INCOME TAX REPORTS (ITR)--PRINT AND ONLINE EDITION
Appeal to High Court --Appeal to Supreme Court--Documents placed before Supreme Court--Documents of relevance--Matter remanded to High Court with direction to accept documents and dispose of appeal afresh after looking into them-- Tek Ram (Dead through LRs.) v . CIT . . . 133
Advance rulings --Jurisdiction of Authority for Advance Rulings--Scope of section 245R--Authority would not have jurisdiction to render ruling where return has been filed--Income-tax Act, 1961, s. 245R-- Netapp B. V . v. Authority for Advance Rulings (Delhi) . . . 102
Appeal to High Court --Order of revision confirmed by Tribunal--Plea not raised before Commissioner or Tribunal cannot be raised before High Court for the first time--Income-tax Act, 1961, s. 260A-- Kandi Friends Educational Trust v. CIT
(P&H) . . . 84
(P&H) . . . 84
Assessment --Assessing Officer--Jurisdiction--Scope of section 124--No objection taken to jurisdiction of Assessing Officer--Objection could not be raised for first time on appeal--Income-tax Act, 1961, s. 124-- CIT v. All India Children Care and Educational Development Society (All) . . . 134
----Special audit--Scope of section 142(2A)--Books of account refers to other documents also--Proceedings under section 142(2A) not judicial proceedings--Detailed reasons not necessary--Accounts of assessee complex--Order under section 142(2A) after application of mind--Valid--Income-tax Act, 1961, s. 142(2A)-- U. P. Samaj Kalyan Nirman Nigam Ltd . v . CIT (All) . . . 12
Business expenditure --Financial corporation--Special reserve created by institution providing long-term finance--Scope of section 36(1)(viii)--Processing charges, foreclosure charges and penalty for late payments--Amounts having direct nexus with business of providing finance--Deductible--Income-tax Act, 1961, s. 36(1)(viii)-- CIT v . Weizmann Homes Ltd . (Karn) . . . 74
----Warranty liability--Provision for warranty based on scientific calculation--Deductible--Income-tax Act, 1961, s. 37-- CIT v. IBM India Ltd . (Karn) . . . 88
Capital or revenue expenditure --Expenditure on acquiring software enabling assessee to carry on business more efficiently--Revenue expenditure--Income-tax Act, 1961, s. 37-- CIT v. IBM India Ltd . (Karn) . . . 88
Company --Book profit--Computation--Advance tax--Default in payment--Interest--Interest can be levied where income of company is computed under section 115JA--Income-tax Act, 1961, ss. 115JA, 234B-- CIT v . IBM India Ltd . (Karn) . . . 88
----Book profit--Computation--Lease equalisation reserve and provision for contingencies to be added--Income-tax Act, 1961, s. 115JA-- CIT v . Weizmann Homes Ltd.
(Karn) . . . 74
(Karn) . . . 74
----Book profit--Computation--Provision for bad debts--Not deductible--Income-tax act, 1961, s. 115JA-- CIT v . IBM India Ltd. (Karn) . . . 88
Donation to charitable institution --Special deduction--Approval of institution--No finding in order refusing registration that assessee violated section 80G(5)--Refusal of registration not valid--Income-tax Act, 1961, ss. 12AA, 80G(5)-- DIT v . Neel Gagan Charitable Trust (Delhi) . . . 86
Exemption --Educational institution--Effect of third proviso to section 10(23C)(vi)--Assessee obtaining order of approval from prescribed authority but not utilising income for educational purposes--Order of approval not conclusive--Tribunal not justified in granting exemption to assessee--Matter remanded--Income-tax Act, 1961, s. 10(23C)(vi)-- CIT v. Manipal Academy of Higher Education (MAHE) (Karn) . . . 114
Gift-tax --Deemed gift--Conditions precedent for application of section 4--Transfer of property for inadequate consideration--Subscription for shares--No transfer of property--Shares allotted at face value--No deemed gift--Gift-tax Act, 1958, s. 4(1)(a)-- CIT v . O. P. Srivastava (All) . . . 1
Income from house property --Business income--Income from lease--Reassessment--Notice--Notice issued before finalisation of return and framing assessment, treating lease income as from house property--Tribunal upholding lease income as from house property but remitting issue of reopening--No question of law arises for consideration--Income-tax Act, 1961-- Mahesh Investments v. Asst. CIT (Karn) . . . 42
