notice for assessment year 2008-09 on ground that deduction under section 10A was found to be excessive in similar circumstances for assessment year 2009-10--Tribunal holding that deduction was not excessive--Notice not valid--Income-tax Act, 1961, ss. 147, 148-- A. T. Kearney India Ltd. v. ITO (Delhi) . . . 179
----Notice after four years--Validity--Failure to disclose material facts necessary for assessment--Gains shown in returns as long-term capital gains and details regarding transfer of capital asset given--Notice after four years to treat gains as short-term capital gains--Not valid--Income-tax Act, 1961, ss. 147, 148-- Amar Nath Agrawal v. CIT (All) . . . 183
----Notice within four years--Power to reassess not a power to review--Industrial undertaking--Special deduction--Allocation of expenditure between assessees’ three manufacturing units--Assessing Officer raising queries and accepting reply--Due application of mind by Assessing Officer to facts involved and opinion formed to allow claim--Reassessment with respect to allocation of expenditure--Change of opinion--No reason to believe that income chargeable to tax has escaped assessment--Reassessment not valid--Income-tax Act, 1961, ss. 80-IA, 80-IB, 147, 148-- GKN Sinter Metals Ltd. v. Ms. Ramapriya Raghavan, Asst. CIT (Bom) . . . 225
Recovery of tax --Stay of recovery proceedings--Prima facie case against order of assessment--Finding that recovery of amount demanded would cause irreparable injury to assessee--Conditional stay granted--Income-tax Act, 1961-- Nerka Chemicals P. Ltd. v. Union of India (Bom) . . . 280
Remuneration from foreign enterprise --Special deduction--Conditions precedent--Assessee conducting services for benefit of foreign companies--Services rendered “from India†and “in Indiaâ€--Distinction--Report of survey submitted by assessee not utilised within India though received by foreign agency in India--Mere submission of report within India does not take assessee out of purview of benefit--Income-tax Act, 1961, s. 80-O-- CIT v. Peters and Prasad Association (T & AP) . . . 206
Search and seizure --Block assessment--Assessment of third person--Undisclosed income--Assessing Officer satisfied that undisclosed income discovered during search belonged to third person--Notice under section 158BD to such third person--Valid--Income-tax Act, 1961, ss. 158BC, 158BD-- Gyanendra Kumar Jain v. Asst. CIT (All) . . . 244
----Block assessment--Undisclosed income--Deletion of non-genuine gifts on ground amount already included--Benefit given to certain amount as past savings--Allowing certain value of jewellery as stridhan of assessee’s wife--Deletion of addition for unexplained jewellery on ground jewellery belonged to some one else--Pure findings of fact--Income-tax Act, 1961-- CIT v. Naresh Kumar Kohli (P&H) . . . 201
----Block assessment--Undisclosed income--Statement of managing partner of assessee recorded one-and-half months after search--Cannot be brought under purview of section 132(4)--Block assessment solely on basis of discrepancy between two registers referable to Central Excise Act--Registers can be taken into account for income-tax purposes only after ascertaining facts and conclusions from officials of Excise Department--Neither Assessing Officer nor Commissioner (Appeals) recording any finding that assessee suppressed sale of steel referable to discrepancy--Block assessment just on basis of surmises--Block assessment not valid--Income-tax Act, 1961, ss. 132(4), 158BC-- CIT v. Balaji Steel Profiles (T & AP) . . . 265
Shipping business --Tonnage tax company--Tonnage tax scheme--Tonnage income--Non qualifying ships--Computation--Income from slot charter operations--Includible--Income-tax Act, 1961, ss. 115VB, 115VC, 115VD-- Trans Asian Shipping Services P. Ltd. v. CIT (Ker) . . . 194
S. 11 --Charitable purposes--Charitable trust--Registration of trust--Cancellation of registration--Finding that trust was running several educational institutions and had not violated any of the conditions for claiming exemption--Assessee entitled to registration-- CIT v. Karnataka Lingayat Education Society (Karn) . . . 249
