President promulgates ordinances for commercial courts' constitution & amending Arbitration and Conciliation Act
President of India has promulgated two ordinances: (i) Constitution of commercial courts, Commercial Division and Commercial Appellate Division in the High Courts for adjudicating commercial disputes of specified value and for matters connected there with / incidental thereto, and (ii) Amendment to Arbitration and Conciliation Act 1996; The Union Cabinet had approved the promulgation of these ordinances on Wednesday, October 21, 2015 and recommended the same to the President: PIB Press Release
COMPANY CASES (CC) HIGHLIGHTS
F Employee or erstwhile employee of company and creditor of company can file winding up petition in respect of unpaid emoluments : Jonathan Allen v. Zoom Developers P. Ltd. (MP) [FB] p. 501
F CLB has no power to refer dispute to arbitral tribunal by invoking sections 397, 398 and 402 of 1956 Act : Rakesh Malhotra v. Rajinder Kumar Malhotra (Bom) p. 516
F CLB bound by decision of foreign court holding dispute not covered by arbitration agreement not being contrary to Supreme Court's decision : Rakesh Malhotra v. Rajinder Kumar Malhotra (Bom) p. 516
F Common order for dismissal of petition filed for disputes not falling within Chapter VI and allowing application for reference to arbitration sufficient : Rakesh Malhotra v. Rajinder Kumar Malhotra (Bom) p. 516
F CLB has power to appoint observer and facilitator but cannot delegate function of resolving disputes : Rakesh Malhotra v. Rajinder Kumar Malhotra (Bom) p. 516
F Petitioners to raise their objections before arbitrator appointed by High Court before whom petition filed on strength of shareholding pending : Chiranjiv Singh v. Omega Exports P. Ltd. p. 597
F Regulations :
Foreign Exchange Management (Transfer or Issue of Security by a Person Resident Outside India) (Seventh Amendment) Regulations, 2015 p. 112
Securities and Exchange Board of India (Procedure for Search and Seizure) Repeal Regulations, 2015 p. 107
Securities and Exchange Board of India (Share Based Employee Benefits) (Amendment) Regulations, 2015 p. 108
F Rules :
Companies (Acceptance of Deposits) Second Amendment Rules, 2015 p. 110
Companies (Management and Administration) Second Amendment Rules, 2015 p. 111
Prevention of Money-laundering (Maintenance of Records) Third Amendment Rules, 2015 p. 109
F Notifications :
Foreign Exchange Management Act, 1999 : Notification under section 37A(1) : Officers of the Directorate of Enforcement, not below the rank of Assistant Director, to act as the Authorised Officer p. 111
Notification under section 37A(1) proviso : Mandatory threshold of the aggregate value of rupees one crore prescribed p. 111
Securities Contracts (Regulation) Act, 1956 : Notification under section 4 : Renewal of recognition to stock exchanges p. 107
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Central Board of Excise and Customs revises limit for arrest and prosecution substantially upwards ; In cases of outright smuggling or mis-declaration of baggage, the limits regarding value of offending goods have been revised from Rs. 5 lakh to Rs. 20 lakh among others
Persons involved in serious offences of tax evasion are liable for arrest and prosecution under the Central Excise Act, 1994, Finance Act, 1994 dealing with Service Tax and Customs Act, 1962. Central Board of Excise and Customs (CBEC) has issued instructions from time to time prescribing the procedures, safeguards and threshold limits above which these powers are to be exercised with discretion and responsibility. CBEC has now issued fresh instructions today rescinding the past circulars and consolidating them at one place with following objectives. The monetary limits for arrest and prosecution have been revised substantially upwards to ensure that these powers are not used against small and medium businesses.
Thus the limits in case of offence of evasion of tax or wrongful utilization of input tax credit in case of Central Excise and Service tax have been revised to Rs.1 crore from Rs. 25 lakh and Rs. 10 lakh respectively.