Intercorporate dividends --Special deduction under section 80M--Condition precedent--Dividends must be received by domestic company from another domestic company--Dividend should be distributed in year in question before due date--Dividend need not relate to year in question--Dividends relating to 1990-91 and 1991-92 distributed in accounting year relevant for assessment year 1993-94--Entitled to deduction in assessment year 1993-94--Income-tax Act, 1961, s. 80M-- CIT v . Delhi Tourism and Transportation Development Corporation Ltd . (Delhi) . . . 95
Precedent --Effect of Supreme Court decisions in Khoday Distilleries Ltd. v. CIT [2008] 307 ITR 312 (SC) and Sri Gopal Jalan and Co. v. Calcutta Stock Exchange Association Ltd. [1963] 33 Comp Cas 862 (SC)-- CIT v. O. P. Srivastava (All) . . . 1
Reassessment --Notice--Reassessment on ground excess depreciation claimed--Writ--Interim order of status quo not a factor to interfere with order of reassessment--Writ petition filed without availing of remedy of appeal--Writ not maintainable--Income-tax Act, 1961, ss. 32(1)(v), 147, 148-- Narmadha Chemicals (P.) Ltd. v . Asst. CIT
(Mad) . . . 45
(Mad) . . . 45
----Notice--Validity--Notice on ground that assessee had unexplained investments in immovable property--Return submitted in response to notice--No objection that reasons for reassessment had not been given--Tribunal not justified in setting aside notice--Matter remanded--Income-tax Act, 1961, ss. 147, 148-- CIT v . All India Children Care and Educational Development Society (All) . . . 134
----Notice after four years--Condition precedent--Failure to disclose material facts necessary for assessment--Assessment after detailed enquiry into identity and creditworthiness of share applicants--Notice after four years on ground that share applications not genuine--No failure to disclose material facts necessary for assessment--Notice not valid--Income-tax Act, 1961, ss. 147, 148-- CIT v . Suren International P. Ltd.
(Delhi) . . . 24
(Delhi) . . . 24
----Notice after four years--Failure to disclose material facts necessary for assessment--Claim for deduction of expenditure and provision for gratuity--Claims considered by Assessing Officer and Assessing Officer also examining tax audit report--Computation error in calculating deprecation--No failure to disclose material facts necessary for assessment--Notice of reassessment after four years--Not valid--Income-tax Act, 1961, ss. 147, 148-- Microsoft Corporation (I) P. Ltd . v . Dy. CIT (Delhi) . . . 50
Search and seizure --Block assessment--Undisclosed income--Undisclosed income to be determined on basis of evidence found during search operations or requisition of books and documents--Undisclosed income cannot be computed on the basis of best judgment--Income-tax Act, 1961, s. 158BC-- CIT v. Dr. Ratan Kumar Singh
(All) . . . 35
(All) . . . 35
Writ --Jurisdiction of High Court--Limited jurisdiction--Constitution of India, art. 226-- U. P. Samaj Kalyan Nirman Nigam Ltd . v . CIT (All) . . . 12
Advance ruling --Application for--Maintainability--Jurisdiction of Authority--Bar where question raised in application for ruling pending before income-tax authority--Returns filed and notices issued under section 143(2)--Question deemed to be pending before assessing authority--Application cannot be entertained--Income-tax Act, 1961, ss. 143(2), 245R(2)-- Hyosung Corporation , In re . . . 123
----Authority--Jurisdiction--Creature of statute--Cannot consider validity of provision on ground of discrimination--Income-tax Act, 1961, s. 245R(2)--Constitution of India, art. 14--Double Taxation Avoidance Agreement between India and South Korea, art. 25-- Hyosung Corporation, In re . . . 123
Art. 14 --Advance ruling--Authority--Jurisdiction--Creature of statute--Cannot consider validity of provision on ground of discrimination-- Hyosung Corporation, In re (AAR) . . . 123
Art. 226 --Writ--Jurisdiction of High Court--Limited jurisdiction-- U. P. Samaj Kalyan Nirman Nigam Ltd . v . CIT (All) . . . 12