S. 12 --Charitable purposes--Charitable trust--Registration of trust--Cancellation of registration--Finding that trust was running several educational institutions and had not violated any of the conditions for claiming exemption--Assessee entitled to registration-- CIT v. Karnataka Lingayat Education Society (Karn) . . . 249
S. 12A --Charitable purposes--Charitable trust--Registration of trust--Cancellation of registration--Finding that trust was running several educational institutions and had not violated any of the conditions for claiming exemption--Assessee entitled to registration-- CIT v. Karnataka Lingayat Education Society (Karn) . . . 249
S. 32 --Depreciation--Rate of depreciation--Broadcasting/exhibition rights and satellite rights in feature films amount to distribution rights--Assessee entitled to 100 per cent. depreciation-- CIT v. Smt. Achila Sabharwal (Delhi) . . . 219
S. 35D(2)(c)(iv) --Amortisation of preliminary expenses--Expenditure on raising share capital--One-tenth of expenditure in assessment years 1994-95 to 1999-2000-- CIT v. Nuchem Ltd. (P&H) . . . 164
S. 36(1)(va) --Business expenditure--Delay in deposit of employees’ contribution to PF and ESI--Finding that there was no delay--Disallowance not justified-- CIT v. Nuchem Ltd. (P&H) . . . 164
S. 37 --Business expenditure--Firm doing import and export--Foreign travel expenses of persons including a lady--Lady one of the founder partners travelling in that capacity with others--Expenditure incurred wholly and exclusively for the purpose of the business--Allowable deduction-- CIT v. Irbaz Shoe Co. (Mad) . . . 215
----Business expenditure--Mercantile system of accounting--Provision made based on past experience--Concurrent finding method not objectionable--Not a contingent liability--Provision allowable-- CIT v. Yum Restaurants India P. Ltd. (Delhi) . . . 139
S. 37(1) --Business expenditure--Commercial expediency--Royalty payments to foreign principals--Deductible-- CIT v. Yum Restaurants India P. Ltd. (Delhi) . . . 139
----Business expenditure--Subsidiary company of assessee--Administrative expenses--Final effect is revenue-neutral--No allocation or apportionment of expenses could be made-- CIT v. Yum Restaurants India P. Ltd. (Delhi) . . . 139
S. 37(2A), (3) --Business expenditure--Guarantee commission--Deductible--Expenditure on maintenance of accommodation of employees--Deductible--Expenditure on inauguration of new centre--Deductible--Amount paid for market survey--Deductible-- CIT v. Nuchem Ltd. (P&H) . . . 164
S. 43B --Business expenditure--Deduction only on actual payment--Contributions to provident fund and employees’ State insurance--Provision that contribution should be paid before due date for filing return applicable to contribution by employees also-- CIT v. Magus Customers Dialog Pvt. Ltd. (Karn) . . . 242
S. 45 --Capital gains--Difference between short-term and long-term capital gains--Land held on lease for more than three years--Conversion into freehold and transfer thereafter--Gains assessable as long-term capital gains-- Amar Nath Agrawal v. CIT (All) . . . 183
S. 80-I --Industrial undertaking--Special deduction--Computation--Depreciation allowance and development rebate for past assessment years fully set off against total income for those assessment years--Not to be notionally carried forward and set off against income of current year-- Carborundum Universal Ltd. v. Joint CIT (Mad) . . . 275
S. 80-IA --Reassessment--Notice within four years--Power to reassess not a power to review--Industrial undertaking--Special deduction--Allocation of expenditure between assessees’ three manufacturing units--Assessing Officer raising queries and accepting reply--Due application of mind by Assessing Officer to facts involved and opinion formed to allow claim--Reassessment with respect to allocation of expenditure--Change of opinion--No reason to believe that income chargeable to tax has escaped assessment--Reassessment not valid-- GKN Sinter Metals Ltd. v. Ms. Ramapriya Raghavan, Asst. CIT (Bom) . . . 225
