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ITR'S TRIBUNAL TAX REPORTS (ITR (Trib)) HIGHLIGHTS
F International transactions : ALP : Where gross margin for related and unrelated party transactions discounting factors to be adopted, TPO rejecting discounting factors on project management cost and credit risk proper : Dy. CIT v. American Megatrends India P. Ltd. (Chennai) p. 56
F Loss : Loans granted by assessee to company : No evidence to show that transaction a sham or bogus : Long-terms capital loss to be accepted and assessee to be permitted to carry it forward : Consolidated Finvest and Holdings Ltd. v. Asst. CIT (Delhi) p. 67
F ITG networking equipment, included in block of computers, entitled to higher rate of depreciation: Microsoft Corporation India P. Ltd. v. Addl. CIT (Delhi) p. 290 (18-12-2014)
F Expenditure in maintenance of vehicles used by employees, allowable : Microsoft Corporation India P. Ltd. v. Addl. CIT (Delhi) p. 290 (18-12-2014)
F Donation for charitable purpose : Special deduction : Where registration u/s. 12AA is sufficient proof, DIT rejecting application for grant of approval u/s. 80G(5) not proper : Sri Ramanuja Sahasrabdi v. DIT (Exemptions) (Hyd) p. 303 (5-12-2014)
F International transactions : ALP : Selection of comparables : Software product companies not comparable with companies rendering software services : Kenexa Technologies P. Ltd. v. Dy. CIT (Hyd) p. 306 (14-11-2014)
F Appeal to Appellate Tribunal : Tax effect less than prescribed limit not maintainable : Dy. CIT v. Piyush Apartment P. Ltd. (Delhi) p. 340 (1-1-2015)
F Routers and switches integrated with computers to be treated as computer system entitled to higher rate of depreciation : Cisco Systems Capital (India) P. Ltd. v. Addl. CIT (Bangalore) p. 343
F Where assessee recording remuneration received in cash in books of account and depositing it in bank, cannot be considered as unaccounted money : Dy. CIT v. Yuvanshankar Raja (Chennai) p. 355
F Exemption : Export : Expenses incurred at other units having no connection with EOU and it cannot be allocated to EOU, assessee eligible for exemption u/s. 10B : GTL Ltd. v. Asst. CIT (Mumbai) p. 376 (2-1-2015)
F Where assessee having no bank account at place of purchase, no doubt as to genuineness of purchases, disallowance not justified u/s. 40A(3): Radha Shyam Panda v. ITO (Cuttack) p. 386
F International transactions : ALP : Determination : Comparable price to be treated as ALP when pricing mechanism for AE and independent enterprise is same : Toll Global Fowarding India P. Ltd. v. Dy. CIT (Delhi) p. 391 (18-11-2014)
F Tax provisions relating to real estate investment trust (REIT) and Infrastructure Investment Trust (INVIT)--Pankaj R. Toprani, Advocate p. 1
COMPANY LAW INSTITUTE OF INDIA PVT. LTD.
No. 2, Vaithyaram Street,
T.Nagar, Chennai - 600017.
