ITR Volume 338 : Part 3 (Issue dated 31-10-2011) : SUBJECT INDEX

INCOME TAX REPORTS (ITR)

Volume 338 : Part 3 (Issue dated 31-10-2011)

SUBJECT INDEX TO CASES REPORTED IN THIS PART

HIGH COURTS

Appeal to Appellate Tribunal --Duty of Tribunal--Duty to follow decision of jurisdictional High Court--Tribunal cannot hold High Court decision erroneous because it did not consider relevant provision--Income-tax Act, 1961, s. 254-- National Textile Corporation Ltd. (M. P.) v. CIT (MP) . . . 371

Exemption --Export oriented unit--Manufacture--Definition--Change of law--Exclusion of processing--Blending, packing and export of tea bags, tea packets and bulk tea packs--Entitled to exemption being 100 per cent. export oriented unit--Income-tax Act, 1961, s. 10B-- Tata Tea Ltd. v. Asst. CIT (Ker) . . . 285

----Export--Manufacture--Definition--Subsequent incorporation of definition--Clarificatory--Blending and packing of tea for export in industrial unit in special economic zone--Qualifies for exemption even for earlier periods--Special Economic Zones Act, 2005, s. 2(r)--Income-tax Act, 1961, ss. 10A, 10AA-- Girnar Industries v. CIT

(Ker) . . . 277

Export --Exemption under section 10B--Assessee an approved export oriented unit and manufacturing articles for export--Some work done on job basis by sister concern--Not relevant--Assessee entitled to exemption--Income-tax Act, 1961, s. 10B-- CIT v. Continental Engines Ltd . (Delhi) . . . 290

Interpretation of taxing statutes --Exemption clause--To be considered with reference to object with which it is enacted-- Girnar Industries v. CIT

(Ker) . . . 277

----Explanation in provision-- R. P. G. Industries Ltd . v. CIT

(Cal) . . . 313

Loss --Carry forward and set off--Loss in sale and purchase of shares--Assessee not carrying on business in share transactions exclusively but also other business--Loss in share dealing to be treated as speculation loss and cannot be set off against income from business or other sources of income--Income-tax Act, 1961, s. 73, Expln.-- Paharpur Cooling Towers Ltd. v. CIT (Cal) . . . 295

----Speculation--Carry forward and set off of loss--Effect of Explanation to section 73 inserted w.e.f. 1-4-1977--Purchase and sale of shares by certain companies deemed to be speculative transactions--Loss on such transactions to be carried forward and set off only against profits from speculative transactions--Income-tax Act, 1961, ss. 70, 71, 72, 73-- R. P. G. Industries Ltd . v. CIT (Cal) . . . 313

Precedent --Duty of Tribunal to follow decision of jurisdictional High Court--No power to declare decision of High Court erroneous-- National Textile Corporation Ltd. (M. P.) v. CIT (MP) . . . 371

Search and seizure --Warrant of authorisation--Conditions precedent--Reason to believe that asset represents undisclosed income--Prohibitory order--Bank account--Conditions precedent--Reason to believe that money in account is undisclosed income--No indication that account used to park undisclosed income--Existence of account disclosed in accounts for all earlier years--No finding that source of any deposit in account not explained or not disclosed in regular books of account--Seizure of bank account and conversion of proceeds into demand draft in favour of Department--Not sustainable--Income-tax Act, 1961, s. 132(3)-- VISA Comtrade Limited v. Union of India

(Orissa) . . . 343

Transfer pricing --International transactions--Determination of arm's length price--Powers of Dispute Resolution Panel--Draft order regarding pricing--Dispute Resolution Panel does not have power to issue direction to Assessing Officer to consider eligibility for exemption under section 10A--Income-tax Act 1961, s. 144C-- GE India Technology Centre P. Ltd . v. Dispute Resolution Panel (Karn) . . . 416

----Reference to Dispute Resolution Panel--Powers of Dispute Resolution Panel--Direction of Dispute Resolution Panel to Assessing Officer to consider eligibility for exemption under section 10A--No conclusion by Dispute Resolution Panel--Direction valid--Income-tax Act 1961, s. 144C-- GE India Technology Centre P. Ltd. v. Dispute Resolution Panel (Karn) . . . 411

