Chartered Accountant Finance: [aaykarbhavan] Judgments and Information , C L I I T R , [1 Attachment]

More than 14 lakhs cos registered till June 2015, Maharashtra leads in cos registration

Minister of Corporate Affairs, Shri Arun Jaitley, to a question in the Lok Sabha today, states the statistics with regard to companies registered with RoC; As per the stats, 14,79,374 cos have been registered with ROC in all the states and union territories, as on June 30, 2015; The highest number of cos have been registered in Maharashtra crossing 2 lakhs; Further, Shri Jaitley states that 43,396 cos have been closed during the last three financial years and the current financial year (up to June 30, 2015); Also mentions that Govt has formulated no scheme for revival of closed companies : PIB

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Cos Act 2013, Ind AS aim at strengthening of corporate governance: Jaitley

To a question regarding corporate governance, Shri Arun Jaitley, Minister of Corporate Affairs writes that provisions under Companies Act, 2013 aims at strengthening of corporate governance in companies in India; Such provisions include, enhanced responsibilities for the Board and its committees like Audit Committee etc, enhanced disclosures to stakeholders, appointment of Independent Directors, greater level of investor protection etc, states Jaitley; The Minister further mentions that "The Indian Accounting Standards (Ind AS) have also been notified in February 2015, and are expected to contribute to improved corporate governance."; Points out that Companies Act, 2013 has been amended to do away with mandatory requirement of minimum paid up capital for companies, common seal for companies and the requirement of filing declaration of commencement of business with a view to facilitate doing business using company as a vehicle; Also states that incorporation process for a company has been simplified through the introduction of an integrated e-form INC 29 : PIB

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Penalty levied on directors of 11 cos., including Ramalinga Raju: Arun Jaitley

To a question relating to penalty on directors of cos in Lok Sabha, Shri Arun Jaitley cites 11 cos whose directors have been penalised; Such cos. include Xrbia Developers Ltd, Borachem Industries Ltd, Li Taka Pharmaceuticals Ltd. ; Penalised directors include directors of Satyam Computer Services Ltd, viz., Ramalinga Raju, B. Ramaraju, V. Srinivas and Mynampati : PIB

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ICSI issues FAQs on SS-1, clarifies on applicability & convening board meetings

ICSI issues 'responses to queries on SS-1', clarifies on convening and conducting meetings of the board of directors; ICSI clarifies that SS-1 is applicable to banking company if the Bank is incorporated under Companies Act; ICSI clarifies that SS-1 shall apply only to those Board Meetings in respect of which Notices are issued on or after 1st July, 2015; States that Independent Director, being director, may also summon a Board Meeting, unless otherwise provided in Articles of Association ('AoA'); With respect to issuing notice of Board Meeting, ICSI states that on consultation by the CS, if Chairman / MD / WTD, refuses to convene the meeting, the AoA would prevail, and in case AoA is silent, the CS cannot convene a Board Meeting; States that there is no prohibition on sending Agenda & Notes on Agenda separately, subject to the condition that both should be sent atleast 7-days before the meeting: ICSI

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ICSI issues FAQs on SS-2, clarifies on applicability & conducting of general meetings

ICSI issues 'responses to queries on SS-2', clarifies on convening and conducting general meetings; States that SS-2 shall only apply to General Meetings in respect of which Notices are issued on / after July 1, 2015 and hence for the general meetings, notice issued in June 2015, the SS – 2 shall not apply; Clarifies on the applicability of SS-2 to private companies; States that notice of general meetings should also be issued to preference shareholder, being member of the company: ICSI

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Govt. revises draft Indian Financial Code, seeks public comments

Govt. states that draft Indian Financial Code ('IFC') has been revised in the light of the comments received;Modification in draft Indian Financial Code mainly relates to strengthening the regulatory accountability of financial agencies, rulemaking and operational aspects of capital controls, monetary policy framework, composition of Monetary Policy Committee, regulation of systematically important payment system etc.; States that modifications have taken into consideration enactments (Pension Fund Regulatory & Development Authority Act, 2013, Securities Laws (Amendment) Act, 2014) subsequent to the submission of FSLRC Report and such modifications in revised Draft IFC remain consistent with the overall structure and philosophy of Financial Sector Legislative Reforms Commission (FSLRC) Report; Stakeholders to provide comments/suggestions on the Revised Draft IFC by August 8, 2015 : PIB

