Source: http://canews1.blogspot.com/2010/12/itr-vol-329-part-3-and-itr-trib-vol-6.html
Timestamp: 2014-07-23 23:46:02
Document Index: 123569751

Matched Legal Cases: ['ART 3', 'ART 7', 'ART 3', 'ART 7', 'art 3', 'art. 226', 'Art. 136', 'Art. 141', 'art. 226', 'art. 226', 'art 7', 'art. 12', 'Art. 12', 'ART 4', 'ART 3', 'ART 3', 'ART 2', 'ART 8', 'ART 1', 'ART 4', 'ART 7', 'ART 2', 'ART 5', 'ART 3', 'ART 1', 'ART 4', 'ART 3']

CA.Chandrakant Pawar | Chartered Accountants| Nashik: ITR VOL 329 PART 3 AND ITR (TRIB) VOL 6 PART 7
ITR VOL 329 PART 3 AND ITR (TRIB) VOL 6 PART 7
INCOME TAX REPORTS (ITR)Volume 329 : Part 3 (Issue dated 13-12-2010)SUBJECT INDEX TO CASES REPORTED IN THIS PARTHIGH COURTSAdvance tax --Interest--Company--Assessment on book profits basis--No liability to pay advance tax--No interest leviable for default in payment of advance tax--Income-tax Act, 1961, ss. 115J, 115JA, 207, 208, 234B, 234C-- Binani Industries Ltd. v. CIT (Cal) . . . 323Appeal to High Court --Powers of High Court--Finding of fact cannot normally be set aside--Income-tax Act, 1961, s. 260A-- CIT v. Forech India Ltd. (Delhi) . . . 336----Powers of High Court--Point not raised before lower authorities cannot be considered by High Court--Income-tax Act, 1961, s. 260A-- CIT v. Chand Ratan Bagri (Delhi) . . . 356Business expenditure --Capital or revenue expenditure--Lease rent paid to State Industrial Development Corporation for use of land for ninety-nine years--Registration of lease deed not relevant--Land not acquired by assessee--Payment made to carry on business--Lease rent deductible--Income-tax Act, 1961, s. 37-- Deputy CIT v. Sun Pharmaceuticals Ind. Ltd. (Guj) . . . 479Capital gains --Computation of capital gains--Gains on transfer of intellectual property rights--Tribunal not justified in blindly applying B. C. Srinivasa Setty's case and concluding capital gains could not be computed--Matter remanded--Income-tax Act, 1961, ss. 45, 48-- CIT v. P. R. Seshadri (Karn) . . . 377----Exemption--Investment of net consideration in residential house--Fact that land was owned by assessee's spouse and she had used construction for mortgage purposes--Not relevant--Finding that house had been constructed--Assessee entitled to benefit of section 54F--Income-tax Act, 1961, s. 54F-- CIT v. P. R. Seshadri (Karn) . . . 377Capital or revenue expenditure --Fees paid to foreign company for designs and drawings and expenses on foreign technicians for training assessee's personnel--Expenditure for facilitating process of manufacture--Expenses incurred are revenue expenditure--Income-tax Act, 1961-- CIT v. Munjal Showa Ltd. (Delhi) . . . 449Deduction of tax at source --Certificate for non-deduction--Assesssee claiming income was exempt under section 11--Amendment of section 2(15) w.e.f. 1-4-2009 not challenged--Union of India not impleaded as a party--Effect of amendment of section 2(15) could not be considered--Refusal to issue certificate for non-deduction of tax at source--Justified--Income-tax Act, 1961, ss. 2(15), 11, 197-- Infoparks Kerala v. Deputy CIT (Ker) . . . 404Depreciation --Plant--Poultry sheds--Building specifically designed with a view to protecting birds from disease--Building designed proper and scientific feeding arrangement, proper water system, proper arrangement for collection of manure and droppings, proper arrangement for medication and vaccination--Building specifically designed to further the cause of manufacture or production--Is plant--Entitled to depreciation and investment allowance--Income-tax Act, 1961, s. 43(3)-- CIT v. Shivalik Hatcheries P. Ltd. (HP) . . . 432----Poultry sheds, fencing, water and water tank--Entitled to extra shift allowance--Income-tax Act, 1961-- CIT v. Shivalik Hatcheries P. Ltd. (HP) . . . 432Exemptions --Educational institution--Registered society running schools--Society granted exemption under section 10(23C) up to assessment year 2001-02--Law applicable--Effect of amendment of section 10(23C)--Condition regarding application of funds--Applicability of condition--Exemption already being granted could not be refused for assessment years 2002-03 to 2004-05--Income-tax Act, 1961, s. 10(23C)(vi)-- Digember Jain Society for Child Welfare v. Director General of Income-tax (Exemptions) (Delhi) . . . 459Export --Special deduction under section 80HHC--Computation of export turnover--Freight and insurance not includible in export turnover--Income-tax Act, 1961, s. 80HHC-- CIT v. King Metal Works (Bom) . . . 426----Special deduction under section 80HHC--Computation of special deduction--Meaning of profits of business--Entire sale consideration on transfer of DEPB credit assessable under section 28(iiid)--Income-tax Act, 1961, ss. 28, 80HHC-- CIT v. King Metal Works (Bom) . . . 