Wednesday, August 18, 2010

ITR :- Volume 326 : Part 2 (Issue dated 23-8-2010)

NCOME TAX REPORTS (ITR)

Volume 326 : Part 2 (Issue dated 23-8-2010)

SUBJECT INDEX TO CASES REPORTED IN THIS PART

HIGH COURTS

Accounting --Rejection of accounts giving several reasons--Commissioner (Appeals) holding that accounts could not be rejected--Tribunal not justified in confirming the order of Commissioner (Appeals) without considering material on record--Matter remanded--Income-tax Act, 1961-- CIT v. T. M. Kuruvilla (Ker) . . . 210

Appeal to Appellate Tribunal --Judicial discipline--Decision made on identical factual situation--Coordinate Bench cannot take a contrary view--Remedy is to make a reference to President of Tribunal under section 255(3)--Income-tax Act, 1961, s. 255(3)--Affection Investments Ltd . v. Asst. CIT (Guj) . . . 255

Appeal to High Court --Competency of appeal--Tax less than prescribed monetary limit and issue involved not falling within exception under CBDT circular--Appeal by Department dismissed--Income-tax Act, 1961, s. 260A--CBDT circular F. No. 279/126/98-IT dated 27-3-2000-- CIT v. G. Chandra (Mad) . . . 336

----Export--Special deduction--Net loss from export of goods--Assessee not entitled to deduction--Settled law--Assessee raising a question of law in appeal before Tribunal--Not entitled to raise question before court--Income-tax Act, 1961, ss. 80HHC, 260A--Asvini Fisheries P. Ltd. v. Deputy CIT (Mad) . . . 344

Assessment --Reference to valuation officer--Change of law with retrospective effect--Effect--Investment in construction of building--Commissioner (Appeals) remanding matter for examination of genuineness of cash credits--Reference to Departmental valuation officer--Reassessment proceedings initiated after receipt of valuation report--Assessing Officer entitled to refer valuation after completion of assessment--Impact of amendment with retrospective effect not considered--Matter remanded--Income-tax Act, 1961, ss. 142A, 147, 260A-- CIT v. Mrs. Achamma Chacko (Ker) . . . 258

Bad debts --Assessee writing off interest on money advanced to subsidiary company--Finding that advances irrecoverable bad debts and interest not charged due to commercial expediency--Findings of fact--Income-tax Act, 1961, s. 36(1)(vii)-- CIT v. V. Ramakrishna and Sons Ltd . (Mad) . . . 315

Business expenditure --Condition precedent for allowance--Company--Expenditure on performing puja--Not deductible--Income-tax Act, 1961, s. 37-- Hira Ferro Alloys Ltd. v. Deputy CIT (Assessment) (Chhattisgarh) . . . 261

----Expenditure on technical know-how--In-house research and development facility--Weighted deduction--Expenditure incurred on establishment of facility--Section not mentioning any cut-off date or particular date for eligibility to claim deduction--Tribunal granting weighted deduction for entire expenditure incurred--Proper--Income-tax Act, 1961, s. 35AB(2)-- CIT v. Claris Lifesciences Ltd . (Guj) . . . 251

Capital gains --Computation of capital gains--Sale of property to a Government concern--Valuation by stamp duty authorities higher than consideration received by assessee--Application for reference to valuation cell under section 50C--Assessment order adopting valuation of stamp duty authorities without waiting for valuation of valuation cell--Not valid--Indian Stamp Act, 1899, s. 47A--Income-tax Act, 1961, ss. 45, 50C, 153(3)(ii)-- N. Meenakshi v. Asst. CIT (Mad) . . . 229

----Loss--Long-term capital loss--Reduction in loss on account of increase in deemed sale consideration of properties by adopting stamp duty value--Assessee not availing of opportunity provided under sub-sections (2) and (3) of section 50C--Reduction in capital loss justified--Income-tax Act, 1961, s. 50C-- Ambattur Clothing Co. Ltd . v. Asst. CIT (Mad) . . . 245

