Can the valuation done by any authority of the State Government for the purpose

 

Can the valuation done by any authority of the State Government for the purpose of payment of stamp duty in respect of land or building be taken as actual sale consideration received by the purchaser?

CIT v. Chandni Buchar (2010) 323 ITR 0510 (Pun.& Har.)

The Assessing Officer added the difference between purchase price disclosed in the sale deed and purchase price of the property adopted for the purpose of paying the stamp duty to the total income of the assessee as income from unexplained sources. The Commissioner of Income-tax (Appeals) deleted this addition by holding that section 50C is a deeming provision for the purpose of bringing to tax the difference as capital gain. Further, he also held that in the absence of any legally acceptable evidence, valuation done for the purpose of section 50C would not represent actual consideration passed on to the seller. The Tribunal also held that valuation done by any State agency for the purpose of stamp duty would not ipso facto substitute the actual sale consideration as being passed on to the seller by the purchaser in the absence of any admissible evidence. The Assessing Officer is obliged to bring on record positive evidence indicating the fact that the assessee has paid anything more than the sum disclosed in the purchase deed. In this case, the assessee has discharged the burden of proving the sale consideration as projected in the sale deed by producing original bank statement.

The High Court, therefore, held that the view taken by the Tribunal while accepting the order of the Commissioner of Income-tax (Appeals) does not suffer from any legal infirmity.

__._,_.___

__

Partial completion of housing project Eligibility for deduction under section

 

Partial completion of housing project Eligibility for deduction under section 80-IB(10)

Assessee can claim deduction under section 80-IB on year to year basis, in view of the Circular of the CBDT dated 30-6-2009, even though the assessee proposes to construct on the entire extent of land and paid the development charges in this regard. Therefore, where the assessee completed the project in respect of one block, the assessee was eligible for deduction under section 80-IB( 10) of the Act in respect of the same. – Vide Nagarjuna Homes v.Income Tax Officer (2011) 42(II) ITCL 199 (Hyd-Trib)

IT : Donation by a charitable trust to other charitable institution cannot resul

IT : Donation by a charitable trust to other charitable institution cannot result in same becoming income of donor-trust

Income-tax : If the assessee-trust either itself uses any part of its income for charitable purposes or donates the same to any other charitable trust, such income is exempt from inclusion in the total income of the assessee trust for the relevant year [Section 11 of the Income-tax Act, 1961 - Charitable or religious trust - Exemption of income from property held under] - [2011] 10 taxmann.com 128 (Delhi - ITAT)

I-T SET TO TAP FOREIGN WHISTLEBLOWERSAmid mounting pressure from the Supreme Cou

 

I-T SET TO TAP FOREIGN WHISTLEBLOWERSAmid mounting pressure from the Supreme Court, the government is set to accept tip-offs from foreign informers and whistleblowers for fishing out information on tax evaders who have parked money in Swiss banks and tax havens. We have clear guidelines to pay informants and the same can be extended to cover foreign informers, a top tax official told ET. While rules allow tapping such sources, its an option that has never been explored by Indian authorities. India has been pushing for co-operation among countries in sharing information on tax evaders. At the G20 session in Paris over the weekend, Finance Minister Pranab Mukherjee renewed the pitch for securing old banking information, without explicitly naming Switzerland. Over the past few years, some governments in Europe have used stolen data accessed from whistleblowers to investigate and pass on information to other countries. A few months ago, France shared with New Delhi a list of more than 600 bank accounts of Indians in HSBC, Geneva. The list was stolen by a former HSBC employee. Germany, too, bought stolen data on scores of bank account holders of LGT, a bank in Liechtenstein. The decision to use foreign unofficial sources comes at a time the income-tax department is carrying out raids at residences of individuals whose names figure on the list of HSBC account holders. According to sources, there are indications that the department has also received details of several bank accounts of Indians with two other Swiss banks Julius Baer and Credit Suisse. In recent weeks residents with accounts in these banks have been approached, said a person familiar with the raids.However, we dont know how the I-T department got hold of the names, said the person familiar with the raids and ongoing investigation. Tax officials, however, refused to confirm this. Residents who parked undisclosed wealth abroad either operated direct numbered accounts or used a discretionary trust to hold the money. In such structures, an NRI member of the family functions as settlor of the trust and a tax professional in most cases a chartered accountant is appointed as the protector who looks after the interest of the settler, while other members of the family, most of whom may be resident Indians, are the beneficiaries of the trust. During recent raids, tax officials have landed up at residences of some of the trust beneficiaries. There is a panic. There are many who are willing to give self-declaration of their wealth and pay penalty despite the fact that in many cases there have been no transactions in these accounts for past 6-7 years. . . They want to avoid prosecution, said a senior chartered accountant. According to him, members of certain trades such as diamond exports have come under the glare of the tax department, which has also used passport numbers of residents to make enquiries on bank accounts with authorities in tax havens. Banks worldwide use passport numbers for customer verification. We are hoping to secure information on Indian tax evaders through various channels, including whistleblowers and other informants, especially since foreign banks, most often, do not disclose client details, said the tax official. However, taxmen will check the veracity of the information provided by informants before acting on it. In many cases, Indians hold legitimate money in foreign bank accounts and surely they cannot be subjected to any harassment, the official said. As per rules, the government is to pay informers only after tax evaders settle their dues. The term informer in the tax rule is generic. It does not say that the informer has to be a person of Indian nationality. So, we do not see any problem in covering foreigners or paying them, said the official. Usually, an informer is paid 10% of the amount collected as tax from the evader. Investigation on account holders of HSBC, Geneva, is on and the department is set to launch prosecution proceedings in cases where criminality is proven, said the official. In some cases, he said, the tax department had also found corroborative evidence to nail the evader. Global Financial Integrity, a Washington-based thinktank, has estimated the size of Indias underground economy at 50% of the countrys GDP, or around $640 billion, at end-2008. Of this, about 72% of the illicit assets are held abroad. – www.economictimes.indiatimes.com