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DIPP prescribes guidelines for using 'Make in India' Logo

States that all establishments, offices and officers of DIPP and all Central Govt. Ministries/Departments and Departments of State Govt. /Union Territories Administrations are allowed to use "Make in India" logo without any permission, in the programmes directly organized by them; Prescribes the events for use of 'Make in India' logo with prior approval of DIPP; Lays down format for applying for permission to use the "Make in India" logo: DIPP

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Govt. releases SIT's recommendations on Black Money, suggests effective monitoring by SEBI, SFIO & ED

Govt. releases recommendations of SIT on Black Money (as contained in Third SIT Report) on aspects relating to misuse of long term capital gains ('LTCG') exemption and P-Notes ('PNs') for money laundering, use of shell cos. and cash in black economy; Recommends SEBI to have an effective monitoring mechanism for studying unusual rise of stock prices, sharing of information with CBDT & FIU, launching of prosecution under SEBI Act etc.; Recommends obtaining information on PNs' 'beneficial ownership' for preventing misuse, wherein SEBI needs to come up with Regulations, for detecting "final beneficial owner" and to have beneficial owner's information as 'KYC information'; On shell cos. it suggests that SFIO needs to actively mine MCA-21 database for certain red flag indicators, share information on such high risk cos. with law enforcement agencies, proceed under IPC for fraud and refer matter to ED for taking action under PMLA; Recommends MCA to make rules for providing manner of holding & disclosing beneficial interest u/s 89 of Cos. Act, 2013: PIB

NEW DELHI, JULY 25, 2015: THE number of companies, registered with Registrar of Companies as on 30.06.2015, State/UT-wise, is given in Annex-I.

The State/UT-wise and category-wise (struck-off and liquidated) number of closed companies during the last three financial years and the current financial year (up to 30.06.2015), is given in Annex-II.

The Government of India has formulated No scheme for revival of closed companies.

ANNEX I

State/UT-wise number of registered companies as on 30.06.2015.

Sl. No.	STATE/UT	NUMBER
1	Andaman and Nicobar Islands	265
2	Andhra Pradesh	21,688
3	Arunachal Pradesh	492
4	Assam	9,328
5	Bihar	20,208
6	Chandigarh	12,804
7	Chhattisgarh	7,606
8	Dadra and Nagar Haveli	440
9	Daman and Diu	316
10	Delhi	2,75,895
11	Goa	7,391
12	Gujarat	82,113
13	Haryana	26,974
14	Himachal Pradesh	4,804
15	Jammu and Kashmir	4,075
16	Jharkhand	9,124
17	Karnataka	80,183
18	Kerala	38,405
19	Lakshadweep	13
20	Madhya Pradesh	30,124
21	Maharashtra	2,98,611
22	Manipur	411
23	Meghalaya	941
24	Mizoram	98
25	Nagaland	480
26	Odisha	18,686
27	Puducherry	2,774
28	Punjab	26,380
29	Rajasthan	46,336
30	Tamil Nadu	1,15,981
31	Telangana	78,289
32	Tripura	336
33	Uttar Pradesh	67,050
34	Uttarakhand	4,799
35	West Bengal	1,85,954
Total		14,79,374

ANNEX-II

State/UT-wise and category-wise number of companies closed during last three financial years and current financial year (up to 30.06.2015).