426Income from undisclosed sources --Additions to income on basis of admission by assessee and consideration of material on record--Deletion of addition without adequate consideration--Not valid--Matter remanded--Income-tax Act, 1961-- CIT v. Swastik India (Karn) . . . 473Industrial undertaking --Special deduction under section 80-IA--Condition precedent--Manufacture of article--Meaning of "manufacture"--Conversion of limestone into limestone powder constitutes manufacture--Assessee entitled to special deduction under section 80-IA--Income-tax Act, 1961, s. 80-IA-- CIT v. Janak Raj Bansal (HP) . . . 417----Special deduction under section 80-IB--Condition precedent--Manufacture of article--Meaning of manufacture--Process of making transformer core from cold rolled coils amounts to "manufacture"--Assessee entitled to special deduction under section 80-IB--Income-tax Act, 1961, s. 80-IB-- CIT v. Alfa Lamination (Guj) . . . 348Industrial undertaking in backward area --Special deduction--Finding that industrial undertaking was situated in district notified as a backward area--Assessee entitled to special deduction under section 80HH--Notification No. S. O. 165(E), dated December 19, 1986--Income-tax Act, 1961, s. 80HH-- CIT v. Guffic Chem P. Ltd .(Karn) . . . 470Interpretation of taxing statutes --Literal interpretation-- CIT v. King Metal Works (Bom) . . . 426Loss --Short-term capital loss--Forfeiture of amount paid towards convertible warrants--Loss deductible as short-term capital loss--Income-tax Act, 1961-- CIT v. Chand Ratan Bagri (Delhi) . . . 356Non-resident --Income deemed to accrue or arise in India--Royalty--Agreement between Indian company and foreign company for supply of plant know-how and product know-how--Agreement concluded and data delivered abroad--Purchase of drawings and documents abroad--Transaction was one of sale--No income could be deemed to accrue or arise to non-resident--Income-tax Act, 1961, s. 9(1)(vi)-- CIT v. Maggronic Devices P. Ltd. (HP) . . . 442Penalty --Concealment of income--Search and seizure--Additional income offered by assessee and assessed on estimate--Levy of penalty not permissible without detailed discussion of documents and explanation for offer of additional income--Income-tax Act, 1961, s. 271(1)(c)-- CIT v. Suresh Chand Bansal (Cal) . . . 330Precedent --Effect of decision of Supreme Court in Lucky Minmat v. CIT [2000] 245 ITR 830-- CIT v. Janak Raj Bansal (HP) . . . 417----Effect of decisions of Supreme Court in American Hotel and Lodging Association Educational Institute v. CBDT [2008] 301 ITR 86 and Aditanar Educational Institution v. Additional CIT [1997] 224 ITR 310-- Digember Jain Society for Child Welfare v. Director General of Income-tax (Exemptions) (Delhi) . . . 459----Ratio of case when applicable-- CIT v. P. R. Seshadri (Karn) . . . 377----Supreme Court--One-line order of Supreme Court dismissing appeal after it is admitted and heard--Binding--Constitution of India, arts. 136, 141-- Binani Industries Ltd. v. CIT (Cal) . . . 323Reassessment --Limitation--Law applicable--Effect of amendment of section 143 w.e.f. 1-4-1989--Return filed on 24-1-2003 in response to notice under section 148--No notice issued under section 143(2) but assessee having opportunity to be heard--Order of reassessment passed on 26-3-2004--Barred by limitation--Income-tax Act, 1961, ss. 143, 148--Circular No. 549 dated 31-10-1989-- CIT v. Deep Baruah (Gauhati) . . . 362----Notice--Notice beyond four years--Condition precedent--Failure to disclose material facts necessary for assessment--Facts relating to sale of shares disclosed and assessment after enquiry--Notice after four years on ground that transaction not genuine--Notice not valid--Income-tax Act, 1961, ss. 147, 148-- Smt. Raj Rani Gulati v. Union of India (All) . . . 370----Notice--Oral direction not to proceed with enquiry--Enquiry without affording an opportunity to assessee--Assessment order set aside--Matter remanded--Income-tax Act, 1961, ss. 147, 148-- Vira Properties (Madras) Pvt. Ltd. v. Asst. CIT (Mad) . . . 389----Writ--Writ court cannot consider facts--Return submitted by assessee--Survey showing undisclosed income--Notice of reassessment was valid--Income-tax Act, 1961, ss. 147, 148--Constitution of India, art. 226-- Dr. Lata Chouhan v. ITO (MP) . . . 400Rectification of mistake --Mistake apparent from record--Search and seizure--Refund--Interest on refund--Assessee entitled to interest--Assessee to seek rectification --Income-tax Act, 1961, ss. 132, 154-- CIT v. Sri Krishna Saraf (Mad) . . . 342Search and seizure --Addition on account of documents found at premises of a relative of assessee--Investment in purchase of car and interest--Tribunal remanding the matter to Assessing Officer--Findings of fact--Income-tax Act, 1961, s. 158BFA(1)-- CIT v. Harjit Singh (P&H) . . . 