Art. 25 --Advance ruling--Authority--Jurisdiction--Creature of statute--Cannot consider validity of provision on ground of discrimination-- Hyosung Corporation, In re (AAR) . . . 123
S. 4(1)(a) --Gift-tax--Deemed gift--Conditions precedent for application of section 4--Transfer of property for inadequate consideration--Subscription for shares--No transfer of property--Shares allotted at face value--No deemed gift-- CIT v . O. P. Srivastava (All) . . . 1
S. 10(23C)(vi) --Exemption--Educational institution--Effect of third proviso to section 10(23C)(vi)--Assessee obtaining order of approval from prescribed authority but not utilising income for educational purposes--Order of approval not conclusive--Tribunal not justified in granting exemption to assessee--Matter remanded-- CIT v. Manipal Academy of Higher Education (MAHE) (Karn) . . . 114
S. 12AA --Donation to charitable institution--Special deduction--Approval of institution--No finding in order refusing registration that assessee violated section 80G(5)--Refusal of registration not valid-- DIT v . Neel Gagan Charitable Trust
(Delhi) . . . 86
(Delhi) . . . 86
S. 32(1)(v) --Reassessment--Notice--Reassessment on ground excess depreciation claimed--Writ--Interim order of status quo not a factor to interfere with order of reassessment--Writ petition filed without availing of remedy of appeal--Writ not maintainable-- Narmadha Chemicals (P.) Ltd. v . Asst. CIT (Mad) . . . 45
S. 36(1)(viii) --Business expenditure--Financial corporation--Special reserve created by institution providing long-term finance--Scope of section 36(1)(viii)--Processing charges, foreclosure charges and penalty for late payments--Amounts having direct nexus with business of providing finance--Deductible-- CIT v . Weizmann Homes Ltd .
(Karn) . . . 74
(Karn) . . . 74
S. 37 --Business expenditure--Warranty liability--Provision for warranty based on scientific calculation--Deductible-- CIT v. IBM India Ltd . (Karn) . . . 88
----Capital or revenue expenditure--Expenditure on acquiring software enabling assessee to carry on business more efficiently--Revenue expenditure-- CIT v. IBM India Ltd . (Karn) . . . 88
S. 80G(5) --Donation to charitable institution--Special deduction--Approval of institution--No finding in order refusing registration that assessee violated section 80G(5)--Refusal of registration not valid-- DIT v . Neel Gagan Charitable Trust
(Delhi) . . . 86
(Delhi) . . . 86
S. 80M --Intercorporate dividends--Special deduction under section 80M--Condition precedent--Dividends must be received by domestic company from another domestic company--Dividend should be distributed in year in question before due date--Dividend need not relate to year in question--Dividends relating to 1990-91 and 1991-92 distributed in accounting year relevant for assessment year 1993-94--Entitled to deduction in assessment year 1993-94-- CIT v . Delhi Tourism and Transportation Development Corporation Ltd . (Delhi) . . . 95
S. 115JA --Company--Book profit--Computation--Advance tax--Default in payment--Interest--Interest can be levied where income of company is computed under section 115JA-- CIT v . IBM India Ltd . (Karn) . . . 88
----Company--Book profit--Computation--Lease equalisation reserve and provision for contingencies to be added-- CIT v . Weizmann Homes Ltd. (Karn) . . . 74
----Company--Book profit--Computation--Provision for bad debts--Not deductible-- CIT v . IBM India Ltd. (Karn) . . . 88
S. 124 --Assessment--Assessing Officer--Jurisdiction--Scope of section 124--No objection taken to jurisdiction of Assessing Officer--Objection could not be raised for first time on appeal-- CIT v. All India Children Care and Educational Development Society (All) . . . 134
S. 142(2A) --Assessment--Special audit--Scope of section 142(2A)--Books of account refers to other documents also--Proceedings under section 142(2A) not judicial proceedings--Detailed reasons not necessary--Accounts of assessee complex--Order under section 142(2A) after application of mind--Valid-- U. P. Samaj Kalyan Nirman Nigam Ltd . v . CIT (All) . . . 12