In case of evasion of tax under the Customs Act, the limits have been revised to Rs. 1 crore from Rs. 10 lakh in case of evasion of tax by wrongful availment of exemption or duty drawback. Similar, revisions regarding value of goods have been carried-out regarding appraisement of tax during import or export.
In cases of outright smuggling or mis-declaration of baggage, the limits regarding value of offending goods have been revised from Rs. 5 lakh to Rs. 20 lakh. As in the past, there shall be no lower limit for arrest and prosecution in the cases of smuggling of fake Indian currency notes, arms, ammunitions and explosives and endangered species.
The procedure to be followed for arrest and sanction of prosecution has been revised and specified with adequate safeguards in these instructions to ensure that only in cases of serious nature above the revised thresholds, where there is strong prima-facie evidence, these powers are exercised.
DSM
(Release ID :129933)
INCOME TAX REPORTS (ITR)--PRINT AND ONLINE EDITION
Exemption --Sum received under early retirement option scheme of bank--Assessee entitled to exemption under section 10(10C)--Income-tax Act, 1961, s. 10(10C)-- S. Palaniappan v. ITO . . . 275
Income-tax --General principles--Rule of consistency--Head of income--Income from other sources or business income--Interest from fixed deposits before business actually commenced treated as business income for preceding three years--No change in circumstances--Income for year in question to be treated similarly--Income-tax Act, 1961, ss. 28, 56-- CIT v. Dalmia Promoters and Devels. (P) Ltd. . . . 277
Deduction of tax at source --Failure to pay tax deducted at source to Government--Interest--Assessment of payee companies completed holding them not liable to pay tax--No interest leviable against assessee for period after that--Income-tax Act, 1961, s. 201(1A)-- CIT v. Labh Construction and Ind. Ltd. (Guj) . . . 261
----Legislative powers--Constitutional validity of provision--Section 234E levying fee for delay in filing statements of tax deducted at source--Default in filing statement would cause problems for Revenue--No hardships for assessee--Power of CBDT to issue general or specific orders--Principles of natural justice not applicable--Section 234E valid--Income-tax Act, 1961, s. 234E--Constitution of India, art. 226-- Lakshminirman Bangalore P. Ltd. v. Deputy CIT (Karn) . . . 279
Interpretation of taxing statutes --Interpretation upholding constitutional validity of provisions-- Lakshminirman Bangalore P. Ltd. v. Deputy CIT (Karn) . . . 279
Penalty --Concealment of income--Furnishing of inaccurate particulars of income--Hospital--Difference between profit and loss account and account books impounded at time of survey--Differential amount not accounted--Explanation that on account of impounding of books, accounts could not be audited and no intentional omission--Explanation rejected on ground assessee's duty to get its accounts audited and time for audit expired long before survey--Finding upheld by Tribunal attained finality--Levy of penalty justified--Income-tax Act, 1961, s. 271(1)(c)-- Manural Huda Trust v. CIT (Ker) . . . 270
Charitable purpose --Accumulation of income--Exercise of option--No specific mode--Exercise of option at time of filing return--Sufficient compliance--Income-tax Act, 1961, s. 11-- CIT v. G. R. Govindarajulu and Sons . . .1
----Accumulation of income--Only to extent of 25 per cent. of income not actually applied for charitable purpose--No further deduction for accumulation of income--Income-tax Act, 1961, s. 11-- CIT v. G. R. Govindarajulu and Sons . . .1
Wealth-tax --Valuation of asset--"Price that asset would fetch in market"--Factors to be considered--Land coming under purview of Land Ceiling Act--Proceedings for acquisition initiated and maximum compensation therefor declared at Rs. 2 lakhs though notification not issued--Value for wealth-tax purposes--Cannot be arrived at ignoring pending proceedings under Land Ceiling Act--Reasonable buyer knowing acquisition proceedings in progress would not offer more than Rs. 2 lakhs--Value for wealth-tax purposes cannot be at higher figure--Wealth-tax Act, 1957, s. 7--Urban Land (Ceiling and Regulation) Act, 1976-- S. N. Wadiyar (decd. through L. R.) v. CWT . . . 9