422----Penalty--No concealment of income--No failure to furnish inaccurate particulars of income--Assessing authority not justified in levying penalty--Income-tax Act, 1961, s. 271(1)(c)-- CIT v. Sri Krishna Saraf (Mad) . . . 342----Search at premises of third person--Seizure and recovery from safe deposits belonging to assessee--Issue of notice under section 142(1) after search revealing search having nexus with assessee--Assessment under section 143(3)--Assessee entitled to seek necessary relief under section 132B(4)--Income-tax Act, 1961, ss. 132, 132B(4), 143-- CIT v. Sri Krishna Saraf (Mad) . . . 342Undisclosed stock --Books of account incomplete at time of survey--Finding of Commissioner (Appeals) and Tribunal that stock related to import purchases verifiable from customs records--Accounts reconciled later--Finding of fact--Income-tax Act, 1961-- CIT v. Forech India Ltd. (Delhi) . . . 336Unexplained investment --Assessee purchasing demand drafts and remitting to a party--No proof that sum represented bad debt or business loss--Addition as unexplained investment--Justified--Income-tax Act, 1961, s. 69-- Satish Kumar v. CIT (P&H) . . . 396Wealth-tax --Company--Exemption--Asset used for business--Land used for internal roads and playground--Not entitled to exemption--Wealth-tax Act, 1957--Finance Act, 1983, s. 40(3)(vi)-- Motwane Manufacturing Co. Pvt. Ltd . v. CWT (Bom) . . . 413Words and phrases --Meaning of "manufacture"-- CIT v. Alfa Lamination (Guj) . . . 348----Meaning of "manufacture"-- CIT v. Janak Raj Bansal (HP) . . . 417
SECTIONWISE INDEX TO CASES REPORTED IN THIS PARTConstitution of India : Art. 136 --Precedent--Supreme Court--One-line order of Supreme Court dismissing appeal after it is admitted and heard--Binding-- Binani Industries Ltd. v. CIT (Cal) . . . 323Art. 141 --Precedent--Supreme Court--One-line order of Supreme Court dismissing appeal after it is admitted and heard--Binding-- Binani Industries Ltd. v. CIT (Cal) . . . 323Finance Act, 1983 : S. 40(3)(vi) --Wealth-tax--Company--Exemption--Asset used for business--Land used for internal roads and playground--Not entitled to exemption-- Motwane Manufacturing Co. Pvt. Ltd . v. CWT (Bom) . . . 413Income-tax Act, 1961 : S. 2(15) --Deduction of tax at source--Certificate for non-deduction--Assesssee claiming income was exempt under section 11--Amendment of section 2(15) w.e.f. 1-4-2009 not challenged--Union of India not impleaded as a party--Effect of amendment of section 2(15) could not be considered--Refusal to issue certificate for non-deduction of tax at source--Justified-- Infoparks Kerala v. Deputy CIT (Ker) . . . 404S. 9(1)(vi) --Non-resident--Income deemed to accrue or arise in India--Royalty--Agreement between Indian company and foreign company for supply of plant know-how and product know-how--Agreement concluded and data delivered abroad--Purchase of drawings and documents abroad--Transaction was one of sale--No income could be deemed to accrue or arise to non-resident-- CIT v. Maggronic Devices P. Ltd. (HP) . . . 442S. 10(23C)(vi) --Exemptions--Educational institution--Registered society running schools--Society granted exemption under section 10(23C) up to assessment year 2001-02--Law applicable--Effect of amendment of section 10(23C)--Condition regarding application of funds--Applicability of condition--Exemption already being granted could not be refused for assessment years 2002-03 to 2004-05-- Digember Jain Society for Child Welfare v. Director General of Income-tax (Exemptions) (Delhi) . . . 459S. 11 --Deduction of tax at source--Certificate for non-deduction--Assesssee claiming income was exempt under section 11--Amendment of section 2(15) w.e.f. 1-4-2009 not challenged--Union of India not impleaded as a party--Effect of amendment of section 2(15) could not be considered--Refusal to issue certificate for non-deduction of tax at source--Justified-- Infoparks Kerala v. Deputy CIT (Ker) . . . 404S. 28 --Export--Special deduction under section 80HHC--Computation of special deduction--Meaning of profits of business--Entire sale consideration on transfer of DEPB credit assessable under section 28(iiid)-- CIT v. King Metal Works (Bom) . . . 426S. 37 --Business expenditure--Capital or revenue expenditure--Lease rent paid to State Industrial Development Corporation for use of land for ninety nine years--Registration of lease deed not relevant--Land not acquired by assessee--Payment made to carry on business--Lease rent deductible-- Deputy CIT v. Sun Pharmaceuticals Ind. Ltd. (Guj) . . . 