S. 143(2) --Advance ruling--Application for--Maintainability--Jurisdiction of Authority--Bar where question raised in application for ruling pending before income-tax authority--Returns filed and notices issued under section 143(2)--Question deemed to be pending before assessing authority--Application cannot be entertained-- Hyosung Corporation , In re (AAR) . . . 123
S. 147 --Reassessment--Notice--Reassessment on ground excess depreciation claimed--Writ--Interim order of status quo not a factor to interfere with order of reassessment--Writ petition filed without availing of remedy of appeal--Writ not maintainable-- Narmadha Chemicals (P.) Ltd. v . Asst. CIT (Mad) . . . 45
----Reassessment--Notice--Validity--Notice on ground that assessee had unexplained investments in immovable property--Return submitted in response to notice--No objection that reasons for reassessment had not been given--Tribunal not justified in setting aside notice--Matter remanded-- CIT v . All India Children Care and Educational Development Society (All) . . . 134
----Reassessment--Notice after four years--Condition precedent--Failure to disclose material facts necessary for assessment--Assessment after detailed enquiry into identity and creditworthiness of share applicants--Notice after four years on ground that share applications not genuine--No failure to disclose material facts necessary for assessment--Notice not valid-- CIT v . Suren International P. Ltd. (Delhi) . . . 24
----Reassessment--Notice after four years--Failure to disclose material facts necessary for assessment--Claim for deduction of expenditure and provision for gratuity--Claims considered by Assessing Officer and Assessing Officer also examining tax audit report--Computation error in calculating deprecation--No failure to disclose material facts necessary for assessment--Notice of reassessment after four years--Not valid-- Microsoft Corporation (I) P. Ltd . v . Dy. CIT (Delhi) . . . 50
S. 148 --Reassessment--Notice--Reassessment on ground excess depreciation claimed--Writ--Interim order of status quo not a factor to interfere with order of reassessment--Writ petition filed without availing of remedy of appeal--Writ not maintainable-- Narmadha Chemicals (P.) Ltd. v . Asst. CIT (Mad) . . . 45
----Reassessment--Notice--Validity--Notice on ground that assessee had unexplained investments in immovable property--Return submitted in response to notice--No objection that reasons for reassessment had not been given--Tribunal not justified in setting aside notice--Matter remanded-- CIT v . All India Children Care and Educational Development Society (All) . . . 134
----Reassessment--Notice after four years--Condition precedent--Failure to disclose material facts necessary for assessment--Assessment after detailed enquiry into identity and creditworthiness of share applicants--Notice after four years on ground that share applications not genuine--No failure to disclose material facts necessary for assessment--Notice not valid-- CIT v . Suren International P. Ltd. (Delhi) . . . 24
----Reassessment--Notice after four years--Failure to disclose material facts necessary for assessment--Claim for deduction of expenditure and provision for gratuity--Claims considered by Assessing Officer and Assessing Officer also examining tax audit report--Computation error in calculating deprecation--No failure to disclose material facts necessary for assessment--Notice of reassessment after four years--Not valid-- Microsoft Corporation (I) P. Ltd . v . Dy. CIT (Delhi) . . . 50
S. 158BC --Search and seizure--Block assessment--Undisclosed income--Undisclosed income to be determined on basis of evidence found during search operations or requisition of books and documents--Undisclosed income cannot be computed on the basis of best judgment-- CIT v. Dr. Ratan Kumar Singh (All) . . . 35
S. 234B --Company--Book profit--Computation--Advance tax--Default in payment--Interest--Interest can be levied where income of company is computed under section 115JA-- CIT v . IBM India Ltd . (Karn) . . . 88
S. 245R --Advance rulings--Jurisdiction of Authority for Advance Rulings--Scope of section 245R--Authority would not have jurisdiction to render ruling where return has been filed-- Netapp B. V . v. Authority for Advance Rulings
(Delhi) . . . 102
(Delhi) . . . 102