Phone: (044) 24350752 - 55
Fax: (044) 24322015
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GOODS AND SERVICE TAX REPORTS (GSTR) HIGHLIGHTS
F Power of Settlement Commission to remand is in addition of other powers : Vinay Wire and Poly Product P. Ltd. v. Director General of Central Excise (All) p. 213
F Penal proceedings for delay in discharge of monthly duty liability cannot be initiated after expiry of five years : Commissioner, Central Excise Commissionerate v. Malwa Iron and Steel Company (P&H) p. 209
F Excess consumption of electricity not sufficient without corroborative evidence relating to purchase of raw material, conversion of raw material into final products and clearance produced to raise presumption of evasion of duty : Union Enterprises v. Union of India (Cal) p. 228
F Writ jurisdiction not completely taken away because of existence of alternative remedy by way of an appeal under section 35F : Union Enterprises v. Union of India (Cal) p. 228
F Manipulation and creation of fictitious units to procure invoices without movement of goods to avail of credit, penalty, confiscation and recovery of credit confirmed : Bhanu Iron and Steel Co. Ltd. v. CCE (Trib.-Delhi) p. 130
F Appellate Tribunal and High Court holding assessee entitled to exemption, invocation of extended period of limitation not proper : Vijay Kumar Arora v. CCE (Trib.-Delhi) p. 194
F Where Commissioner not examining various evidences individually or collectively and making general observations and comments, matter remanded for fresh consideration : Vijay Kumar Arora v. CCE (Trib.-Delhi) p. 194
F Failure to insure goods for value of customs duty in terms of warehousing bond, assessee not entitled to remission of duty : Sandoz P. Ltd. v. CCE (Trib.-Mum) p. 151
F Where goods procured duty-free under exemption notification, provisions of section 23 of 1962 Act not applicable : Sandoz P. Ltd. v. CCE (Trib.-Mum) p. 151
F Misdeclaration of goods to avail of benefit of compounded levy scheme, invocation of extended period of limitation and imposition of penalty on assessee and its managing director, proper : Neptune Textile Mills Ltd. v. CCE (Trib.-Ahd) p. 184
F Failure by Department to prove misdeclaration and violation of import policy, benefit of doubt in favour of importer : Amaravathy Textiles v. Commissioner of Customs and Central Excise (Trib.-Chennai) p. 204
F Option to pay reduced penalty to be given to assessee : Universal Auto Industries v. CCE (Trib.-Delhi) p. 164
F Commissioner (Appeals) setting aside order without directing value to be adopted and without giving finding on grounds raised in appeal, matter remanded : Fuji Electric (I) P. Ltd. v. Commissioner of Customs (Trib.-Mum) p. 179
COMPANY LAW INSTITUTE OF INDIA PVT. LTD.
No. 2, Vaithyaram Street,
T.Nagar, Chennai - 600017.
Phone: (044) 24350752 - 55
Fax: (044) 24322015
info@cliofindia.com
To Unsubscribe : Reply back with "Unsubscribe" in subject followed by the key word "ITR" or "CC" or "VST" or "ITR (Trib)" or "GSTR", respectively or "All" if you do not want any Email. ITR : Income Tax Reports, CC : Company Cases, VST : VAT and Service Tax Cases, GSTR : Goods and Service Tax Reports, ITR (Trib) : ITR'S Tribunal Tax Reports. Also send your feedback or comments to info@cliofindia.com
INCOME TAX REPORTS (ITR)--PRINT AND ONLINE EDITION
ITR'S TRIBUNAL TAX REPORTS (ITR (Trib)) HIGHLIGHTS
F International transactions : ALP : Where gross margin for related and unrelated party transactions discounting factors to be adopted, TPO rejecting discounting factors on project management cost and credit risk proper : Dy. CIT v. American Megatrends India P. Ltd. (Chennai) p. 56
F Loss : Loans granted by assessee to company : No evidence to show that transaction a sham or bogus : Long-terms capital loss to be accepted and assessee to be permitted to carry it forward : Consolidated Finvest and Holdings Ltd. v. Asst. CIT (Delhi) p. 67
F ITG networking equipment, included in block of computers, entitled to higher rate of depreciation: Microsoft Corporation India P. Ltd. v. Addl. CIT (Delhi) p. 290 (18-12-2014)
F Expenditure in maintenance of vehicles used by employees, allowable : Microsoft Corporation India P. Ltd. v. Addl. CIT (Delhi) p. 290 (18-12-2014)
