Agricultural income --Fact of ownership of agricultural land not disputed--Claim
for deduction of expenses for agriculture allowed--No evidence that
agricultural operations were not performed--Income was agricultural--Income-tax
Act, 1961, s. 10(1)-- Thangamani Vinodhagan v. Asst. CIT
(Chennai) . . . 230
----Rose plants grown in green house--Mother plants grown in
agricultural land using human labour --Income from rose flowers exempt as
agricultural income--Income-tax Act, 1961, ss. 2(1), 10(1)--Circular No. 1,
dated 27-3-2009-- CIT (Dy.) v. Best Roses Biotech P. Ltd.
(Ahmedabad) . . . 211
Appeal to Appellate
Tribunal --Powers of Tribunal--Power to admit additional ground of
appeal--Question regarding limitation can be raised for first time before
Tribunal--Income-tax Act, 1961-- Crompton Creaves Ltd. v. Dy.
CIT (Mumbai) . . . 151
Business expenditure --Expenditure for
purpose prohibited by law--Assessee
exporting rice to Iraq under oil for food programme of United Nations--Paying
commission to company for services in connection with export from procurement
to final realisation of proceeds--Report by U. N. committee probing
irregularities that company to which assessee paid commission was front company
for Iraqi regime and payment used as kickback--Payment to Iraqi regime by agent
not under assessee™s control--No denial that services rendered--No material to
show assessee knew and was part of scheme to pay kickbacks to Iraqi
regime--Payment deductible--Income-tax Act, 1961, s. 37, Expln. --
CIT (Dy.) v. Rajrani Exports P. Ltd. (Kolkata) . . . 239
Cash credits --Amounts repaid by debtors--Debtors not denying
transaction--Amount not includible in assessee™s total income--Amount claimed
to be advanced by sister--No evidence of such advance--Amount includible in
total income of assessee--Income-tax Act, 1961, s. 68-- Thangamani
Vinodhagan v. Asst. CIT (Chennai) . . . 230
Company --Book profits--Computation--Minimum alternate tax--Deduction from net
profit on account of foreign exchange fluctuation--No adjustment available
except as provided in Explanation --Reduction of amount while computing
book profit--Not permissible--Income-tax Act, 1961, s. 115JB-- City Gold
Media Ltd. v. ITO (Ahmedabad) . . . 192
Deduction of tax at
source --Payment to non-resident--Failure to deduct tax at
source--No assessment proceedings against non-resident for four years--Assessee
cannot be treated as assessee in default under section 201--Income-tax Act,
1961, ss. 195, 201-- Crompton Creaves Ltd. v. Dy. CIT
(Mumbai) . . . 151
Heads of income --Capital gains or
business income--Proprietary concern of assessee
taken over by company as going concern--Consideration for transfer is taxable
as long-term capital gains--Assessee employed by company on salary and other
terms of employment--Not a case of compensation for not engaging in similar
business--Income-tax Act, 1961, ss. 28(va), 50B-- CIT (Asst.) v. Sangeeta
Wij (Smt.) (Delhi) . . . 162
Income --Computation of income--Disallowance of expenditure relating to non-taxable income
from firm--Borrowed amount invested as capital of firm--Interest relating to
share of profit to be disallowed--Income-tax Act, 1961, s. 14A-- CIT (Asst.)
v. Vinay Singal (Chandigarh) . . . 146
Penalty --Concealment of income--Capital gains--Claim for exemption--Investment of net
consideration in residential property--Shortfall in amount invested due to
wrong advice by counsel--No concealment of income--Penalty cannot be imposed
--Income-tax Act, 1961, ss. 54, 271(1)(c)-- Majorjit Singh v. Asst.
CIT (Chandigarh) . . . 183
----Failure
to respond to notice under section 143(1) and (2)--Bona fide belief that
income was non-taxable--Not reasonable explanation--Penalty
imposable--Income-tax Act, 1961, s. 271(1)(b)-- Thangamani Vinodhagan v.