EC ropes in I-T dept to check poll funding October, 17th 2011 In a bid to ch

 

EC ropes in I-T dept to check poll funding

October, 17th 2011
In a bid to check suspicious transactions, the Election Commission has rolled out fresh guidelines for monitoring of poll funding during the forthcoming elections in five states, including Uttar Pradesh, and has roped in the income tax department and the financial intelligence unit for this purpose.

The directives to create a database of doubtful transactions and dubious movement of cash were recently issued by the EC to chief electoral officers of the five states that go to the polls.

"The EC guidelines on poll expenditure monitoring have been operationalized," a senior official privy to the development said. This is for the first time that the EC has asked the elite financial intelligence unit, functioning under the finance ministry, to sift through their records for any instance of information about the assets and liabilities of candidates participating in the polls.

"Besides, the I-T (investigation) and FIU will download from EC website the copies of affidavits declaring assets and liabilities by the candidates. The FIU will also verify the information available with them pertaining to the candidates and send the report to the director general of income tax (investigation) of the state through the Central Board of Direct Taxes," the EC said.

IT : Closing stock of an erstwhile firm converted into stock-in-trade by a propr

IT : Closing stock of an erstwhile firm converted into stock-in-trade by a proprietorship concern will have to be valued at the market value

Income-tax : On dissolution of a firm closing stock has to be valued on the basis of real value i.e., market value, which is independent of the fact whether or not the erstwhile partners of a dissolved firm continue to do business with assets received on dissolution [Section 145 of the Income-tax Act, 1961 - Method of accounting - Valuation of stock] - [2011] 10 taxmann.com 126 (Delhi)

Direct Tax Laws Oct 2011 08

On expiry of tax holiday period under section 10B, block of assets, viz., plant and machineries of industry are available for working out relief under section 50(2) - [2011] 14 taxmann.com 82 (Madras)

Transfer pricing - Rule 10B nowhere provides that comparable uncontrolled transaction shall be only an international transaction - [2011] 14 taxmann.com 91 (New Delhi - Trib.)

Losses on sale and purchase of shares would not be treated as speculation losses of assessee engaged in bills rediscounting activities - [2011] 14 taxmann.com 81 (Mumbai - Trib.)

Where assessee which was an association related to trade had incurred revenue expenses solely for purpose of protection of common interest of its members it would be allowable as deduction under section 44A - [2011] 14 taxmann.com 80 (Delhi - Trib.)

A partner of a firm is an individual only even if he is partner as a representative of HUF and, thus, where salary is paid to such a partner for conducting affairs of business of firm, it has to be allowed as deduction in view of Explanation 4 to section 40(b) - [2011] 14 taxmann.com 79 (Ahmedabad - Trib.)