Accounting --Rejection of accounts--Consistent method of accounting followed--Stock register maintained--Reasonable explanation for expenses--Accounts could not be rejected--Income-tax Act, 1961-- CIT v. Navbharat Export (Delhi) . . . 89
Appeal to Appellate Tribunal --Compliance with principles of natural justice--Duty to pass reasoned order--Tribunal copying order of Commissioner (Appeals) verbatim at different places--No independent application of mind--Matter remitted to Tribunal for decision afresh--Income-tax Act, 1961-- Kewal Chaudhary v. CIT (P&H) . . . 52
Appeal to High Court --Substantial question of law--Interest on borrowed capital--Assessee having at its disposal its own and borrowed funds--Loans advanced interest free to sister concerns--To be taken to have come from own funds--Tribunal taking plausible view on facts--No question of law arises--Income-tax Act, 1961, ss. 36(1)(iii), 260A-- CIT v. Modi Rubber Ltd. (Delhi) . . . 128
Business expenditure --Capital or revenue expenditure--Assessee running business owning land in different places--Land in excess of ceiling prescribed--Application for exemption of excess land from acquisition--State Government granting exemption subject to payment of specified amount and construction of certain buildings--Amount paid was for obtaining enduring benefit--Not deductible--Income-tax Act, 1961, s. 37-- Sandvik Asia Ltd. v. Deputy CIT (Bom) . . . 114
----Deduction only on actual payment--Payment to superannuation fund--Scheme of company not providing for payment by employee--No question of disallowing delayed payment--Income-tax Act, 1961, s. 43B-- CIT v. Modi Rubber Ltd. (Delhi) . . . 128
----Interest on borrowed capital--Interest on borrowings used to subscribe to rights issue of closely related company--Whether investments made from borrowings on account of strategic compulsions or linked to earning of dividends--Matter remanded to Assessing Officer for full appraisal of fact situations--Income-tax Act, 1961, ss. 36(1)(iii), 80M-- Eicher Goodearth Ltd. v. CIT (Delhi) . . . 28
Capital gains --Long-term capital gains--Capital asset--Definition--Agricultural land--Exception--Land situated within specified distance from municipality--Measurement of distance from municipality--Distance to be measured from agricultural land to outer limit of municipality by road--Not by straight line or aerial route--Income-tax Act, 1961, s. 2(14)(iii)(b)-- CIT v. Vijay Singh Kadan (Delhi) . . . 71
Capital or revenue expenditure --Current repairs--Import of Banbury mixer--Capital expenditure--Expenditure on reduction gear box for 3 coil calendar--Imported item part of 3 roll calendar--Revenue expenditure--Income-tax Act, 1961-- CIT v. Modi Rubber Ltd. (Delhi) . . . 128
Capital or revenue receipt --Business income--Remission or cessation of trading liability--Waiver of sums by creditors including part of principal--Principal waived not debited into profit and loss account in earlier years or claimed as deduction--Not taxable--Income-tax Act, 1961, s. 41(1)-- CIT v. Pasupati Spinning Weaving Mills Ltd. (Delhi) . . . 80
Central Board of Direct Taxes --Power to relax provisions of section 139--Extension of due date for filing income-tax returns--Policy decision--High Court not to interfere such decision--No prejudice would be caused by extending time for filing income-tax returns--Not a ground to interfere to such decision--Income-tax Act, 1961, ss. 119, 139-- Avinash Gupta v. Union of India (Delhi) . . . 137
Charitable purposes --Exemption under section 11--Assessee granted exemption under section 10(20) as local authority up to assessment year 2002-03--Assessee filing application for registration as a charitable trust on 26-3-2007 with effect from 1-4-2003--Application rejected by Assessing Officer but accepted finally by Tribunal--Claim for exemption under section 11 for assessment year 2005-06--Rejection of application on account of delay in filing necessary forms--Not valid--Income-tax Act, 1961, ss. 11, 12A-- CIT v. Mumbai Metropolitan Regional Iron and Steel Market Committee (Bom) . . . 103
