ITR (TRIB): Volume 10 : Part 5 Issue dt.01-08-2011

ITR'S TRIBUNAL TAX REPORTS (ITR (TRIB))

Volume 10 : Part 5 (Issue dated : 01-08-2011)

SUBJECT INDEX TO CASES REPORTED IN THIS PART

Business expenditure --Amount written off towards amortisation of lease amount--To be disallowed--Income-tax Act, 1961-- Krishak Bharati Co-operative Ltd. v. Addl. CIT (Delhi) . . . 527

----Deduction--R and D expenses--Assessee not making claim in return but making during course of assessment proceedings--Matter remanded--Income-tax Act, 1961-- Krishak Bharati Co-operative Ltd. v. Addl. CIT (Delhi) . . . 527

----Disallowance--Sums on which tax deductible at source--Payments for supply of gas--Not works contract--Tax not deductible at source--Expenditure allowable--Income-tax Act, 1961, s. 40(a)(ia)-- Krishak Bharati Co-operative Ltd. v. Addl. CIT (Delhi) . . . 527

----Firm--Insurance premium paid to insure life of partners--Is revenue expenditure--Income-tax Act, 1961, ss. 10(10D), 37--CBDT Circular No. 762, dated 18-2-1998-- Asst. CIT v. Grishma Metal Technology (Mumbai) . . . 497

----Insurance premium--Has nexus with assessee's business--Allowable--Income-tax Act, 1961, s. 37-- Krishak Bharati Co-operative Ltd. v. Addl. CIT (Delhi) . . . 527

Capital gains --Addition in respect of gains assessed in last assessment year--Same amount of gains not to be repetitively taxed in two assessment years--Income-tax Act, 1961, s. 45-- Taher Alimohammed Poonawala v. Addl. CIT (Pune) . . . 534

----Transfer--Transaction allowing possession to be taken in part performance of contract treated as transfer--Agreement for sale of property to developer--Section 2(47)(v) applicable--Entering into property and handing over instantaneous--Provisions of section 45 applicable--Income-tax Act, 1961, ss. 2(47)(v), 45-- Taher Alimohammed Poonawala v. Addl. CIT (Pune) . . . 534

Charitable purpose --Registration of trusts--Cancellation of registration--Acceptance of capitation fee--Not ground for cancellation of registration of a charitable organisation--Assessee not diverting and using funds for objects of trust--Registration to be restored--Income-tax Act, 1961, s. 12AA--Prohibition of Capitation Fees Act, 1987-- Padanilam Welfare Trust v. Deputy CIT (Chennai) . . . 479

Company --Book profit--Computation--Special deduction under section 80HHC--Direction of Tribunal to compute deduction on adjusted book profit computed under section 115JA--Assessing Officer not entitled to recompute deduction--Income-tax Act, 1961, ss. 80HHC, 115JA-- Deputy CIT v. Divi's Laboratories Ltd. (Hyderabad) . . . 501

Deduction of tax at source --Business expenditure--Disallowance under section 40(a)(ia)--Commission paid to non-resident agents--Income not arising in India--Section 40(a)(ia) does not apply--Income-tax Act, 1961, s. 40(a)(ia)-- Deputy CIT v. Divi's Laboratories Ltd. (Hyderabad) . . . 501

Income --Computation of income--Dividend income--Disallowance--Direction to follow Assessing Officer under rule 8D for disallowance--Matter remanded--Income-tax Act, 1961, s. 14A--Income-tax Rules, 1962, r. 8D-- Krishak Bharati Co-operative Ltd. v. Addl. CIT (Delhi) . . . 527

Income-tax survey --Valuation of stock--Addition on account of excess stock--Finding that survey team had not valued stock correctly in terms of measurement and value--Reduction of measurement of slabs and direction to allow 37.5 per cent. rebate towards difference between market price and actual sale price--Proper--Income-tax Act, 1961-- ITO v. Rajasthani Marbles (Chennai) . . . 491