Assessee not entitled to deduction under section 80-IB(10) where it sold plots to respective customers by registering a sale deed and thereafter it constructed building at an agreed price - [2011] 14 taxmann.com 78 (Indore - Trib.)

Where assessee, a non-resident company, carried out work of offshore transportation and installation of pipelines in territorial waters of India through its vassels, it could be said to have a fixed place of business in India in terms of paragraph (1) of article 5 of Indo-Mauritius DTAA - [2011] 14 taxmann.com 77 (Delhi - Trib.)

If stock-in-trade is converted into investment and sold later on, difference between sale price of shares and their indexed cost of acquisition should be computed as capital gain - [2011] 14 taxmann.com 76 (Chennai - Trib.)

S. 153A: Assessments pending in appeal do not abate

S. 153A: Assessments pending in appeal do not abate


For AY 2002-03, an addition of Rs. 99 lakhs was made by the AO & confirmed by the CIT (A). During the pendency of the appeal before the Tribunal, a search under s. 132 was conducted and s. 153A proceedings were initiated. The Tribunal held that in view of the s. 153A notice, the assessments of the six preceding assessment years prior to the date of search abated and that assessments pending in appeal would stand merged in the fresh assessment to be made by the AO u/s 153A pursuant of the search. The AO was directed to reconsider the additions in the s. 153A assessment. On appeal by the department, HELD reversing the Tribunal:

The second proviso to s. 153A provides that “assessments relating to any assessment year falling within the period of six assessment years pending on the date of initiation of the search u/s 132 shall abate“. The words “pending on the date of initiation of search” has to be assigned simple and plain meaning. If the assessment is finalized, there are no “pending proceedings” to be abated. The pendency of an appeal does not mean that the assessment proceedings are pending. The word ‘abatement‘ refers to something, which is pending or alive and its suspension or termination. Proceedings which are complete are not liable for abatement (Circular No.7 of 2003 dated 5.9.2003 referred)

Commodity, bullion trade to come under the I-T radar

 

Commodity, bullion trade to come under the I-T radar

October, 14th 2011

A tardy progress in tax collection has triggered this reform. The government has decided to bring mining along with bullion and commodity trade on the income tax radar in the current financial year so as to promptly detect tax evasion and garner additional revenue.

The Income Tax department has chalked out a multi-pronged strategy to counter the impact of slowdown in growth across sectors, noticing that 2011-12 has failed to paint a rosy picture on direct tax collection so far this year.

A senior official with the Central Board of Direct Taxes (CBDT) said on Thursday that the authorities, as part of the plan, were taking steps to identify potential areas for detecting major tax evasion, act speedily and effectively on the arrear recovery front and verify high-value transaction to identify tax avoidance.

So discouraging has been the direct tax collection performance in the first half of this fiscal that it has made tough the achievement of even the budget estimate of 5.33 lakh crore for 2011-12. We (CBDT) now expect that these steps will help us meeting the target envisaging a 19.5 per cent growth over previous years collection of Rs 4.46 lakh crore, the official told Business Standard.

Net direct tax collection for the first half of 2011-12 was up by only seven per cent to Rs 194,812 crore after a refund of over Rs 62,000 crore.

The scams associated with mining in Karnataka and Goa clearly indicate that the potential of detecting tax evasion in the mining cases is huge, the official noted. Commodity and bullion have also emerged as potential areas in this regard. Realty has always been an area under continued scrutiny.

Along with the news steps, the I-T department has initiated a comprehensive exercise of detecting possible tax avoidance and underpayments from the high-value transaction data uploaded in its system. The idea is to make full use of the available data and compare it with the returns filed by the assessees to identify gaps and collect additional revenue this year, he pointed out.

The CBDT official said the Central Information Branch (CIB) across the country has been given the powers of verification and intelligence gathering on the high-value transaction information available with the department.

We now have a robust database of information on transaction of every assessee. The department is equipped with improved 360 degree profiling for anti-evasion action, he informed.

The I-T department has received 6,462 annual information returns on high-value transactions in 2010-11. These contain 43.83 lakh transactions with a total value of Rs 15,328,045 crore. Further, the CIB uploaded 14.57 crore pieces of information about high-value transactions in 2010-11, as compared to 4.45 crore in 2009-10.

As for arrear recovery, the work has gained pace with the CBDT setting up a committee to strengthen steps to swiftly collect demand due in various cases.

The department is also dwelling on the use of third parties for recovery of tax arrears. This is considering that the recovery of older demands has got hampered due to lack of information on assets of the assessee.