Depreciation --Actual cost--Written down value--Imported hospital equipment--Withdrawal of customs duty exemption--Increase in cost of equipment to extent of customs duty paid--Enhanced cost to be taken into consideration from year in which order for payment of customs duty passed--Assessee entitled to depreciation on enhanced cost from that year and written down value to be computed accordingly--Whether assessee entitled to depreciation on enhanced cost from year of import left open--Income-tax Act, 1961-- CIT v. Noida Medicare Centre Ltd. (Delhi) . . . 65
----Building--Cost of construction--Amount paid to State Government to prevent acquisition of land--Not part of cost of construction--Assessee not entitled to depreciation on such amount--Income-tax Act, 1961, s. 32-- Sandvik Asia Ltd. v. Deputy CIT (Bom) . . . 114
Income --Computation of income--Exempted income--Disallowance of expenditure incurred in earning exempted income--Meaning of expression "does not form part of the total income" in section 14A--No income exempt from tax received or receivable in relevant previous year--No disallowance could be made under section 14A--Income-tax Act, 1961, s. 14A-- Cheminvest Ltd. v. CIT (Delhi) . . . 33
----Disallowance of expenditure in relation to exempt income--Higher disallowance agreed to before Assessing Officer during course of assessment--Assessee could not be bound by such offer--Restriction of disallowance justified--Income-tax Act, 1961, s. 14A-- CIT v. Everest Kento Cylinders Ltd. (Bom) . . . 57
International transactions --Transfer pricing--Arm's length price--Determination--Assessee issuing corporate guarantee in respect of borrowings by its associated enterprise--Distinction between corporate guarantee and bank guarantee--No transfer pricing adjustment could be made in respect of guarantee commission on basis of bank rate--Income-tax Act, 1961, s. 92B-- CIT v. Everest Kento Cylinders Ltd. (Bom) . . . 57
Offences and prosecution --Failure to produce accounts or documents--Finding that accounts had been submitted when criminal complaint was issued--Sanction for prosecution not valid--Income-tax Act, 1961, s. 276D--Criminal Procedure Code, 1973, s. 482-- Shravan Gupta v. Asst. CIT (Delhi) . . . 95
Reassessment --Notice--Creditor in a settlement agreeing to convert a portion of interest into shares--Original assessment accepting conversion as actual payment of interest within meaning of section 43B--Reassessment on ground that conversion of portion of outstanding interest into shares will not amount to actual payment of interest--Change of opinion--Reassessment impermissible--Income-tax Act, 1961, ss. 43B, 147, 148-- CIT v. Rathi Graphics Technologies Ltd. (Delhi) . . . 107
Return --E-filing of income-tax returns for assessment year 2015-16--Due date for filing returns--Forms not available on first day of assessment year--No satisfactory explanation or justification for not prescribing relevant forms--Plea that only minor changes in forms--Not justified--Period required for e-filing of returns not reasonable--Extension of date up to 31-10-2015--Income-tax Act, 1961, ss. 119, 139, 139C, 139D-- Vishal Garg v. Union of India (P & H) . . . 145
----Prescription of due date for e-filing returns--Duty of Central Board of Direct Taxes to provide necessary utility and forms at beginning of assessment year--Delay in providing utility and forms--Curtailment of substantial period--Difficulty in collecting necessary datas in notified forms--Direction to extend from 30-9-2015 to 31-10-2015--Income-tax Act, 1961, ss. 119, 139-- All Gujarat Federation of Tax Consultants v. CBDT (Guj) . . . 160
----Prescription of due date for filing e-filing returns--Period of 183 days available to collect necessary information if forms notified on first of April of assessment year--Delay in notifying forms restricting time to 55 to 61 days--Difficulty facing by chartered accountants and tax practitioners to comply with all requirements in notified forms--Extension of due date to two States--Discrimination to assessees in other States--Effect of non-filing of returns--Central Board of Direct Taxes directed to extend due date as extended in two States--Income-tax Act, 1961, ss. 119, 139-- Chamber of Tax Consultants v. Union of India (Bom) . . . 188