Capital or revenue expenditure --Expenditure on allotment of shares to assessee in subsidiary company--No difference between share capital raised for capital expansion of company and for acquiring shares of a subsidiary company--In either case expenditure is for raising capital--Not entitled to deduction--Income-tax Act, 1961, s. 37-- G. T. N. Textiles Ltd . v. Deputy CIT(Ker) . . . 352

Charitable purposes --Registration--Exemption--Conditions precedent--Rejection on ground amended deed not produced--Amended deed not a pre-requisite condition--Matter remanded --Income-tax Act, 1961, s. 12A-- CIT v. R. M. S. Trust (Mad) . . . 310

Depreciation --Effect of third proviso to section 32(1)(ii)--Rate of deprecation restricted to 75 per cent.--Applies only to companies and only for assessment year 1991-92--Income-tax Act, 1961, s. 32(1)(ii), third proviso-- CIT v. Lotus Roofings P. Ltd. (Mad) . . . 307

Export --Special deduction--Computation--Interest--90 per cent. of gross interest received to be reduced for purposes of section 80HHC--Income-tax Act, 1961, s. 80HHC-- Ambattur Clothing Co. Ltd. v. Asst. CIT (Mad) . . . 245

----Special deduction--Computation--Law applicable--Explanation (baa) to section 80HHC(4) inserted with effect from 1-4-1992 not retrospective--Cash compensatory support whether to be excluded from business profits in assessment year 1991-92--Matter remanded--Income-tax Act, 1961, s. 80HHC(4C), Expln. (baa)-- CIT v. Tractors and Farm Equipment Ltd . (Mad) . . . 313

Income from other sources --Interest--Share application money placed in deposit--Interest thereon is income from other sources--Income-tax Act, 1961, s. 56-- G. T. N. Textiles Ltd . v. Deputy CIT (Ker) . . . 352

Income or capital --Transfer of business--Receipt of amount for not competing with transferee--Assessee carrying on various businesses--Sale of one of businesses did not affect its entire profit making structure--Amount constituted revenue receipt--Income-tax Act, 1961-- CIT v. Tata Coffee Ltd. (Karn) . . . 214

Industrial undertaking --Depreciation--Trial run--Plant and machinery put to use for purposes of business during relevant accounting year--Assessee entitled to depreciation--Income-tax Act, 1961, ss. 71, 80AB, 80HHA-- CIT v. Mentha and Allied Products (All) . . . 297

----Special deduction--Loss from non-industrial unit in terms of section 80AB and section 71 to be adjusted first--Income-tax Act, 1961, ss. 71, 80AB, 80HHA-- CIT v. Mentha and Allied Products (All) . . . 297

Interest on borrowed capital --Amount borrowed at 16 per cent. interest and invested in purchase of 4 per cent. non-cumulative preference shares--No evidence that transaction not genuine--No part of interest could be disallowed--Income-tax Act, 1961, s. 36(1)(iii)-- CIT v. Pankaj Munjal Family Trust (P&H) . . . 286

----Assessee borrowing money from sister concern at a higher rate of interest and investing in sister concern giving lower income--Tribunal failing to apply test of commercial expediency--Matter referred to a larger Bench--Income-tax Act, 1961-- CITv. Rockman Cycle Industries Private Limited (P&H) . . . 291

Penalty --Advance tax--Finding that assessee having bona fide belief that sales tax liability not includible in total income and on that bona fide belief not including sales tax liability in advance tax estimate--Penalty order set aside based on evidence and material on record--No interference--Income-tax Act, 1961, ss. 43B, 273(2)(aa)-- CIT v. Amrit Banaspati Company Limited (All) . . . 303

Precedent --Effect of Supreme Court decision in CIT v. Sun Engg. Works P. Ltd. [1992] 198 ITR 297-- CIT v. Sangeetha Granites Ltd.  (Karn) . . . 324

Reassessment --Notice on grounds that fixed deposits revealed unaccounted investments--Fixed deposits considered in earlier assessment years--Interest on fixed deposits assessed in prior years--Reassessment for recomputing agricultural income--Not valid--Remand to consider recomputation of agricultural income--Order of remand not valid--Income-tax Act, 1961, ss. 147, 148--CIT v. Rama-krishna Hegde (Karn) . . . 347

