INCOME TAX REPORTS (ITR)
Volume 338 : Part 5 (Issue dated 14-11-2011)
SUBJECT INDEX TO CASES REPORTED IN THIS PART
HIGH COURTS
Advance tax :-
--Interest--Company--Book profits--Interest can be charged where
tax calculated on book profits--Income-tax Act, 1961, ss. 115JA, 234B, 234C--
Amtek Auto Ltd . v. CIT (P&H) . . . 550
Book profits :-
--Computation--Provision for bad and doubtful debts, whether
includible--Change of law--Matter remanded--Income-tax Act, 1961, s. 115JB--
CIT v. Hutchison Max Telecom P. Ltd. (P&H) . . . 614
Computation:- --Provision
for diminution in value of investments--Change of law--Law applicable--Amount
set aside as provision for diminution in value of assets will not reduce book
profits--Income-tax Act, 1961, s. 115JB(2)-- CIT v. Steriplate P. Ltd .
(P&H) . . . 547
Company :- --Book
profits--Advance tax--Interest payable by assessee--Effect of section 115JB and
Circular No. 13 of 2001--Computation of income under section 115JB--Company
liable to pay advance tax--Interest leviable under sections 234B and
234C--Income-tax Act, 1961, ss. 115JB, 234B, 234C-- CIT v. Sankala Polymers P.
Ltd . (Karn) . . . 617
Dividend:- --Deemed
dividend--Loan to shareholder--Scope of section 2(22)(e)--Gratuitous loan
deemed to be dividend--Loan in return to advantage conferred by
shareholder--Not deemed dividend--Shareholder permitting his immovable property
to be mortgaged to bank enabling it to obtain loan--Loan by company to
shareholder--Not deemed dividend--Income-tax Act, 1961, s. 2(22)(e)-- Pradip
Kumar Malhotra v. CIT (Cal) . . . 538
Deduction of
tax at source :- --Salary--Meaning of--Tips collected by hotel
and disbursed to employees constitute salary--Tax deductible at source on such
tips--Assessee under bona fide belief that tax was not deductible--Cannot be
treated as assessee in default under section 201--Interest under section
201(1A) compensatory and to be paid--Income-tax Act, 1961, ss. 15, 16, 17, 192,
201-- CIT (TDS) v. ITC Ltd. (Delhi) . . . 598
Income from
undisclosed sources :- --Burden of proof--Gifts--Proof of
identity of donors, their creditworthiness and genuineness of gifts--Value of
gifts not assessable as income from undisclosed sources--Income-tax Act, 1961--
CIT v. Ms. Mayawati (Delhi) . . . 563
Rectification
of mistakes :- --Failure to apply provisions of law--Mistake
which can be rectified--Income-tax Act, 1961, s. 154-- CIT v. Sankala Polymers
P. Ltd .(Karn) . . . 617
Revision :- --Commissioner--Assessment
order allowing set off of business losses of earlier years against dividend
income without discussing how dividend income was business income--Order of
revision holding order of Assessing Officer erroneous and prejudicial to
interests of Revenue--Tribunal to adjudge validity of order of Commissioner and
not to go into question of nature of income--Matter remanded--Income-tax Act,
1961, ss. 56, 72-- CIT v. Nalwa Investments Ltd . (Delhi) . . . 552
Search and
seizure :- --Block assessment--Undisclosed income--Meaning
of--Tax deducted at source from income and advance tax paid by
recipient--Income not undisclosed--Income of partners--Firm disclosing
remuneration to partners and deducting tax at source on them--No undisclosed
income in hands of partners--Income-tax Act, 1961, s. 158BC-- CIT v. H. E.