Sl. No.	STATE/UT	STRUCK-OFF	LIQUIDATED	TOTAL
1	Andaman and Nicobar Islands	2	-	2
2	Andhra Pradesh	852	-	852
3	Arunachal Pradesh	20	-	20
4	Assam	340	3	343
5	Bihar	202	1	203
6	Chandigarh	973	-	973
7	Chhattisgarh	76	-	76
8	Dadra and Nagar Haveli	7	-	7
9	Daman and Diu	2	-	2
10	Delhi	5,995	74	6,069
11	Goa	167	-	167
12	Gujarat	1,529	8	1,537
13	Haryana	562	2	564
14	Himachal Pradesh	238	-	238
15	Jammu and Kashmir	68	-	68
16	Jharkhand	123	3	126
17	Karnataka	1,903	27	1,930
18	Kerala	1,030	9	1,039
19	Lakshadweep	-	-	-
20	Madhya Pradesh	711	-	711
21	Maharashtra	4,684	49	4,733
22	Manipur	8	-	8
23	Meghalaya	39	-	39
24	Mizoram	17	-	17
25	Nagaland	25	-	25
26	Odisha	1,825	7	1,832
27	Puducherry	61	2	63
28	Punjab	1,858	-	1,858
29	Rajasthan	1,315	12	1,327
30	Tamil Nadu	3,491	77	3,568
31	Telangana	6,756	19	6,775
32	Tripura	25	-	25
33	Uttar Pradesh	1,067	16	1,083
34	Uttarakhand	106	2	108
35	West Bengal	6,997	11	7,008
Total		43,074	322	43,396

This information was given by Mr Arun Jaitley, Minister of Corporate Affairs in written reply to a question in the Lok Sabha today.

INCOME TAX REPORTS (ITR)

ONLINE EDITION

SUBJECT INDEX TO CASES REPORTED IN THIS PART

SUPREME COURT

Wealth tax --Exemption--Company--Asset used in business--Office--Hospital building--Not office--Not exempt--Finance Act, 1983, s. 40(3)(vi)-- Cosmopolitan Hospitals (P.) Ltd. v. CWT . . . 72

HIGH COURTS

Business expenditure --Deduction only on actual payment--Electricity duty--Assessee collecting duty from consumers as agent of State--Not a trading receipt--Not a sum payable by assessee as a primary liability by way of tax, duty, cess or fee--Section 43B has no application--Income-tax Act, 1961, s. 43B-- CESC Ltd. v. CIT (Cal) . . . 90

Reassessment --Notice--Export--Computer software--Hundred per cent. export oriented unit--Exemption allowed for subsequent years following first year mechanically--Intimation not amounting to assessment--No question of change of opinion--Whether assessee eligible for exemption or not--Mixed question of fact and law--Assessee to prove eligibility before Assessing Officer--Notices valid--Income-tax Act, 1961, ss. 10A, 148-- Naren Sadashiv Burade v. ITO (Guj) . . . 76

PRINT EDITION

ITR Volume 375 : Part 4 (Issue dated : 27-7-2015)

SUBJECT INDEX TO CASES REPORTED IN THIS PART

HIGH COURTS

Appeal to Appellate Tribunal --Rectification--Mistake apparent from record--Restoration of miscellaneous application for consideration by Tribunal limited to donorâ€™s statement and opportunity to meet the decision of Supreme Court--Tribunal limiting the scope of adjudication of rectification application to two issues--Justified--Income-tax Act, 1961, s. 254(2)-- Naresh K. Pahuja v. ITAT (Bom) . . . 526

Appeal to High Court --Substantial question of law--Condonation of delay--Appeal filed beyond time by Revenue in 2010--Matter coming up before court in 2015--Revenue taking no steps and not pursuing matter seriously--No proof showing Revenue prevented any cause from preferring application--Delay should not be condoned--Income-tax Act, 1961, s. 260A-- CIT v. Golden Corporation Services (Cal) . . . 581

Business --Transactions in shares--Whether business transactions or investments--Assessee showing shares declared as either long-term or short-term capital gains in investment portfolio--Shares valued at cost and on shareholding in stock-in-trade valued either at market rate or cost--Concurrent finding that transactions not business activity--View taken not perverse--Income-tax Act, 1961-- CIT v. H. K. Financiers P. Ltd. (Cal) . . . 577

Business expenditure --Assessee running hospital--Daughter of managing director working in hospital as doctor--Expenditure on higher studies of doctor--Doctor coming back to work in hospital--Expenditure had nexus with business of assessee--Deductible--Income tax

Act, 1961, s. 37-- Mallige Medical Centre P. Ltd. v. Joint CIT (Karn) . . . 522

----Disallowance--Failure to deduct tax at source on payments--Civil contracts--Material supplied by contractee cannot be taken into account--Assessee, a sub-contractor, not responsible for purchase of raw materials--Assessee not responsible to deduct tax at source--Tribunal ignoring factual as well as legal position--Matter remanded--Income-tax Act, 1961, s. 40(a)(ia)-- Ravi Dubey v. CIT (All) . . . 469