F Donation for charitable purpose : Special deduction : Where registration u/s. 12AA is sufficient proof, DIT rejecting application for grant of approval u/s. 80G(5) not proper : Sri Ramanuja Sahasrabdi v. DIT (Exemptions) (Hyd) p. 303 (5-12-2014)
F International transactions : ALP : Selection of comparables : Software product companies not comparable with companies rendering software services : Kenexa Technologies P. Ltd. v. Dy. CIT (Hyd) p. 306 (14-11-2014)
F Appeal to Appellate Tribunal : Tax effect less than prescribed limit not maintainable : Dy. CIT v. Piyush Apartment P. Ltd. (Delhi) p. 340 (1-1-2015)
F Routers and switches integrated with computers to be treated as computer system entitled to higher rate of depreciation : Cisco Systems Capital (India) P. Ltd. v. Addl. CIT (Bangalore) p. 343
F Where assessee recording remuneration received in cash in books of account and depositing it in bank, cannot be considered as unaccounted money : Dy. CIT v. Yuvanshankar Raja (Chennai) p. 355
F Exemption : Export : Expenses incurred at other units having no connection with EOU and it cannot be allocated to EOU, assessee eligible for exemption u/s. 10B : GTL Ltd. v. Asst. CIT (Mumbai) p. 376 (2-1-2015)
F Where assessee having no bank account at place of purchase, no doubt as to genuineness of purchases, disallowance not justified u/s. 40A(3): Radha Shyam Panda v. ITO (Cuttack) p. 386
F International transactions : ALP : Determination : Comparable price to be treated as ALP when pricing mechanism for AE and independent enterprise is same : Toll Global Fowarding India P. Ltd. v. Dy. CIT (Delhi) p. 391 (18-11-2014)
F Tax provisions relating to real estate investment trust (REIT) and Infrastructure Investment Trust (INVIT)--Pankaj R. Toprani, Advocate p. 1
| COMPANY LAW INSTITUTE OF INDIA PVT. LTD. No. 2, Vaithyaram Street, T.Nagar, Chennai - 600017. Phone: (044) 24350752 - 55 Fax: (044) 24322015 info@cliofindia.com |
GOODS AND SERVICE TAX REPORTS (GSTR) HIGHLIGHTS
F Power of Settlement Commission to remand is in addition of other powers : Vinay Wire and Poly Product P. Ltd. v. Director General of Central Excise (All) p. 213
F Penal proceedings for delay in discharge of monthly duty liability cannot be initiated after expiry of five years : Commissioner, Central Excise Commissionerate v. Malwa Iron and Steel Company (P&H) p. 209
F Excess consumption of electricity not sufficient without corroborative evidence relating to purchase of raw material, conversion of raw material into final products and clearance produced to raise presumption of evasion of duty : Union Enterprises v. Union of India (Cal) p. 228
F Writ jurisdiction not completely taken away because of existence of alternative remedy by way of an appeal under section 35F : Union Enterprises v. Union of India (Cal) p. 228
F Manipulation and creation of fictitious units to procure invoices without movement of goods to avail of credit, penalty, confiscation and recovery of credit confirmed : Bhanu Iron and Steel Co. Ltd. v. CCE (Trib.-Delhi) p. 130
F Appellate Tribunal and High Court holding assessee entitled to exemption, invocation of extended period of limitation not proper : Vijay Kumar Arora v. CCE (Trib.-Delhi) p. 194
F Where Commissioner not examining various evidences individually or collectively and making general observations and comments, matter remanded for fresh consideration : Vijay Kumar Arora v. CCE (Trib.-Delhi) p. 194
F Failure to insure goods for value of customs duty in terms of warehousing bond, assessee not entitled to remission of duty : Sandoz P. Ltd. v. CCE (Trib.-Mum) p. 151
F Where goods procured duty-free under exemption notification, provisions of section 23 of 1962 Act not applicable : Sandoz P. Ltd. v. CCE (Trib.-Mum) p. 151
F Misdeclaration of goods to avail of benefit of compounded levy scheme, invocation of extended period of limitation and imposition of penalty on assessee and its managing director, proper : Neptune Textile Mills Ltd. v. CCE (Trib.-Ahd) p. 184
F Failure by Department to prove misdeclaration and violation of import policy, benefit of doubt in favour of importer : Amaravathy Textiles v. Commissioner of Customs and Central Excise (Trib.-Chennai) p. 204