479S. 43(3) --Depreciation--Plant--Poultry sheds--Building specifically designed with a view to protecting birds from disease--Building designed proper and scientific feeding arrangement, proper water system, proper arrangement for collection of manure and droppings, proper arrangement for medication and vaccination--Building specifically designed to further the cause of manufacture or production--Is plant--Entitled to depreciation and investment allowance-- CIT v. Shivalik Hatcheries P. Ltd. (HP) . . . 432S. 45 --Capital gains--Computation of capital gains--Gains on transfer of intellectual property rights--Tribunal not justified in blindly applying B. C. Srinivasa Setty's case and concluding capital gains could not be computed--Matter remanded-- CIT v. P. R. Seshadri (Karn) . . . 377S. 48 --Capital gains--Computation of capital gains--Gains on transfer of intellectual property rights--Tribunal not justified in blindly applying B. C. Srinivasa Setty's case and concluding capital gains could not be computed--Matter remanded-- CIT v. P. R. Seshadri (Karn) . . . 377S. 54F --Capital gains--Exemption--Investment of net consideration in residential house--Fact that land was owned by assessee's spouse and she had used construction for mortgage purposes--Not relevant--Finding that house had been constructed--Assessee entitled to benefit of section 54F-- CIT v. P. R. Seshadri (Karn) . . . 377S. 69 --Unexplained investment--Assessee purchasing demand drafts and remitting to a party--No proof that sum represented bad debt or business loss--Addition as unexplained investment--Justified-- Satish Kumar v. CIT (P&H) . . . 396S. 80HH --Industrial undertaking in backward area--Special deduction--Finding that industrial undertaking was situated in district notified as a backward area--Assessee entitled to special deduction under section 80HH--Notification No. S.O. 165(E), dated December 19, 1986-- CIT v. Guffic Chem P. Ltd . (Karn) . . . 470S. 80HHC --Export--Special deduction under section 80HHC--Computation of export turnover--Freight and insurance not includible in export turnover-- CIT v. King Metal Works (Bom) . . . 426----Export--Special deduction under section 80HHC--Computation of special deduction--Meaning of profits of business--Entire sale consideration on transfer of DEPB credit assessable under section 28(iiid)-- CIT v. King Metal Works (Bom) . . . 426S. 80-IA --Industrial undertaking--Special deduction under section 80-IA--Condition precedent--Manufacture of article--Meaning of "manufacture"--Conversion of limestone into limestone powder constitutes manufacture--Assessee entitled to special deduction under section 80-IA-- CIT v. Janak Raj Bansal (HP) . . . 417S. 80-IB --Industrial undertaking--Special deduction under section 80-IB--Condition precedent--Manufacture of article--Meaning of manufacture--Process of making transformer core from cold rolled coils amounts to "manufacture"--Assessee entitled to special deduction under section 80-IB-- CIT v. Alfa Lamination (Guj) . . . 348S. 115J --Advance tax--Interest--Company--Assessment on book profits basis--No liability to pay advance tax--No interest leviable for default in payment of advance tax-- Binani Industries Ltd. v. CIT (Cal) . . . 323S. 115JA --Advance tax--Interest--Company--Assessment on book profits basis--No liability to pay advance tax--No interest leviable for default in payment of advance tax-- Binani Industries Ltd. v. CIT (Cal) . . . 323S. 132 --Rectification of mistake--Mistake apparent from record--Search and seizure--Refund--Interest on refund--Assessee entitled to interest--Assessee to seek rectification-- CIT v. Sri Krishna Saraf (Mad) . . . 342----Search and seizure--Search at premises of third person--Seizure and recovery from safe deposits belonging to assessee--Issue of notice under section 142(1) after search revealing search having nexus with assessee--Assessment under section 143(3)--Assessee entitled to seek necessary relief under section 132B(4)-- CIT v. Sri Krishna Saraf (Mad) . . . 342S. 132B(4) --Search and seizure--Search at premises of third person--Seizure and recovery from safe deposits belonging to assessee--Issue of notice under section 142(1) after search revealing search having nexus with assessee--Assessment under section 143(3)--Assessee entitled to seek necessary relief under section 132B(4)-- CIT v. Sri Krishna Saraf (Mad) . . . 342S. 143 --Reassessment--Limitation--Law applicable--Effect of amendment of section 143 w.e.f. 1-4-1989--Return filed on 24-1-2003 in response to notice under section 148--No notice issued under section 143(2) but assessee having opportunity to be heard--Order of reassessment passed on 26-3-2004--Barred by limitation--Circular No. 549 dated 31-10-1989-- CIT v. Deep Baruah (Gauhati) . . . 