As on March 31, 2010, the total income tax arrear demand outstanding stood at Rs 229,032 crore. Out of this, demand worth Rs 9,476 has become difficult to recover because the assesses have turned out to be untraceable. Besides, Rs 92,360 crore stand as arrear demands held up in no assets cases.

ITR Volume 339 : Part 4 (Issue dated 19-12-2011)

INCOME TAX REPORTS (ITR)

Volume 339 : Part 4 (Issue dated 19-12-2011)

SUBJECT INDEX TO CASES REPORTED IN THIS PART

HIGH COURTS

Advance tax --Interest--Company--Book profits--Assessment under section 143/147 and later recomputation under section 143(3) pursuant to revision by Commissioner--Interest under section 234B chargeable on tax calculated on book profits--Income-tax Act, 1961, ss. 115J, 143, 147, 234B-- CIT v. Nahar Spinning Mills Ltd .

(P&H) . . . 557

Appeal to Appellate Tribunal --Powers of Tribunal--Commissioner (Appeals) directing Assessing Officer to decide question on merits--Consequent order of Assessing Officer reversed by Tribunal--Order of Tribunal--Valid--Income-tax Act, 1961, ss. 43(6), Expln. 2, 254-- CIT v. Arvind Products Ltd . (Guj) . . . 643

Assessment --Valuation of property--Reference to valuer--Reference to valuer only after rejection of books of account--Income-tax Act, 1961, s. 142A(1)-- CIT v. Lucknow Public Educational Society (All) . . . 588

Bad debt --Bank--Rural branch--Meaning of "place" in Explanation (ia) to section 36(1)(viia)--Branch in a rural area where population is less than 10,000--Income-tax Act, 1961, s. 36(1)(viia)-- CIT v. Lord Krishna Bank Ltd . (Ker) . . . 606

----Money-lending business--Finding that money-lending business had been carried on and interest had been assessed as business income--Amount written off--Deductible--Income-tax Act 1961, s. 36(1)(vii)-- CIT v. Southern Polymers P. Ltd.

(Mad) . . . 540

Capital gains --Exemption--Sale of residential property--Condition precedent for exemption--Profits to be used for purchase of residential property or deposited in specified account before due date for furnishing return--Date for furnishing return--Can be date under section 139(4)--Profits utilised for specified purpose before that date--Entire profits entitled to exemption--Income-tax Act, 1961, ss. 54, 139(4)-- CIT v. Ms. Jagriti Aggarwal (P&H) . . . 610

Charitable purposes --Charitable trust--Exemption--Condition precedent--Application of income for charitable purposes--Mandis established by State Government to help marketing of agricultural produce--Mandi samitis required to give part of collections and development cess to Agricultural Produce Market Board constituted under Mandi Act--Amounts given to Board constituted application of income for charitable purposes--Mandis entitled to exemption--Income-tax Act, 1961-- CIT v. Krishi Utpadan Mandi Samiti (All) . . . 488

----Charitable trust--Registration--Cancellation--Law applicable--Power to cancel registration under section 12A granted with effect from 1-6-2010--Registration under section 12A in December, 1974--Cancellation of registration under section 12AA by order dated 30-6-2009--Not valid--Income-tax Act, 1961, ss. 12A, 12AA-- Director of Income-tax (Exemptions) v. Mool Chand Khairati Ram Trust

(Delhi) . . . 622

Company --Book profits--Unabsorbed depreciation lower than loss carried forward from earlier year--Depreciation to be set off under clause (iv) of Explanation to section 115J(1A)--Income-tax Act, 1961, s. 115J-- Peico Electronics and Electricals Ltd . v. CIT (Cal) . . . 506

Deduction of tax at source --Assessee engaged in transportation of building material--Hiring dumpers--Payment made to contractors for hiring dumpers--Is not rent for machinery or equipment but payment for works contract of shifting of goods from one place to another--Section 194C applicable and not section 194-I--Income-tax Act, 1961, ss. 194C, 194-I-- CIT (TDS) v. Shree Mahalaxmi Transport Co.

(Guj) . . . 484

----Assessee entering into works contracts for transport of goods belonging to assessee to clients through their vehicles--Payment not rent for machinery or equipment but payment for works contract--Tax to be deducted under section 194C--Income-tax Act, 1961, ss. 194C, 194-I-- CIT (TDS) v. Swayam Shipping Services P. Ltd .

