INCOME TAX REPORTS (ITR) Volume 345 Part 3 (Issue dated 2-7-2012) SUBJECT INDEX TO CASES REPORTED IN THIS PART

INCOME TAX REPORTS (ITR)

Volume 345 Part 3 (Issue dated 2-7-2012)

SUBJECT INDEX TO CASES REPORTED IN THIS PART

HIGH COURTS

Business expenditure --Deduction--Expenditure incurred on education of daughter of one of directors abroad--Finding by Commissioner (Appeals) as well as Tribunal that expenditure not wholly and exclusively incurred for purpose of business--Finding of fact--Income-tax Act, 1961, s. 37-- Natco Exports P. Ltd. v . CIT (Delhi) . . . 188

Income-tax --General principles--Procedure strictly according to law--Satisfaction of one authority cannot be substituted by satisfaction of another authority-- CIT v . SPL’s Siddhartha Ltd . (Delhi) . . . 223

International transactions --Arms length price--Determination--Payment for acquisition of use of technical know-how incurred for genuine business purposes--To be allowed even if assessee suffered continuous losses in business--Income-tax Act, 1961, s. 92CA--Income-tax Rules, 1962, r. 10B(1)(a)-- CIT v . EKL Appliances Ltd .  (Delhi) . . . 241

Penalty --Repayment of loans or deposits otherwise than by account payee cheque or draft--Provision mandatory--Repayment by debit of account through journal entries--Is in contravention of provision--But penalty can be avoided on showing reasonable cause--Assessee becoming liable to repay loan and receive similar sum towards sale price of shares sold to creditor--Account settled by journal entries--No finding that repayment not bona fide or attempt at evasion of tax--Reasonable cause shown--Penalty not leviable--Income-tax Act, 1961, ss. 269T, 271E, 273B-- CIT v . Triumph International Finance (I.) Ltd . (Bom) . . . 270

Perquisite --Salary--Tax on salary paid by employer--Is a perquisite--Tax component of such perquisite value cannot be included in computation of perquisite value of rent free accommodation--Income-tax Rules, 1962, r. 3--Income-tax Act, 1961, s. 17(2)(iv)-- CIT v. Telsuo Mitera (Delhi) . . . 256

----Valuation--Tax on salary paid by employer--Excludible while computing perquisite of rent free accommodation--Income-tax Act, 1961, s. 17(2)(iv)--Income-tax Rules, 1962, r. 3-- CIT v . Hidechito Shiga (Delhi) . . . 269

Reassessment --Notice--Assessing Officer initially holding transfer of equity shares investments but on reassessment as trade--Change of opinion--Notice to be quashed--Income-tax Act, 1961, ss. 147, 148-- Ritu Investments P. Ltd . v . Deputy CIT  (Delhi) . . . 214

----Notice--Jurisdiction--No universal proposition that notice can never be served when time for issue of notice under section 143(2) has not expired--Assessee deliberately keeping matter pending and continuing to appear and neither protesting nor objecting--Assessing Officer not prevented or barred from recording reasons in writing and issuing fresh notice under section 148--Undertaking by Department to withdraw notice with liberty to issue fresh notice--Income-tax Act, 1961, ss. 147, 148-- Acorus Unitech Wireless P. Ltd . v . Deputy CIT (Delhi) . . . 228

----Notice--Sanction of Joint Commissioner required--Sanction obtained from Commissioner--Notice not valid--Income-tax Act, 1961, ss. 148, 151, 292B-- CIT v. SPL’s Siddhartha Ltd. (Delhi) . . . 223

Revision --Avoidance of tax--International transactions--Circular stating that reference must be made to Transfer Pricing Officer where value exceeds Rs. 5 crores--Circular binding on Assessing Officer--Failure to make reference to Transfer Pricing Officer--Order can be revised--Income-tax Act, 1961, ss. 92CA, 263--Circular No. 3, dated 20-5-2003-- Ranbaxy Laboratories Ltd . v. CIT (Delhi) . . . 193

AUTHORITY FOR ADVANCE RULINGS

Non-resident --Taxability in India--Fees for technical services--Indian company rendering technical services to overseas group companies--Shared services company incorporated in the Netherlands to support global finance functions of group--Branch office in Philippines performing the back office finance services--Philippines branch providing business support services to Indian company--Services rendered by Netherlands company though Philippines branch--DTAA between India and Philippines not applicable--Consideration for financial services received by Indian company not fees for technical services--Payment received by Netherlands company not chargeable to tax in India--No obligation on Indian company to withhold tax--Income-tax Act, 1961, s. 195--Double Taxation Avoidance Agreement between India and the Netherlands, arts. 5, 12-- Shell Technology India Private Limited, In re . . . 206