S. 80-IB --Reassessment--Notice within four years--Power to reassess not a power to review--Industrial undertaking--Special deduction--Allocation of expenditure between assessees’ three manufacturing units--Assessing Officer raising queries and accepting reply--Due application of mind by Assessing Officer to facts involved and opinion formed to allow claim--Reassessment with respect to allocation of expenditure--Change of opinion--No reason to believe that income chargeable to tax has escaped assessment--Reassessment not valid-- GKN Sinter Metals Ltd. v. Ms. Ramapriya Raghavan, Asst. CIT (Bom) . . . 225
S. 80-O --Remuneration from foreign enterprise--Special deduction--Conditions precedent--Assessee conducting services for benefit of foreign companies--Services rendered “from India†and “in Indiaâ€--Distinction--Report of survey submitted by assessee not utilised within India though received by foreign agency in India--Mere submission of report within India does not take assessee out of purview of benefit-- CIT v. Peters and Prasad Association (T & AP) . . . 206
S. 115VB --Shipping business--Tonnage tax company--Tonnage tax scheme--Tonnage income--Non qualifying ships--Computation--Income from slot charter operations--Includible-- Trans Asian Shipping Services P. Ltd. v. CIT (Ker) . . . 194
S. 115VC --Shipping business--Tonnage tax company--Tonnage tax scheme--Tonnage income--Non qualifying ships--Computation--Income from slot charter operations--Includible-- Trans Asian Shipping Services P. Ltd. v. CIT (Ker) . . . 194
S. 115VD --Shipping business--Tonnage tax company--Tonnage tax scheme--Tonnage income--Non qualifying ships--Computation--Income from slot charter operations--Includible-- Trans Asian Shipping Services P. Ltd. v. CIT (Ker) . . . 194
S. 132(4) --Search and seizure--Block assessment--Undisclosed income--Statement of managing partner of assessee recorded one-and-half months after search--Cannot be brought under purview of section 132(4)--Block assessment solely on basis of discrepancy between two registers referable to Central Excise Act--Registers can be taken into account for income-tax purposes only after ascertaining facts and conclusions from officials of Excise Department--Neither Assessing Officer nor Commissioner (Appeals) recording any finding that assessee suppressed sale of steel referable to discrepancy--Block assessment just on basis of surmises--Block assessment not valid-- CIT v. Balaji Steel Profiles (T & AP) . . . 265
S. 147 --Reassessment--Notice--Validity--Notice based on audit objection--Notice not valid-- Raajratna Metal Industries Ltd. v. Asst. CIT (Guj) . . . 222
----Reassessment--Notice--Validity--Notice for assessment year 2008-09 on ground that deduction under section 10A was found to be excessive in similar circumstances for assessment year 2009-10--Tribunal holding that deduction was not excessive--Notice not valid-- A. T. Kearney India Ltd. v. ITO (Delhi) . . . 179
----Reassessment--Notice after four years--Validity--Failure to disclose material facts necessary for assessment--Gains shown in returns as long-term capital gains and details regarding transfer of capital asset given--Notice after four years to treat gains as short-term capital gains--Not valid-- Amar Nath Agrawal v. CIT (All) . . . 183
----Reassessment--Notice within four years--Power to reassess not a power to review--Industrial undertaking--Special deduction--Allocation of expenditure between assessees’ three manufacturing units--Assessing Officer raising queries and accepting reply--Due application of mind by Assessing Officer to facts involved and opinion formed to allow claim--Reassessment with respect to allocation of expenditure--Change of opinion--No reason to believe that income chargeable to tax has escaped assessment--Reassessment not valid-- GKN Sinter Metals Ltd. v. Ms. Ramapriya Raghavan, Asst. CIT (Bom) . . . 225
S. 148 --Reassessment--Notice--Limitation--Notice after four years but before six years--Condition precedent--Satisfaction of Assessing Officer that income escaping assessment was likely to exceed one lakh rupees--No recording of such satisfaction--Notice barred by limitation-- Amar Nath Agrawal v. CIT (All) . . . 183
----Reassessment--Notice--Validity--Notice based on audit objection--Notice not valid-- Raajratna Metal Industries Ltd. v. Asst. CIT (Guj) . . . 222