----Time for filing--No provision mandating time of one hundred eighty days--Completion of audit not dependent on prescription of forms for filing returns--No cause of action or infringement of fundamental rights--Forms prescribed on 29-7-2015/7-8-2015--Time to 30-9-2015 sufficient for filing income-tax returns and audit report--Central Board of Direct Taxes directed to make available forms for audit report and filing returns on April 1 of assessment year--Income-tax Act, 1961, s. 139-- Avinash Gupta v. Union of India (Delhi) . . . 137
Revision --Commissioner--Condition precedent--Most appropriate method of accounting to correctly reflect the true financial statement is debatable issue--Assessee consistently following project completion method--That method cannot be rejected because another method is preferable--Revision not valid--Income-tax Act, 1961, s. 263-- CIT v. Aditya Builders (Bom) . . . 75
Search and seizure --Assessment of third person--Condition precedent--Satisfaction of Assessing Officer that seized articles belonged to third person--No connection between seized documents and third person--Assessment of third person not valid--Income-tax Act, 1961, s. 153C-- CIT v. Sinhgad Technical Education Society (Bom) . . . 84
----Block assessment--Undisclosed income--Document found during search disclosing loan agreement--Agreement providing for interest on loan--No evidence that interest was not received--No regular books of account maintained--No scope for assessee to claim that it was following cash system of accounting--Interest assessable as undisclosed income--Income-tax Act, 1961, ss. 132, 153BC-- Paras Shantilal Shah v. Deputy CIT (Bom) . . . 41
----Block assessment--Undisclosed income--Jewellery found during search--Statement on oath accepting ownership of jewellery--Subsequent explanation regarding jewellery--Statement not retracted--Value of jewellery assessable as undisclosed income--Income-tax Act, 1961, ss. 132, 153BC-- Paras Shantilal Shah v. Deputy CIT (Bom) . . . 41
S. 482 --Offences and prosecution--Failure to produce accounts or documents--Finding that accounts had been submitted when criminal complaint was issued--Sanction for prosecution not valid-- Shravan Gupta v. Asst. CIT (Delhi) . . . 95
S. 2(14)(iii)(b) --Capital gains--Long-term capital gains--Capital asset--Definition--Agricultural land--Exception--Land situated within specified distance from municipality--Measurement of distance from municipality--Distance to be measured from agricultural land to outer limit of municipality by road--Not by straight line or aerial route-- CIT v. Vijay Singh Kadan (Delhi) . . . 71
S. 11 --Charitable purpose--Accumulation of income--Exercise of option--No specific mode--Exercise of option at time of filing return--Sufficient compliance-- CIT v. G. R. Govindarajulu and Sons (SC). . .1
----Charitable purpose--Accumulation of income--Only to extent of 25 per cent. of income not actually applied for charitable purpose--No further deduction for accumulation of income-- CIT v. G. R. Govindarajulu and Sons (SC) . . . 1
----Charitable purposes--Exemption under section 11--Assessee granted exemption under section 10(20) as local authority up to assessment year 2002-03--Assessee filing application for registration as a charitable trust on 26-3-2007 with effect from 1-4-2003--Application rejected by Assessing Officer but accepted finally by Tribunal--Claim for exemption under section 11 for assessment year 2005-06--Rejection of application on account of delay in filing necessary forms--Not valid-- CIT v. Mumbai Metropolitan Regional Iron and Steel Market Committee (Bom) . . . 103
S. 12A --Charitable purposes--Exemption under section 11--Assessee granted exemption under section 10(20) as local authority up to assessment year 2002-03--Assessee filing application for registration as a charitable trust on 26-3-2007 with effect from 1-4-2003--Application rejected by Assessing Officer but accepted finally by Tribunal--Claim for exemption under section 11 for assessment year 2005-06--Rejection of application on account of delay in filing necessary forms--Not valid-- CIT v. Mumbai Metropolitan Regional Iron and Steel Market Committee (Bom) . . . 103
S. 14A --Income--Computation of income--Exempted income--Disallowance of expenditure incurred in earning exempted income--Meaning of expression "does not form part of the total income" in section 14A--No income exempt from tax received or receivable in relevant previous year--No disallowance could be made under section 14A-- Cheminvest Ltd. v. CIT (Delhi) . . . 33