Mynuddin Pasha (Karn) . . . 533
Words and
phrases :- --”Salary”-- CIT (TDS) v. ITC Ltd . (Delhi) . . . 598
AUTHORITY FOR ADVANCE RULINGS
Non-resident :-
--Agreement with Indian company for development of software--All
software developed by Indian company assigned to non-resident--Settlement of
dispute arising out of breach of covenant as to inventor’s assignment by Indian
company--Sum paid by Indian company thereunder including consideration for
licensing of right to use patent and software comprised therein--Balance
payment capital receipt but not capital gains taxable in India--Interest on
sums placed in escrow account in India--Is income accruing in India to
non-resident--Decision of New York court that payment to be subject to tax
deduction at source--Parties to be governed by ruling of court and of order on
appeal therefrom--Income-tax Act, 1961, ss. 9(1)(vi), 195-- Upaid Systems
Limited , In re . . . 517
SECTIONWISE INDEX TO CASES REPORTED IN THIS PART
Income-tax Act, 1961 :
S. 2(22)(e) :-
--Company--Dividend--Deemed dividend--Loan to shareholder--Scope
of section 2(22)(e)--Gratuitous loan deemed to be dividend--Loan in return to
advantage conferred by shareholder--Not deemed dividend--Shareholder permitting
his immovable property to be mortgaged to bank enabling it to obtain loan--Loan
by company to shareholder--Not deemed dividend-- Pradip Kumar Malhotra v. CIT
(Cal) . . . 538
S. 9(1)(vi) :-
--Non-resident--Agreement with Indian company for development of
software--All software developed by Indian company assigned to
non-resident--Settlement of dispute arising out of breach of covenant as to
inventor’s assignment by Indian company--Sum paid by Indian company thereunder
including consideration for licensing of right to use patent and software
comprised therein--Balance payment capital receipt but not capital gains
taxable in India--Interest on sums placed in escrow account in India--Is income
accruing in India to non-resident--Decision of New York court that payment to
be subject to tax deduction at source--Parties to be governed by ruling of
court and of order on appeal therefrom-- Upaid Systems Limited , In re(AAR) . .
. 517
S. 15 :- --Deduction
of tax at source--Salary--Meaning of--Tips collected by hotel and disbursed to
employees constitute salary--Tax deductible at source on such tips--Assessee
under bona fide belief that tax was not deductible--Cannot be treated as
assessee in default under section 201--Interest under section 201(1A)
compensatory and to be paid-- CIT (TDS) v. ITC Ltd. (Delhi) . . . 598
S. 16 :- --Deduction
of tax at source--Salary--Meaning of--Tips collected by hotel and disbursed to
employees constitute salary--Tax deductible at source on such tips--Assessee
under bona fide belief that tax was not deductible--Cannot be treated as
assessee in default under section 201--Interest under section 201(1A)
compensatory and to be paid-- CIT (TDS) v. ITC Ltd. (Delhi) . . . 598
S. 17 :- --Deduction
of tax at source--Salary--Meaning of--Tips collected by hotel and disbursed to
employees constitute salary--Tax deductible at source on such tips--Assessee
under bona fide belief that tax was not deductible--Cannot be treated as
assessee in default under section 201--Interest under section 201(1A)
compensatory and to be paid-- CIT (TDS) v. ITC Ltd. (Delhi) . . . 598
S. 56 :- --Revision--Commissioner--Assessment
order allowing set off of business losses of earlier years against dividend
income without discussing how dividend income was business income--Order of
revision holding order of Assessing Officer erroneous and prejudicial to
interests of Revenue--Tribunal to adjudge validity of order of Commissioner and
not to go into question of nature of income--Matter remanded-- CIT v. Nalwa
Investments Ltd . (Delhi) . . . 552
S. 72 :- --Revision--Commissioner--Assessment
order allowing set off of business losses of earlier years against dividend
income without discussing how dividend income was business income--Order of
revision holding order of Assessing Officer erroneous and prejudicial to
interests of Revenue--Tribunal to adjudge validity of order of Commissioner and
not to go into question of nature of income--Matter remanded-- CIT v. Nalwa
Investments Ltd . (Delhi) . . . 552
S. 115JA :- --Advance
tax--Interest--Company--Book profits--Interest can be charged where tax
calculated on book profits-- Amtek Auto Ltd . v. CIT (P&H) . . . 550
S. 115JB :- --Book
profits--Computation--Provision for bad and doubtful debts, whether
includible--Change of law--Matter remanded-- CIT v. Hutchison Max Telecom P.
