ITR (TRIB) Volume 11 : Part 7 Issue dated : 10-10-2011 :- SUBJECT INDEX

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

Volume 11 : Part 7 (Issue dated : 10-10-2011)

SUBJECT INDEX TO CASES REPORTED IN THIS PART

Deemed dividend :- Circuitous transaction where money initially belonged to assessee returned to company on very same day--No net outflow, no intention to give money as loan or advance, no diversion of dividend or funds--Section 2(22)(e) not attracted--Income-tax Act, 1961, s. 2(22)(e)-- Pravin Bhimshi Chheda Shivsadan v. Deputy CIT (Mumbai)      . . . 705

Housing project: - Special deduction under section 80-IB(10)--Residential as well as commercial project approved by local authority--Assessee entitled to deduction--Income-tax Act, 1961, s. 80-IB(10)-- Bhumiraj Homes Ltd. v. Deputy CIT (Mumbai)            . . . 699

Income: - Keyman insurance policy--Assignment of policy to employee--Consequential treatment for taxation--Order not in accordance with ratio laid in assessee's own case--Matter remanded--Income-tax Act, 1961, s. 10(10D)-- Rajan Nanda v. Asst. CIT (Delhi)                . . . 689

Interpretation of taxing statutes: - Construction that negates intention of Legislature to be avoided-- Gajendra Kumar T. Agarwal v. ITO (Mumbai)         . . . 640

Loss: - Carry forward and set off--Speculation business--Definition--Change of law taking trading in derivatives out of definition--Effect--Loss from trading in derivatives treated as speculation loss in earlier years carried forward--Allowable against profits from trading in derivatives after amendment--Loss can be set off against profit from same business--Income-tax Act, 1961, ss. 43(5), 72, 73-- Gajendra Kumar T. Agarwal v. ITO (Mumbai)       . . . 640

Non-resident: - Income deemed to accrue or arise in India--Royalty--Company having data centre in Singapore providing data processing support to bank in India under agreement--Raw input bank transaction data sent by bank through telecommunication lines to Singapore for processing--Processing done at Singapore according to bank's requirement and processing output generated as reports according to bank's specifications transmitted to India through telecommunication lines--No use or right to use process involved--No right to use any equipment--Payment not royalty--Income-tax Act, 1961, ss. 9(1)(vi), Expln., 195--Double Taxation Avoidance Agreement between India and Singapore, arts. 5, 7, 12(3)(a)-- Standard Chartered Bank v. Deputy Director of Income-tax (Mumbai)       . . . 721

Reassessment: - Notice--No new materials found after completion of original assessment--Reassessment on change of opinion--Not valid--Notice to be quashed--Income-tax Act, 1961, ss. 143(3), 147, 148-- Deputy CIT v. Manak Shoes Co. P. Ltd. (Delhi)          . . . 673

Revision: - Erroneous and prejudicial to Revenue--To be judged on basis of law obtaining at time of assessment--Assessing Officer allowing set off in accordance with judicial pronouncements--Order not erroneous calling for revision--Income-tax Act, 1961, s. 263-- Gajendra Kumar T. Agarwal v. ITO (Mumbai)          . . . 640

SECTIONWISE INDEX TO CASES REPORTED IN THIS PART

Double Taxation Avoidance Agreement between India and Singapore :

Art. 5: - Non-resident--Income deemed to accrue or arise in India--Royalty--Company having data centre in Singapore providing data processing support to bank in India under agreement--Raw input bank transaction data sent by bank through telecommunication lines to Singapore for processing--Processing done at Singapore according to bank's requirement and processing output generated as reports according to bank's specifications transmitted to India through telecommunication lines--No use or right to use process involved--No right to use any equipment--Payment not royalty-- Standard Chartered Bank v. Deputy Director of Income-tax (Mumbai)    . . . 721

Art. 7: - Non-resident--Income deemed to accrue or arise in India--Royalty--Company having data centre in Singapore providing data processing support to bank in India under agreement--Raw input bank transaction data sent by bank through telecommunication lines to Singapore for processing--Processing done at Singapore according to bank's requirement and processing output generated as reports according to bank's specifications transmitted to India through telecommunication lines--No use or right to use process involved--No right to use any equipment--Payment not royalty-- Standard Chartered Bank v. Deputy Director of Income-tax (Mumbai)    . . . 721