(Guj) . . . 647

----Payment to sub-contractors--Union of truck operators procuring contracts for its members--No sub-contracts--Tax not deductible at source--Income-tax Act, 1961, s. 194C-- CIT v. Truck Operators' Union (P&H) . . . 532

Exemption --Dividend--No expenditure in fact incurred in earning dividend income--No disallowance permissible--Income-tax Act, 1961, s. 14A-- CIT v. Reliance Industries Ltd. (Bom) . . . 632

Gift --Transfer of immovable property by assessee to her husband stated to be out of love and affection--Marriage subsisting at time of gift--No evidence that husband bought property with his funds--Gift-tax rightly imposed--Gift-tax Act, 1958, s. 16-- K. Meenakumari v. ITO (Mad) . . . 580

Gift-tax --Deemed gift--Firm--Property brought in as capital contribution by partners--Subsequent retirement of partners and withdrawal of property from firm--Difference in value not as deemed gift--Gift-tax Act, 1958, s. 4(1)(a)-- CIT v. Smt. Jayalakshmamma (Karn) . . . 546

Income --Exemption--Club--Principle of mutuality--Interest on fixed deposits, dividend, income from Government securities and profit on sale of investments--Principle of mutuality applies--Not chargeable to tax--Income-tax Act, 1961-- CIT v. Delhi Gymkhana Club Ltd. (Delhi) . . . 525

----Income or capital--Sales tax incentive--Purpose test--Capital receipt--Income-tax Act, 1961-- CIT v. Reliance Industries Ltd . (Bom) . . . 632

----Mutual concern--Co-operative society--Finding that there was complete identity between contributors and participators--Income of society not taxable--Income-tax Act, 1961-- CIT v. Talangang Co-op. Group Housing Society Ltd.

(Delhi) . . . 518

Industrial undertaking --Special deduction under section 80-IA--Manufacture of identity cards--Finding that activity involved making of a new final product from data with which it started and amount to manufacture or production of an article or thing--Assessee entitled to deduction--Income-tax Act, 1961, s. 80-IA-- CIT v. Haryana State Electronics Development Corporation Ltd. (P&H) . . . 615

----Special deduction under section 80-IB--Condition precedent--Manufacture of goods employing more than ten workers--Meaning of "worker"--Worker would include persons employed indirectly by contractor--Assessee entitled to special deduction under section 80-IB--Income-tax Act, 1961, s. 80-IB(2)(iv)-- CIT v. Jyoti Plastic Works Private Limited (Bom) . . . 491

Interest-tax --Charge of tax--Effect of sections 5 and 6--Interest on loans and advances under bills rediscounting scheme from banks to which Banking Regulation Act applies--Not chargeable to tax--Interest-tax Act, 1974, ss. 5, 6-- National Insurance Co. Ltd. v. CIT (Cal) . . . 573

Precedent --Effect of decision of Supreme court in Sargam Cinema v. CIT [2010] 328 ITR 513 (SC)-- CIT v. Lucknow Public Educational Society (All) . . . 588

Reassessment --Limitation--Effect of section 149(1)(b)--Period extended where alleged escaped income exceeds prescribed limit--Section 149 does not override provisions of section 147--Notice after four years--Failure to disclose material facts necessary for assessment must exist--Income-tax Act, 1961, ss. 147, 149-- Sayaji Hotels Ltd . v. ITO (Guj) . . . 498

----Notice--Change of opinion by succeeding Assessing Officer--Not a ground for reassessment--Income-tax Act, 1961, ss. 144, 147, 148-- H. K. Buildcon Ltd . v. ITO

(Guj) . . . 535

----Validity--Tax payable on reassessment less than tax paid under regular assessment--Reassessment proceedings--Not valid--Income-tax Act, 1961, ss. 147, 148-- PKM Advisory Services P. Ltd. v. ITO (Guj) . . . 585

----Writ--Reassessment after four years--Failure to disclose material facts necessary for assessment--Duty of assessee to disclose material facts fully and truly--Assessee claiming exemption under section 10B in respect of alleged new unit--Facts that exemption under section 10B had been granted earlier not disclosed--Whether facts had been disclosed fully and truly--Question could not be decided in writ proceedings--Income-tax Act, 1961, ss. 147, 148--Constitution of India, art. 226-- Sociedade De Formento Industrial P. Ltd. v. Asst. CIT (Bom) . . . 595