362----Reassessment--Limitation--Law applicable--Effect of amendment of section 143 w.e.f. 1-4-1989--Return filed on 24-1-2003 in response to notice under section 148--No notice issued under section 143(2) but assessee having opportunity to be heard--Order of reassessment passed on 26-3-2004--Barred by limitation--Circular No. 549 dated 31-10-1989-- CIT v. Deep Baruah (Gauhati) . . . 362----Search and seizure--Search at premises of third person--Seizure and recovery from safe deposits belonging to assessee--Issue of notice under section 142(1) after search revealing search having nexus with assessee--Assessment under section 143(3)--Assessee entitled to seek necessary relief under section 132B(4)-- CIT v. Sri Krishna Saraf (Mad) . . . 342S. 147 --Constitution of India, art. 226--Reassessment--Writ--Writ court cannot consider facts--Return submitted by assessee--Survey showing undisclosed income--Notice of reassessment was valid-- Dr. Lata Chouhan v. ITO (MP) . . . 400----Reassessment--Notice--Notice beyond four years--Condition precedent--Failure to disclose material facts necessary for assessment--Facts relating to sale of shares disclosed and assessment after enquiry--Notice after four years on ground that transaction not genuine--Notice not valid-- Smt. Raj Rani Gulati v. Union of India (All) . . . 370----Reassessment--Notice--Oral direction not to proceed with enquiry--Enquiry without affording an opportunity to assessee--Assessment order set aside--Matter remanded-- Vira Properties (Madras) Pvt. Ltd. v. Asst. CIT (Mad) . . . 389S. 148 --Constitution of India, art. 226--Reassessment--Writ--Writ court cannot consider facts--Return submitted by assessee--Survey showing undisclosed income--Notice of reassessment was valid-- Dr. Lata Chouhan v. ITO (MP) . . . 400----Reassessment--Notice--Notice beyond four years--Condition precedent--Failure to disclose material facts necessary for assessment--Facts relating to sale of shares disclosed and assessment after enquiry--Notice after four years on ground that transaction not genuine--Notice not valid-- Smt. Raj Rani Gulati v. Union of India (All) . . . 370----Reassessment--Notice--Oral direction not to proceed with enquiry--Enquiry without affording an opportunity to assessee--Assessment order set aside--Matter remanded-- Vira Properties (Madras) Pvt. Ltd. v. Asst. CIT (Mad) . . . 389S. 154 --Rectification of mistake--Mistake apparent from record--Search and seizure--Refund--Interest on refund--Assessee entitled to interest--Assessee to seek rectification-- CIT v. Sri Krishna Saraf (Mad) . . . 342S. 158BFA(1) --Search and seizure--Addition on account of documents found at premises of a relative of assessee--Investment in purchase of car and interest--Tribunal remanding the matter to Assessing Officer--Findings of fact-- CIT v. Harjit Singh (P&H) . . . 422S. 197 --Deduction of tax at source--Certificate for non-deduction--Assesssee claiming income was exempt under section 11--Amendment of section 2(15) w.e.f. 1-4-2009 not challenged--Union of India not impleaded as a party--Effect of amendment of section 2(15) could not be considered--Refusal to issue certificate for non-deduction of tax at source--Justified-- Infoparks Kerala v. Deputy CIT (Ker) . . . 404S. 207 --Advance tax--Interest--Company--Assessment on book profits basis--No liability to pay advance tax--No interest leviable for default in payment of advance tax-- Binani Industries Ltd. v. CIT (Cal) . . . 323S. 208 --Advance tax--Interest--Company--Assessment on book profits basis--No liability to pay advance tax--No interest leviable for default in payment of advance tax-- Binani Industries Ltd. v. CIT (Cal) . . . 323S. 234B --Advance tax--Interest--Company--Assessment on book profits basis--No liability to pay advance tax--No interest leviable for default in payment of advance tax-- Binani Industries Ltd. v. CIT (Cal) . . . 323S. 234C --Advance tax--Interest--Company--Assessment on book profits basis--No liability to pay advance tax--No interest leviable for default in payment of advance tax-- Binani Industries Ltd. v. CIT (Cal) . . . 323S. 260A --Appeal to High Court--Powers of High Court--Finding of fact cannot normally be set aside-- CIT v. Forech India Ltd. (Delhi) . . . 336----Appeal to High Court--Powers of High Court--Point not raised before lower authorities cannot be considered by High Court-- CIT v. Chand Ratan Bagri (Delhi) . . . 356S. 271(1)(c) --Penalty--Concealment of income--Search and seizure--Additional income offered by assessee and assessed on estimate--Levy of penalty not permissible without detailed discussion of documents and explanation for offer of additional income-- CIT v. Suresh Chand Bansal (Cal) . . . 330----Search and seizure--Penalty--No concealment of income--No failure to furnish inaccurate particulars of income--Assessing authority not justified in levying penalty-- CIT v. Sri Krishna Saraf (Mad) . . . 