Capital gains --Capital asset--Cost of acquisition--Capital asset acquired by assessee by inheritance--Indexed cost of acquisition--To be with reference to year in which previous owner acquired asset and not year in which assessee acquired asset--Income-tax Act, 1961, ss. 2(42A), Expln. (1)(b) , 49, 55(2)(b)(ii)-- CIT v. Smt. Mina Deogun (Cal) . . . 586

----Computation of capital gains--Reference to Departmental Valuation Officer--Only where Assessing Officer of opinion that valuation made by registered valuer less than fair market value of property--Valuation made by registered valuer was on higher side--No occasion for Assessing Officer to make reference--Income-tax Act, 1961, s. 55A-- CIT v. Smt. Mina Deogun (Cal) . . . 586

Cash credit - Creditworthiness

and genuineness of transactions--Assessee receiving unsecured loans--Assessing Officer making addition on ground creditworthiness of creditors and genuineness of transactions not proved by persons who responded to summons--Assessee failing to furnish further explanation--Commissioner (Appeals) confirming addition--Tribunal not examining correctness of views expressed by Assessing Officer and Commissioner (Appeals)--No reasons disclosed by Tribunal why views expressed by them wrong--Tribunalâ€™s order deleting addition not sustainable--Income-tax Act, 1961, s. 68-- CIT v. Mihir Kanti Hazra (Cal) . . . 555

Deduction of tax at source --Commission--Discount allowed by assessee to distributors in respect of sale of starter packs and recharge coupons

for its prepaid service constitute commission--Assessee is a person â€œresponsible for payingâ€--Assessee liable to deduct tax at source on such commission--Income-tax Act, 1961, s. 194H-- Hutchison Telecom East Ltd. v. CIT (Cal) . . . 566

----Remuneration to employees--Remuneration for professional services--Meanings of â€œemploymentâ€ and â€œprofessionâ€--Assessee providing health services--Doctors working for assessee--Agreement that doctors would not work elsewhere--Not conclusive--Doctors were not employees of assessee--Section 192 not applicable--Income-tax Act, 1961, ss. 192, 194J-- CIT v. Manipal Health Systems P. Ltd. (Karn) . . . 509

----Rent--Meaning of rent in section 194-I--Assessee providing medical services--Agreement vesting assessee with powers of management of premises used as hospital--Annual sum and payment of interest on loan taken by lessor and liability to repay loan--Annual sum amounted to rent--Tax deductible at source on such amount--Liability to pay interest and repay loan did not amount to rent--Tax not deductible on such amount--Income-tax Act, 1961, s. 194-I-- CIT v. Manipal Health Systems P. Ltd. (Karn) . . . 509

Exemption --Export--Export oriented undertaking--Development Commissioner granting approval to assessee as hundred per cent. export oriented unit--Board of Approval ratifying this subsequently--Ratification relates back to date on which Development Commissioner granted

approval--Assessee entitled to exemption--Income-tax Act, 1961, s. 10B-- Principal CIT v. ECI Technologies Pvt. Ltd. (Guj) . . . 595

Income from house property --Income from other sources--Land owned by husband and building constructed thereon with joint funds belonging to himself and his wife--Common stock

of property between husband and wife--Doctrine of blending--Rent from property--Assessable as income from house property--Income-tax Act, 1961, ss. 22, 27-- CIT v. Smt. Mina Deogun (Cal) . . . 586

Precedent --Effect of decision of Supreme Court in CIT v. Sun Engineering Works P. Ltd. [1992] 198 ITR 297-- J. K. Cotton Spinning and Weaving v. CIT (All) . . . 533

Reassessment --Notice--Validity--Reason to believe income has escaped assessment--Reason must be based on direct or circumstantial evidence--Cash seized from assessee--Explanation for possession of cash accepted by income-tax authorities--Notice on ground that amount represented undisclosed income--Notice based on suspicion and surmise--Notice not valid--Income-tax Act, 1961, ss. 147, 148-- Krown Agro Foods Pvt. Ltd. v. Asst. CIT (Delhi) . . . 460

