INCOME TAX REPORTS (ITR)--PRINT AND ONLINE EDITION
Income or capital --Assessee running financial schemes--Funds deposited with assessee by depositors to earn interest--Constitute capital receipt-- CIT v. Sahara Investments India Ltd. . . . 140
Purchase of immovable property by Central Government --Condition precedent--Understatement of apparent consideration by more than 15 per cent. of market value--Dissimilarities between sale instance property and property under consideration--Finding that sale instance property could not have been made basis for calculation for arriving at finding of undervaluation--Findings of fact--Supreme Court--No interference--Income-tax Act, 1961, s. 269UD-- Union of India v. Vishnu Maruti Ghosale . . . 144
Royalty --Special deduction--Royalty or fees received in foreign exchange--Special deduction under section 80-O--Special deduction to be computed with reference to net income and not gross income--Income-tax Act, 1961, s. 80-O-- S. R. Grover (Decd.) v. Asst. CIT . . . 146
Capital gains --Exemption--Condition precedent--Utilisation of capital gains in purchase of land, building, plant and machinery--Advances given for purchase of these assets--Amounts to “utilisation†of capital gains for specified purpose--Assessee entitled to exemption--Income-tax Act, 1961, s. 54G-- Fibre Boards (P.) Ltd. v. CIT . . . 596
----Exemption--Transfer of unit from urban area to non-urban area--Omission of section 280ZA and introduction of section 54G with effect from same date--Provisions substantially the same--Notification of urban area under erstwhile provision continues to have effect--Income-tax Act, 1961, ss. 54G, 280Y(d), 280ZA--General Clauses Act, 1897, ss. 6, 6A, 24--Notification dated 22-9-1967-- Fibre Boards (P.) Ltd. v. CIT . . . 596
Repeal --Includes implied repeal--Omission of provision and enactment of another substantially similar provision--Intention to continue subordinate legislation under erstwhile provision--General Clauses Act, 1897, ss. 6, 6A, 24-- Fibre Boards (P.) Ltd. v. CIT . . . 596
Business expenditure --Disallowance--Payments liable to deduction of tax at source--Non-resident--Shipping company--Tax not deductible at source on overseas freight--Payment not to be disallowed--Income-tax Act, 1961, ss. 40(a)(ia), 172, 194, 194C-- Principal CIT v. India Gelatine and Chemicals Ltd. (Guj) . . . 553
Capital or revenue expenditure --Research and testing components--Development charges--Not a one-time event--Revenue expenditure--Income-tax Act, 1961-- CIT v. JCB India Ltd. (Delhi) . . . 621
Income --Interest on borrowed capital--Disallowance under section 14A--Finding that assessee had sufficient interest-free funds out of which concerned investments had been made--Disallowance under section 14A not justified--Income-tax Act, 1961, s. 14A-- Principal CIT v. India Gelatine and Chemicals Ltd. (Guj) . . . 553
Loss --Business loss--Loss claimed on purchase and sale of shares--Transactions of purchase and sale found to be bogus--Loss not allowable--Income-tax Act, 1961-- CIT v. Vishishth Chay Vyapar Ltd. (Delhi) . . . 576
----Set off--Assessee not completely disclosed stock in books of account--Case of assessee would fall under section 69B--Set off of undisclosed stocks against loss--Permissible--No penalty could be imposed on assessee--Income-tax Act, 1961, ss. 69B, 69C, 71-- Krishnamegh Yarn Industries v. Asst. CIT (Guj) . . . 561
Non-resident --Assessment--Computation of income--Mineral oils--Presumptive tax--Special provision--Scope of section 44BB --Amounts received outside India to be taken into account--Income-tax Act, 1961, s. 44BB-- Fugro Geoteam AS v. Addl. DIT, International Taxation (Uttarakhand) . . . 529
Penalty --Concealment of income--General principles--Difference between assessment proceedings and penalty proceedings--Claim for special deduction--Facts relating to claim furnished--No finding in assessment proceedings that assessee’s claim was a bogus claim--Penalty could not be levied--Income-tax Act, 1961, s. 271(1)(c)-- Rave Entertainment Pvt. Ltd. v. CIT (All) . . . 544
Reassessment --Notice after four years--Conditions precedent--Escapement of income must be occasioned by failure by assessee to disclose fully and truly all material facts--Claim to depreciation considered and granted in original assessment--Reassessment on ground assessee not entitled to additional depreciation--No new material--Change of opinion--Reopening of assessment not permissible--Income-tax Act, 1961, ss. 147, 148-- Paladiya Brothers and Co. v. Asst. CIT (Guj) . . . 567