342ITR'S TRIBUNAL TAX REPORTS (ITR (TRIB))Volume 6 : Part 7 (Issue dated : 13-12-2010)SUBJECT INDEX TO CASES REPORTED IN THIS PARTAdvance tax --Interest--Entire income of non-resident liable to deduction of tax at source--No interest chargeable--Income-tax Act, 1961 , ss. 195, 234B-- Rolls Royce Industrial Power Ltd. v. Asst. CIT (Delhi) . . . 722Business expenditure --Assessee marketing fertiliser--Insurance premium created for welfare of farmers who purchased fertiliser--Has nexus with assessee's business--Allowable--Income-tax Act, 1961, s. 37-- Asst. CIT v. KRIBHCO (Delhi) . . . 686----Prior period expenses--Expenses allowed in original assessment--No reasons given for disallowance--Disallowance to be deleted--Income-tax Act, 1961, s. 37-- Deputy CIT v. Pasupati Spinning and Weaving Mills Ltd. (Delhi) . . . 689Business income --Technical services--Carrying out work giving rise to business income--Not a case of making available technical knowledge--Income-tax Act, 1961, s. 9(1)(vii), Expln. 2-- Rolls Royce Industrial Power Ltd. v. Asst. CIT (Delhi) . . . 722Capital gains --Depreciable assets--Sale of asset forming part of block--If after crediting sale proceeds written down value of block reduced not to be taxed separately--If written down value of block exceeded profit to be taxed as short-term capital gains --Income-tax Act, 1961, s. 50-- Rolls Royce Industrial Power Ltd. v. Asst. CIT (Delhi) . . . 722Capital or revenue receipt --Foreign exchange fluctuation--Profit or loss arising out of capital asset is capital receipt--If arising out of trading business, trading receipt-- Rolls Royce Industrial Power Ltd. v. Asst. CIT (Delhi) . . . 722Double taxation relief --Assessee having only current account in India--Interest arising out of bank accounts in U. K.--To be excluded--Double Taxation Avoidance Agreement between India and the U. K., art. 12(2)-- Rolls Royce Industrial Power Ltd. v. Asst. CIT (Delhi) . . . 722Income --Expenditure incurred in relation to income not forming part of total income --Disallowance--Deduction of income derived by co-operative society under section 80P--Not a case of "exempt income" but of "deduction from income"--Section 14A not applicable--Income-tax Act, 1961, ss. 10, 14A, 80P-- Asst. CIT v. KRIBHCO (Delhi) . . . 686Income-tax --General principles--Corporate entity is single entity--Assessee not bound to file tax audit reports for each separate business--Income-tax Act, 1961, s. 44AB-- Rolls Royce Industrial Power Ltd. v. Asst. CIT (Delhi) . . . 722Income-tax Department --Taking view that contract not one for rendering service for purpose of certificate of nil deduction of tax at source--Not entitled to take contrary stand in assessment where no change in facts-- Rolls Royce Industrial Power Ltd. v. Asst. CIT (Delhi) . . . 722Non-resident --Agreement for erection, commissioning, supervision, operation and maintenance of power plants--Activities carried on through permanent establishment--Operation involving huge costs--No technical knowledge made available nor activity ancillary or subsidiary to enjoyment of right, property or information--Income not fees for technical services or royalty but business income--Not to be taxed on gross basis--Deduction of expenses of permanent establishment allowable--Assessee protected by "non-discrimination" clause in Double Taxation Avoidance Agreement--Assessee entitled to set-off of both unabsorbed depreciation and unabsorbed loss--Income-tax Act, 1961, ss. 9(1)(vii), Expln. 2, 44AB, 44D, 90(2), 115A--Double Taxation Avoidance Agreement between India and the U. K., arts. 7, 12(2), 13, 26--Circular No. 202 dated July 5, 1976-- Rolls Royce Industrial Power Ltd. v. Asst. CIT (Delhi) . . . 722Reassessment --Income escaping assessment--Reassessment after four years--General principles--Income-tax Act, 1961, s. 147, prov.-- Rolls Royce Industrial Power Ltd. v. Asst. CIT (Delhi) . . . 722----No claim for special deduction under section 80HHC in original assessment because of absence of business income--Reassessment withdrawing deductions--Business income arising as a consequence--Assessee entitled to claim special deduction under section 80HHC in reassessment proceedings--Income-tax Act, 1961, ss. 80HHC, 147-- ITO v. Tamilnadu Minerals Ltd. (Chennai) . . . 698----Validity--Reopening on ground objection raised by audit--Assessing Officer satisfied with details furnished by assessee in original assessment--Reassessment on change of opinion--Not valid--Income-tax Act, 1961, ss. 143(3), 147-- Deputy CIT v. Pasupati Spinning and Weaving Mills Ltd. (Delhi) . . . 689Refund --Interest on excess refund--Chargeable from assessment year 2004-05--Income-tax Act, 1961, s. 234D-- Rolls Royce Industrial Power Ltd. v. Asst. CIT (Delhi) . . . 722