----Notice after four years--Conditions precedent--Share premium amount--No lack of disclosure or suppression of any material facts--No tangible reasons in notice--Notice not valid--Income-tax Act, 1961, ss. 147, 148-- Alliance Space Pvt. Ltd. v. ITO (Bom) . . . 473

----Notice after four years--Condition precedent--Special deduction--Small scale industrial undertaking--Assessee filing with return balance-sheet in which total value of plant and machinery certified--No omission or suppression on part of assessee of true and correct facts--Reassessment proceedings to disallow deduction on ground investment exceeding limit for small scale industrial undertaking--Not permissible--Income-tax Act, 1961, ss. 80-IB, 147, 148-- Principal CIT v. Lincoln Pharmaceuticals Ltd. (Guj) . . . 561

----Scope of--Reassessment confined to incomes which had escaped assessment--Other issues cannot be considered--Income-tax Act, 1961, s. 147-- J. K. Cotton Spinning and Weaving v. CIT (All) . . . 533

Search and seizure --Block assessment--Limitation--Is dependent on the conclusion of search and not on the conclusion of investigation--Conclusion of search on 31-1-2000--Assessing Officer wanting to examine assessee but assessee not co-operating--Assessee not pointing out period of limitation for completing assessment--Prolongation of search not causing any prejudice to assessee--Assessee in his letter dated 28-1-2002 evincing his intention not to appear--Assessment completed on 31-1-2002--Assessment not barred by limitation--Income-tax Act, 1961, ss. 158BC, 158BE(1)(b)-- Navin Kumar Agarwal v. CIT (Cal) . . . 541

----Block assessment--Penalty--Estimate of income based on admission

during search proceedings--Penalty could be levied--Income-tax Act, 1961, s. 158BFA-- JRD Stock Brokers P. Ltd. v. CIT (Delhi) . . . 600

Settlement of cases --Writ--Application for settlement of case--Settlement Commission finding conditions for application fulfilled and that disclosure of income appeared prima facie full and true--Order admitting application was justified--Writ would not issue to quash order--Income-tax Act, 1961, s. 245C--Constitution of India, art

. 226-- CIT v. ITSC (Bom) . . . 483

Wealth-tax --Charge of tax--Company--Effect of section 40 of the Finance

Act, 1983--Land obtained on lease for ninety-nine years--Building constructed on land and sub-leased to bank--Value of land and building assessable--Finance Act, 1983, s. 40-- South India Structural Corporation Ltd. v. Deputy CWT (Mad) . . . 445

SECTIONWISE INDEX TO CASES REPORTED IN THIS PART

Constitution of India :

Art. 226 --Settlement of cases--Writ--Application for settlement of case--Settlement Commission finding conditions for application fulfilled and that disclosure of income appeared prima facie full and true--Order admitting application was justified--Writ would not issue to quash order-- CIT v. ITSC (Bom) . . . 483

Finance Act, 1983 :

S. 40 --Wealth tax

--Charge of tax--Company--Effect of section 40 of the Finance Act, 1983--Land obtained on lease for ninety-nine years--Building constructed on land and sub-leased to bank--Value of land and building assessable-- South India Structural Corporation Ltd. v. Deputy CWT (Mad) . . . 445

Income-tax Act, 1961 :

S. 2(42A), Expln. (1)(b) --Capital gains--Capital asset--Cost of acquisition--Capital asset acquired by assessee by inheritance--Indexed cost of acquisition--To be with reference to year in which previous owner acquired asset and not year in which assessee acquired asset-- CIT v. Smt. Mina Deogun (Cal) . . . 586

S. 10B --Exemption--Export--Export oriented undertaking--Development Commissioner granting approval to assessee as hundred per cent. export oriented unit--Board of Approval ratifying this subsequently--Ratification relates back to date on which Development Commissioner granted

approval--Assessee entitled to exemption-- Principal CIT v. ECI Technologies Pvt. Ltd. (Guj) . . . 595