----Income--Disallowance of expenditure in relation to exempt income--Higher disallowance agreed to before Assessing Officer during course of assessment--Assessee could not be bound by such offer--Restriction of disallowance justified-- CIT v. Everest Kento Cylinders Ltd. (Bom) . . . 57
S. 32 --Depreciation--Building--Cost of construction--Amount paid to State Government to prevent acquisition of land--Not part of cost of construction--Assessee not entitled to depreciation on such amount-- Sandvik Asia Ltd. v. Deputy CIT (Bom) . . . 114
S. 36(1)(iii) --Appeal to High Court--Substantial question of law--Interest on borrowed capital--Assessee having at its disposal its own and borrowed funds--Loans advanced interest free to sister concerns--To be taken to have come from own funds--Tribunal taking plausible view on facts--No question of law arises-- CIT v. Modi Rubber Ltd. (Delhi) . . . 128
----Business expenditure--Interest on borrowed capital--Interest on borrowings used to subscribe to rights issue of closely related company--Whether investments made from borrowings on account of strategic compulsions or linked to earning of dividends--Matter remanded to Assessing Officer for full appraisal of fact situations-- Eicher Goodearth Ltd. v. CIT (Delhi) . . . 28
S. 37 --Business expenditure--Capital or revenue expenditure--Assessee running business owning land in different places--Land in excess of ceiling prescribed--Application for exemption of excess land from acquisition--State Government granting exemption subject to payment of specified amount and construction of certain buildings--Amount paid was for obtaining enduring benefit--Not deductible-- Sandvik Asia Ltd. v. Deputy CIT (Bom) . . . 114
S. 41(1) --Capital or revenue receipt--Business income--Remission or cessation of trading liability--Waiver of sums by creditors including part of principal--Principal waived not debited into profit and loss account in earlier years or claimed as deduction--Not taxable-- CIT v. Pasupati Spinning Weaving Mills Ltd. (Delhi) . . . 80
S. 43B --Business expenditure--Deduction only on actual payment--Payment to superannuation fund--Scheme of company not providing for payment by employee--No question of disallowing delayed payment-- CIT v. Modi Rubber Ltd. (Delhi) . . . 128
----Reassessment--Notice--Creditor in a settlement agreeing to convert a portion of interest into shares--Original assessment accepting conversion as actual payment of interest within meaning of section 43B--Reassessment on ground that conversion of portion of outstanding interest into shares will not amount to actual payment of interest--Change of opinion--Reassessment impermissible-- CIT v. Rathi Graphics Technologies Ltd. (Delhi) . . . 107
S. 80M --Business expenditure--Interest on borrowed capital--Interest on borrowings used to subscribe to rights issue of closely related company--Whether investments made from borrowings on account of strategic compulsions or linked to earning of dividends--Matter remanded to Assessing Officer for full appraisal of fact situations-- Eicher Goodearth Ltd. v. CIT (Delhi) . . . 28
S. 92B --International transactions--Transfer pricing--Arm's length price--Determination--Assessee issuing corporate guarantee in respect of borrowings by its associated enterprise--Distinction between corporate guarantee and bank guarantee--No transfer pricing adjustment could be made in respect of guarantee commission on basis of bank rate-- CIT v. Everest Kento Cylinders Ltd. (Bom) . . . 57
S. 119 --Central Board of Direct Taxes--Power to relax provisions of section 139--Extension of due date for filing income-tax returns--Policy decision--High Court not to interfere such decision--No prejudice would be caused by extending time for filing income-tax returns--Not a ground to interfere to such decision-- Avinash Gupta v. Union of India (Delhi) . . . 137
----Return--E-filing of income-tax returns for assessment year 2015-16--Due date for filing returns--Forms not available on first day of assessment year--No satisfactory explanation or justification for not prescribing relevant forms--Plea that only minor changes in forms--Not justified--Period required for e-filing of returns not reasonable--Extension of date up to 31-10-2015-- Vishal Garg v. Union of India (P & H) . . . 145
