Thursday, March 24, 2011

ITR(Trib) Vol 332 Part 1 dated 28-03-2011

INCOME TAX REPORTS (ITR)

Volume 332 : Part 2 (Issue dated 28-3-2011)

SUBJECT INDEX TO CASES REPORTED IN THIS PART

HIGH COURTS

Appeal to Commissioner (Appeals) --Additional evidence--Assessing Officer making addition on basis of valuation of work-in-progress--Commissioner (Appeals) as well as Tribunal upholding valuation of assessee considering affidavit filed before Commissioner (Appeals) reiterating its stand--Findings of fact--Income-tax Rules, 1962, r. 46A-- CIT v. Central Mall (P&H) . . . 320

Business expenditure --Disallowance on estimate basis--Similar expenses allowed in totality in previous year--To be followed in subsequent years--Income-tax Act, 1961, s. 37-- Friends Clearing Agency (P.) Ltd . v. CIT (Delhi) . . . 269

----Disallowance--Payment to non-resident--Assessee purchasing software and selling in Indian market--Payment not royalty--Not liable to deduction of tax at source--Deduction allowable--Income-tax Act, 1961, s. 40(a)(i)-- CIT v. Dynamic Vertical Software India P. Ltd. (Delhi) . . . 222

----Interest--Mercantile system of accounting--Amount not shown in books of account by assessee nor by bank--No finding that assessee did not pay interest for relevant period--Assessee entitled to deduction--Income-tax Act, 1961, s. 37-- Friends Clearing Agency (P.) Ltd. v. CIT (Delhi) . . . 269

Cash credits --Claim that certain amounts were received as gifts--No evidence of gifts--Amount assessable under section 68--Income-tax Act, 1961, s. 68-- Trilok Singh Dhillon v. CIT (Chhattisgarh) . . . 185

----No rule that addition on account of unexplained credit entries cannot be made along with trading addition--Question of fact whether unexplained credit entries have nexus with trading results--Income-tax Act, 1961-- Grover Fabrics (India) P. Ltd. v. CIT (P&H) . . . 312

Deduction of tax at source --Commission or brokerage--Mobile telephone service--Discount given to distributors on sale of SIM cards and recharge coupons--No sale of goods--Tax deductible at source on discount--Income-tax Act, 1961, s. 194H--V odafone Essar Cellular Ltd. v. Asst. CIT (TDS) (Ker) . . . 255

----Commission--Agents of airline companies permitted to sell tickets at any rate between fixed minimum commercial price and published price--Difference between commercial price and published price--Not commission or brokerage--No deduction of tax at source--Income-tax Act, 1961, s. 194H, Expln.-- CIT v. Qatar Airways (Bom) . . . 253

Depreciation --Actual cost--Fluctuation in foreign exchange rates--To be allowed on outstanding liability--Income-tax Act, 1961-- CIT v. National Hydroelectric Power Corpn. Ltd . (P&H) . . . 322

----Plant and machinery--Addition to block of assets and sale of some machinery--Plant and machinery remaining in existence--Entitled to depreciation on written down value after adjustment of addition and sale--Income-tax Act, 1961, ss. 32(1), 41(2)-- CIT v. Rhodoen Silk Mills P. Ltd . (P&H) . . . 330

----Plant--Meaning of--Construction industry--Centering and shuttering material--Each item of shuttering material does not form a plant--Not entitled to 100 per cent. depreciation under first proviso to section 32(1)(ii)--Income-tax Act, 1961, s. 32(1)(ii), first proviso-- CIT v. Vijaya Enterprises (AP) . . . 235

----Rate of depreciation--EPABX and mobile phones are not computers--Not entitled to depreciation at the rate of 60 per cent.--Income-tax Act, 1961-- Federal Bank Ltd . v. Asst. CIT (Ker) . . . 319

Double Taxation Avoidance --Canadian company providing consultancy services to Indian Government organisation--Technical drawings furnished by Canadian company--Fees received were "fees for included services" within the meaning of article 12(4) of DTAA--Fees not assessable under section 9--Income-tax Act, 1961, s. 9--DTAA between Canada and India, art. 12(4)-- DIT v. SNC Lavalin International Inc .(Delhi) . . . 314

Export --Special deduction under section 80HHC--Computation of special deduction--Business income--Assessee carrying on export business utilising surplus funds for discounting bills and making intercorporate deposits--Income earned therefrom--Not business income--Income-tax Act, 1961, s. 80HHC-- CIT v. Swani Spice Mills P. Ltd. (Bom) . . . 288

----Special deduction under section 80HHC--Exclusion mineral oil--Meaning of mineral oil--Calcined petroleum coke derived from crude petroleum is not mineral oil--Income-tax Act, 1961, s. 80HHC-- Goa Carbon Ltd. v. CIT (Bom) . . . 209

Industrial undertaking --Deduction under section 80-IB--Claim not allowed on ground assessee had not filed a revised return--Tribunal allowing deduction on ground that assessee not making any fresh claim and duly furnished documents and Form 10CCB during assessment proceedings--Justified--Income-tax Act, 1961, s. 80-IB-- CIT v. Ramco International (P&H) . . . 306

Interpretation of taxing statutes --Meaning of words--Common parlance meaning-- Goa Carbon Ltd . v. CIT (Bom) . . . 209

Investment deposit account --Computation of profits for purposes of deduction under section 32AB--Revision--Assessing Officer taking a view prevalent at time that income shown in balance-sheet under head "Other income" not to be excluded--Commissioner (Appeals) granting relief resulting in enhanced deduction--Section 263 cannot be invoked--Income-tax Act, 1961, s. 32AB--Companies Act, 1956, Sch. VI-- CIT v. Kelvinator of India Ltd . (Delhi) . . . 231