Asst. CIT (Chennai) . . . 230
Rectification of mistakes --Depreciation--Withdrawal of deprecation on ground of
non-user--Question debatable--Depreciation cannot be withdrawn in rectification
proceedings--Income-tax Act, 1961, ss. 32, 154-- Thangamani Vinodhagan v.
Asst. CIT (Chennai) . . . 230
Revision
--Commissioner--Reassessment--Financial
charges paid on funds borrowed for purchase of property--Part of closing
stock--No finding that Assessing Officer applied his mind to facts of case--Direction
to Assessing Officer to examine issue--Proper--Income-tax Act, 1961, s. 263--
Devi Developers P. Ltd. v. CIT (Delhi) . . . 187
Transfer pricing --Depreciation--Method of computing depreciation--No
difference in result as a result of applying any of methods--Income-tax Act,
1961, s. 92C-- Lason India P. Ltd. v. Asst. CIT (Chennai)
. . . 203
----Draft
assessment order incorporating proposals of Transfer Pricing
Officer--Draft assessment order erroneously termed final order--Assessing
Officer has power to issue corrigendum to correct error--Income-tax Act, 1961,
s. 144C-- Lason India P. Ltd. v. Asst. CIT (Chennai) . . .
203
Unexplained expenditure --Addition based on statement of director recorded by
Central excise authorities--Addition not supported by evidence--Addition not
justified --Additions under section 69C set aside by Tribunal in assessment
year 2004-05--No new facts in assessment year 2008-09--Addition not
valid--Income-tax Act, 1961, s. 69C -- ITO v. Arora Alloys
Ltd. (Chandigarh) . . . 133
S. 2(1) --Agricultural income--Rose plants grown in green
house--Mother plants grown in agricultural land using human labour --Income
from rose flowers exempt as agricultural income--Circular No. 1, dated
27-3-2009-- Deputy CIT v. Best Roses Biotech P. Ltd.
(Ahmedabad) . . . 211
S. 10(1) --Agricultural income--Fact of ownership of agricultural
land not disputed--Claim for deduction of expenses for agriculture allowed--No
evidence that agricultural operations were not performed--Income was
agricultural-- Thangamani Vinodhagan v. Asst. CIT
(Chennai) . . . 230
Agricultural income--Rose plants grown in green house--Mother plants grown in
agricultural land using human labour --Income from rose flowers exempt as
agricultural income--Circular No. 1, dated 27-3-2009-- Deputy CIT v.
Best Roses Biotech P. Ltd. (Ahmedabad) . . . 211
S. 14A --Income--Computation of income--Disallowance of expenditure
relating to non-taxable income from firm--Borrowed amount invested as capital
of firm--Interest relating to share of profit to be disallowed-- Asst. CIT
v. Vinay Singal (Chandigarh) . . . 146
S. 28(va) --Heads of income--Capital gains or business
income--Proprietary concern of assessee taken over by company as going
concern--Consideration for transfer is taxable as long-term capital
gains--Assessee employed by company on salary and other terms of
employment--Not a case of compensation for not engaging in similar business--
Asst. CIT v. Sangeeta Wij (Smt.) (Delhi) . . . 162
S. 32 --Rectification of mistakes--Depreciation--Withdrawal of
deprecation on ground of non-user--Question debatable--Depreciation cannot be
withdrawn in rectification proceedings-- Thangamani Vinodhagan v.
Asst. CIT (Chennai) . . . 230
S. 37, Expln .--
Business expenditure--Expenditure for purpose prohibited by law--Assessee
exporting rice to Iraq under oil for food programme of United Nations--Paying
commission to company for services in connection with export from procurement
to final realisation of proceeds--Report by U. N. committee probing
irregularities that company to which assessee paid commission was front company
for Iraqi regime and payment used as kickback--Payment to Iraqi regime by agent
not under assessee™s control--No denial that services rendered--No material to
show assessee knew and was part of scheme to pay kickbacks to Iraqi
regime--Payment deductible-- Deputy CIT v. Rajrani Exports P.