----Scope of reassessment--Reassessment proceedings pertaining to particular income--Assessee cannot claim in reassessment proceedings that entire income was exempt--Reassessment proceedings to disallow part of claim under section 80HHC--Assessee cannot claim that its entire income was exempt under section 10B--Income-tax Act, 1961, ss. 10B, 80HHC, 147-- CIT v.Sangeetha Granites Ltd. (Karn) . . . 324

Rectification of mistakes --Mistake must be obvious--Issue regarding computation of income of company under section 115J--Issue settled subsequently by Supreme Court--Rectification based on such decision--Not valid--Income-tax Act, 1961, ss. 143, 154-- CIT v. Palani Andavar Cotton and Synthetic Spinners Ltd. (Mad) . . . 339

Rejection of accounts --Fall in gross profit--No defects found in accounts--Absence of stock register alone not a ground to infer that accounts inaccurate or incorrect--Commissioner (Appeals) as well as Tribunal accepting explanation of assessee for fall in gross profit--Findings of fact--Income-tax Act, 1961, s. 145(3)-- CIT v. Smt. Poonam Rani (Delhi) . . . 223

Return --Delay in filing returns--Interest--Waiver of interest--Effect of CBDT order dated 26-6-2006--Prior refusal of waiver--Limited waiver granted to rival group belonging to same organisation--Waiver application must be reconsidered--Income-tax Act, 1961, ss. 234A, 234B and 234C--CBDT order dated 26-6-2006-- S. Pankajam v. Chief CIT (Mad) . . . 331

Search and seizure --Block assessment--Undisclosed income--Commissioner (Appeals) confirming addition of undisclosed income--Tribunal not justified in cancelling assessment without considering facts--Matter remanded--Income-tax Act, 1961-- CITv. Smt. M. Thankamma (Ker) . . . 249

----Block assessment--Unexplained investment--Amounts not accounted for and on which no advance tax paid--Additions valid--Income-tax Act, 1961, s. 158B(b)-- M. A. Anto v. CIT (Ker) . . . 212

Writ --Existence of alternate remedy--Not a bar to issue of writ where fundamental right is breached or there is violation of statutory provision--Constitution of India, art. 226-- N. Meenakshi v. Asst. CIT (Mad) . . . 229

AUTHORITY FOR ADVANCE RULINGS

Business expenditure --Financial corporation--Long-term finance for industrial or agricultural development--Profits "derived from" eligible business --Scope of--Bonds given by guarantor--Interest paid by assessee--Eligible for deduction--Loan--Rescheduled--Premium paid--Allowable as deduction--Income-tax Act, 1961, s. 36(1)(viii)-- Rural Electrification Corporation Ltd. , In re . . . 267

Capital gains --Transfer--Income-tax Act, 1961, ss. 45, 47(iv)-- Praxair Pacific Ltd. , In re . . . 276

Deduction of tax at source --Income-tax Act, 1961, s. 195-- Praxair Pacific Ltd. , In re . . . 276

Foreign company --Minimum alternate tax-- Timken Company, In re. . . 193|

Minimum alternate tax --Provisions not applicable to non-resident company having no presence in India--Income-tax Act, 1961, s. 115JB-- Praxair Pacific Ltd., In re . . . 276

----Special provision--Company whose total income less than 10 per cent. of book profits--Minimum alternate tax--Not applicable to foreign company having no physical presence or permanent establishment in India--Income-tax Act, 1961, ss. 10(38), 115JB-- Timken Company , In re . . . 193|

Non-resident --Non-resident company having a wholly owned Indian subsidiary--Transfer by non-resident of shares held in another private company to subsidiary--Non-resident company not taxable in India--Income-tax Act, 1961, ss. 2(14), 45, 47(iv), 90, 92 to 92F, 115JB--Agreement for the Avoidance of Double Taxation between India and Mauritius-- Praxair Pacific Ltd. , In re. . . 276

Transfer pricing --Income-tax Act, 1961, ss. 92 to 92F-- Praxair Pacific Ltd. , In re . . . 276

Words and phrases --"Derived from", meaning of-- Rural Electrification Corporation Ltd ., In re . . . 267

