ITR (TRIB) Volume 12 : Part 3 (Issue dated : 14-11-2011) SUBJECT INDEX TO CASES REPORTED

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

Volume 12 : Part 3 (Issue dated : 14-11-2011)

SUBJECT INDEX TO CASES REPORTED IN THIS PART

Business expenditure :- --Disallowance--Expenditure on labour charges--Assessing Officer disallowing 50 per cent. as excessive claim for job charges--Assessee getting processing of diamonds done by outside parties and making payment by “account payee cheque”--Expenses within reasonable limits and also within industry norms--To be allowed--Income-tax Act, 1961, s. 37-- J. B. Brothers v . Addl. CIT (Ahmedabad) . . . 293

Disallowance:- --Foreign travel, postage, factory expenses etc.--Assessing Officer disallowing 10 per cent. on ad hoc basis--Assessee producing details of expenses--Expenses incurred exclusively for business--Not to be disallowed--Income-tax Act, 1961, s. 37-- J. B. Brothers v. Addl. CIT (Ahmedabad) . . . 293

Penalty :- --Concealment of income--Income from sale of plants and trees claimed as agricultural income--Assessing Officer holding that composite sale along with land and taxing as capital gains--Difference in treatment of receipt--Not a case of concealment of income--Penalty to be deleted--Income-tax Act, 1961, s. 271(1)(c)-- Abhinav Ajmera v . Asst. CIT (Delhi) . . . 290

Reassessment :- --Notice--Information that assessee raised bogus loans--Addition made on account of receipts of sale of fabrics--No addition on account of any bogus loans or share capital in assessment order--Proceedings initiated mechanically on vague grounds and without application of mind--Not valid--Income-tax Act, 1961, s. 147-- ITO v . Lakshya Exim P. Ltd. (Delhi) . . . 303

Revision :- --Commissioner invoking jurisdiction in view of additions made by Assessing Officer based on statement of director--Additional Commissioner considering and dealing with relevant aspects and giving directions under section 144A--Direction part of assessment proceedings and therefore part of assessment order--Direction not prejudicial to interests of Revenue--Order under section 263 to be cancelled--Income-tax Act, 1961, ss. 144A, 263-- ITO v. Arora Alloys Ltd. (Chandigarh) . . . 263

Unexplained expenditure :- --Addition based on statement of director recorded by Central excise authorities--Addition not supported by evidence--Additions not justified--Income-tax Act, 1961, s. 69C-- ITO v. Arora Alloys Ltd. (Chandigarh) . . . 263

SECTIONWISE INDEX TO CASES REPORTED IN THIS PART

Income-tax Act, 1961 :

S. 37 :- --Business expenditure--Disallowance--Expenditure on labour charges--Assessing Officer disallowing 50 per cent. as excessive claim for job charges--Assessee getting processing of diamonds done by outside parties and making payment by “account payee cheque”--Expenses within reasonable limits and also within industry norms--To be allowed-- J. B. Brothers v. Addl. CIT (Ahmedabad) . . . 293

Business expenditure:- --Disallowance--Foreign travel, postage, factory expenses etc.--Assessing Officer disallowing 10 per cent. on ad hoc basis--Assessee producing details of expenses--Expenses incurred exclusively for business--Not to be disallowed-- J. B. Brothers v. Addl. CIT (Ahmedabad) . . . 293

S. 69C :- --Unexplained expenditure--Addition based on statement of director recorded by Central excise authorities--Addition not supported by evidence--Additions not justified-- ITO v. Arora Alloys Ltd. (Chandigarh) . . . 263

S. 144A :- --Revision--Commissioner invoking jurisdiction in view of additions made by Assessing Officer based on statement of director--Additional Commissioner considering and dealing with relevant aspects and giving directions under section 144A--Direction part of assessment proceedings and therefore part of assessment order--Direction not prejudicial to interests of Revenue--Order under section 263 to be cancelled-- ITO v. Arora Alloys Ltd. (Chandigarh) . . . 263

S. 147 :- --Reassessment--Notice--Information that assessee raised bogus loans--Addition made on account of receipts of sale of fabrics--No addition on account of any bogus loans or share capital in assessment order--Proceedings initiated mechanically on vague grounds and without application of mind--Not valid-- ITO v. Lakshya Exim P. Ltd. (Delhi) . . . 303

S. 263 :- --Revision--Commissioner invoking jurisdiction in view of additions made by Assessing Officer based on statement of director--Additional Commissioner considering and dealing with relevant aspects and giving directions under section 144A--Direction part of assessment proceedings and therefore part of assessment order--Direction not prejudicial to interests of Revenue--Order under section 263 to be cancelled-- ITO v. Arora Alloys Ltd. (Chandigarh) . . . 263

S. 271(1)(c) :- --Penalty--Concealment of income--Income from sale of plants and trees claimed as agricultural income--Assessing Officer holding that composite sale along with land and taxing as capital gains--Difference in treatment of receipt--Not a case of concealment of income--Penalty to be deleted-- Abhinav Ajmera v. Asst. CIT (Delhi) . . . 290