Search and seizure --Warrant of authorisation--Validity--Warrant based on material--Satisfaction note scrutinised by higher authorities--Warrant of authorisation valid--Income-tax Act, 1961, s. 132-- Dipin G. Patel v. Director General of Income-tax (Investigation) (Guj) . . . 636

Unexplained investment --Finding by Tribunal after considering material that investment had been explained--Finding of fact--Deletion of addition--Justified--Income-tax Act, 1961-- CIT v. R. Hanumaiah Associates (Karn) . . . 603

----Value of investment assessable under section 69--Income-tax Act, 1961, ss. 69, 69B-- Dhanush General Stores v. CIT (Chhattisgarh) . . . 651

Valuation of stock --Bank--Valuation of unquoted Government securities--Valuation according to RBI guidelines--Valid--Income-tax Act, 1961-- CIT v. Lord Krishna Bank Ltd . (Ker) . . . 606

Wealth-tax --Asset--Land taken on lease--Assessee in possession after expiry of lease--Litigation with regard to right of assessee--Order of court with regard to previous years that interest in land not assessable to wealth-tax as assessee does not have vested interest in land for a period exceeding six years--To be followed in present year also--Wealth-tax Act, 1957, s. 2(e)(2)(iii)-- George Oakes Ltd . v. Deputy CWT

(Mad) . . . 630

SECTIONWISE INDEX TO CASES REPORTED IN THIS PART

Constitution of India ;

Art. 226 --Reassessment--Writ--Reassessment after four years--Failure to disclose material facts necessary for assessment--Duty of assessee to disclose material facts fully and truly--Assessee claiming exemption under section 10B in respect of alleged new unit--Facts that exemption under section 10B had been granted earlier not disclosed--Whether facts had been disclosed fully and truly--Question could not be decided in writ proceedings-- Sociedade De Formento Industrial P. Ltd. v. Assistant Commissioner of Income-tax (Bom) . . . 595

Gift-tax Act, 1958 :

S. 4(1)(a) --Gift-tax--Deemed gift--Firm--Property brought in as capital contribution by partners--Subsequent retirement of partners and withdrawal of property from firm--Difference in value not as deemed gift-- CIT v. Smt. Jayalakshmamma

(Karn) . . . 546

S. 16 --Gift--Transfer of immovable property by assessee to her husband stated to be out of love and affection--Marriage subsisting at time of gift--No evidence that husband bought property with his funds--Gift-tax rightly imposed-- K. Meenakumari v. ITO

(Mad) . . . 580

Income-tax Act, 1961 :

S. 12A --Charitable purposes--Charitable trust--Registration--Cancellation--Law applicable--Power to cancel registration under section 12A granted with effect from 1-6-2010--Registration under section 12A in December, 1974--Cancellation of registration under section 12AA by order dated 30-6-2009--Not valid-- Director of Income-tax (Exemptions) v. Mool Chand Khairati Ram Trust

(Delhi) . . . 622

S. 12AA --Charitable purposes--Charitable trust--Registration--Cancellation--Law applicable--Power to cancel registration under section 12A granted with effect from 1-6-2010--Registration under section 12A in December, 1974--Cancellation of registration under section 12AA by order dated 30-6-2009--Not valid-- Director of Income-tax (Exemptions) v. Mool Chand Khairati Ram Trust

(Delhi) . . . 622

S. 14A --Exemption--Dividend--No expenditure in fact incurred in earning dividend income--No disallowance permissible-- CIT v. Reliance Industries Ltd.

(Bom) . . . 632

S. 36(1)(vii) --Bad debt--Money-lending business--Finding that money-lending business had been carried on and interest had been assessed as business income--Amount written off--Deductible-- CIT v. Southern Polymers P. Ltd.