SECTIONWISE INDEX TO CASES REPORTED IN THIS PARTDouble Taxation Avoidance Agreement between India and the U. K : Art. 12(2) --Double taxation relief--Assessee having only current account in India--Interest arising out of bank accounts in U. K.--To be excluded-- Rolls Royce Industrial Power Ltd. v. Asst. CIT (Delhi) . . . 722Arts. 7, 12(2), 13, 26 --Non-resident--Agreement for erection, commissioning, supervision, operation and maintenance of power plants--Activities carried on through permanent establishment--Operation involving huge costs--No technical knowledge made available nor activity ancillary or subsidiary to enjoyment of right, property or information--Income not fees for technical services or royalty but business income--Not to be taxed on gross basis--Deduction of expenses of permanent establishment allowable--Assessee protected by "non-discrimination" clause in Double Taxation Avoidance Agreement--Assessee entitled to set-off of both unabsorbed depreciation and unabsorbed loss--Circular No. 202 dated July 5, 1976-- Rolls Royce Industrial Power Ltd. v. Asst. CIT (Delhi) . . . 722Income-tax Act, 1961 : S. 9(1)(vii), Expln. 2 --Business income--Technical services--Carrying out work giving rise to business income--Not a case of making available technical knowledge-- Rolls Royce Industrial Power Ltd. v. Asst. CIT (Delhi) . . . 722----Non-resident--Agreement for erection, commissioning, supervision, operation and maintenance of power plants--Activities carried on through permanent establishment--Operation involving huge costs--No technical knowledge made available nor activity ancillary or subsidiary to enjoyment of right, property or information--Income not fees for technical services or royalty but business income--Not to be taxed on gross basis--Deduction of expenses of permanent establishment allowable--Assessee protected by "non-discrimination" clause in Double Taxation Avoidance Agreement--Assessee entitled to set-off of both unabsorbed depreciation and unabsorbed loss--Circular No. 202 dated July 5, 1976-- Rolls Royce Industrial Power Ltd. v. Asst. CIT (Delhi) . . . 722S. 10 --Income--Expenditure incurred in relation to income not forming part of total income --Disallowance--Deduction of income derived by co-operative society under section 80P--Not a case of "exempt income" but of "deduction from income"--Section 14A not applicable-- Asst. CIT v. KRIBHCO (Delhi) . . . 686S. 14A --Income--Expenditure incurred in relation to income not forming part of total income--Disallowance--Deduction of income derived by co-operative society under section 80P--Not a case of "exempt income" but of "deduction from income"--Section 14A not applicable-- Asst. CIT v. KRIBHCO (Delhi) . . . 686S. 37 --Business expenditure--Assessee marketing fertiliser--Insurance premium created for welfare of farmers who purchased fertiliser--Has nexus with assessee's business--Allowable-- Asst. CIT v. KRIBHCO (Delhi) . . . 686----Business expenditure--Prior period expenses--Expenses allowed in original assessment--No reasons given for disallowance--Disallowance to be deleted-- Deputy CIT v. Pasupati Spinning and Weaving Mills Ltd. (Delhi) . . . 689S. 44AB --Income-tax--General principles--Corporate entity is single entity--Assessee not bound to file tax audit reports for each separate business-- Rolls Royce Industrial Power Ltd. v. Asst. CIT (Delhi) . . . 722----Non-resident--Agreement for erection, commissioning, supervision, operation and maintenance of power plants--Activities carried on through permanent establishment--Operation involving huge costs--No technical knowledge made available nor activity ancillary or subsidiary to enjoyment of right, property or information--Income not fees for technical services or royalty but business income--Not to be taxed on gross basis--Deduction of expenses of permanent establishment allowable--Assessee protected by "non-discrimination" clause in Double Taxation Avoidance Agreement--Assessee entitled to set-off of both unabsorbed depreciation and unabsorbed loss--Circular No. 202 dated July 5, 1976-- Rolls Royce Industrial Power Ltd. v. Asst. CIT (Delhi) . . . 722S. 44D --Non-resident--Agreement for erection, commissioning, supervision, operation and maintenance of power plants--Activities carried on through permanent establishment--Operation involving huge costs--No technical knowledge made available nor activity ancillary or subsidiary to enjoyment of right, property or information--Income not fees for technical services or royalty but business income--Not to be taxed on gross basis--Deduction of expenses of permanent establishment allowable--Assessee protected by "non-discrimination" clause in Double Taxation Avoidance Agreement--Assessee entitled to set-off of both unabsorbed depreciation and unabsorbed loss--Circular No. 202 dated July 5, 1976-- Rolls Royce Industrial Power Ltd. v. Asst. CIT (Delhi) . . . 