S. 22 --Income from house property--Income from other sources--Land owned by husband and building constructed thereon with joint

funds belonging to himself and his wife--Common stock

of property between husband and wife--Doctrine of blending--Rent from property--Assessable as income from house property-- CIT v. Smt. Mina Deogun (Cal) . . . 586

S. 27 --Income from house property--Income from other sources--Land owned by husband and building constructed thereon with joint funds belonging to himself and his wife--Common stock of property between husband and wife--Doctrine of blending--Rent from property--Assessable as income from house property-- CIT v. Smt. Mina Deogun (Cal) . . . 586

S. 37 --Business expenditure--Assessee running hospital--Daughter of managing director working in hospital as doctor--Expenditure on higher studies of doctor--Doctor coming back to work in hospital--Expenditure had nexus with business of assessee--Deductible-- Mallige Medical Centre P. Ltd. v. Joint CIT (Karn) . . . 522

S. 40(a)(ia) --Business expenditure--Disallowance--Failure to deduct tax at source on payments--Civil contracts--Material supplied by contractee cannot be taken into account--Assessee, a sub-contractor, not responsible for purchase of raw materials--Assessee not responsible to deduct tax at source--Tribunal ignoring factual as well as legal position--Matter remanded-- Ravi Dubey v. CIT (All) . . . 469

S. 49 --Capital gains--Capital asset--Cost of acquisition--Capital asset acquired by assessee by inheritance--Indexed cost of acquisition--To be with reference to year in which previous owner acquired asset and not year in which assessee acquired asset-- CIT v. Smt. Mina Deogun (Cal) . . . 586

S. 55(2)(b)(ii) --Capital gains--Capital asset--Cost of acquisition--Capital asset acquired by assessee by inheritance--Indexed cost of acquisition--To be with reference to year in which previous owner acquired asset and not year in which assessee acquired asset-- CIT v. Smt. Mina Deogun (Cal) . . . 586

S. 55A --Capital gains--Computation of capital gains--Reference to Departmental Valuation Officer--Only where Assessing Officer of opinion that valuation made by registered valuer less than fair market value of property--Valuation made by registered valuer was on higher side--No occasion for Assessing Officer to make reference-- CIT v. Smt. Mina Deogun (Cal) . . . 586

S. 68 --Cash credit- Creditworthiness

S. 80-IB --Reassessment--Notice after four years--Condition precedent--Special deduction--Small scale industrial undertaking--Assessee filing with return balance-sheet in which total value of plant and machinery certified--No omission or suppression on part of assessee of true and correct facts--Reassessment proceedings to disallow deduction on ground investment exceeding limit for small scale industrial undertaking--Not permissible-- Principal CIT v. Lincoln Pharmaceuticals Ltd. (Guj) . . . 561

S. 147 --Reassessment--Notice--Validity--Reason to believe income has escaped assessment--Reason must be based on direct or circumstantial evidence--Cash seized from assessee--Explanation for possession of cash accepted by income-tax authorities--Notice on ground that amount represented undisclosed income--Notice based on suspicion and surmise--Notice not valid-- Krown Agro Foods Pvt. Ltd. v. Asst. CIT (Delhi) . . . 460

----Reassessment--Notice after four years--Condition precedent--Special deduction--Small scale industrial undertaking--Assessee filing with return balance-sheet in which total value of plant and machinery certified--No omission or suppression on part of assessee of true and correct facts--Reassessment proceedings to disallow deduction on ground investment exceeding limit for small scale industrial undertaking--Not permissible-- Principal CIT v. Lincoln Pharmaceuticals Ltd. (Guj) . . . 561

----Reassessment--Notice after four years--Conditions precedent--Share premium amount--No lack of disclosure or suppression of any material facts--No tangible reasons in notice--Notice not valid-- Alliance Space Pvt. Ltd. v. ITO (Bom) . . . 473

----Reassessment--Scope of--Reassessment confined to incomes which had escaped assessment--Other issues cannot be considered-- J. K. Cotton Spinning and Weaving v. CIT (All) . . . 533

S. 148 --Reassessment--Notice--Validity--Reason to believe income has escaped assessment--Reason must be based on direct or circumstantial evidence--Cash seized from assessee--Explanation for possession of cash accepted by income-tax authorities--Notice on ground that amount represented undisclosed income--Notice based on suspicion and surmise--Notice not valid-- Krown Agro Foods Pvt. Ltd. v. Asst. CIT (Delhi) . . . 460

