INCOME TAX REPORTS (ITR)
Volume 343 : Part 2 (Issue dated 7-5-2012)
SUBJECT INDEX TO CASES REPORTED IN THIS PART
HIGH
COURTS
Assessment --Reference
to Departmental Valuation Officer--Change of law of with retrospective
effect--Effect--Construction in factory building relating to assessment year
1984-85--Reference by Assessing Officer to Departmental Valuation Officer--Not
justified--Income-tax Act, 1961, s. 142A-- CIT v. Nabha Solvex (P) Ltd .
(P&H) . . . 178
Business expenditure
--Expenditure on higher education of two directors of assessee--Disallowance on
ground directors are children of managing director--Not proper--Assessing
Officer to consider whether assessee entitled to claim deduction under section
37(1)--Income-tax Act, 1961, ss. 37(1), 144(1)(b)-- Krishna Fabrications Ltd .
v. Joint CIT (Asstt.) (Karn) . . . 126
Capital gains
--Transfer--Slump sale--Agreement for transfer of business as going
concern--Not of itemised assets--Capital gains not chargeable--Income-tax Act,
1961, s. 45-- CIT v. Polychem Ltd. (Bom) . . . 115
Reassessment
--Notice--Assessing Officer finding that claim of depreciation bogus--Notice
valid--Income-tax Act, 1961, s. 148-- Indo European Breweries Ltd. v. ITO (Bom)
. . . 195
----Notice--Non-resident
company deriving income by maintaining and operating super computer sold to
Government of India--Assessment order showing Assessing Officer aware of nature
and character of obligation performed for which consideration
paid--Reassessment on ground agreement between assessee and Government not produced
before Assessing Officer--Not proper--Income-tax Act, 1961, ss. 147, 148-- CIT
v. Cray Research India Ltd. (Delhi) . . . 212
----Reassessment after
four years--Condition precedent--Failure to disclose material facts necessary
for assessment--Meaning of "primary facts"--Claim for special
deduction under sections 80HHC and 80-IB--Audited accounts and auditor's report
submitted--Special deductions allowed--Reassessment notice after four years on
ground that special deductions were excessive--Notice not valid--Income-tax
Act, 1961, s. 147-- CIT v. Purolator India Ltd. (Delhi) . . . 155
----Reassessment after
four years--Condition precedent--Failure to disclose material facts necessary
for assessment--No such failure--Reassessment to correct errors in assessment--Not
valid--Income-tax Act, 1961, s. 147-- Titanor Components Ltd . v. Asst. CIT
(Bom) . . . 183
----Reassessment after
four years--Permissible on basis of disclosures made by assessee in assessment
for subsequent year--Disclosures not made in year in question--Amounts to
failure to disclose material facts--Income-tax Act, 1961, ss. 10A, 147, 148-- Siemens
Information Systems Limited v. Asst. CIT (Bom) . . . 188
----Reassessment after
four years--Validity--No failure to disclose material facts necessary for
assessment--Deduction of expenditure in original assessment--Reassessment
proceedings to disallow expenditure--Not valid--Income-tax Act, 1961, s. 147--
BLB Limited v. Asst. CIT (Delhi) . . . 129
----Validity--Failure
to disclose material facts necessary for assessment--Details regarding loan not
furnished--Assessment order for assessment year 1999-2000 that loan from sister
concern was assessable as deemed dividend--Reassessment proceedings to assess
such loans as deemed dividend in assessment year 2000-01--Valid--Income-tax
Act, 1961, s. 147-- Atma Ram Properties Private Limited v. Deputy CIT
(Delhi) . . . 141
----Validity--Reassessment
after four years--Failure to disclose material facts necessary for
assessment--Loans from sister concern--Facts disclosed by assessee--Failure to
assess loans as deemed dividends--Reassessment proceedings not valid for
assessment year 1999-2000--Income-tax Act, 1961, s. 147-- Atma Ram Properties
Private Limited v. Deputy CIT (Delhi) . . . 141
Revision --Erroneous
and prejudicial to Revenue--General principles--Special deductions under
sections 80-I, 80-IA and 80HHC granted without allocation of expenditure to
those units--Revision justified--Revision to allocate expenditure on green tea
cess, interest and agency commission--Not justified--Income-tax Act, 1961, s.