(Mad) . . . 540

S. 36(1)(viia) --Bad debt--Bank--Rural branch--Meaning of "place" in Explanation (ia) to section 36(1)(viia)--Branch in a rural area where population is less than 10,000-- CIT v. Lord Krishna Bank Ltd . (Ker) . . . 606

S. 43(6), Expln. 2 --Appeal to Appellate Tribunal--Powers of Tribunal--Commissioner (Appeals) directing Assessing Officer to decide question on merits--Consequent order of Assessing Officer reversed by Tribunal--Order of Tribunal--Valid-- CIT v. Arvind Products Ltd . (Guj) . . . 643

S. 54 --Capital gains--Exemption--Sale of residential property--Condition precedent for exemption--Profits to be used for purchase of residential property or deposited in specified account before due date for furnishing return--Date for furnishing return--Can be date under section 139(4)--Profits utilised for specified purpose before that date--Entire profits entitled to exemption-- CIT v. Ms. Jagriti Aggarwal

(P&H) . . . 610

S. 69 --Unexplained investment--Value of investment assessable under section 69-- Dhanush General Stores v. CIT (Chhattisgarh) . . . 651

S. 69B --Unexplained investment--Value of investment assessable under section 69-- Dhanush General Stores v. CIT (Chhattisgarh) . . . 651

S. 80-IA --Industrial undertaking--Special deduction under section 80-IA--Manufacture of identity cards--Finding that activity involved making of a new final product from data with which it started and amount to manufacture or production of an article or thing--Assessee entitled to deduction-- CIT v. Haryana State Electronics Development Corporation Ltd. (P&H) . . . 615

S. 80-IB(2)(iv) --Industrial undertaking--Special deduction under section 80-IB--Condition precedent--Manufacture of goods employing more than ten workers--Meaning of "worker"--Worker would include persons employed indirectly by contractor--Assessee entitled to special deduction under section 80-IB-- CIT v. Jyoti Plastic Works Private Limited (Bom) . . . 491

S. 115J --Advance tax--Interest--Company--Book profits--Assessment under section 143/147 and later recomputation under section 143(3) pursuant to revision by Commissioner--Interest under section 234B chargeable on tax calculated on book profits-- CIT v. Nahar Spinning Mills Ltd . (P&H) . . . 557

----Company--Book profits--Unabsorbed depreciation lower than loss carried forward from earlier year--Depreciation to be set off under clause (iv) of Explanation to section 115J(1A)-- Peico Electronics and Electricals Ltd . v. CIT

(Cal) . . . 506

S. 132 --Search and seizure--Warrant of authorisation--Validity--Warrant based on material--Satisfaction note scrutinised by higher authorities--Warrant of authorisation valid-- Dipin G. Patel v. Director General of Income-tax (Investigation)

(Guj) . . . 636

S. 139(4) --Capital gains--Exemption--Sale of residential property--Condition precedent for exemption--Profits to be used for purchase of residential property or deposited in specified account before due date for furnishing return--Date for furnishing return--Can be date under section 139(4)--Profits utilised for specified purpose before that date--Entire profits entitled to exemption-- CIT v. Ms. Jagriti Aggarwal

(P&H) . . . 610

S. 142A(1) --Assessment--Valuation of property--Reference to valuer--Reference to valuer only after rejection of books of account-- CIT v. Lucknow Public Educational Society (All) . . . 588

S. 143 --Advance tax--Interest--Company--Book profits--Assessment under section 143/147 and later recomputation under section 143(3) pursuant to revision by Commissioner--Interest under section 234B chargeable on tax calculated on book profits-- CIT v. Nahar Spinning Mills Ltd . (P&H) . . . 557

S. 144 --Reassessment--Notice--Change of opinion by succeeding Assessing Officer--Not a ground for reassessment-- H. K. Buildcon Ltd . v. ITO

(Guj) . . . 535

S. 147 --Advance tax--Interest--Company--Book profits--Assessment under section 143/147 and later recomputation under section 143(3) pursuant to revision by Commissioner--Interest under section 234B chargeable on tax calculated on book profits-- CIT v. Nahar Spinning Mills Ltd . (P&H) . . . 557

----Reassessment--Limitation--Effect of section 149(1)(b)--Period extended where alleged escaped income exceeds prescribed limit--Section 149 does not override provisions of section 147--Notice after four years--Failure to disclose material facts necessary for assessment must exist-- Sayaji Hotels Ltd . v. ITO (Guj) . . . 498

----Reassessment--Notice--Change of opinion by succeeding Assessing Officer--Not a ground for reassessment-- H. K. Buildcon Ltd . v. ITO (Guj) . . . 535

----Reassessment--Validity--Tax payable on reassessment less than tax paid under regular assessment--Reassessment proceedings--Not valid-- PKM Advisory Services P. Ltd. v. ITO (Guj) . . . 585