S. 245R(2) --Advance ruling--Application for--Maintainability--Jurisdiction of Authority--Bar where question raised in application for ruling pending before income-tax authority--Returns filed and notices issued under section 143(2)--Question deemed to be pending before assessing authority--Application cannot be entertained-- Hyosung Corporation , In re (AAR) . . . 123
----Advance ruling--Authority--Jurisdiction--Creature of statute--Cannot consider validity of provision on ground of discrimination-- Hyosung Corporation, In re
(AAR) . . . 123
(AAR) . . . 123
S. 260A --Appeal to High Court--Order of revision confirmed by Tribunal--Plea not raised before Commissioner or Tribunal cannot be raised before High Court for the first time-- Kandi Friends Educational Trust v. CIT (P&H) . . . 84
ITR'S TRIBUNAL TAX REPORTS (ITR (TRIB)) -- PRINT AND ONLINE EDITION
Business expenditure --Employees’ State insurance and employees’ contributions to provident fund--Payments made before due date for filing return--Allowable--Income-tax Act, 1961, s. 36(1)(va)-- ITO v. Onward Technologies Ltd. (Mumbai) . . . 292
Educational institution --Exemption--Conditions precedent for exemption--Existence solely for educational purposes and without profit motive--Assessee making huge profits--Not entitled to exemption--Income-tax Act, 1961, s. 10(23C)(iiiab), (iiiad)-- M. P. Rajya Open School v. Deputy CIT (Indore) . . . 313
Exemption --Export of computer software--Computation of exemption--Brought forward losses and unabsorbed depreciation not to be adjusted--To be set off against income after completion of tax holiday period--Set off of entire unabsorbed depreciation to section 10A unit in first year of claim--Not proper--Details made available by assessee--Matter remanded to Assessing Officer for fresh consideration--Income-tax Act, 1961, s. 10A-- ITO v. Onward Technologies Ltd. (Mumbai) . . . 292
----Export of computer software--Computation of exemption--Expenses to be excluded both from export turnover and total turnover--Income-tax Act, 1961, s. 10A-- ITO v. Onward Technologies Ltd. (Mumbai) . . . 292
----Export of computer software--Computation of exemption--Interest income--Interest on bank margin and letter of credit margin--Nexus with business activity of undertaking--To be included in eligible profits--Other interest to be considered as income from other sources and not to be included in eligible profits--Income-tax Act, 1961, s. 10A-- ITO v. Onward Technologies Ltd. (Mumbai) . . . 292
----Export of computer software--Computation of exemption--Miscellaneous income, finder fees and marketing fees--Close nexus with activities of undertaking--Includible in total turnover--Income-tax Act, 1961, s. 10A-- ITO v. Onward Technologies Ltd. (Mumbai) . . . 292
Appeal to Appellate Tribunal --Power to admit additional grounds--Department not entitled to raise issue concluded in assessment as additional ground-- Syndicate Bank v. Deputy CIT (Bangalore) . . . 501
Bad debts --Bad and doubtful debts--Provision for--Banking company--Provision for bad and doubtful debts account not relevant for deduction in respect of bad debts of non-rural branches written off--Total income for purposes of computation of deduction under section 36(1)(viia) not to be restricted to total income of rural branches or to amount prescribed under RBI prudential norms--Difference between sum claimed as deduction as provision for bad and doubtful debts in respect of rural advances and sum debited to profit and loss account--To be disallowed--Income-tax Act, 1961, s. 36(1)(vii), (viia)-- Syndicate Bank v. Deputy CIT (Bangalore) . . . 501
Banking company --Business loss--Investments are stock-in-trade--Assessee entitled to value all investments at lower of cost or market value--Diminution in value of investments--Diminution in value of stock-in-trade as on last day of previous year to be allowed as deduction-- Syndicate Bank v. Deputy CIT (Bangalore) . . . 501