----Reassessment--Notice--Validity--Notice for assessment year 2008-09 on ground that deduction under section 10A was found to be excessive in similar circumstances for assessment year 2009-10--Tribunal holding that deduction was not excessive--Notice not valid-- A. T. Kearney India Ltd. v. ITO (Delhi) . . . 179
----Reassessment--Notice after four years--Validity--Failure to disclose material facts necessary for assessment--Gains shown in returns as long-term capital gains and details regarding transfer of capital asset given--Notice after four years to treat gains as short-term capital gains--Not valid-- Amar Nath Agrawal v. CIT (All) . . . 183
----Reassessment--Notice within four years--Power to reassess not a power to review--Industrial undertaking--Special deduction--Allocation of expenditure between assessees’ three manufacturing units--Assessing Officer raising queries and accepting reply--Due application of mind by Assessing Officer to facts involved and opinion formed to allow claim--Reassessment with respect to allocation of expenditure--Change of opinion--No reason to believe that income chargeable to tax has escaped assessment--Reassessment not valid-- GKN Sinter Metals Ltd. v. Ms. Ramapriya Raghavan, Asst. CIT (Bom) . . . 225
S. 149 --Reassessment--Notice--Limitation--Notice after four years but before six years--Condition precedent--Satisfaction of Assessing Officer that income escaping assessment was likely to exceed one lakh rupees--No recording of such satisfaction--Notice barred by limitation-- Amar Nath Agrawal v. CIT (All) . . . 183
S. 158BC --Search and seizure--Block assessment--Assessment of third person--Undisclosed income--Assessing Officer satisfied that undisclosed income discovered during search belonged to third person--Notice under section 158BD to such third person--Valid-- Gyanendra Kumar Jain v. Asst. CIT (All) . . . 244
----Search and seizure--Block assessment--Undisclosed income--Statement of managing partner of assessee recorded one-and-half months after search--Cannot be brought under purview of section 132(4)--Block assessment solely on basis of discrepancy between two registers referable to Central Excise Act--Registers can be taken into account for income-tax purposes only after ascertaining facts and conclusions from officials of Excise Department--Neither Assessing Officer nor Commissioner (Appeals) recording any finding that assessee suppressed sale of steel referable to discrepancy--Block assessment just on basis of surmises--Block assessment not valid-- CIT v. Balaji Steel Profiles (T & AP) . . . 265
S. 158BD --Search and seizure--Block assessment--Assessment of third person--Undisclosed income--Assessing Officer satisfied that undisclosed income discovered during search belonged to third person--Notice under section 158BD to such third person--Valid-- Gyanendra Kumar Jain v. Asst. CIT (All) . . . 244
S. 246A --Appeal to Commissioner (Appeals)--Competency of appeal--Appeal maintainable only by aggrieved person--Assessee consenting to assessment--Subsequent penalty cancelled--Assessee was not an aggrieved person--Assessee not competent to appeal-- Deep Kukreti v. CIT (Uttarakhand) . . . 257
S. 268A --Appeal to High Court--Monetary ceiling limits--Exception--Revenue audit objection--No document to support--Tribunal finding appeal not maintainable on ground tax effect much less than prescribed limit--Justified--CBDT Instruction No. 3 of 2011, dated 9-2-2011-- CIT v. Shri Shanthinath Benefit Fund Ltd. (Mad) . . . 271
S. 271(1), Expln. 1(B) --Penalty--Concealment of income--No satisfactory explanation as regards failure by assessee to disclose in original return gifts from non-resident Indians--Disclosure in revised return only after survey operation in business premises--Genuineness of gifts not proved--Levy of penalty justified-- R. Padmanabhan v. Deputy CIT (Mad) . . . 211
R. 9B --Depreciation--Rate of depreciation--Broadcasting/exhibition rights and satellite rights in feature films amount to distribution rights--Assessee entitled to 100 per cent. depreciation-- CIT v. Smt. Achila Sabharwal (Delhi) . . . 219
Orders company's winding up as consequence of 2G licences quashing |