S. 158BC --Search and seizure--Block assessment--Limitation--Is dependent on the conclusion of search and not on the conclusion of investigation--Conclusion of search on 31-1-2000--Assessing Officer wanting to examine assessee but assessee not co-operating--Assessee not pointing out period of limitation for completing assessment--Prolongation of search not causing any prejudice to assessee--Assessee in his letter dated 28-1-2002 evincing his intention not to appear--Assessment completed on 31-1-2002--Assessment not barred by limitation-- Navin Kumar Agarwal v. CIT (Cal) . . . 541

S. 158BE(1)(b) --Search and seizure--Block assessment--Limitation--Is dependent on the conclusion of search and not on the conclusion of investigation--Conclusion of search on 31-1-2000--Assessing Officer wanting to examine assessee but assessee not co-operating--Assessee not pointing out period of limitation for completing assessment--Prolongation of search not causing any prejudice to assessee--Assessee in his letter dated 28-1-2002 evincing his intention not to appear--Assessment completed on 31-1-2002--Assessment not barred by limitation-- Navin Kumar Agarwal v. CIT (Cal) . . . 541

S. 158BFA --Search and seizure--Block assessment--Penalty--Estimate of income based on admission

during search proceedings--Penalty could be levied-- JRD Stock Brokers P. Ltd. v. CIT (Delhi) . . . 600

S. 192 --Deduction of tax

at source--Remuneration to employees--Remuneration for professional services--Meanings of â€œemploymentâ€ and â€œprofessionâ€--Assessee providing health services--Doctors working for assessee--Agreement that doctors would not work elsewhere--Not conclusive--Doctors were not employees of assessee--Section 192 not applicable-- CIT v. Manipal Health Systems P. Ltd. (Karn) . . . 509

S. 194H --Deduction of tax at source--Commission--Discount allowed by assessee to distributors in respect of sale of starter packs and recharge coupons

for its prepaid service constitute commission--Assessee is a person â€œresponsible for payingâ€--Assessee liable to deduct tax at source on such commission-- Hutchison Telecom East Ltd. v. CIT (Cal) . . . 566

S. 194-I --Deduction of tax at source--Rent--Meaning of rent in section 194-I--Assessee providing medical

services--Agreement vesting assessee with powers of management of premises used as hospital--Annual sum and payment of interest on loan taken by lessor and liability to repay loan--Annual sum amounted to rent--Tax deductible at source on such amount--Liability to pay interest and repay loan did not amount to rent--Tax not deductible on such amount-- CIT v. Manipal Health Systems P. Ltd. (Karn) . . . 509

S. 194J --Deduction of tax at source--Remuneration to employees--Remuneration for professional services--Meanings of â€œemploymentâ€ and â€œprofessionâ€--Assessee providing health services--Doctors working for assessee--Agreement that doctors would not work elsewhere--Not conclusive--Doctors were not employees of assessee--Section 192 not applicable-- CIT v. Manipal Health Systems P. Ltd. (Karn) . . . 509

S. 245C --Settlement of cases--Writ--Application for settlement of case--Settlement Commission finding conditions for application fulfilled and that disclosure of income appeared prima facie full and true--Order admitting application was justified--Writ would not issue to quash order-- CIT v. ITSC (Bom) . . . 483

S. 254(2) --Appeal to Appellate Tribunal--Rectification--Mistake apparent from record--Restoration of miscellaneous application for consideration by Tribunal limited to donorâ€™s statement and opportunity to meet the decision of Supreme Court--Tribunal limiting the scope of adjudication of rectification application to two issues--Justified-- Naresh K. Pahuja v. ITAT (Bom) . . . 526

S. 260A --Appeal to High Court--Substantial question of law--Condonation of delay--Appeal filed beyond time by Revenue in 2010--Matter coming up before court in 2015--Revenue taking no steps and not pursuing matter seriously--No proof showing Revenue prevented any cause from preferring application--Delay should not be condoned-- CIT v. Golden Corporation Services (Cal) . . . 581

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