Ltd. (P&H) . . . 614
Company--Book
profits:- --Advance tax--Interest payable by assessee--Effect of
section 115JB and Circular No. 13 of 2001--Computation of income under section
115JB--Company liable to pay advance tax--Interest leviable under sections 234B
and 234C-- CIT v. Sankala Polymers P. Ltd . (Karn) . . . 617
S. 115JB(2) :-
--Book profits--Computation--Provision for diminution in value
of investments--Change of law--Law applicable--Amount set aside as provision
for diminution in value of assets will not reduce book profits-- CIT v.
Steriplate P. Ltd .(P&H) . . . 547
S. 154 :- --Rectification
of mistakes--Failure to apply provisions of law--Mistake which can be
rectified-- CIT v. Sankala Polymers P. Ltd . (Karn) . . . 617
S. 158BC :- --Search
and seizure--Block assessment--Undisclosed income--Meaning of--Tax deducted at
source from income and advance tax paid by recipient--Income not
undisclosed--Income of partners--Firm disclosing remuneration to partners and
deducting tax at source on them--No undisclosed income in hands of partners--
CIT v. H. E. Mynuddin Pasha (Karn) . . . 533
S. 192 :- --Deduction
of tax at source--Salary--Meaning of--Tips collected by hotel and disbursed to
employees constitute salary--Tax deductible at source on such tips--Assessee
under bona fide belief that tax was not deductible--Cannot be treated as
assessee in default under section 201--Interest under section 201(1A)
compensatory and to be paid-- CIT (TDS) v. ITC Ltd. (Delhi) . . . 598
S. 195 :- --Non-resident--Agreement
with Indian company for development of software--All software developed by Indian
company assigned to non-resident--Settlement of dispute arising out of breach
of covenant as to inventor’s assignment by Indian company--Sum paid by Indian
company thereunder including consideration for licensing of right to use patent
and software comprised therein--Balance payment capital receipt but not capital
gains taxable in India--Interest on sums placed in escrow account in India--Is
income accruing in India to non-resident--Decision of New York court that
payment to be subject to tax deduction at source--Parties to be governed by
ruling of court and of order on appeal therefrom-- Upaid Systems Limited , In
re (AAR) . . . 517
S. 201 :- --Deduction
of tax at source--Salary--Meaning of--Tips collected by hotel and disbursed to
employees constitute salary--Tax deductible at source on such tips--Assessee
under bona fide belief that tax was not deductible--Cannot be treated as
assessee in default under section 201--Interest under section 201(1A)
compensatory and to be paid-- CIT (TDS) v. ITC Ltd. (Delhi) . . . 598
S. 234B :- --Advance
tax--Interest--Company--Book profits--Interest can be charged where tax
calculated on book profits-- Amtek Auto Ltd . v. CIT (P&H) . . . 550
Company--Book
profits:- --Advance tax--Interest payable by assessee--Effect of
section 115JB and Circular No. 13 of 2001--Computation of income under section
115JB--Company liable to pay advance tax--Interest leviable under sections 234B
and 234C-- CIT v. Sankala Polymers P. Ltd . (Karn) . . . 617
S. 234C :- --Advance
tax--Interest--Company--Book profits--Interest can be charged where tax
calculated on book profits-- Amtek Auto Ltd . v. CIT (P&H) . . . 550
Company--Book
profits:- --Advance tax--Interest payable by assessee--Effect of
section 115JB and Circular No. 13 of 2001--Computation of income under section
115JB--Company liable to pay advance tax--Interest leviable under sections 234B
and 234C-- CIT v. Sankala Polymers P. Ltd . (Karn) . . . 617
