Friday, December 18, 2009

INCOME TAX REPORTS (ITR) HIGHLIGHTS ISSUE DATED 21-12-2009 Volume 319 : Part 4 HIGH COURT JUDGMENTS Block assessment : No discrepancy or omission found in accounts warranting their rejection : Addition on basis of discrepancy in stocks worked out on

INCOME TAX REPORTS (ITR) HIGHLIGHTS

ISSUE DATED 21-12-2009

Volume 319 : Part 4

 

 

HIGH COURT JUDGMENTS


àBlock assessment : No discrepancy or omission found in accounts warranting their rejection : Addition on basis of discrepancy in stocks worked out on estimate basis not permissible : CIT v. Utkal Alloys Ltd. (Orissa) p. 339


àAdvance tax on salary paid by non-resident : Grossing up of tax liability u/s 195A not justified : CIT v. Tadashi Murakami (Delhi) p. 347

 

à Search in residence-cum-clinic of doctor : Documents disclosing receipt of illegal money by sharing fee of doctors and x-ray clinics : Additions justified : Dr. Mrs. Shanti Roy v. Chief CIT (Patna) p. 350

àAssessee conceding before Tribunal that minimum penalty be imposed : Penalty imposed justified : Dr. Mrs. Shanti Roy v. Chief CIT (Patna) p. 350

àDelivery of assets by assessee to lessee before September 30, 1996 o-->previous year : Assessee entitled to full depreciation : CIT v. UTI Bank Ltd. (Guj) p. 357

àAppeal to Appellate Tribunal : Mere upholding of finding of Commissioner (Appeals) is not sufficient : K. D. Wires P. Ltd. v. Union of India (MP) p. 359

àTrust deed empowering trust to start educational agencies for earning income to achieve aims and objects of trust : Surplus transferred to trust and utilised in purchase of land and construction of building : Valid trust : CIT v. Brihdaranyak Mandal (Trust) (All) p. 363

àHigh Court has no power to condone delay in filing appeal : CIT v. Williamson Tea (Assam) Ltd. (Gauhati) p. 368

àAssessee filing appeal before Tribunal and requesting deferment of penalty proceedings cannot plead that levy of penalty barred by limitation : Dewan Engineering Works v. CIT (P & H) p. 375

àConsultancy fees not deductible u/s 37 : Emmpac Holdings P. Ltd. v. CIT (Delhi) p. 379

àMaximum amount of penalty u/s 272A(2) not to exceed amount of tax deductible : CIT v. Jain Colonizers P. Ltd. (All) p. 383

àAssessment order of subsequent year could form basis for reassessment : Tilak Raj Bedi v. Joint CIT (P & H) p. 385

àHigh Court has no power to review substantively : CIT v. West Coast Paper Mills Ltd. (Bom) p. 390

àInvestment not confirmed by some applicants : Not undisclosed income of assessee : Asst. CIT v. Venkateshwar Ispat P. Ltd. (Chhattisgarh) p. 393

àGoods purchased but not entered in stock register : Explanation that son of assessee looking after assessee's business was out of station in connection with treatment of his mother : Commissioner (Appeals) and Tribunal accepting explanation : Finding of fact : CIT v. Satyanaryan Agrawal (Chhattisgarh) p. 396

àCBDT the prescribed authority to grant approval u/s 10(23C)(vi) for AYs 1999-2000 and 2000-01 : Cancellation of approval by Director General not valid : Maharashtra Academy of Engineering and Educational Research v. Director General of Income-tax (Investigation) (Bom) p. 399

àFirm claiming that out of borrowings from firm, partner acquiring land in his personal name but for business of firm : Firm given opportunity to prove its case : CIT v. Anugraha Builders (Ker) p. 407

àFailure to deduct tax at source : AO to reconsider matter in the light of SC decision : Children's Education Society v. Deputy CIT (TDS) p. 409

àLoans and interest thereon not includible in total income of assessee where there is a finding by Tribunal that loans were genuine and in the form account payee cheques : CIT v. Smt. Sushila Devi Khadaria (Bom) p. 413

àInterest on capital borrowed for investment in shares deductible u/s 57(iii) : CIT v. Smt. Sushila Devi Khadaria (Bom) p. 413

àExpenditure related to exempted income not deductible : Pradeep Kar v. Asst. CIT (Karn) p. 416

àForeign technician : Status as non-resident for years before entry into India : Exemption available for forty-eight months : CIT v. J. G. Lovoie (Karn) p. 419

àTrust not entitled to exemption where Tribunal finding managing trustee personally utilised income of trust : CIT v. Sir M. Visveswaraya Educational Trust (Kar) p. 425

àAppeals pending from assessment of public sector company which had large resources : Rejection of application for stay of recovery proceedings without giving reasons not valid : Tamil Nadu State Transport Corporation (Kumbakonam) Ltd. v. Chief CIT (Mad) p. 430

àNo finding that company had accumulated profits : Loan to shareholder not assessable as deemed dividend : CIT v. Nitin Shantilal Parikh (Guj) p. 437

àSubsidy received to encourage hotel industry in State not liable to tax : CIT v. Udupi Builders P. Ltd. (Karn) p. 440

àTransfer of right to exhibit films outside India : Assessee entitled to deduction u/s 80HHC : CIT v R. K Exports (Mad) p. 442

àOriginal assessment granting exemption : Notice after four years to withdraw exemption not valid : Nikhil K. Kotak v. Mahesh Kumar (Guj) p. 445

APPELLATE TRIBUNAL ORDERS


àRemuneration from foreign enterprise : Only on receipts brought into India in foreign exchange : Vikram Tannan v. ITO (Mumbai) p. 407

àCredit for tax deducted at source in foreign country allowable to extent of tax paid in foreign country but restricted to tax payable in India : Vikram Tannan v. ITO (Mumbai) p. 407

àRecovery of tax : Interest to be reckoned from date of original assessment order : Deputy CIT v. A. S. Krishna and Co. Ltd. (Visakhapatnam) p. 414

àAssets and income of trust used for poverty alleviation and benefit of socio-economically weaker sections : Assessee entitled to exemption : Asst. Director of Income-tax (Exemption) v. Bharatha Swamukti Samsthe (Bangalore) p. 422

àFinding that rural and urban poor women benefiting from trust's funding activities : Assessee entitled to registration : Asst. Director of Income-tax (Exemption) v. Bharatha Swamukti Samsthe (Bangalore) p. 422

àNo material to show that assessee received amount in cash as a deposit or loan : No violation of s 269SS : Hamarashehar Co. P. Ltd. v. Addl. CIT (Hyderabad) p. 437

STATUTES


àC. B. D. T. Circulars :

Remittances to non-residents under section 195 of the Income-tax Act, 1961-Remittances of consular receipts-Clarification reg. : Circular No. 9 of 2009, dated 30th November, 2009
p. 65

àNotifications :

Notifications under section 35AC(1) Expln., clause (b) : Eligible projects or schemes
p. 66

Notifications under section 35(1)(ii) : Scientific research association/Institution notified by the Central Government for the purpose of section 35(1)(ii)
p. 74

 



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