Art. 12(3)(a): - Non-resident--Income deemed to accrue or arise in India--Royalty--Company having data centre in Singapore providing data processing support to bank in India under agreement--Raw input bank transaction data sent by bank through telecommunication lines to Singapore for processing--Processing done at Singapore according to bank's requirement and processing output generated as reports according to bank's specifications transmitted to India through telecommunication lines--No use or right to use process involved--No right to use any equipment--Payment not royalty-- Standard Chartered Bank v. Deputy Director of Income-tax (Mumbai)    . . . 721

Income-tax Act, 1961 :

S. 2(22)(e): - Deemed dividend--Circuitous transaction where money initially belonged to assessee returned to company on very same day--No net outflow, no intention to give money as loan or advance, no diversion of dividend or funds--Section 2(22)(e) not attracted-- Pravin Bhimshi Chheda Shivsadan v. Deputy CIT (Mumbai)           . . . 705

S. 9(1)(vi), Expln.: - Non-resident--Income deemed to accrue or arise in India--Royalty--Company having data centre in Singapore providing data processing support to bank in India under agreement--Raw input bank transaction data sent by bank through telecommunication lines to Singapore for processing--Processing done at Singapore according to bank's requirement and processing output generated as reports according to bank's specifications transmitted to India through telecommunication lines--No use or right to use process involved--No right to use any equipment--Payment not royalty-- Standard Chartered Bank v. Deputy Director of Income-tax (Mumbai)    . . . 721

S. 10(10D): - Income--Keyman insurance policy--Assignment of policy to employee--Consequential treatment for taxation--Order not in accordance with ratio laid in assessee's own case--Matter remanded-- Rajan Nanda v. Asst. CIT (Delhi)  . . . 689

S. 43(5): - Loss--Carry forward and set off--Speculation business--Definition--Change of law taking trading in derivatives out of definition--Effect--Loss from trading in derivatives treated as speculation loss in earlier years carried forward--Allowable against profits from trading in derivatives after amendment--Loss can be set off against profit from same business-- Gajendra Kumar T. Agarwal v. ITO (Mumbai) . . . 640

S. 72: - Loss--Carry forward and set off--Speculation business--Definition--Change of law taking trading in derivatives out of definition--Effect--Loss from trading in derivatives treated as speculation loss in earlier years carried forward--Allowable against profits from trading in derivatives after amendment--Loss can be set off against profit from same business-- Gajendra Kumar T. Agarwal v. ITO (Mumbai)       . . . 640

S. 73: - Loss--Carry forward and set off--Speculation business--Definition--Change of law taking trading in derivatives out of definition--Effect--Loss from trading in derivatives treated as speculation loss in earlier years carried forward--Allowable against profits from trading in derivatives after amendment--Loss can be set off against profit from same business-- Gajendra Kumar T. Agarwal v. ITO (Mumbai)       . . . 640

S. 80-IB(10): - Housing project--Special deduction under section 80-IB(10)--Residential as well as commercial project approved by local authority--Assessee entitled to deduction-- Bhumiraj Homes Ltd. v. Deputy CIT (Mumbai)      . . . 699

S. 143(3): - Reassessment--Notice--No new materials found after completion of original assessment--Reassessment on change of opinion--Not valid--Notice to be quashed-- Deputy CIT v. Manak Shoes Co. P. Ltd. (Delhi)        . . . 673

S. 147: - Reassessment--Notice--No new materials found after completion of original assessment--Reassessment on change of opinion--Not valid--Notice to be quashed-- Deputy CIT v. Manak Shoes Co. P. Ltd. (Delhi)        . . . 673

S. 148: - Reassessment--Notice--No new materials found after completion of original assessment--Reassessment on change of opinion--Not valid--Notice to be quashed: -- Deputy CIT v. Manak Shoes Co. P. Ltd. (Delhi)     . . . 673

S. 195: - Non-resident--Income deemed to accrue or arise in India--Royalty--Company having data centre in Singapore providing data processing support to bank in India under agreement--Raw input bank transaction data sent by bank through telecommunication lines to Singapore for processing--Processing done at Singapore according to bank's requirement and processing output generated as reports according to bank's specifications transmitted to India through telecommunication lines--No use or right to use process involved--No right to use any equipment--Payment not royalty-- Standard Chartered Bank v. Deputy Director of Income-tax (Mumbai)    . . . 721

S. 263: - Revision--Erroneous and prejudicial to Revenue--To be judged on basis of law obtaining at time of assessment--Assessing Officer allowing set off in accordance with judicial pronouncements--Order not erroneous calling for revision-- Gajendra Kumar T. Agarwal v. ITO (M