----Return--Prescription of due date for e-filing returns--Duty of Central Board of Direct Taxes to provide necessary utility and forms at beginning of assessment year--Delay in providing utility and forms--Curtailment of substantial period--Difficulty in collecting necessary datas in notified forms--Direction to extend from 30-9-2015 to 31-10-2015-- All Gujarat Federation of Tax Consultants v. CBDT (Guj) . . . 160
----Return--Prescription of due date for filing e-filing returns--Period of 183 days available to collect necessary information if forms notified on first of April of assessment year--Delay in notifying forms restricting time to 55 to 61 days--Difficulty facing by chartered accountants and tax practitioners to comply with all requirements in notified forms--Extension of due date to two States--Discrimination to assessees in other States--Effect of non-filing of returns--Central Board of Direct Taxes directed to extend due date as extended in two States-- Chamber of Tax Consultants v. Union of India (Bom) . . . 188
S. 132 --Search and seizure--Block assessment--Undisclosed income--Document found during search disclosing loan agreement--Agreement providing for interest on loan--No evidence that interest was not received--No regular books of account maintained--No scope for assessee to claim that it was following cash system of accounting--Interest assessable as undisclosed income-- Paras Shantilal Shah v. Deputy CIT (Bom) . . . 41
----Search and seizure--Block assessment--Undisclosed income--Jewellery found during search--Statement on oath accepting ownership of jewellery--Subsequent explanation regarding jewellery--Statement not retracted--Value of jewellery assessable as undisclosed income-- Paras Shantilal Shah v. Deputy CIT (Bom) . . . 41
S. 139 --Central Board of Direct Taxes--Power to relax provisions of section 139--Extension of due date for filing income-tax returns--Policy decision--High Court not to interfere such decision--No prejudice would be caused by extending time for filing income-tax returns--Not a ground to interfere to such decision-- Avinash Gupta v. Union of India (Delhi) . . . 137
----Return--E-filing of income-tax returns for assessment year 2015-16--Due date for filing returns--Forms not available on first day of assessment year--No satisfactory explanation or justification for not prescribing relevant forms--Plea that only minor changes in forms--Not justified--Period required for e-filing of returns not reasonable--Extension of date up to 31-10-2015-- Vishal Garg v. Union of India (P & H) . . . 145
----Return--Prescription of due date for e-filing returns--Duty of Central Board of Direct Taxes to provide necessary utility and forms at beginning of assessment year--Delay in providing utility and forms--Curtailment of substantial period--Difficulty in collecting necessary datas in notified forms--Direction to extend from 30-9-2015 to 31-10-2015-- All Gujarat Federation of Tax Consultants v. CBDT (Guj) . . . 160
----Return--Prescription of due date for filing e-filing returns--Period of 183 days available to collect necessary information if forms notified on first of April of assessment year--Delay in notifying forms restricting time to 55 to 61 days--Difficulty facing by chartered accountants and tax practitioners to comply with all requirements in notified forms--Extension of due date to two States--Discrimination to assessees in other States--Effect of non-filing of returns--Central Board of Direct Taxes directed to extend due date as extended in two States-- Chamber of Tax Consultants v. Union of India (Bom) . . . 188
----Return--Time for filing--No provision mandating time of one hundred eighty days--Completion of audit not dependent on prescription of forms for filing returns--No cause of action or infringement of fundamental rights--Forms prescribed on 29-7-2015/7-8-2015--Time to 30-9-2015 sufficient for filing income-tax returns and audit report--Central Board of Direct Taxes directed to make available forms for audit report and filing returns on April 1 of assessment year-- Avinash Gupta v. Union of India (Delhi) . . . 137