Business --Same business or separate businesses--Assessee engaged in production of hot briquetted sponge iron--Setting up unit for production of hot-rolled coils--Finding by Commissioner (Appeals) of integration and interlacing of units--Hot-rolled coils project to be taken as part of existing business--All revenue expenditure incurred in connection with new project to be allowed-- Deputy CIT v. Essar Steel Ltd. (Mumbai) . . . 623
Business expenditure --Accrued or contingent liability--Provision for bank’s liability to reimburse credit cardholders in respect of reward points accumulated by them--Accrued liability--Allowable-- Syndicate Bank v. Deputy CIT (Bangalore) . . . 501
----Amortisation of preliminary expenses--Expenditure incurred by banking company in connection with issue for public subscription of shares--Assessee not an industrial undertaking--That issue of share capital was for meeting working capital requirement not relevant--Expenses not allowable--Income-tax Act, 1961, ss. 35D, 37-- Syndicate Bank v. Deputy CIT (Bangalore) . . . 501
----Disallowance--Payments subject to tax deduction at source--External commercial borrowing--Interest--Not taxable in hands of recipient--No question of tax deduction at source on interest--Interest not to be disallowed--Income-tax Act, 1961, ss. 10(15)(iv)(c), 40(a)(ia)-- Deputy CIT v. Essar Steel Ltd. (Mumbai) . . . 623
----Rent paid on leasing transactions--Reduced rent debited in accounts because of long period of lease--Treatment in books of account would not alter character of expenditure--Lease rent allowable in full-- Deputy CIT v. Essar Steel Ltd. (Mumbai) . . . 623
Business income or capital gains --Trading in shares or investment--Period of holding of shares and non receipt of dividend--Not a decisive factor--No interference required--Circular No. 4 dated 15-6-2007--Income-tax Act, 1961-- Deputy CIT v. Emerging Securities P. Ltd. (Delhi) . . . 593
Capital or revenue expenditure --Expenditure incurred on expansion of existing project--Inextricable linkage with existing business--No new asset--Not capital expenditure--Income-tax Act, 1961-- Gujarat Green Revolution Co. Ltd. v. Assistant CIT (Ahmedabad) . . . 567
----Fees paid to financial institutions for loan, floating rate notes, restructuring expenses and plant repairs and maintenance--Expenses treated as deferred revenue expenditure in books but claimed as revenue expenditure in return of income--To be allowed-- Deputy CIT v. Essar Steel Ltd. (Mumbai) . . . 623
----Raising of funds by issue of bonds akin to borrowing--Stamp duty expenses incurred in issuing bonds to public--Revenue expenditure-- Syndicate Bank v. Deputy CIT (Bangalore) . . . 501
Depreciation --Additional depreciation--Assessee setting up windmill for power generation--Use of electricity in manufacturing activity of assessee not precondition for grant of additional depreciation under statute--Amendment of section 32(1)(iia) by Finance Act, 2012--Clarificatory--Assessee entitled to additional depreciation on windmill--Income-tax Act, 1961, s. 32(1)(iia)-- Deputy CIT v. Hutti Gold Mines Co. Ltd. (Bangalore) . . . 600
----Rate of depreciation--Greenhouse--Functional test to be applied--Greenhouse to be considered as plant--Depreciation allowable at rate of 25 per cent.--Income-tax Act, 1961, s. 32-- Gujarat Green Revolution Co. Ltd. v. Assistant CIT (Ahmedabad) . . . 567
----Rate of depreciation--Reach stacker--Is a crane considered as motor lorry falling under category of heavy goods vehicle--Entitled to depreciation at rate applicable to motor lorries--Reach stacker run for hire--Entitled to higher rate of depreciation--Income-tax Rules, 1962, r. 5, Appex. I, Part I, item IIIE (1a)-- FIS Logistics P. Ltd. v. Assistant CIT (Kolkata) . . . 605
----Written down value--Actual cost--Advances for acquisition of plant and machinery--Company unable to fulfil commitments and lenders waiving part of principal--Reduction of sum waived from written down value of plant and machinery--Not permissible--Income-tax Act, 1961, s. 43(1)-- Deputy CIT v. Essar Steel Ltd. (Mumbai) . . . 623
Income --Computation--Expenditure on earning exempt income--Disallowance--Matter remanded to Assessing Officer to determine expenditure adopting reasonable basis for effecting apportionment--Income-tax Act, 1961, ss. 10(23G), 14A-- Syndicate Bank v. Deputy CIT (Bangalore) . . . 501