F Option to pay reduced penalty to be given to assessee : Universal Auto Industries v. CCE (Trib.-Delhi) p. 164
F Commissioner (Appeals) setting aside order without directing value to be adopted and without giving finding on grounds raised in appeal, matter remanded : Fuji Electric (I) P. Ltd. v. Commissioner of Customs (Trib.-Mum) p. 179
| COMPANY LAW INSTITUTE OF INDIA PVT. LTD. No. 2, Vaithyaram Street, T.Nagar, Chennai - 600017. Phone: (044) 24350752 - 55 Fax: (044) 24322015 info@cliofindia.com |
INCOME TAX REPORTS (ITR)--PRINT AND ONLINE EDITION
Infrastructure development --Special deduction--Condition precedent--Development of infrastructure facility and deriving of income from such facility--Meaning of infrastructure--Assessee engaged in advertising--Agreement with local authority to construct bus shelters, erect lamp posts and beautify road medians--Income derived from advertisement hoardings on such structure--No development of infrastructure facility and no income derived therefrom--Assessee not entitled to special deduction--Income-tax Act, 1961, s. 80-IA-- CIT v. Skyline Advertising P. Ltd. (Karn) . . . 1
Appeal to Appellate Tribunal --Duty of Tribunal--Appeal should not be disposed of in a light hearted or casual manner--Issue withdrawing deduction in relation to standard assets--Tribunal merely following previous orders and upholding order of Commissioner--Not justified--Tribunal directed to rehear appeal on merits--Income-tax Act, 1961, s. 254(2)-- State Bank of India v. Deputy CIT (Bom) . . . 438
----Opportunity of hearing--Request by assessee by letter for adjournment--Record not showing whether assessee put on notice about the date of hearing--Tribunal ought not to have heard appeals ex parte--To dispose of appeals afresh--Income-tax (Appellate Tribunal) Rules, 1963, r. 25--Income-tax Act, 1961, s. 24(1)(x)-- Ananda Nilayam v. ITO (T & AP) . . . 370
Appeal to Commissioner (Appeals) --Powers of Commissioner (Appeals)--Power to admit additional evidence--Evidence of third parties summoned under sections 131 and 133--Assessing Officer not given opportunity to rebut evidence--Order of Commissioner (Appeals) relying on such evidence--Not valid--Order of Tribunal upholding order of Commissioner (Appeals)--Not valid--Income-tax Act, 1961--Income-tax Rules, 1962, r. 46A-- CIT v. Trimline Vyapaar P. Ltd. (Cal) . . . 373
Business expenditure --Disallowance--Payments subject to deduction of tax at source--Bank providing swiping machine to assessee--Amount punched in swiping machine credited to account of retailer by bank--Bank providing banking services in form of payment and subsequently collecting payment--Bank does not render any service in the nature of agency--Bank not concerned with buying or selling of goods--Disallowance under section 40(a)(ia) not warranted--Principle of doubtful penalisation is applicable and has to be applied strictly--Income-tax Act, 1961, ss. 40(a)(ia), 194H-- CIT v. JDS Apparels P. Ltd. (Delhi) . . . 454
Capital gains --Long-term capital gains--Cost of acquisition--Acquisition of additional floor space index/transferable development right under Development Control Rules--No cost of acquisition incurred in respect of development right--Not a case of sale of development right already embedded in land acquired and owned by assessee--Transfer of transferable development right under a document in favour purchaser--Does not result in capital gains assessable to tax--Income-tax Act, 1961, s. 55(2)-- CIT v. Sambhaji Nagar Co-op. Hsg. Society Ltd. (Bom) . . . 325
Charitable institution --Exemption--Continuation of grant of exemption--Effect of insertion of fourteenth proviso to section 10(23C)(via)--Application after 1-6-2006, to be made during previous year relevant to assessment year--Proviso not applicable to previous year which had already expired before introduction of proviso--Income-tax Act, 1961, s. 10(23C)(via), fourteenth proviso-- Marthoma Medical Mission v. Chief CIT (Ker) . . . 418
Company --Book profits--Computation--Law applicable--Effect of amendment with effect from 1-4-1998--Provision for bad and doubtful debts not deductible from book profits for assessment year 1998-99--Income-tax Act, 1961, s. 115JA-- CIT v. Tamil Nadu Small Industries Development Corporation Ltd. (Mad) . . . 449