----"Transfer", meaning of-- Praxair Pacific Ltd. , In re . . . 276

 

SECTIONWISE INDEX TO CASES REPORTED IN THIS PART

Constitution of India :

Art. 226 --Writ--Existence of alternate remedy--Not a bar to issue of writ where fundamental right is breached or there is violation of statutory provision-- N. Meenakshi v. Asst. CIT (Mad) . . . 229

Income-tax Act, 1961 :

S. 2(14) --Non-resident--Non-resident company having a wholly owned Indian subsidiary--Transfer by non-resident of shares held in another private company to subsidiary--Non-resident company not taxable in India-- Praxair Pacific Ltd. , In re (AAR) . . . 276

S. 10(38) --Minimum alternate tax--Special provision--Company whose total income less than 10 per cent. of book profits--Minimum alternate tax--Not applicable to foreign company having no physical presence or permanent establishment in India--Timken Company , In re (AAR) . . . 193

S. 10B --Reassessment--Scope of reassessment--Reassessment proceedings pertaining to particular income--Assessee cannot claim in reassessment proceedings that entire income was exempt--Reassessment proceedings to disallow part of claim under section 80HHC--Assessee cannot claim that its entire income was exempt under section 10B-- CIT v. Sangeetha Granites Ltd.(Karn) . . . 324

S. 12A --Charitable purposes--Registration--Exemption--Conditions precedent--Rejection on ground amended deed not produced--Amended deed not a pre-requisite condition--Matter remanded -- CIT v. R. M. S. Trust (Mad) . . . 310

S. 32(1)(ii), third proviso --Depreciation--Effect of third proviso to section 32(1)(ii)--Rate of deprecation restricted to 75 per cent.--Applies only to companies and only for assessment year 1991-92-- CIT v. Lotus Roofings P. Ltd. (Mad) . . . 307

S. 35AB(2) --Business expenditure--Expenditure on technical know-how--In-house research and development facility--Weighted deduction--Expenditure incurred on establishment of facility--Section not mentioning any cut-off date or particular date for eligibility to claim deduction--Tribunal granting weighted deduction for entire expenditure incurred--Proper-- CIT v. Claris Lifesciences Ltd . (Guj) . . . 251

S. 36(1)(iii) --Interest on borrowed capital--Amount borrowed at 16 per cent. interest and invested in purchase of 4 per cent. non-cumulative preference shares--No evidence that transaction not genuine--No part of interest could be disallowed-- CIT v.Pankaj Munjal Family Trust (P&H) . . . 286

S. 36(1)(vii) --Bad debts--Assessee writing off interest on money advanced to subsidiary company--Finding that advances irrecoverable bad debts and interest not charged due to commercial expediency--Findings of fact-- CIT v. V. Rama-krishna and Sons Ltd . (Mad) . . . 315

S. 36(1)(viii) --Business expenditure--Financial corporation--Long-term finance for industrial or agricultural development--Profits "derived from" eligible business --Scope of--Bonds given by guarantor--Interest paid by assessee--Eligible for deduction--Loan--Rescheduled--Premium paid--Allowable as deduction-- Rural Electrification Corporation Ltd. , In re (AAR) . . . 267

S. 37 --Business expenditure--Condition precedent for allowance--Company--Expenditure on performing puja--Not deductible--Hira Ferro Alloys Ltd. v. Deputy CIT (Assessment) (Chhattisgarh) . . . 261

----Capital or revenue expenditure--Expenditure on allotment of shares to assessee in subsidiary company--No difference between share capital raised for capital expansion of company and for acquiring shares of a subsidiary company--In either case expenditure is for raising capital--Not entitled to deduction-- G. T. N. Textiles Ltd . v. Deputy CIT (Ker) . . . 352

S. 43B --Penalty--Advance tax--Finding that assessee having bona fide belief that sales tax liability not includible in total income and on that bona fide belief not including sales tax liability in advance tax estimate--Penalty order set aside based on evidence and material on record--No interference-- CIT v. Amrit Banaspati Company Limited (All) . . . 303