Interest on borrowed capital --Monies advanced without interest--Notional interest--Finding of Commissioner (Appeals) that during year interest was payable by assessee to H--No disallowance--Income-tax Act, 1961, s. 36(1)(iii)-- Deputy CIT v. Essar Steel Ltd. (Mumbai) . . . 623
Method of accounting --Banking company--Consistently offering interest on securities credited to profit and loss account on cash basis--Accepted by Department in past--Interest not taxable on accrual basis-- Syndicate Bank v. Deputy CIT (Bangalore) . . . 501
Minimum alternate tax --Banking company--Special provisions not applicable--Income-tax Act, 1961, s. 115JB-- Syndicate Bank v. Deputy CIT (Bangalore) . . . 501
Search and seizure --Assessment in search cases--Abatement of assessment proceedings--Assessment completed prior to date of search would not abate--Assessment completed allowing deduction under section 80-IB--Deduction cannot be disallowed in assessment made pursuant to search--Income-tax Act, 1961, ss. 80-IB, 153A-- Dinesh Tobacco Industries v. Deputy CIT (Jodhpur) . . . 579
----Assessment in search cases--Search executed in residence of individual--Unaccounted payment--Surrender of amount taxed in individual capacity--Substantive addition in hands of assessee-firm not proper-- Dinesh Tobacco Industries v. Deputy CIT (Jodhpur) . . . 579
----Assessment in search cases--Undisclosed income--Document seized relate to unaccounted transaction in business concern--Surrender of income by individual--Income to be assessed in hands of individual on substantive basis not in hands of firm--Income-tax Act, 1961, s. 153A-- Nand Kishore Malani v. Deputy CIT (Jodhpur) . . . 613
----Assessment in search cases--Undisclosed income--Gold and silver jewellery--Quantum of jewellery can be treated as explained in accordance with circular--Income-tax Act, 1961, s. 153A--CBDT Circular No. 1916 dated 11-5-1994-- Nand Kishore Malani v. Deputy CIT (Jodhpur) . . . 613
----Assessment in search cases--Undisclosed income--Unaccounted cash--Reasonable to consider cash unexplained in hands of individual on basis of surrender--Income-tax Act, 1961, s. 153A-- Nand Kishore Malani v. Deputy CIT (Jodhpur) . . . 613
----Unaccounted investment--Trading addition on basis of estimated gross profit rate--Trading addition telescoped into addition made on account of unaccounted investment and no separate addition made--Proper-- Dinesh Tobacco Industries v. Deputy CIT (Jodhpur) . . . 579
Words and phrases --â€Heavy goods vehiclesâ€, meaning of-- FIS Logistics P. Ltd. v. Assistant CIT (Kolkata) . . . 605
S. 10(15)(iv)(c) --Business expenditure--Disallowance--Payments subject to tax deduction at source--External commercial borrowing--Interest--Not taxable in hands of recipient--No question of tax deduction at source on interest--Interest not to be disallowed-- Deputy CIT v. Essar Steel Ltd. (Mumbai) . . . 623
S. 10(23G) --Income--Computation--Expenditure on earning exempt income--Disallowance--Matter remanded to Assessing Officer to determine expenditure adopting reasonable basis for effecting apportionment-- Syndicate Bank v. Deputy CIT (Bangalore) . . . 501
S. 14A --Income--Computation--Expenditure on earning exempt income--Disallowance--Matter remanded to Assessing Officer to determine expenditure adopting reasonable basis for effecting apportionment-- Syndicate Bank v. Deputy CIT (Bangalore) . . . 501
S. 32 --Depreciation--Rate of depreciation--Greenhouse--Functional test to be applied--Greenhouse to be considered as plant--Depreciation allowable at rate of 25 per cent.-- Gujarat Green Revolution Co. Ltd. v. Assistant CIT (Ahmedabad) . . . 567
S. 32(1)(iia) --Depreciation--Additional depreciation--Assessee setting up windmill for power generation--Use of electricity in manufacturing activity of assessee not precondition for grant of additional depreciation under statute--Amendment of section 32(1)(iia) by Finance Act, 2012--Clarificatory--Assessee entitled to additional depreciation on windmill-- Deputy CIT v. Hutti Gold Mines Co. Ltd. (Bangalore) . . . 600