Words and phrases --"Manufacture"--Meaning of-- Girnar Industries v. CIT

(Ker) . . . 277

AUTHORITY FOR ADVANCE RULINGS

Non-resident --Software licensing and maintenance agreement with Indian company--Fees received--Are royalty--Not a case of mere sale of goods but of licence to use copyright in software programme developed by it--Income-tax Act, 1961, ss. 9(1)(vi), Expln. 2, 195--Double Taxation Avoidance Agreement between India and Sri Lanka, arts. 5, 7, 12--Copyright Act, 1957, ss. 2(ffb), (ffc), (o), 14, 52(aa)-- Millennium IT Software Ltd. , In re . . . 391

----Taxability in India--Installation and erection projects of duration not exceeding 183 days each--Independent projects--No aggregation of duration--No permanent establishment in India--Applicant not taxable in India--Income-tax Act, 1961, s. 9(1)(vii), Expln. 2--Double Taxation Avoidance Agreement between India and Singapore, arts. 5(3), 7(1)-- Tiong Woon Project and Contracting Pte. Limited, In re

. . . 386

SECTIONWISE INDEX TO CASES REPORTED IN THIS PART

Copyright Act, 1957 :

Ss. 2(ffb), (ffc), (o), 14, 52(aa) --Non-resident--Software licensing and maintenance agreement with Indian company--Fees received--Are royalty--Not a case of mere sale of goods but of licence to use copyright in software programme developed by it-- Millennium IT Software Ltd. , In re (AAR) . . . 391

Double Taxation Avoidance Agreement between India and Singapore :

Arts. 5(3), 7(1) --Non-resident--Taxability in India--Installation and erection projects of duration not exceeding 183 days each--Independent projects--No aggregation of duration--No permanent establishment in India--Applicant not taxable in India-- Tiong Woon Project and Contracting Pte. Limited, In re

(AAR) . . . 386

Double Taxation Avoidance Agreement between India and Sri Lanka :

Arts. 5, 7, 12 --Non-resident--Software licensing and maintenance agreement with Indian company--Fees received--Are royalty--Not a case of mere sale of goods but of licence to use copyright in software programme developed by it-- Millennium IT Software Ltd. , In re (AAR) . . . 391

Income-tax Act, 1961 :

S. 9(1)(vi), Expln. 2 --Non-resident--Software licensing and maintenance agreement with Indian company--Fees received--Are royalty--Not a case of mere sale of goods but of licence to use copyright in software programme developed by it-- Millennium IT Software Ltd. , In re (AAR) . . . 391

S. 9(1)(vii), Expln. 2 --Non-resident--Taxability in India--Installation and erection projects of duration not exceeding 183 days each--Independent projects--No aggregation of duration--No permanent establishment in India--Applicant not taxable in India-- Tiong Woon Project and Contracting Pte. Limited, In re

(AAR) . . . 386

S. 10A --Exemption--Export--Manufacture--Definition--Subsequent incorporation of definition--Clarificatory--Blending and packing of tea for export in industrial unit in special economic zone--Qualifies for exemption even for earlier periods-- Girnar Industries v. CIT (Ker) . . . 277

S. 10AA --Exemption--Export--Manufacture--Definition--Subsequent incorporation of definition--Clarificatory--Blending and packing of tea for export in industrial unit in special economic zone--Qualifies for exemption even for earlier periods-- Girnar Industries v. CIT (Ker) . . . 277

S. 10B --Exemption--Export oriented unit--Manufacture--Definition--Change of law--Exclusion of processing--Blending, packing and export of tea bags, tea packets and bulk tea packs--Entitled to exemption being 100 per cent. export oriented unit-- Tata Tea Ltd. v. Asst. CIT (Ker) . . . 285

----Export--Exemption under section 10B--Assessee an approved export oriented unit and manufacturing articles for export--Some work done on job basis by sister concern--Not relevant--Assessee entitled to exemption-- CIT v. Continental Engines Ltd . (Delhi) . . . 290