Search and seizure --Block assessment--Undisclosed income--Peak credit of earlier year to be taken into account in determining income of subsequent year--Income-tax Act, 1961, s. 158BC-- CIT v. Saraf Trading Co. (All) . . . 534
S. 6 --Capital gains--Exemption--Transfer of unit from urban area to non-urban area--Omission of section 280ZA and introduction of section 54G with effect from same date--Provisions substantially the same--Notification of urban area under erstwhile provision continues to have effect-- Fibre Boards (P.) Ltd. v. CIT (SC). . . 596
----Repeal--Includes implied repeal--Omission of provision and enactment of another substantially similar provision--Intention to continue subordinate legislation under erstwhile provision-- Fibre Boards (P.) Ltd. v. CIT (SC). . . 596
S. 6A --Capital gains--Exemption--Transfer of unit from urban area to non-urban area--Omission of section 280ZA and introduction of section 54G with effect from same date--Provisions substantially the same--Notification of urban area under erstwhile provision continues to have effect-- Fibre Boards (P.) Ltd. v. CIT (SC). . . 596
----Repeal--Includes implied repeal--Omission of provision and enactment of another substantially similar provision--Intention to continue subordinate legislation under erstwhile provision-- Fibre Boards (P.) Ltd. v. CIT (SC). . . 596
S. 24 --Capital gains--Exemption--Transfer of unit from urban area to non-urban area--Omission of section 280ZA and introduction of section 54G with effect from same date--Provisions substantially the same--Notification of urban area under erstwhile provision continues to have effect-- Fibre Boards (P.) Ltd. v. CIT (SC). . . 596
----Repeal--Includes implied repeal--Omission of provision and enactment of another substantially similar provision--Intention to continue subordinate legislation under erstwhile provision-- Fibre Boards (P.) Ltd. v. CIT (SC). . . 596
S. 14A --Income--Interest on borrowed capital--Disallowance under section 14A--Finding that assessee had sufficient interest-free funds out of which concerned investments had been made--Disallowance under section 14A not justified-- Principal CIT v. India Gelatine and Chemicals Ltd. (Guj) . . . 553
S. 40(a)(ia) --Business expenditure--Disallowance--Payments liable to deduction of tax at source--Non-resident--Shipping company--Tax not deductible at source on overseas freight--Payment not to be disallowed-- Principal CIT v. India Gelatine and Chemicals Ltd. (Guj) . . . 553
S. 44BB --Non-resident--Assessment--Computation of income--Mineral oils--Presumptive tax--Special provision--Scope of section 44BB --Amounts received outside India to be taken into account-- Fugro Geoteam AS v. Addl. DIT, International Taxation (Uttarakhand) . . . 529
S. 54G --Capital gains--Exemption--Condition precedent--Utilisation of capital gains in purchase of land, building, plant and machinery--Advances given for purchase of these assets--Amounts to “utilisation†of capital gains for specified purpose--Assessee entitled to exemption-- Fibre Boards (P.) Ltd. v. CIT (SC). . . 596
----Capital gains--Exemption--Transfer of unit from urban area to non-urban area--Omission of section 280ZA and introduction of section 54G with effect from same date--Provisions substantially the same--Notification of urban area under erstwhile provision continues to have effect-- Fibre Boards (P.) Ltd. v. CIT (SC). . . 596
S. 69B --Loss--Set off--Assessee not completely disclosed stock in books of account--Case of assessee would fall under section 69B--Set off of undisclosed stocks against loss--Permissible--No penalty could be imposed on assessee-- Krishnamegh Yarn Industries v. Asst. CIT (Guj) . . . 561
S. 69C --Loss--Set off--Assessee not completely disclosed stock in books of account--Case of assessee would fall under section 69B--Set off of undisclosed stocks against loss--Permissible--No penalty could be imposed on assessee-- Krishnamegh Yarn Industries v. Asst. CIT (Guj) . . . 561
S. 71 --Loss--Set off--Assessee not completely disclosed stock in books of account--Case of assessee would fall under section 69B--Set off of undisclosed stocks against loss--Permissible--No penalty could be imposed on assessee-- Krishnamegh Yarn Industries v. Asst. CIT (Guj) . . . 561
S. 147 --Reassessment--Notice after four years--Conditions precedent--Escapement of income must be occasioned by failure by assessee to disclose fully and truly all material facts--Claim to depreciation considered and granted in original assessment--Reassessment on ground assessee not entitled to additional depreciation--No new material--Change of opinion--Reopening of assessment not permissible-- Paladiya Brothers and Co. v. Asst. CIT (Guj) . . . 567