Non-resident --Income deemed to accrue or arise in India--Scope of section 9(1)(vii)--Technical know-how--Designs, drawings and data delivered to person outside India--Consideration received by non-resident not assessable in India--Income-tax Act, 1961, s. 9(1)(vii)-- Grasim Industries Ltd. v. S. M. Mishra, CIT (Bom) . . . 276

Penalty --Concealment of income--Disallowance of business loss in quantum proceedings--No finding that transaction was not genuine--Penalty could not be imposed--Income-tax Act, 1961, s. 271(1)(c)-- CIT v. Usha Marketing (P.) Ltd .(Delhi) . . . 334

Precedent --Effect of Supreme Court decision in Ishikawajima-Harima Heavy Industries Ltd. v. Director of Income-tax [2007] 288 ITR 408 (SC)-- Grasim Industries Ltd . v. S. M. Mishra, CIT (Bom) . . . 276

Reassessment --Income escaping assessment--Sum received by assessee on retirement from firm of solicitors upon superannuation--Provision in deed of partnership prohibiting retiring partners from soliciting firm's clients for three years--Not applicable to assessee--No income escaping assessment--Income-tax Act, 1961, ss. 28(iv), 147, 148-- Smt. Jyoti Rajnikant v. Asst. CIT (Bom) . . . 229

----Notice--Notice issued after four years from relevant assessment year--Assessing Officer on satisfaction allowing claim regarding entrance fee in original assessment--No failure on part of assessee to disclose fully and truly all material facts--Notice to be quashed--Income-tax Act, 1961, ss. 147, 148-- Bombay Presidency Golf Club Ltd . v. ITO (Bom) . . . 226

----Notice--Scientific research--Exemption for donation to approved institution--Reassessment on ground CBDT had withdrawn approval to institution with retrospective effect--High Court quashing notification of withdrawal--Reassessment not valid--Income-tax Act, 1961, ss. 147, 148-- Ultra Marine Air Aids (P.) Ltd. v. Inspecting Assistant Commissioner (Delhi) . . . 273

----Reassessment after four years--Condition precedent--Failure to disclose material facts necessary for assessment--Assessee claiming deduction under section 36(1)(viii) --Complete details furnished--Deduction granted after consideration by Assessing Officer--Reassessment proceedings after four years on the ground that deduction had been wrongly granted--Reassessment proceedings not valid--Income-tax Act, 1961, s. 147-- CIT v. Pradeshiya Industrial and Investment Corporation of Uttar Pradesh Ltd. (All) . . . 324

Recovery of tax --Stay of recovery proceedings--Factors to be considered--Existence of prima facie case--Order refusing stay without considering existence of prima facie case--Set aside--Income-tax Act, 1961, s. 220(6)-- KLM Royal Dutch Airlines v. Deputy DIT (Delhi) . . . 224

Revision --Commissioner--Assessing Officer taking one of two possible views with which Commissioner not agreeing--Cannot be treated as an erroneous order prejudicial to interest of Revenue--Income-tax Act, 1961, s. 263-- CIT v. Kelvinator of India Ltd. (Delhi) . . . 231

Scientific research --Application for approval under section 35--Rejection of application without affording assessee opportunity to be heard and without giving reasons--Order of rejection--Not valid--Income-tax Act, 1961, s. 35(1)(ii)-- Institution of Engineers (India) v. Union of India (Cal) . . . 309

Search and seizure --Assessment--Assessment not at the dictates of other authorities--Finding that assessee was transacting business through benamidars--Findings of fact--Additions of certain amounts--Remand to Assessing Officer in respect of additions--Justified--Income-tax Act, 1961-- Trilok Singh Dhillon v. CIT (Chhattisgarh) . . . 185

----Assessment--Notice--Notice under section 153C issued in February 2005 and a second notice issued in September 2006--Income of third persons included in total income of assessee--Same Assessing Officer assessing such third persons--First notice issued after application of mind--Second notice would not invalidate proceedings--Income-tax Act, 1961, s. 153C-- Trilok Singh Dhillon v. CIT (Chhattisgarh) . . . 185

----Assessment--Protective assessment permissible under section 153C--Income-tax Act, 1961, s. 153C-- Trilok Singh Dhillon v. CIT (Chhattisgarh) . . . 185

----Assessment--Validity of search cannot be questioned during assessment proceedings or in appellate proceedings therefrom--Income-tax Act, 1961, ss 132, 153A-- Trilok Singh Dhillon v. CIT (Chhattisgarh) . . . 185

Words and phrases --"Plant" meaning of-- CIT v. Vijaya Enterprises (AP) . . . 235

----Meaning of "mineral oil"-- Goa Carbon Ltd . v. CIT (Bom) . . . 209

--
>>>>>>>>>>>>>>>>>>>>>>
Dear Friend
Please and immedietly remove my email id from your contact list. As I do not want to receive any invitation from the various friend sites you subscribe.
Thanks and regards.

Me on net :  http://rajkumaratthenet.blogspot.com/
http://itronline.blogspot.com/
http://finance.groups.yahoo.com/group/It_law_reported

http://labs.google.co.in/smschannels/channel/rajkumarsms
--
Virus Warning: Although the I have taken reasonable precautions to ensure no viruses are present in his email, sender (I) cannot accept responsibility for any loss or damage arising from the use of this email or attachment."

No comments:

Post a Comment

Note: Only a member of this blog may post a comment.