HC directs winding up of Swan Telecom (respondent-now known as Etisalat DB Telecom Pvt. Ltd) as basic substratum of company being 2G licences was lost pursuant to Supreme Court's order quashing such licences; Accepts Emirates' 100% subsidiary Etisalat Mauritius' (petitioner) submission that 2G licences were the most valuable assets of the Company and company's commercial existence depended on such licences, also notes, "the UASLs (Unified Access Services Licenses) were undoubtedly the basis on which the Petitioner was persuaded to invest a sum of Rs. 3,500 crores in the Company"; Relies on Appeal Court observations (Swan had appealed against admission of winding up petition) that, "Petition must be admitted on the ground that there is more than just a prima facie case that the substratum of the Company has gone with almost no hope of it being revived, there is a complete breakdown in the faith and trust between the main Partners i.e. the Appellants and the Petitioners and that there is a total deadlock in the management of the Company and on its Board of Directors"; Rejects respondent's defence of reviving the company under a planned revival scheme, holds the scheme as 'unrealistic, speculative and unworkable' and observes that there was lack of any prospect of revival of respondent-co. and it was established beyond doubt that existing and probable assets were insufficient to meet existing liability; Further rejects respondents' contention that petitioner's conduct was unfair and dubious, absent proof; Also dismisses respondent's submission that since petitioner had also filed a suit for damages, it could not move the Court seeking winding up on just and equitable ground, holds, "suit for damages is not an alternate remedy for a winding up petition. The Petitioner does not seek to benefit financially or recover its losses in the winding up petition which is primarily for the benefit of the creditors"; Relies on video recording of respondent-company's board meeting and accepts petitioner's contention that respondent unilaterally decided to shut its business, rejects respondent's contention that video recording could not be relied on as it was incomplete; Rejects respondent's contention that petitioner tried to violate FDI policy which stipulated that to acquire more than 49% shares in telecom co., FIPB approval was required, and thus, petitioner being related Etisalat Grp co approached Court with unclean hands; Holds, "The above submission advanced on behalf of the Respondent No. 2 will not be of much assistance to the Respondent No. 2 since the Petitioner is not a noticee to the show cause notice under PMLA (Prevention of Money Laundering Act) or under FEMA, and nor has it been issued any other show cause notice in this regard":Bombay HC |
| The order was given by Justice S.J. Kathawalla. Senior Advocates Dinyar D. Madon, Pradeep Sancheti, Pesi Modi alongwith Advocates Zal Andhyarujina, F.A. Sagar, Amit Vyas and Aanchal Vaswani argued on behalf of the petitioner. Senior Advocate S.U. Kamdar alongwith Advocates Chirag Mody, Sharan Jagtiani, Ankit Lohia, Sajit Suwarna, M. Virjee, Rishikesh Soni and Manhar S.Saini represented the |
ITR'S TRIBUNAL TAX REPORTS (ITR (Trib)) HIGHLIGHTS
F Charitable purpose : Registration cannot be cancelled merely on addition made to objects clause without intimation to Department : Maharashtra Cricket Association v. CIT (Pune) p. 150
F Business expenditure : Where consultancy charges paid in foreign currency to American company, assessee not liable to deduct tax at source on payment : Rich Graviss Products P. Ltd. v. Addl. CIT (Mumbai) p. 181
F Where receipt of registration charges from members would not change fundamental character of charitable activity into commercial activity, assessee entitled to registration u/s. 12A : Army Welfare Placement Organisation v. DIT (Exemptions) (Delhi) p. 1 (22-1-2015)
F Revision on ground of lack of proper enquiry by AO not valid : B.S. Sangwan v. ITO (Delhi) p. 11 (21-1-2015)
F International transactions : ALP : Selection of comparables : Functionally different companies to be excluded : ITO v. Prana Studios P. Ltd. (Mumbai) p. 21 (16-1-2015)