S. 148 --Reassessment--Notice after four years--Conditions precedent--Escapement of income must be occasioned by failure by assessee to disclose fully and truly all material facts--Claim to depreciation considered and granted in original assessment--Reassessment on ground assessee not entitled to additional depreciation--No new material--Change of opinion--Reopening of assessment not permissible-- Paladiya Brothers and Co. v. Asst. CIT (Guj) . . . 567
S. 158BC --Search and seizure--Block assessment--Undisclosed income--Peak credit of earlier year to be taken into account in determining income of subsequent year-- CIT v. Saraf Trading Co. (All) . . . 534
S. 172 --Business expenditure--Disallowance--Payments liable to deduction of tax at source--Non-resident--Shipping company--Tax not deductible at source on overseas freight--Payment not to be disallowed-- Principal CIT v. India Gelatine and Chemicals Ltd. (Guj) . . . 553
S. 194 --Business expenditure--Disallowance--Payments liable to deduction of tax at source--Non-resident--Shipping company--Tax not deductible at source on overseas freight--Payment not to be disallowed-- Principal CIT v. India Gelatine and Chemicals Ltd. (Guj) . . . 553
S. 194C --Business expenditure--Disallowance--Payments liable to deduction of tax at source--Non-resident--Shipping company--Tax not deductible at source on overseas freight--Payment not to be disallowed-- Principal CIT v. India Gelatine and Chemicals Ltd. (Guj) . . . 553
S. 271(1)(c) --Penalty--Concealment of income--General principles--Difference between assessment proceedings and penalty proceedings--Claim for special deduction--Facts relating to claim furnished--No finding in assessment proceedings that assessee’s claim was a bogus claim--Penalty could not be levied-- Rave Entertainment Pvt. Ltd. v. CIT (All) . . . 544
S. 280Y(d) --Capital gains--Exemption--Transfer of unit from urban area to non-urban area--Omission of section 280ZA and introduction of section 54G with effect from same date--Provisions substantially the same--Notification of urban area under erstwhile provision continues to have effect-- Fibre Boards (P.) Ltd. v. CIT (SC). . . 596
S. 280ZA --Capital gains--Exemption--Transfer of unit from urban area to non-urban area--Omission of section 280ZA and introduction of section 54G with effect from same date--Provisions substantially the same--Notification of urban area under erstwhile provision continues to have effect-- Fibre Boards (P.) Ltd. v. CIT (SC). . . 596
COMPANY CASES (CC) HIGHLIGHTS
F Where sale of property without proper publicity or fixing minimum reserve price, auction process vitiated and set aside : Tech Invest India P. Ltd. v. Assam Power and Electricals Ltd. p. 69
F Delay in filing appeal can be condoned by DRAT under proviso to section 20(3) of 1993 Act read with section 18(2) of 2002 Act : Baleshwar Dayal Jaiswal v. Bank of India p. 74
F SFC not to be required to prove debt which it is entitled to realise under 1951 Act : Laxmi Fibres Ltd. v. Andhra Pradesh Industrial Development Corporation Ltd. p. 84
F Where issue of payment of gratuity to exiting director, not to be taken before authorities under 1972 Act but for enforcement before CLB within jurisdiction of Board : Ramchandar's Coaching Institute P. Ltd. v. Rakesh Ramchandar Nanda (Bom) p. 1
F Where company unable to pay its liability, petition for winding up admitted : BlueOrchard Microfinance Fund v. Share Microfin Ltd. (T & AP) p. 9
F No power in court to condone delay beyond period specified u/s. 10F of 1956 Act : Kabul Chawla v. CPI India Real Estate Ventures Ltd. (P & H) p. 44
F Where petitioner failed to prove that company was insolvent in the commercial sense, petition dismissed : Soni Gulati and Co. v. JHS Svendgaard Laboratories Ltd. (HP) p. 53
F Where shareholders failing to seek relief in earlier petition filed and despite knowledge that certain shares not shown in their name, no relief granted : Arvind Mohan Johari v. Carlton Hotels P. Ltd. p. 90
F Where company not appropriating call money from shareholder's money already lying with it, forfeiture of shares invalid : Arvind Mohan Johari v. Carlton Hotels P. Ltd. p. 90
F For an effective bankruptcy code-T. C. A. Ramanujam and T. C. A. Sangeetha p. 1
F Incorporation on non-trading companies under Companies Act, 2013-A. M. Sridharan p. 7
F Powers of writ court cannot be delayed to Tribunals-Dr. Mahesh Thakar and Ms. Jyotmala Thakar p. 14
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