S. 35D --Business expenditure--Amortisation of preliminary expenses--Expenditure incurred by banking company in connection with issue for public subscription of shares--Assessee not an industrial undertaking--That issue of share capital was for meeting working capital requirement not relevant--Expenses not allowable-- Syndicate Bank v. Deputy CIT (Bangalore) . . . 501
S. 36(1)(iii) --Interest on borrowed capital--Monies advanced without interest--Notional interest--Finding of Commissioner (Appeals) that during year interest was payable by assessee to H--No disallowance-- Deputy CIT v. Essar Steel Ltd. (Mumbai) . . . 623
S. 36(1)(vii), (viia) --Bad debts--Bad and doubtful debts--Provision for--Banking company--Provision for bad and doubtful debts account not relevant for deduction in respect of bad debts of non-rural branches written off--Total income for purposes of computation of deduction under section 36(1)(viia) not to be restricted to total income of rural branches or to amount prescribed under RBI prudential norms--Difference between sum claimed as deduction as provision for bad and doubtful debts in respect of rural advances and sum debited to profit and loss account--To be disallowed-- Syndicate Bank v. Deputy CIT (Bangalore) . . . 501
S. 37 --Business expenditure--Amortisation of preliminary expenses--Expenditure incurred by banking company in connection with issue for public subscription of shares--Assessee not an industrial undertaking--That issue of share capital was for meeting working capital requirement not relevant--Expenses not allowable-- Syndicate Bank v. Deputy CIT (Bangalore) . . . 501
S. 40(a)(ia) --Business expenditure--Disallowance--Payments subject to tax deduction at source--External commercial borrowing--Interest--Not taxable in hands of recipient--No question of tax deduction at source on interest--Interest not to be disallowed-- Deputy CIT v. Essar Steel Ltd. (Mumbai) . . . 623
S. 43(1) --Depreciation--Written down value--Actual cost--Advances for acquisition of plant and machinery--Company unable to fulfil commitments and lenders waiving part of principal--Reduction of sum waived from written down value of plant and machinery--Not permissible-- Deputy CIT v. Essar Steel Ltd. (Mumbai) . . . 623
S. 80-IB --Search and seizure--Assessment in search cases--Abatement of assessment proceedings--Assessment completed prior to date of search would not abate--Assessment completed allowing deduction under section 80-IB--Deduction cannot be disallowed in assessment made pursuant to search-- Dinesh Tobacco Industries v. Deputy CIT (Jodhpur) . . . 579
S. 115JB --Minimum alternate tax--Banking company--Special provisions not applicable-- Syndicate Bank v. Deputy CIT (Bangalore) . . . 501
S. 153A --Search and seizure--Assessment in search cases--Abatement of assessment proceedings--Assessment completed prior to date of search would not abate--Assessment completed allowing deduction under section 80-IB--Deduction cannot be disallowed in assessment made pursuant to search-- Dinesh Tobacco Industries v. Deputy CIT (Jodhpur) . . . 579
----Search and seizure--Assessment in search cases--Undisclosed income--Document seized relate to unaccounted transaction in business concern--Surrender of income by individual--Income to be assessed in hands of individual on substantive basis not in hands of firm-- Nand Kishore Malani v. Deputy CIT (Jodhpur) . . . 613
----Search and seizure--Assessment in search cases--Undisclosed income--Gold and silver jewellery--Quantum of jewellery can be treated as explained in accordance with circular-- Nand Kishore Malani v. Deputy CIT (Jodhpur) . . . 613
----Search and seizure--Assessment in search cases--Undisclosed income--Unaccounted cash--Reasonable to consider cash unexplained in hands of individual on basis of surrender-- Nand Kishore Malani v. Deputy CIT (Jodhpur) . . . 613
R. 5, Appex. I, Part I, item IIIE (1a) --Depreciation--Rate of depreciation--Reach stacker--Is a crane considered as motor lorry falling under category of heavy goods vehicle--Entitled to depreciation at rate applicable to motor lorries--Reach stacker run for hire--Entitled to higher rate of depreciation-- FIS Logistics P. Ltd. v. Assistant CIT (Kolkata) . . . 605
__._,_.___
No comments:
Post a Comment