263-- CIT v. Hindustan Lever Ltd. (Bom) . . . 161
AUTHORITY FOR ADVANCE
RULINGS
Advance ruling
--Authority--Jurisdiction--Prohibition where question in issue before
authorities under Act--Application by Indian company whether tax deductible at
source on payments to non-resident--Is in effect question of taxability of
payments in hands of non-resident--Non-resident already assessed and appeal
pending before Tribunal--Question already pending before income-tax
authority--Application by Indian company not maintainable--Income-tax Act,
1961, ss. 195, 245N(a)(ii), 245R(2), 245S-- Nuclear Power Corporation of India
Ltd. , In re . . . 220
----Maintainability--Question
on which ruling sought already pending before income-tax authority--Application
not maintainable--Date of filing return is date to be reckoned for determination
whether question already pending before authority--Income-tax Act, 1961, s.
245R(2)-- WaveField Inseis ASA , In re . . . 136
Non-resident --Purchase
of aircraft by Indian company from company incorporated in France--COFACE, body
incorporated on behalf of French State, ensuring credit facility--Promissory
notes, for principal and interest separately executed by Indian buyer in favour
of foreign seller--Promissory notes irrevocably and unconditionally assigned by
seller to BNP Paribas--Interest payable by Indian buyer to seller or to BNP not
taxable in India--Income-tax Act, 1961, s. 195--Double Taxation Avoidance
Agreement between India and France, art. 12(3)(b)-- Poonawalla Aviation Private
Limited , In re
. . . 202
SECTIONWISE INDEX TO
CASES REPORTED IN THIS PART
Double Taxation
Avoidance Agreement between India and France :
Art. 12(3)(b)
--Non-resident--Purchase of aircraft by Indian company from company
incorporated in France--COFACE, body incorporated on behalf of French State,
ensuring credit facility--Promissory notes, for principal and interest
separately executed by Indian buyer in favour of foreign seller--Promissory
notes irrevocably and unconditionally assigned by seller to BNP
Paribas--Interest payable by Indian buyer to seller or to BNP not taxable in
India-- Poonawalla Aviation Private Limited , In re
(AAR) . . . 202
Income-tax Act, 1961 :
S. 10A
--Reassessment--Reassessment after four years--Permissible on basis of
disclosures made by assessee in assessment for subsequent year--Disclosures not
made in year in question--Amounts to failure to disclose material facts--
Siemens Information Systems Limited v. Asst. CIT (Bom) . . . 188
S. 37(1) --Business
expenditure--Expenditure on higher education of two directors of
assessee--Disallowance on ground directors are children of managing
director--Not proper--Assessing Officer to consider whether assessee entitled
to claim deduction under section 37(1)-- Krishna Fabrications Ltd . v. Joint
CIT (Asstt.)
(Karn) . . . 126
S. 45 --Capital
gains--Transfer--Slump sale--Agreement for transfer of business as going
concern--Not of itemised assets--Capital gains not chargeable-- CIT v. Polychem
Ltd. (Bom) . . . 115
S. 142A
--Assessment--Reference to Departmental Valuation Officer--Change of law of
with retrospective effect--Effect--Construction in factory building relating to
assessment year 1984-85--Reference by Assessing Officer to Departmental
Valuation Officer--Not justified-- CIT v. Nabha Solvex (P) Ltd . (P&H) . .
. 178
S. 144(1)(b) --Business
expenditure--Expenditure on higher education of two directors of
assessee--Disallowance on ground directors are children of managing
director--Not proper--Assessing Officer to consider whether assessee entitled
to claim deduction under section 37(1)-- Krishna Fabrications Ltd . v. Joint
CIT (Asstt.)
(Karn) . . . 126
S. 147
--Reassessment--Notice--Non-resident company deriving income by maintaining and
operating super computer sold to Government of India--Assessment order showing
Assessing Officer aware of nature and character of obligation performed for
which consideration paid--Reassessment on ground agreement between assessee and
Government not produced before Assessing Officer--Not proper-- CIT v. Cray
Research India Ltd. (Delhi) . . . 212
----Reassessment--Reassessment
after four years--Condition precedent--Failure to disclose material facts
necessary for assessment--Meaning of "primary facts"--Claim for
special deduction under sections 80HHC and 80-IB--Audited accounts and
auditor's report submitted--Special deductions allowed--Reassessment notice
after four years on ground that special deductions were excessive--Notice not
valid-- CIT v. Purolator India Ltd. (Delhi) . . . 155
----Reassessment--Reassessment
after four years--Condition precedent--Failure to disclose material facts
necessary for assessment--No such failure--Reassessment to correct errors in assessment--Not
valid-- Titanor Components Ltd . v. Asst. CIT
(Bom) . . . 183
----Reassessment--Reassessment
after four years--Permissible on basis of disclosures made by assessee in
assessment for subsequent year--Disclosures not made in year in question--Amounts
to failure to disclose material facts-- Siemens Information Systems Limited v.