S. 45 --Capital gains--Computation of capital gains--Sale of property to a Government concern--Valuation by stamp duty authorities higher than consideration received by assessee--Application for reference to valuation cell under section 50C--Assessment order adopting valuation of stamp duty authorities without waiting for valuation of valuation cell--Not valid-- N. Meenakshi v. Asst. CIT (Mad) . . . 229

----Capital gains--Transfer-- Praxair Pacific Ltd. , In re(AAR) . . . 276

----Non-resident--Non-resident company having a wholly owned Indian subsidiary--Transfer by non-resident of shares held in another private company to subsidiary--Non-resident company not taxable in India-- Praxair Pacific Ltd. , In re (AAR) . . . 276

S. 47(iv) --Capital gains--Transfer-- Praxair Pacific Ltd. , In re (AAR) . . . 276

----Non-resident--Non-resident company having a wholly owned Indian subsidiary--Transfer by non-resident of shares held in another private company to subsidiary--Non-resident company not taxable in India-- Praxair Pacific Ltd. , In re (AAR) . . . 276

S. 50C --Capital gains--Computation of capital gains--Sale of property to a Government concern--Valuation by stamp duty authorities higher than consideration received by assessee--Application for reference to valuation cell under section 50C--Assessment order adopting valuation of stamp duty authorities without waiting for valuation of valuation cell--Not valid-- N. Meenakshi v. Asst. CIT (Mad) . . . 229

----Capital gains--Loss--Long-term capital loss--Reduction in loss on account of increase in deemed sale consideration of properties by adopting stamp duty value--Assessee not availing of opportunity provided under sub-sections (2) and (3) of section 50C--Reduction in capital loss justified-- Ambattur Clothing Co. Ltd . v. Asst. CIT (Mad) . . . 245

S. 56 --Income from other sources--Interest--Share application money placed in deposit--Interest thereon is income from other sources-- G. T. N. Textiles Ltd . v. Deputy CIT (Ker) . . . 352

S. 71 --Industrial undertaking--Depreciation--Trial run--Plant and machinery put to use for purposes of business during relevant accounting year--Assessee entitled to depreciation-- CIT v. Mentha and Allied Products (All) . . . 297

----Industrial undertaking--Special deduction--Loss from non-industrial unit in terms of section 80AB and section 71 to be adjusted first-- CIT v. Mentha and Allied Products (All) . . . 297

S. 80AB --Industrial undertaking--Depreciation--Trial run--Plant and machinery put to use for purposes of business during relevant accounting year--Assessee entitled to depreciation-- CIT v. Mentha and Allied Products (All) . . . 297

----Industrial undertaking--Special deduction--Loss from non-industrial unit in terms of section 80AB and section 71 to be adjusted first-- CIT v. Mentha and Allied Products (All) . . . 297

S. 80HHA --Industrial undertaking--Depreciation--Trial run--Plant and machinery put to use for purposes of business during relevant accounting year--Assessee entitled to depreciation-- CIT v. Mentha and Allied Products (All) . . . 297

----Industrial undertaking--Special deduction--Loss from non-industrial unit in terms of section 80AB and section 71 to be adjusted first-- CIT v. Mentha and Allied Products (All) . . . 297

S. 80HHC --Appeal to High Court--Export--Special deduction--Net loss from export of goods--Assessee not entitled to deduction--Settled law--Assessee raising a question of law in appeal before Tribunal--Not entitled to raise question before court-- Asvini Fisheries P. Ltd. v. Deputy CIT (Mad) . . . 344

----Export--Special deduction--Computation--Interest--90 per cent. of gross interest received to be reduced for purposes of section 80HHC-- Ambattur Clothing Co. Ltd. v. Asst. CIT (Mad) . . . 245

----Reassessment--Scope of reassessment--Reassessment proceedings pertaining to particular income--Assessee cannot claim in reassessment proceedings that entire income was exempt--Reassessment proceedings to disallow part of claim under section 80HHC--Assessee cannot claim that its entire income was exempt under section 10B-- CIT v. Sangeetha Granites Ltd. (Karn) . . . 324