S. 70 --Loss--Speculation--Carry forward and set off of loss--Effect of Explanation to section 73 inserted w.e.f. 1-4-1977--Purchase and sale of shares by certain companies deemed to be speculative transactions--Loss on such transactions to be carried forward and set off only against profits from speculative transactions-- R. P. G. Industries Ltd . v. CIT (Cal) . . . 313

S. 71 --Loss--Speculation--Carry forward and set off of loss--Effect of Explanation to section 73 inserted w.e.f. 1-4-1977--Purchase and sale of shares by certain companies deemed to be speculative transactions--Loss on such transactions to be carried forward and set off only against profits from speculative transactions-- R. P. G. Industries Ltd . v. CIT (Cal) . . . 313

S. 72 --Loss--Speculation--Carry forward and set off of loss--Effect of Explanation to section 73 inserted w.e.f. 1-4-1977--Purchase and sale of shares by certain companies deemed to be speculative transactions--Loss on such transactions to be carried forward and set off only against profits from speculative transactions-- R. P. G. Industries Ltd . v. CIT (Cal) . . . 313

S. 73 --Loss--Speculation--Carry forward and set off of loss--Effect of Explanation to section 73 inserted w.e.f. 1-4-1977--Purchase and sale of shares by certain companies deemed to be speculative transactions--Loss on such transactions to be carried forward and set off only against profits from speculative transactions-- R. P. G. Industries Ltd . v. CIT (Cal) . . . 313

S. 73, Expln. --Loss--Carry forward and set off--Loss in sale and purchase of shares--Assessee not carrying on business in share transactions exclusively but also other business--Loss in share dealing to be treated as speculation loss and cannot be set off against income from business or other sources of income-- Paharpur Cooling Towers Ltd. v. CIT (Cal) . . . 295

S. 132(3) --Search and seizure--Warrant of authorisation--Conditions precedent--Reason to believe that asset represents undisclosed income--Prohibitory order--Bank account--Conditions precedent--Reason to believe that money in account is undisclosed income--No indication that account used to park undisclosed income--Existence of account disclosed in accounts for all earlier years--No finding that source of any deposit in account not explained or not disclosed in regular books of account--Seizure of bank account and conversion of proceeds into demand draft in favour of Department--Not sustainable-- VISA Comtrade Limited v. Union of India (Orissa) . . . 343

S. 144C --Transfer pricing--International transactions--Determination of arm's length price--Powers of Dispute Resolution Panel--Draft order regarding pricing--Dispute Resolution Panel does not have power to issue direction to Assessing Officer to consider eligibility for exemption under section 10A-- GE India Technology Centre P. Ltd . v. Dispute Resolution Panel (Karn) . . . 416

----Transfer pricing--Reference to Dispute Resolution Panel--Powers of Dispute Resolution Panel--Direction of Dispute Resolution Panel to Assessing Officer to consider eligibility for exemption under section 10A--No conclusion by Dispute Resolution Panel--Direction valid-- GE India Technology Centre P. Ltd. v. Dispute Resolution Panel (Karn) . . . 411

S. 195 --Non-resident--Software licensing and maintenance agreement with Indian company--Fees received--Are royalty--Not a case of mere sale of goods but of licence to use copyright in software programme developed by it-- Millennium IT Software Ltd. , In re (AAR) . . . 391

S. 254 --Appeal to Appellate Tribunal--Duty of Tribunal--Duty to follow decision of jurisdictional High Court--Tribunal cannot hold High Court decision erroneous because it did not consider relevant provision-- National Textile Corporation Ltd. (M. P.) v. CIT (MP) . . . 371

Special Economic Zones Act, 2005 :

S. 2(r) --Exemption--Export--Manufacture--Definition--Subsequent incorporation of definition--Clarificatory--Blending and packing of tea for export in industrial unit in special economic zone--Qualifies for exemption even for earlier periods-- Girnar Industries v. CIT (Ker) . . . 277