Asst. CIT (Bom) . . . 188
----Reassessment--Reassessment
after four years--Validity--No failure to disclose material facts necessary for
assessment--Deduction of expenditure in original assessment--Reassessment
proceedings to disallow expenditure--Not valid-- BLB Limited v. Asst. CIT
(Delhi) . . . 129
----Reassessment--Validity--Failure
to disclose material facts necessary for assessment--Details regarding loan not
furnished--Assessment order for assessment year 1999-2000 that loan from sister
concern was assessable as deemed dividend--Reassessment proceedings to assess
such loans as deemed dividend in assessment year 2000-01--Valid-- Atma Ram
Properties Private Limited v. Deputy CIT
(Delhi) . . . 141
----Reassessment--Validity--Reassessment
after four years--Failure to disclose material facts necessary for
assessment--Loans from sister concern--Facts disclosed by assessee--Failure to
assess loans as deemed dividends--Reassessment proceedings not valid for
assessment year 1999-2000-- Atma Ram Properties Private Limited v. Deputy CIT
(Delhi) . . . 141
S. 148
--Reassessment--Notice--Assessing Officer finding that claim of depreciation
bogus--Notice valid-- Indo European Breweries Ltd. v. ITO (Bom) . . . 195
----Reassessment--Notice--Non-resident
company deriving income by maintaining and operating super computer sold to
Government of India--Assessment order showing Assessing Officer aware of nature
and character of obligation performed for which consideration
paid--Reassessment on ground agreement between assessee and Government not
produced before Assessing Officer--Not proper-- CIT v. Cray Research India Ltd.
(Delhi) . . . 212
----Reassessment--Reassessment
after four years--Permissible on basis of disclosures made by assessee in
assessment for subsequent year--Disclosures not made in year in question--Amounts
to failure to disclose material facts-- Siemens Information Systems Limited v.
Asst. CIT (Bom) . . . 188
S. 195 --Advance
ruling--Authority--Jurisdiction--Prohibition where question in issue before
authorities under Act--Application by Indian company whether tax deductible at
source on payments to non-resident--Is in effect question of taxability of
payments in hands of non-resident--Non-resident already assessed and appeal
pending before Tribunal--Question already pending before income-tax authority--Application
by Indian company not maintainable-- Nuclear Power Corporation of India Ltd. ,
In re
(AAR) . . . 220
----Non-resident--Purchase
of aircraft by Indian company from company incorporated in France--COFACE, body
incorporated on behalf of French State, ensuring credit facility--Promissory
notes, for principal and interest separately executed by Indian buyer in favour
of foreign seller--Promissory notes irrevocably and unconditionally assigned by
seller to BNP Paribas--Interest payable by Indian buyer to seller or to BNP not
taxable in India-- Poonawalla Aviation Private Limited , In re (AAR) . . . 202
S. 245N(a)(ii)
--Advance ruling--Authority--Jurisdiction--Prohibition where question in issue
before authorities under Act--Application by Indian company whether tax
deductible at source on payments to non-resident--Is in effect question of
taxability of payments in hands of non-resident--Non-resident already assessed
and appeal pending before Tribunal--Question already pending before income-tax
authority--Application by Indian company not maintainable-- Nuclear Power
Corporation of India Ltd. , In re
(AAR) . . . 220
S. 245R(2) --Advance
ruling--Authority--Jurisdiction--Prohibition where question in issue before
authorities under Act--Application by Indian company whether tax deductible at
source on payments to non-resident--Is in effect question of taxability of
payments in hands of non-resident--Non-resident already assessed and appeal
pending before Tribunal--Question already pending before income-tax
authority--Application by Indian company not maintainable-- Nuclear Power
Corporation of India Ltd. , In re
(AAR) . . . 220
----Advance
ruling--Maintainability--Question on which ruling sought already pending before
income-tax authority--Application not maintainable--Date of filing return is
date to be reckoned for determination whether question already pending before
authority-- WaveField Inseis ASA , In re (AAR) . . . 136
S. 245S --Advance
ruling--Authority--Jurisdiction--Prohibition where question in issue before
authorities under Act--Application by Indian company whether tax deductible at
source on payments to non-resident--Is in effect question of taxability of
payments in hands of non-resident--Non-resident already assessed and appeal
pending before Tribunal--Question already pending before income-tax
authority--Application by Indian company not maintainable-- Nuclear Power
Corporation of India Ltd. , In re
(AAR) . . . 220
S. 263
--Revision--Erroneous and prejudicial to Revenue--General principles--Special
deductions under sections 80-I, 80-IA and 80HHC granted without allocation of
expenditure to those units--Revision justified--Revision to allocate
expenditure on green tea cess, interest and agency commission--Not justified--
CIT v. Hindustan Lever Ltd. (Bom) . . . 161