Ltd. (Kolkata) . . . 239
S. 50B --Heads of income--Capital gains or business
income--Proprietary concern of assessee taken over by company as going
concern--Consideration for transfer is taxable as long-term capital
gains--Assessee employed by company on salary and other terms of
employment--Not a case of compensation for not engaging in similar business--
Asst. CIT v. Sangeeta Wij (Smt.) (Delhi) . . . 162
S. 54 --Penalty--Concealment of income--Capital gains--Claim for
exemption--Investment of net consideration in residential property--Shortfall in
amount invested due to wrong advice by counsel--No concealment of
income--Penalty cannot be imposed-- Majorjit Singh v. Asst.
CIT (Chandigarh) . . . 183
S. 68 --Cash credits--Amounts repaid by debtors--Debtors not
denying transaction--Amount not includible in assessee™s total income--Amount
claimed to be advanced by sister--No evidence of such advance--Amount
includible in total income of assessee-- Thangamani Vinodhagan v.
Asst. CIT (Chennai) . . . 230
S. 69C --Unexplained expenditure--Addition based on statement of
director recorded by Central excise authorities--Addition not supported by
evidence--Addition not justified--Additions under section 69C set aside by
Tribunal in assessment year 2004-05--No new facts in assessment year
2008-09--Addition not valid-- ITO v. Arora Alloys Ltd.
(Chandigarh) . . . 133
S. 92C --Transfer pricing--Depreciation--Method of computing
depreciation--No difference in result as a result of applying any of methods--
Lason India P. Ltd. v. Asst. CIT (Chennai) . . . 203
S. 115JB --Company--Book profits--Computation--Minimum alternate
tax--Deduction from net profit on account of foreign exchange fluctuation--No
adjustment available except as provided in Explanation --Reduction of
amount while computing book profit--Not permissible-- City Gold Media Ltd.
v. ITO (Ahmedabad) . . . 192
S. 144C --Transfer pricing--Draft assessment order incorporating
proposals of Transfer Pricing Officer--Draft assessment order erroneously
termed final order--Assessing Officer has power to issue corrigendum to correct
error-- Lason India P. Ltd. v. Asst. CIT (Chennai) . . .
203
S. 154 --Rectification of mistakes--Depreciation--Withdrawal of
deprecation on ground of non-user--Question debatable--Depreciation cannot be
withdrawn in rectification proceedings-- Thangamani Vinodhagan v.
Asst. CIT (Chennai) . . . 230
S. 195 --Deduction of tax at source--Payment to
non-resident--Failure to deduct tax at source--No assessment proceedings
against non-resident for four years--Assessee cannot be treated as assessee in
default under section 201-- Crompton Creaves Ltd. v. Deputy
CIT (Mumbai) . . . 151
S. 201 --Deduction of tax at source--Payment to
non-resident--Failure to deduct tax at source--No assessment proceedings
against non-resident for four years--Assessee cannot be treated as assessee in
default under section 201-- Crompton Creaves Ltd. v. Deputy
CIT (Mumbai) . . . 151
S. 263 --Revision--Commissioner--Reassessment--Financial charges
paid on funds borrowed for purchase of property--Part of closing stock--No
finding that Assessing Officer applied his mind to facts of case--Direction to
Assessing Officer to examine issue--Proper-- Devi Developers P. Ltd. v.
CIT (Delhi) . . . 187
S. 271(1)(b) --Penalty--Failure to respond to notice under section 143(1)
and (2)--Bona fide belief that income was non-taxable--Not reasonable
explanation--Penalty imposable-- Thangamani Vinodhagan v. Asst.
CIT (Chennai) . . . 230
S. 271(1)(c) --Penalty--Concealment of income--Capital gains--Claim for
exemption--Investment of net consideration in residential property--Shortfall
in amount invested due to wrong advice by counsel--No concealment of
income--Penalty cannot be imposed-- Majorjit Singh v. Asst.
CIT (Chandigarh) . . . 183