Depreciation --Actual cost--Fixed assets--Acquisition of entire business including assets and liabilities for a lump sum amount--Valuation of buildings, boundary wall and other plant and machinery as on date of sale done by surveyor relied on by assessee and seller--Determination of actual cost of depreciable assets on basis of valuation report justified--Income-tax Act, 1961-- DE NORA India Ltd. v. CIT (Delhi) . . . 391
Exemption --Mutuality--Co-operative housing society--Bye-laws of society in consonance with Government resolution--Building heavy repair fund--Contribution made to fund--Not transfer fees--Principle of mutuality applicable--Not liable to tax--Income-tax Act, 1961-- CIT v. Darbhanga Mansion CHS Ltd. (Bom) . . . 443
Export --Computer software--Hundred per cent. export-oriented undertaking--Exemption--Conditions precedent--Certificate of approval by STPI--Approval from STPI after end of previous year relevant to assessment year--Question of granting exemption does not arise--Circular No. 1 of 2005, dated 6-1-2005--Industries (Development and Regulation) Act, 1951, s. 14--Income-tax Act, 1961, s. 10B-- CIT v. Live Connection Software Solutions P. Ltd. (Mad) . . . 356
----Special deduction--Business income--Income from other sources--Term deposit placed with bank as condition for availing of credit facility--Deposit for purpose of business--Interest earned from such deposit--Business income--Failure to furnish document for purpose of availing of credit facility before Tribunal--Tribunal directed to consider document afresh--Income-tax Act, 1961, s. 80HHC-- Premier Enterprises v. Deputy CIT (Mad). . . 465
Housing project --Special deduction--Condition precedent--Filing of return on time--Condition mandatory--Income-tax Act, 1961, s. 80-IB(10)-- CIT v. Shelcon Properties P. Ltd. (Cal) . . . 305
Income --Accrual--Meaning of accrual--Property sold by Government undertaking--Consideration to be received in instalments along with interest--Accumulated interest credited to suspense account--No evidence that interest was not realisable--Interest had accrued to assessee--Income-tax Act, 1961-- U. P. Chalchitra Nigam Ltd. v. CIT (All) . . . 379
----Computation of income--Disallowance of expenditure on earning non-taxable income--Mode and method of computing disallowance--Voluntary disallowance--Sufficient funds for making investments in shares and mutual funds--No satisfaction recorded by Assessing Officer before making disallowance as to why voluntary disallowance made by assessee was unreasonable and unsatisfactory--Disallowance not justified--Income-tax Act, 1961, s. 14A-- CIT v. Taikisha Engineering India Ltd. (Delhi) . . . 338
Industrial undertaking --Special deduction--Claim by assessee that Central excise set-off was an export incentive--Assessee not entitled to special deduction in respect of Central excise set-off and sales tax set-off--Income-tax Act, 1961, s. 80-IA-- ADCI Dye Chem P. Ltd. v. Deputy CIT (Guj) . . . 408
----Special deduction--Computation--Manufacture of cold rolled strips--Interest on belated payment--Part of consideration and partakes of the character of price--Interest earned from trade debtors to be treated as profits derived from industrial undertaking--Entitled to deduction--Income-tax Act, 1961, s. 80HH-- CIT v. Surana Strips Ltd. (T & AP) . . . 469
----Special deduction--Manufacture of gold jewellery on job work basis--Job workers undertaking work under supervision and control of assessee and under assessee̢۪s directions--Constitutes manufacturing activity by assessee entitling to deduction--Income-tax Act, 1961, s. 80HHC(3)(a)-- CIT v. Harig India Ltd. (Delhi) . . . 424
Offences and prosecution --False verification in return--Complaint lodged after getting proper sanction--Conviction and sentence confirmed--Liberty to Department to consider application for compounding offence--Income-tax Act, 1961, ss. 276C, 277-- B. Gopi v. G. Thiyagarajan, ITO (Mad) . . . 353
