ITR Highlights Volume 334 Part 1 Dated 30.05.2011

INCOME TAX REPORTS (ITR) HIGHLIGHTS

ISSUE DATED 30-5-2011

Volume 334 Part 1

SUPREME COURT JUDGMENTS

--> Interest-tax : Supreme Court remanding matter to determine questions that arose, such as whether assessee "credit institution" and decide them : Motor and General Finance Ltd. v. CIT p. 33

HIGH COURT JUDGMENTS

--> AO not considering explanation of assessee that it was under bona fide belief that there was no liability to deduct taxes : Matter remanded : CIT v. Nissin Food Products Co. Ltd. (Karn) p. 1

--> Machinery purchased and installed in earlier accounting year : Assessee not entitled to deduction u/ss. 80HH and 80-I : CIT v. Wipro Ltd. (Karn) p. 6

--> Period of limitation for filing loss return not applicable for carrying forward of unabsorbed depreciation : CIT v. Govind Nagar Sugar Ltd. (Delhi) p. 13

--> Addition on ground transaction not genuine : Receipt of commission shown by company in return and tax paid : Matter remanded : Pawan Kumar Jain v. CIT (Delhi) p. 23

--> Reassessment : Notice : Date of issue would be date on which notice was handed over for service to proper officer : Kanubhai M. Patel (HUF) v. Hiren Bhatt or his successors to office (Guj) p. 25

--> Order confirming auction sale not conclusive : Appeal to Commissioner maintainable : Vijay Kumar Ruia v. CIT (All) p. 38

--> Land acquired by succession from ex-Ruler of Indian State who acquired it under instrument of annexation : Cost of acquisition to be taken as market value as on 1-1-54 or 1-1-64, as the case may be : CIT v. Raja Malwinder Singh (P&H) [FB] p. 48

--> Provision for warranty liability : Actual expenditure more than provision : Deductible : Himalaya Machinery P. Ltd. v. Deputy CIT (Guj) p. 64

--> Failure by person responsible for paying income to deduct and pay tax at source : Assessee liable to pay tax directly but not liable to pay interest u/s. 234B : Director of Income-tax v. Maersk Co. Ltd. (Uttarakhand) [FB] p. 79

--> Assessee seeking revision for AY 1995-96 pursuant to orders in appeal for later years but withdrawing its appeals to Tribunal : Commissioner ought to have considered petition for condonation of delay liberally : Subuthi Finance Ltd. v. CIT (Mad) p. 90

--> Attachment of property : Entire shareholding of assessee in company attached : High Court directed to restrict attachment to a part of shareholding : Subuthi Finance Ltd. v. CIT (Mad) p. 90

AUTHORITY FOR ADVANCE RULINGS

--> Non-resident company transferring shares held in Indian company to foreign company : Capital gains not taxable : VNU International B. V., In re p. 56

--> Foreign company holding 74 per cent. of paid up capital of Indian company proposed to contribute voluntarily entire 74 per cent. shares to Singapore based company without consideration : No capital gains : Goodyear Tire and Rubber Co., In re p. 69

STATUTES AND NOTIFICATIONS

--> From our Reporter at the Supreme Court :

Appellate Tribunal : No power of review p. 1

Block assessment : Limitation for issue of notice p. 1

Block assessment : Limitation for assessment : Date of last panchnama p. 1

Educational institution : Approval of institution p. 2

Educational institution : Prescribed authority to recall or review approval p. 2

Penalty : Concealment of income : Whether leviable whether there was a net loss p. 3

Revision : Erroneous and prejudicial to Revenue p. 3

Royalty : Payments for use of international communications network p. 3

 Rules :

Income-tax (Third Amendment) Rules, 2011 p. 6

C. B. D. T. Circulars :

Circular No. 3 of 2011, dated 13th May, 2011-Issuance of TDS Certificates in Form No. 16A downloaded from TIN website and option to authenticate the same by way of digital signature-Circular under section 119 of the Income-tax Act, 1961 p. 4

===========================================================

Dear Friends : The emails are schedule to be posted in the blog and will sent to the group on carious dates and time fixed. Instead of sending it on one day it is spread on various dates. regards. R R Makwana