F Where assessee incurring freight and insurance expenses on cost plus freight and insurance basis, receipts on freight to be considered as business income : Asst. CIT v. S.K. International (Export) Co. (Mumbai) p. 33 (13-1-2015)
F Duty entitlement pass book scheme receipt not part of eligible profits : Asst. CIT v. S.K. International (Export) Co. (Mumbai) p. 33 (13-1-2015)
F Where TDS paid to Central Government, credit not be denied on ground income not chargeable to tax in that year : Zelan Projects P. Ltd. v. Dy. CIT (Hyd) p. 41 (12-1-2015)
F Where business activity carried on, though no revenue generated during previous year, expenditure allowable as deduction : S. P. P. S. Systems P. Ltd. v. Dy. CIT (Hyd) p. 49 (9-1-2015)
F Assessee received rent is for space in building can be taxed only as "income from house property", deduction admissible u/s. 24(a) : Manpreet Singh v. ITO (Delhi) p. 55 (6-1-2015)
F Restriction of disallowance by CIT (Appeals) merely on estimation not proper : Asst. CIT v. Lakshmi Machine Works Ltd. (Chennai) p. 61 (2-1-2015)
F Business expenditure : Where no amount remaining unpaid to truck owners at end of year, disallowance cannot be made : Dipendra Bahadur Singh v. Asst. CIT (Cuttack) p. 67
F Capital gains : Sale of land : Capital gains to be computed according to declaration by assessee : Ms. Virmati H Dalal (decd.) v. ITO (Mumbai) p. 72
F Rendering service to banking business not charitable activity or purpose, assessee not entitled to registration : State Forum of Bankers Club (Kerala) v. ITO (Technical) (Cochin) p. 83 (9-1-2015)
F International transactions : ALP : No adjustment required where profit level indicator falls within harbour of plus or minus five per cent. : Watson Pharma P. Ltd. v. Dy. CIT (Mumbai) p. 97 (9-1-2015)
F Profits of eligible unit not to be set off against unabsorbed depreciation of another unit : Watson Pharma P. Ltd. v. Dy. CIT (Mumbai) p. 97 (9-1-2015)
| COMPANY LAW INSTITUTE OF INDIA PVT. LTD. No. 2, Vaithyaram Street, T.Nagar, Chennai - 600017. Phone: (044) 24350752 - 55 Fax: (044) 24322015 info@cliofindia.c |
GOODS AND SERVICE TAX REPORTS (GSTR) HIGHLIGHTS
F Failure to consider all relevant facts and circumstances, matter remanded : Commissioner of Customs and Central Excise v. Aban Exim P. Ltd. (All) p. 563
F Where assessee acted upon proposal of instalments agreed subject to payment of interest, assessee bound to pay interest : Premier Ltd v. Union of India (Bom) p. 581
F Assessee satisfying all conditions required under rule 57F(13) and notification dated 1-3-1987 entitled to refund of Modvat credit allowed on inputs used in goods exported under bond : CCE v. Gillette India Ltd. (Duracell Division) (P&H) p. 601
F Where order of Appellate Tribunal merging with order of High Court, Appellate Tribunal cannot thereafter extend time or grant restoration of appeal : Kisaan Gramodyog Sansthan v. CCE (All) p. 643
F Settlement of cases : "Co-operation" connotes true and full disclosure of facts pertaining to assessee and non-co-operation, opposite of it : Anil Re-rolling Mills v. CCE (T & AP) p. 648
F Where supplementary invoices issued to facilitate recovery of expenditure of cost escalation and enhanced duty paid thereon, section 11AB not applicable : CCE v. Bharat Heavy Electricals Ltd. (Karn) p. 652
F Where admission by officers of assessee regarding illicit clearance of goods not retracted at any time of proceedings, sufficient evidence to prove clandestine manufacture and removal of goods : CCE and Service Tax v. Tec Papers P. Ltd. (Trib.-Ahd) p. 572
F No new, distinct separately identifiable and marketable product emerging from polishing, resin-filling and fibre-backing carried out on duty-paid natural marble slabs, processes not manufacture : Classic Marbles v. CCE (Trib.-Ahd) p. 609
F Notifications :
Central Excise Act, 1944 : Notification under section 5A(1) : Concessional rate of duty on specified goods : Amendments p. 143
Customs Act, 1962 : Notification under section 7(1)(b) and (c) : Land Customs Stations and Routes for import and export of goods by land or inland water ways : Amendments p. 143
Notification under section 25(1) : Effective rates of basic customs duties for specified goods : Amendments p. 113
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