Penalty --Concealment of income--Assessing Officer must record satisfaction during course of assessment proceedings whether or not penalty to be levied--Recording satisfaction in a particular manner or reduce it into writing--Not necessary--Income-tax Act, 1961, s. 271(1)(c)-- CIT v. Lotus Constructions (T & AP) . . . 475
----Loans in cash exceeding prescribed limit--Finding that assessee had a reasonable explanation for such loans--Penalty could not be levied under sections 271D and 271E--Income-tax Act, 1961, ss. 269SS, 269T, 271D, 271E-- CIT v. T. Perumal (Indl.) (Mad) . . . 313
----Self-assessment tax--Non-payment of admitted tax--Finding that assessee had no intention to evade tax and paid entire tax--Reduction of quantum of penalty to twenty-five per cent.--Justified--Income-tax Act, 1961, s. 140A(3)-- CIT v. Naresh Kumar Jaggi (Delhi) . . . 401
Precedent --Effect of decision of Supreme Court in Liberty India v. CIT [2009] 317 ITR 218-- ADCI Dye Chem P. Ltd. v. Deputy CIT (Guj) . . . 408
----Effect of Supreme Court decision in CIT v. Excel Industries [2013] 358 ITR 295-- U. P. Chalchitra Nigam Ltd. v. CIT (All) . . . 379
Reassessment --Notice after four years--Validity--Failure to disclose material facts necessary for assessment--Interest payments allowed after enquiry in original assessment--Reassessment proceedings after four years on ground that rate of interest on part of borrowings was excessive--No failure to disclose material facts--Reassessment proceedings not valid--Income-tax Act, 1961, ss. 147, 148-- CIT v. Asian Tubes Ltd. (Guj) . . . 414
Revision --Commissioner--Powers--Order prejudicial to Revenue--Recording of satisfaction before issuing notice--Commissioner signing on order-sheet for putting up draft notice under section 263 as well as issuing notice--Sufficient compliance in the matter of calling for, examining records of assessment to consider necessity of issuing notice--Notice valid--Income-tax Act, 1961, s. 263-- Zigma Commodities Pvt. Ltd v. ITO (Cal) . . . 318
Search and seizure --Unexplained investment--Excess gold jewellery--No explanation offered--Instruction relating to seizure of jewellery and ornaments in course of search--Does not state that it should not be treated as unexplained investment in jewellery--Inclusion of excess jewellery other than found in wealth-tax assessment--Justified--Income-tax Act, 1961 s. 153-- V. G. P. Ravidas v. Asst. CIT (Mad) . . . 364
S. 10(23C)(via), fourteenth proviso --Charitable institution--Exemption--Continuation of grant of exemption--Effect of insertion of fourteenth proviso to section 10(23C)(via)--Application after 1-6-2006, to be made during previous year relevant to assessment year--Proviso not applicable to previous year which had already expired before introduction of proviso-- Marthoma Medical Mission v. Chief CIT (Ker) . . . 418
S. 10B --Export--Computer software--Hundred per cent. export-oriented undertaking--Exemption--Conditions precedent--Certificate of approval by STPI--Approval from STPI after end of previous year relevant to assessment year--Question of granting exemption does not arise--Circular No. 1 of 2005, dated 6-1-2005-- CIT v. Live Connection Software Solutions P. Ltd. (Mad) . . . 356
S. 14A --Income--Computation of income--Disallowance of expenditure on earning non-taxable income--Mode and method of computing disallowance--Voluntary disallowance--Sufficient funds for making investments in shares and mutual funds--No satisfaction recorded by Assessing Officer before making disallowance as to why voluntary disallowance made by assessee was unreasonable and unsatisfactory--Disallowance not justified-- CIT v. Taikisha Engineering India Ltd. (Delhi) . . . 338
S. 24(1)(x) --Appeal to Appellate Tribunal--Opportunity of hearing--Request by assessee by letter for adjournment--Record not showing whether assessee put on notice about the date of hearing--Tribunal ought not to have heard appeals ex parte--To dispose of appeals afresh-- Ananda Nilayam v. ITO (T & AP) . . . 370
S. 40(a)(ia) --Business expenditure--Disallowance--Payments subject to deduction of tax at source--Bank providing swiping machine to assessee--Amount punched in swiping machine credited to account of retailer by bank--Bank providing banking services in form of payment and subsequently collecting payment--Bank does not render any service in the nature of agency--Bank not concerned with buying or selling of goods--Disallowance under section 40(a)(ia) not warranted--Principle of doubtful penalisation is applicable and has to be applied strictly-- CIT v. JDS Apparels P. Ltd. (Delhi) . . . 454