----Expenditure incurred in relation to income not forming part of total income--Disallowance--Deduction of income derived by co-operative society under section 80P--Not a case of "exempt income" but of "deduction from income"--Section 14A not applicable--Income-tax Act, 1961, ss. 14A, 80P-- Krishak Bharati Co-operative Ltd. v. Addl. CIT (Delhi) . . . 527

Industrial undertaking --Manufacture--Assessee purchasing discarded hair and making wig accessory and exporting--Is manufacture--Income-tax Act, 1961, s. 10B-- Deputy CIT v. R. Benjamin Cherian (Chennai) . . . 521

Penalty --Concealment of income--Benefit on assignment of keyman insurance policy--Sketchy disclosure made in return--Explanation given by assessee bona fide--Issue whether sum taxable at all debatable--Income-tax Act, 1961, s. 271(1)(c)-- Rajan Nanda v. Deputy CIT (Delhi) . . . 511

----Concealment of income--Notice--Assessee responding to notice--Typographical error in notice would not render it invalid--Income-tax Act, 1961, s. 271(1)(c)-- SVC Projects P. Ltd. v. Joint CIT (Visakhapatnam) . . . 552

----Concealment of income--Effect of Explanation 2 to section 271(1)(c)--Addition to income or deduction of loss should be computed for earlier assessment year--Discrepancy in accounts found during income-tax survey--Revised return filed to cover discrepancy--Assessment accepting return--Explanation 2 to section 271(1)(c) not applicable--Penalty not leviable--Income-tax Act, 1961, s. 271(1)(c)-- SVC Projects P. Ltd. v. Joint CIT (Visakhapatnam) . . . 552

Wealth-tax --Valuation of property--Assessing Officer adopting value according to Departmental Valuation Officer's report--Sale price best indicator for valuing property--Value declared in Form No. 37-I approved by competent authorities--Proper--Wealth-tax Act, 1957-- Asst. CWT v. Gujarat Lease Financing Ltd. (Ahmedabad) . . . 575

SECTIONWISE INDEX TO CASES REPORTED IN THIS PART

Income-tax Act, 1961 :

S. 2(47)(v) --Capital gains--Transfer--Transaction allowing possession to be taken in part performance of contract treated as transfer--Agreement for sale of property to developer--Section 2(47)(v) applicable--Entering into property and handing over instantaneous--Provisions of section 45 applicable-- Taher Alimohammed Poonawala v. Addl. CIT (Pune) . . . 534

S. 10(10D) --Business expenditure--Firm--Insurance premium paid to insure life of partners--Is revenue expenditure--CBDT Circular No. 762, dated 18-2-1998-- Asst. CIT v. Grishma Metal Technology (Mumbai) . . . 497

S. 10B --Industrial undertaking--Manufacture--Assessee purchasing discarded hair and making wig accessory and exporting--Is manufacture-- Deputy CIT v. R. Benjamin Cherian (Chennai) . . . 521

S. 12AA --Charitable purpose--Registration of trusts--Cancellation of registration--Acceptance of capitation fee--Not ground for cancellation of registration of a charitable organisation--Assessee not diverting and using funds for objects of trust--Registration to be restored--Prohibition of Capitation Fees Act, 1987-- Padanilam Welfare Trust v. Deputy CIT (Chennai) . . . 479

S. 14A --Income--Computation of income--Dividend income--Disallowance--Direction to follow Assessing Officer under rule 8D for disallowance--Matter remanded -- Krishak Bharati Co-operative Ltd. v. Addl. CIT (Delhi) . . . 527

----Income--Expenditure incurred in relation to income not forming part of total income--Disallowance--Deduction of income derived by co-operative society under section 80P--Not a case of "exempt income" but of "deduction from income"--Section 14A not applicable-- Krishak Bharati Co-operative Ltd. v. Addl. CIT (Delhi) . . . 527