S. 80HHC(4C), Expln. (baa) --Export--Special deduction--Computation--Law applicable--Explanation (baa) to section 80HHC(4) inserted with effect from 1-4-1992 not retrospective--Cash compensatory support whether to be excluded from business profits in assessment year 1991-92--Matter remanded-- CIT v. Tractors and Farm Equipment Ltd . (Mad) . . . 313

S. 90 --Non-resident--Non-resident company having a wholly owned Indian subsidiary--Transfer by non-resident of shares held in another private company to subsidiary--Non-resident company not taxable in India-- Praxair Pacific Ltd. , In re (AAR) . . . 276

S. 92 to 92F --Non-resident--Non-resident company having a wholly owned Indian subsidiary--Transfer by non-resident of shares held in another private company to subsidiary--Non-resident company not taxable in India-- Praxair Pacific Ltd. , In re (AAR) . . . 276 ----Transfer pricing-- Praxair Pacific Ltd. , In re (AAR) . . . 276

S. 115JB --Minimum alternate tax--Provisions not applicable to non-resident company having no presence in India-- Praxair Pacific Ltd., In r (AAR) . . . 276

----Minimum alternate tax--Special provision--Company whose total income less than 10 per cent. of book profits--Minimum alternate tax--Not applicable to foreign company having no physical presence or permanent establishment in India-- Timken Company , In re (AAR) . . . 193|

----Non-resident--Non-resident company having a wholly owned Indian subsidiary--Transfer by non-resident of shares held in another private company to subsidiary--Non-resident company not taxable in India-- Praxair Pacific Ltd. , In re (AAR ). . . 276

S. 142A --Assessment--Reference to valuation officer--Change of law with retrospective effect--Effect--Investment in construction of building--Commissioner (Appeals) remanding matter for examination of genuineness of cash credits--Reference to Departmental valuation officer--Reassessment proceedings initiated after receipt of valuation report--Assessing Officer entitled to refer valuation after completion of assessment--Impact of amendment with retrospective effect not considered--Matter remanded-- CIT v. Mrs. Achamma Chacko (Ker) . . . 258

S. 143 --Rectification of mistakes--Mistake must be obvious--Issue regarding computation of income of company under section 115J--Issue settled subsequently by Supreme Court--Rectification based on such decision--Not valid-- CIT v. Palani Andavar Cotton and Synthetic Spinners Ltd. (Mad) . . . 339

S. 145(3) --Rejection of accounts--Fall in gross profit--No defects found in accounts--Absence of stock register alone not a ground to infer that accounts inaccurate or incorrect--Commissioner (Appeals) as well as Tribunal accepting explanation of assessee for fall in gross profit--Findings of fact-- CIT v. Smt. Poonam Rani (Delhi) . . . 223

S. 147 --Assessment--Reference to valuation officer--Change of law with retrospective effect--Effect--Investment in construction of building--Commissioner (Appeals) remanding matter for examination of genuineness of cash credits--Reference to Departmental valuation officer--Reassessment proceedings initiated after receipt of valuation report--Assessing Officer entitled to refer valuation after completion of assessment--Impact of amendment with retrospective effect not considered--Matter remanded-- CIT v. Mrs. Achamma Chacko (Ker) . . . 258

----Reassessment--Notice on grounds that fixed deposits revealed unaccounted investments--Fixed deposits considered in earlier assessment years--Interest on fixed deposits assessed in prior years--Reassessment for recomputing agricultural income--Not valid--Remand to consider recomputation of agricultural income--Order of remand not valid-- CIT v. Ramakrishna Hegde(Karn) . . . 347

----Reassessment--Scope of reassessment--Reassessment proceedings pertaining to particular income--Assessee cannot claim in reassessment proceedings that entire income was exempt--Reassessment proceedings to disallow part of claim under section 80HHC--Assessee cannot claim that its entire income was exempt under section 10B-- CIT v. Sangeetha Granites Ltd. (Karn) . . . 324

S. 148 --Reassessment--Notice on grounds that fixed deposits revealed unaccounted investments--Fixed deposits considered in earlier assessment years--Interest on fixed deposits assessed in prior years--Reassessment for recomputing agricultural income--Not valid--Remand to consider recomputation of agricultural income--Order of remand not valid-- CIT v. Ramakrishna Hegde(Karn) . . . 347