S. 55(2) --Capital gains--Long-term capital gains--Cost of acquisition--Acquisition of additional floor space index/transferable development right under Development Control Rules--No cost of acquisition incurred in respect of development right--Not a case of sale of development right already embedded in land acquired and owned by assessee--Transfer of transferable development right under a document in favour purchaser--Does not result in capital gains assessable to tax-- CIT v. Sambhaji Nagar Co-op. Hsg. Society Ltd. (Bom) . . . 325
S. 80HH --Industrial undertaking--Special deduction--Computation--Manufacture of cold rolled strips--Interest on belated payment--Part of consideration and partakes of the character of price--Interest earned from trade debtors to be treated as profits derived from industrial undertaking--Entitled to deduction-- CIT v. Surana Strips Ltd. (T & AP) . . . 469
S. 80HHC --Export--Special deduction--Business income--Income from other sources--Term deposit placed with bank as condition for availing of credit facility--Deposit for purpose of business--Interest earned from such deposit--Business income--Failure to furnish document for purpose of availing of credit facility before Tribunal--Tribunal directed to consider document afresh-- Premier Enterprises v. Deputy CIT (Mad). . . 465
S. 80HHC(3)(a) --Industrial undertaking--Special deduction--Manufacture of gold jewellery on job work basis--Job workers undertaking work under supervision and control of assessee and under assessee̢۪s directions--Constitutes manufacturing activity by assessee entitling to deduction-- CIT v. Harig India Ltd. (Delhi) . . . 424
S. 80-IA --Industrial undertaking--Special deduction--Claim by assessee that Central excise set-off was an export incentive--Assessee not entitled to special deduction in respect of Central excise set-off and sales tax set-off-- ADCI Dye Chem P. Ltd. v. Deputy CIT (Guj) . . . 408
S. 80-IB(10) --Housing project--Special deduction--Condition precedent--Filing of return on time--Condition mandatory-- CIT v. Shelcon Properties P. Ltd. (Cal) . . . 305
S. 115JA --Company--Book profits--Computation--Law applicable--Effect of amendment with effect from 1-4-1998--Provision for bad and doubtful debts not deductible from book profits for assessment year 1998-99-- CIT v. Tamil Nadu Small Industries Development Corporation Ltd. (Mad) . . . 449
S. 140A(3) --Penalty--Self-assessment tax--Non-payment of admitted tax--Finding that assessee had no intention to evade tax and paid entire tax--Reduction of quantum of penalty to twenty-five per cent.--Justified-- CIT v. Naresh Kumar Jaggi (Delhi) . . . 401
S. 147 --Reassessment--Notice after four years--Validity--Failure to disclose material facts necessary for assessment--Interest payments allowed after enquiry in original assessment--Reassessment proceedings after four years on ground that rate of interest on part of borrowings was excessive--No failure to disclose material facts--Reassessment proceedings not valid-- CIT v. Asian Tubes Ltd. (Guj) . . . 414
S. 148 --Reassessment--Notice after four years--Validity--Failure to disclose material facts necessary for assessment--Interest payments allowed after enquiry in original assessment--Reassessment proceedings after four years on ground that rate of interest on part of borrowings was excessive--No failure to disclose material facts--Reassessment proceedings not valid-- CIT v. Asian Tubes Ltd. (Guj) . . . 414
S. 153 --Search and seizure--Unexplained investment--Excess gold jewellery--No explanation offered--Instruction relating to seizure of jewellery and ornaments in course of search--Does not state that it should not be treated as unexplained investment in jewellery--Inclusion of excess jewellery other than found in wealth-tax assessment--Justified-- V. G. P. Ravidas v. Asst. CIT (Mad) . . . 364