S. 139C --Return--E-filing of income-tax returns for assessment year 2015-16--Due date for filing returns--Forms not available on first day of assessment year--No satisfactory explanation or justification for not prescribing relevant forms--Plea that only minor changes in forms--Not justified--Period required for e-filing of returns not reasonable--Extension of date up to 31-10-2015-- Vishal Garg v. Union of India (P & H) . . . 145
S. 139D --Return--E-filing of income-tax returns for assessment year 2015-16--Due date for filing returns--Forms not available on first day of assessment year--No satisfactory explanation or justification for not prescribing relevant forms--Plea that only minor changes in forms--Not justified--Period required for e-filing of returns not reasonable--Extension of date up to 31-10-2015-- Vishal Garg v. Union of India (P & H) . . . 145
S. 147 --Reassessment--Notice--Creditor in a settlement agreeing to convert a portion of interest into shares--Original assessment accepting conversion as actual payment of interest within meaning of section 43B--Reassessment on ground that conversion of portion of outstanding interest into shares will not amount to actual payment of interest--Change of opinion--Reassessment impermissible-- CIT v. Rathi Graphics Technologies Ltd. (Delhi) . . . 107
S. 148 --Reassessment--Notice--Creditor in a settlement agreeing to convert a portion of interest into shares--Original assessment accepting conversion as actual payment of interest within meaning of section 43B--Reassessment on ground that conversion of portion of outstanding interest into shares will not amount to actual payment of interest--Change of opinion--Reassessment impermissible-- CIT v. Rathi Graphics Technologies Ltd. (Delhi) . . . 107
S. 153BC --Search and seizure--Block assessment--Undisclosed income--Document found during search disclosing loan agreement--Agreement providing for interest on loan--No evidence that interest was not received--No regular books of account maintained--No scope for assessee to claim that it was following cash system of accounting--Interest assessable as undisclosed income-- Paras Shantilal Shah v. Deputy CIT (Bom) . . . 41
----Search and seizure--Block assessment--Undisclosed income--Jewellery found during search--Statement on oath accepting ownership of jewellery--Subsequent explanation regarding jewellery--Statement not retracted--Value of jewellery assessable as undisclosed income-- Paras Shantilal Shah v. Deputy CIT (Bom) . . . 41
S. 153C --Search and seizure--Assessment of third person--Condition precedent--Satisfaction of Assessing Officer that seized articles belonged to third person--No connection between seized documents and third person--Assessment of third person not valid-- CIT v. Sinhgad Technical Education Society (Bom) . . . 84
S. 260A --Appeal to High Court--Substantial question of law--Interest on borrowed capital--Assessee having at its disposal its own and borrowed funds--Loans advanced interest free to sister concerns--To be taken to have come from own funds--Tribunal taking plausible view on facts--No question of law arises-- CIT v. Modi Rubber Ltd. (Delhi) . . . 128
S. 263 --Revision--Commissioner--Condition precedent--Most appropriate method of accounting to correctly reflect the true financial statement is debatable issue--Assessee consistently following project completion method--That method cannot be rejected because another method is preferable--Revision not valid-- CIT v. Aditya Builders (Bom) . . . 75
S. 276D --Offences and prosecution--Failure to produce accounts or documents--Finding that accounts had been submitted when criminal complaint was issued--Sanction for prosecution not valid-- Shravan Gupta v. Asst. CIT (Delhi) . . . 95
S. 7 --Wealth-tax--Valuation of asset--"Price that asset would fetch in market"--Factors to be considered--Land coming under purview of Land Ceiling Act--Proceedings for acquisition initiated and maximum compensation therefor declared at Rs. 2 lakhs though notification not issued--Value for wealth-tax purposes--Cannot be arrived at ignoring pending proceedings under Land Ceiling Act--Reasonable buyer knowing acquisition proceedings in progress would not offer more than Rs. 2 lakhs--Value for wealth-tax purposes cannot be at higher figure-- S. N. Wadiyar (decd. through L. R.) v. CWT (SC) . . . 9
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