S. 37 --Business expenditure--Firm--Insurance premium paid to insure life of partners--Is revenue expenditure--CBDT Circular No. 762, dated 18-2-1998-- Asst. CIT v. Grishma Metal Technology (Mumbai) . . . 497

----Business expenditure--Insurance premium--Has nexus with assessee's business--Allowable-- Krishak Bharati Co-operative Ltd. v. Addl. CIT (Delhi) . . . 527

S. 40(a)(ia) --Business expenditure--Disallowance--Sums on which tax deductible at source--Payments for supply of gas--Not works contract--Tax not deductible at source --Expenditure allowable-- Krishak Bharati Co-operative Ltd. v. Addl. CIT ( Delhi ) . . . 527

-- --Deduction of tax at source--Business expenditure--Disallowance under section 40(a)(ia)--Commission paid to non-resident agents--Income not arising in India--Section 40(a)(ia) does not apply-- Deputy CIT v. Divi's Laboratories Ltd. (Hyderabad) . . . 501

S. 45 --Capital gains--Addition in respect of gains assessed in last assessment year--Same amount of gains not to be repetitively taxed in two assessment years-- Taher Alimohammed Poonawala v. Addl. CIT (Pune) . . . 534

----Capital gains--Transfer--Transaction allowing possession to be taken in part performance of contract treated as transfer--Agreement for sale of property to developer--Section 2(47)(v) applicable--Entering into property and handing over instantaneous--Provisions of section 45 applicable-- Taher Alimohammed Poonawala v. Addl. CIT (Pune) . . . 534

S. 80HHC --Company--Book profit--Computation--Special deduction under section 80HHC--Direction of Tribunal to compute deduction on adjusted book profit computed under section 115JA--Assessing Officer not entitled to recompute deduction-- Deputy CIT v. Divi's Laboratories Ltd. (Hyderabad) . . . 501

S. 80P --Income--Expenditure incurred in relation to income not forming part of total income--Disallowance--Deduction of income derived by co-operative society under section 80P--Not a case of "exempt income" but of "deduction from income"--Section 14A not applicable-- Krishak Bharati Co-operative Ltd. v. Addl. CIT (Delhi) . . . 527

S. 115JA --Company--Book profit--Computation--Special deduction under section 80HHC--Direction of Tribunal to compute deduction on adjusted book profit computed under section 115JA--Assessing Officer not entitled to recompute deduction-- Deputy CIT v. Divi's Laboratories Ltd. (Hyderabad) . . . 501

S. 271(1)(c) --Penalty--Concealment of income--Benefit on assignment of keyman insurance policy--Sketchy disclosure made in return--Explanation given by assessee bona fide--Issue whether sum taxable at all debatable-- Rajan Nanda v. Deputy CIT (Delhi) . . . 511

----Penalty--Concealment of income--Effect of Explanation 2 to section 271(1)(c)--Addition to income or deduction of loss should be computed for earlier assessment year--Discrepancy in accounts found during income-tax survey--Revised return filed to cover discrepancy--Assessment accepting return--Explanation 2 to section 271(1)(c) not applicable--Penalty not leviable-- SVC Projects P. Ltd. v. Joint CIT (Visakhapatnam) . . . 552

----Penalty--Concealment of income--Notice--Assessee responding to notice--Typographical error in notice would not render it invalid-- SVC Projects P. Ltd. v. Joint CIT (Visakhapatnam) . . . 552

Income-tax Rules, 1962 : .......

R. 8D--Income--Computation of income--Dividend income--Disallowance--Direction to follow Assessing Officer under rule 8D for disallowance--Matter remanded--Krishak Bharati Co-operative Ltd. v. Addl. CIT (Delhi) . . . 527

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

Dear Friends : The emails are schedule to be posted in the blog (itronline.blogspot.com)and will sent to the group on various dates and time fixed. Instead of sending it on one day.

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