S. 194H --Business expenditure--Disallowance--Payments subject to deduction of tax at source--Bank providing swiping machine to assessee--Amount punched in swiping machine credited to account of retailer by bank--Bank providing banking services in form of payment and subsequently collecting payment--Bank does not render any service in the nature of agency--Bank not concerned with buying or selling of goods--Disallowance under section 40(a)(ia) not warranted--Principle of doubtful penalisation is applicable and has to be applied strictly-- CIT v. JDS Apparels P. Ltd. (Delhi) . . . 454
S. 254(2) --Appeal to Appellate Tribunal--Duty of Tribunal--Appeal should not be disposed of in a light hearted or casual manner--Issue withdrawing deduction in relation to standard assets--Tribunal merely following previous orders and upholding order of Commissioner--Not justified--Tribunal directed to rehear appeal on merits-- State Bank of India v. Deputy CIT (Bom) . . . 438
S. 263 --Revision--Commissioner--Powers--Order prejudicial to Revenue--Recording of satisfaction before issuing notice--Commissioner signing on order-sheet for putting up draft notice under section 263 as well as issuing notice--Sufficient compliance in the matter of calling for, examining records of assessment to consider necessity of issuing notice--Notice valid-- Zigma Commodities Pvt. Ltd v. ITO (Cal) . . . 318
S. 269SS --Penalty--Loans in cash exceeding prescribed limit--Finding that assessee had a reasonable explanation for such loans--Penalty could not be levied under sections 271D and 271E-- CIT v. T. Perumal (Indl.) (Mad) . . . 313
S. 269T --Penalty--Loans in cash exceeding prescribed limit--Finding that assessee had a reasonable explanation for such loans--Penalty could not be levied under sections 271D and 271E-- CIT v. T. Perumal (Indl.) (Mad) . . . 313
S. 271(1)(c) --Penalty--Concealment of income--Assessing Officer must record satisfaction during course of assessment proceedings whether or not penalty to be levied--Recording satisfaction in a particular manner or reduce it into writing--Not necessary-- CIT v. Lotus Constructions (T & AP) . . . 475
S. 271D --Penalty--Loans in cash exceeding prescribed limit--Finding that assessee had a reasonable explanation for such loans--Penalty could not be levied under sections 271D and 271E-- CIT v. T. Perumal (Indl.) (Mad) . . . 313
S. 271E --Penalty--Loans in cash exceeding prescribed limit--Finding that assessee had a reasonable explanation for such loans--Penalty could not be levied under sections 271D and 271E-- CIT v. T. Perumal (Indl.) (Mad) . . . 313
S. 276C --Offences and prosecution--False verification in return--Complaint lodged after getting proper sanction--Conviction and sentence confirmed--Liberty to Department to consider application for compounding offence-- B. Gopi v. G. Thiyagarajan, ITO (Mad) . . . 353
S. 277 --Offences and prosecution--False verification in return--Complaint lodged after getting proper sanction--Conviction and sentence confirmed--Liberty to Department to consider application for compounding offence-- B. Gopi v. G. Thiyagarajan, ITO (Mad) . . . 353
S. 14 --Export--Computer software--Hundred per cent. export-oriented undertaking--Exemption--Conditions precedent--Certificate of approval by STPI--Approval from STPI after end of previous year relevant to assessment year--Question of granting exemption does not arise--Circular No. 1 of 2005, dated 6-1-2005-- CIT v. Live Connection Software Solutions P. Ltd. (Mad) . . . 356
R. 25 --Appeal to Appellate Tribunal--Opportunity of hearing--Request by assessee by letter for adjournment--Record not showing whether assessee put on notice about the date of hearing--Tribunal ought not to have heard appeals ex parte--To dispose of appeals afresh-- Ananda Nilayam v. ITO (T & AP) . . . 370
R. 46A --Appeal to Commissioner (Appeals)--Powers of Commissioner (Appeals)--Power to admit additional evidence--Evidence of third parties summoned under sections 131 and 133--Assessing Officer not given opportunity to rebut evidence--Order of Commissioner (Appeals) relying on such evidence--Not valid--Order of Tribunal upholding order of Commissioner (Appeals)--Not valid-- CIT v. Trimline Vyapaar P. Ltd. (Cal) . . . 373
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