S. 153(3)(ii) --Capital gains--Computation of capital gains--Sale of property to a Government concern--Valuation by stamp duty authorities higher than conside-ration received by assessee--Application for reference to valuation cell under section 50C--Assessment order adopting valuation of stamp duty authorities without waiting for valuation of valuation cell--Not valid-- N. Meenakshi v. Asst. CIT (Mad) . . . 229

S. 154 --Rectification of mistakes--Mistake must be obvious--Issue regarding computation of income of company under section 115J--Issue settled subsequently by Supreme Court--Rectification based on such decision--Not valid-- CIT v. Palani Andavar Cotton and Synthetic Spinners Ltd. (Mad) . . . 339

S. 158B(b) --Search and seizure--Block assessment--Unexplained investment--Amounts not accounted for and on which no advance tax paid--Additions valid-- M. A. Anto v. CIT (Ker) . . . 212

S. 195 --Deduction of tax at source-- Praxair Pacific Ltd. , In re(AAR) . . . 276

S. 234A --Return--Delay in filing returns--Interest--Waiver of interest--Effect of CBDT order dated 26-6-2006--Prior refusal of waiver--Limited waiver granted to rival group belonging to same organisation--Waiver application must be reconsidered--CBDT order dated 26-6-2006-- S. Pankajam v. Chief CIT (Mad) . . . 331

S. 234B --Return--Delay in filing returns--Interest--Waiver of interest--Effect of CBDT order dated 26-6-2006--Prior refusal of waiver--Limited waiver granted to rival group belonging to same organisation--Waiver application must be reconsidered--CBDT order dated 26-6-2006-- S. Pankajam v. Chief CIT (Mad) . . . 331

S. 234C --Return--Delay in filing returns--Interest--Waiver of interest--Effect of CBDT order dated 26-6-2006--Prior refusal of waiver--Limited waiver granted to rival group belonging to same organisation--Waiver application must be reconsidered--CBDT order dated 26-6-2006-- S. Pankajam v. Chief CIT (Mad) . . . 331

S. 255(3) --Appeal to Appellate Tribunal--Judicial discipline--Decision made on identical factual situation--Coordinate Bench cannot take a contrary view--Remedy is to make a reference to President of Tribunal under section 255(3)-- Affection Investments Ltd . v. Asst. CIT (Guj) . . . 255

S. 260A --Appeal to High Court--Competency of appeal--Tax less than pres-cribed monetary limit and issue involved not falling within exception under CBDT circular--Appeal by Department dismissed--CBDT circular F. No. 279/126/98-IT dated 27-3-2000--CIT v. G. Chandra (Mad) . . . 336

----Appeal to High Court--Export--Special deduction--Net loss from export of goods--Assessee not entitled to deduction--Settled law--Assessee raising a question of law in appeal before Tribunal--Not entitled to raise question before court-- Asvini Fisheries P. Ltd. v. Deputy CIT (Mad) . . . 344

----Assessment--Reference to valuation officer--Change of law with retrospective effect--Effect--Investment in construction of building--Commissioner (Appeals) remanding matter for examination of genuineness of cash credits--Reference to Departmental valuation officer--Reassessment proceedings initiated after receipt of valuation report--Assessing Officer entitled to refer valuation after completion of assessment--Impact of amendment with retrospective effect not considered--Matter remanded-- CIT v. Mrs. Achamma Chacko  (Ker) . . . 258

S. 273(2)(aa) --Penalty--Advance tax--Finding that assessee having bona fide belief that sales tax liability not includible in total income and on that bona fide belief not including sales tax liability in advance tax estimate--Penalty order set aside based on evidence and material on record--No interference-- CIT v. Amrit Banaspati Company Limited (All) . . . 303

Indian Stamp Act, 1899 :

S. 47A --Capital gains--Computation of capital gains--Sale of property to a Government concern--Valuation by stamp duty authorities higher than consideration received by assessee--Application for reference to valuation cell under section 50C--Assessment order adopting valuation of stamp duty authorities without waiting for valuation of valuation cell--Not valid-- N. Meenakshi v. Asst. CIT  (Mad) . . . 229


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