Saturday, March 9, 2013

ITR Volume 346 Part 3 (Issue dated 20-8-2012)


INCOME TAX REPORTS (ITR)
INCOME TAX REPORTS
Volume 346 Part 3 (Issue dated 20-8-2012)
SUBJECT INDEX TO CASES REPORTED IN THIS PART
HIGH COURTS
Reassessment --Notice after four years--Condition precedent--Failure to disclose material facts necessary for assessment--Amount shown as loan from company--Assessee not disclosing that it had substantial interest in a company--Reassessment proceedings after four years to assess amount as deemed dividend--Valid--Income-tax Act, 1961, ss. 147, 148-- Dishman Pharmaceuticals and Chemicals Limited v. Deputy CIT (OSD) (No. 1 ) (Guj) . . . 228
----Notice after four years--Failure to disclose material facts necessary for assessment--Notice need not specify instances of failure--Sufficient if failure can be inferred--Investigation by customs authorities--Penalty for theft of electricity--Reassessment proceedings valid--Income-tax Act, 1961, ss. 147, 148-- I. P. Patel and Co. v. Deputy CIT
(Guj) . . . 207

----Notice--Validity--Reassessment proceedings found not valid--Reassessment cannot be sustained under another ground not mentioned in notice--Income-tax Act, 1961, ss. 147, 148-- Dishman Pharmaceuticals and Chemicals Ltd . v . Deputy CIT (OSD) (No. 2 ) (Guj) . . . 245
----Reassessment after four years--Assessee disclosing material facts necessary for assessment--Reassessment proceedings to recalculate special deduction under section 80HHC--Not valid--Income-tax Act, 1961, ss. 80HHC, 147, 148-- Dishman Pharmaceuticals and Chemicals Ltd. v . Deputy CIT (OSD) (No. 2 ) (Guj) . . . 245
----Reassessment after four years--Condition precedent--Failure by assessee to disclose material facts--Income from other sources--Claim to deduction of interest against dividend--Fact of borrowings to purchase shares and details of investments disclosed in return and during course of assessment in reply to queries raised by Assessing Officer--Reassessment to disallow deduction on ground interest was not paid for earning dividend but for acquiring controlling interest in company--Not a case of failure to disclose material facts--Reassessment not permissible--Income-tax Act, 1961, ss. 57(iii), 147, 148-- Ketan B. Mehta v . Asst. CIT (Guj) . . . 254
----Reassessment after four years--Condition precedent--Failure by assessee to disclose material facts--Reasons recorded by Assessing Officer must reflect such failure--Reopening of assessment on ground pre-operative expenses capital in nature had been allowed as revenue--Not a case of default by assessee--Reassessment not permissible--Income-tax Act, 1961, ss. 147, 148-- Ashokjyot Oxygen Pvt. Ltd . v . H. N. Patel, ITO
(Guj) . . . 199

----Reassessment after four years--Condition precedent--Failure by assessee to disclose material facts--Reopening of assessment on ground deduction for bad debts erroneously allowed--Not permissible--Income-tax Act, 1961, ss. 147, 148-- V. B. Investments v . Deputy CIT (Guj) . . . 193
----Reassessment after four years--Failure by assessee to disclose material facts--Notice issued to disallow deduction of usance interest paid to non-residents without deduction of tax--No indication of default by assessee--Reopening not permissible--Income-tax Act, 1961, ss. 147, 148-- Priya Blue Industries Pvt. Ltd. v . Deputy CIT
(Guj) . . . 204

----Writ--Powers of High Court--High Court only required to find out if there was prima facie material justifying notice of reassessment--Income-tax Act, 1961, ss. 147, 148--Constitution of India, art. 226-- I. P. Patel and Co. v . Deputy CIT
(Guj) . . . 207

Search and seizure --Assessment of third person--Scope of section 153C--Provision authorises enquiry on satisfaction that valuable articles or documents discovered during search belonged to third person--Such valuable article or document to be handed over to Assessing Officer having jurisdiction over assessee--Not necessary that satisfaction should be recorded that valuable article or document showed undisclosed income--Income-tax Act, 1961, ss. 132, 152A, 153C, 153BD, 158-- SSP Aviation Ltd . v . Deputy CIT (Delhi) . . . 177

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