722S. 50 --Capital gains--Depreciable assets--Sale of asset forming part of block--If after crediting sale proceeds written down value of block reduced not to be taxed separately--If written down value of block exceeded profit to be taxed as short-term capital gains -- Rolls Royce Industrial Power Ltd. v. Asst. CIT (Delhi) . . . 722S. 80HHC --Reassessment--No claim for special deduction under section 80HHC in original assessment because of absence of business income--Reassessment withdrawing deductions--Business income arising as a consequence--Assessee entitled to claim special deduction under section 80HHC in reassessment proceedings-- ITO v. Tamilnadu Minerals Ltd. (Chennai) . . . 698S. 80P --Income--Expenditure incurred in relation to income not forming part of total income--Disallowance--Deduction of income derived by co-operative society under section 80P--Not a case of "exempt income" but of "deduction from income"--Section 14A not applicable-- Asst. CIT v. KRIBHCO (Delhi) . . . 686S. 90(2) --Non-resident--Agreement for erection, commissioning, supervision, operation and maintenance of power plants--Activities carried on through permanent establishment--Operation involving huge costs--No technical knowledge made available nor activity ancillary or subsidiary to enjoyment of right, property or information--Income not fees for technical services or royalty but business income--Not to be taxed on gross basis--Deduction of expenses of permanent establishment allowable--Assessee protected by "non-discrimination" clause in Double Taxation Avoidance Agreement--Assessee entitled to set-off of both unabsorbed depreciation and unabsorbed loss--Circular No. 202 dated July 5, 1976-- Rolls Royce Industrial Power Ltd. v. Asst. CIT (Delhi) . . . 722S. 115A --Non-resident--Agreement for erection, commissioning, supervision, operation and maintenance of power plants--Activities carried on through permanent establishment--Operation involving huge costs--No technical knowledge made available nor activity ancillary or subsidiary to enjoyment of right, property or information--Income not fees for technical services or royalty but business income--Not to be taxed on gross basis--Deduction of expenses of permanent establishment allowable--Assessee protected by "non-discrimination" clause in Double Taxation Avoidance Agreement--Assessee entitled to set-off of both unabsorbed depreciation and unabsorbed loss--Circular No. 202 dated July 5, 1976-- Rolls Royce Industrial Power Ltd. v. Asst. CIT (Delhi) . . . 722S. 143(3) --Reassessment--Validity--Reopening on ground objection raised by audit--Assessing Officer satisfied with details furnished by assessee in original assessment--Reassessment on change of opinion--Not valid-- Deputy CIT v. Pasupati Spinning and Weaving Mills Ltd. (Delhi) . . . 689S. 147 --Reassessment--No claim for special deduction under section 80HHC in original assessment because of absence of business income--Reassessment withdrawing deductions--Business income arising as a consequence--Assessee entitled to claim special deduction under section 80HHC in reassessment proceedings-- ITO v. Tamilnadu Minerals Ltd. (Chennai) . . . 698----Reassessment--Validity--Reopening on ground objection raised by audit--Assessing Officer satisfied with details furnished by assessee in original assessment--Reassessment on change of opinion--Not valid-- Deputy CIT v. Pasupati Spinning and Weaving Mills Ltd. (Delhi) . . . 689S. 147, prov. --Reassessment--Income escaping assessment--Reassessment after four years--General principles-- Rolls Royce Industrial Power Ltd. v. Asst. CIT (Delhi) . . . 722S. 195 --Advance tax--Interest--Entire income of non-resident liable to deduction of tax at source--No interest chargeable-- Rolls Royce Industrial Power Ltd. v. Asst. CIT (Delhi) . . . 722S. 234B --Advance tax--Interest--Entire income of non-resident liable to deduction of tax at source--No interest chargeable-- Rolls Royce Industrial Power Ltd. v. Asst. CIT (Delhi) . . . 722S. 234D --Refund--Interest on excess refund--Chargeable from assessment year 2004-05-- Rolls Royce Industrial Power Ltd. v. Asst. CIT (Delhi) . . . 722
ITR VOL 328 PART 4 AND ITR (TRIB) VOL 6 PART 3
ITR VOL 328 PART 3 AND ITR (TRIB) VOL 6 PART 2
ITR (TRIB) VOL 5 PART 8
ITR VOL 328 PART 1
ITR VOL 327 PART 4 AND ITR (TRIB) VOL 5 PART 7
ITR VOL 327 PART 2 & ITR (TRIB) VOL5 PART 5
ITR VOL 327 PART 3 AND
ITR VOL 327 PART 1
ITR (TRIB) VOL 5 PART 4
ITR (TRIB) VOL 5 PART 3 & EXCEL USEFUL FILE [1 Att...
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