----Reassessment--Writ--Reassessment after four years--Failure to disclose material facts necessary for assessment--Duty of assessee to disclose material facts fully and truly--Assessee claiming exemption under section 10B in respect of alleged new unit--Facts that exemption under section 10B had been granted earlier not disclosed--Whether facts had been disclosed fully and truly--Question could not be decided in writ proceedings-- Sociedade De Formento Industrial P. Ltd. v. Asst. CIT

(Bom) . . . 595

S. 148 --Reassessment--Notice--Change of opinion by succeeding Assessing Officer--Not a ground for reassessment-- H. K. Buildcon Ltd . v. ITO (Guj) . . . 535

----Reassessment--Validity--Tax payable on reassessment less than tax paid under regular assessment--Reassessment proceedings--Not valid-- PKM Advisory Services P. Ltd. v. ITO (Guj) . . . 585

----Reassessment--Writ--Reassessment after four years--Failure to disclose material facts necessary for assessment--Duty of assessee to disclose material facts fully and truly--Assessee claiming exemption under section 10B in respect of alleged new unit--Facts that exemption under section 10B had been granted earlier not disclosed--Whether facts had been disclosed fully and truly--Question could not be decided in writ proceedings-- Sociedade De Formento Industrial P. Ltd. v. Asst. CIT

(Bom) . . . 595

S. 149 --Reassessment--Limitation--Effect of section 149(1)(b)--Period extended where alleged escaped income exceeds prescribed limit--Section 149 does not override provisions of section 147--Notice after four years--Failure to disclose material facts necessary for assessment must exist-- Sayaji Hotels Ltd . v. ITO (Guj) . . . 498

S. 194C --Deduction of tax at source--Assessee engaged in transportation of building material--Hiring dumpers--Payment made to contractors for hiring dumpers--Is not rent for machinery or equipment but payment for works contract of shifting of goods from one place to another--Section 194C applicable and not section 194-I-- CIT (TDS) v. Shree Mahalaxmi Transport Co. (Guj) . . . 484

----Deduction of tax at source--Assessee entering into works contracts for transport of goods belonging to assessee to clients through their vehicles--Payment not rent for machinery or equipment but payment for works contract--Tax to be deducted under section 194C-- CIT (TDS) v. Swayam Shipping Services P. Ltd . (Guj) . . . 647

----Deduction of tax at source--Payment to sub-contractors--Union of truck operators procuring contracts for its members--No sub-contracts--Tax not deductible at source-- CIT v. Truck Operators' Union (P&H) . . . 532

S. 194-I --Deduction of tax at source--Assessee engaged in transportation of building material--Hiring dumpers--Payment made to contractors for hiring dumpers--Is not rent for machinery or equipment but payment for works contract of shifting of goods from one place to another--Section 194C applicable and not section 194-I-- CIT (TDS) v. Shree Mahalaxmi Transport Co. (Guj) . . . 484

----Deduction of tax at source--Assessee entering into works contracts for transport of goods belonging to assessee to clients through their vehicles--Payment not rent for machinery or equipment but payment for works contract--Tax to be deducted under section 194C-- CIT (TDS) v. Swayam Shipping Services P. Ltd . (Guj) . . . 647

S. 234B --Advance tax--Interest--Company--Book profits--Assessment under section 143/147 and later recomputation under section 143(3) pursuant to revision by Commissioner--Interest under section 234B chargeable on tax calculated on book profits-- CIT v. Nahar Spinning Mills Ltd . (P&H) . . . 557

S. 254 --Appeal to Appellate Tribunal--Powers of Tribunal--Commissioner (Appeals) directing Assessing Officer to decide question on merits--Consequent order of Assessing Officer reversed by Tribunal--Order of Tribunal--Valid-- CIT v. Arvind Products Ltd .

(Guj) . . . 643

Interest-tax Act, 1974 :

Ss. 5, 6 --Interest-tax--Charge of tax--Effect of sections 5 and 6--Interest on loans and advances under bills rediscounting scheme from banks to which Banking Regulation Act applies--Not chargeable to tax-- National Insurance Co. Ltd. v. CIT

(Cal) . . . 573

Wealth-tax Act, 1957 :

S. 2(e)(2)(iii) --Wealth-tax--Asset--Land taken on lease--Assessee in possession after expiry of lease--Litigation with regard to right of assessee--Order of court with regard to previous years that interest in land not assessable to wealth-tax as assessee does not have vested interest in land for a period exceeding six years--To be followed in present year also-- George Oakes Ltd . v. Deputy CWT (Mad) . . . 630