VOLUME NO. LLAT/ 301 OF 2009-10
DATE: 31 ST MAY 2009
|
SR |
AUTHORITY |
SECTION/ RULES |
RATIO
(S) |
|
NO |
CITATIONS |
SUBJECT |
CASE (NAME OF ASSESSEE) |
|
1.1 |
MAD HC |
50C, ITA |
S.50C Providing for deeming
of stamp duty value as full value of consideration
is constitutionally valid. |
|
1.2 |
2008TMI3061 |
Cap. Gains |
K.R. Palanisamy & Ors. |
|
2.1 |
|
139(3), ITA |
Where original return was
filed within time without accompanying audited accounts
and defect notice u/s.139(9) had not been issued by AO, who processed the
same u/s.143(1), the revised return filed
claiming a higher loss along-with audited accounts was a valid return u/s.139(3) and, therefore, loss claimed by
the 'a' was to be allowed to carry forward. |
|
2.2 |
8 DTR 341 |
c/f of loss |
Escorts Mahle Ltd. |
|
3.1 |
|
5, ITA |
Real Income
theory-Inter-corporate deposit became doubtful recovery.
Interest can not be accrued. |
|
3.2 |
11 DTR 314 |
Accrual |
Malbros Investments Ltd. |
|
4.1 |
|
194J, ITA |
The interconnect
charges/port access charges paid by the 'a' to MTNL, etc., could not be
regarded as fees for technical services since the
services provided by MTNL, etc., though of technical nature, did not involve any human element. |
|
4.2 |
175 TM 573 |
TDS |
Bharti Cellular Ltd. |
|
5.1 |
BOM TRIB |
36(1)(ii), ITA |
Ex-gratia payment over
and above the limit prescribed under payment of bonus Act, 1965 was allowable
as business expenditure u/s.37(1) and not u/s.36(1)(ii) though the payment
did not cover contractual or customary payment. |
|
5.2 |
218 CTR 653 |
Bus. Deduction |
|
|
6.1 |
|
9(1)(vi), ITA |
Income of a foreign
company towards satellite navigation and transponder
capacity lease is not royalty for equipment hire. |
|
6.2 |
220 CTR 13 |
Income |
ISRO Satellite Centre |
|
Archives |
|
|
VOLUME NO. LLAT/ 302 OF 2009-10 |
|
VOLUME NO. LLAT/ 300 OF 2009-10
DATE: 15 TH MAY 2009
|
SR |
AUTHORITY |
SECTION/ RULES |
RATIO
(S) |
|
NO |
CITATIONS |
SUBJECT |
CASE (NAME OF ASSESSEE) |
|
1.1 |
CHEN TRIB |
195(2), ITA |
It is not open for person
making payment to a NR to take a unilateral decision that the payments made
by him are not sums chargeable to tax. To take that
view, the concurrence of the ao as provided
in s.195(2) is sine qua non. |
|
1.2 |
108 TTJ 970 |
TDS NR |
In Poompuhar Shipping Corpn. Ltd. |
|
2.1 |
|
10A, ITA |
In case 'a' fulfilled criterion
for claiming exemption as laid down u/s.10A in respect of profits of the
unit, it was eligible to claim the same even if it
had earlier either claimed or was entitled to claim deduction u/s.80HHE. |
|
2.2 |
8 DTR 521 |
Exemption |
eFunds International (P) Ltd. |
|
3.1 |
MUM TRIB |
10A, ITA |
Export of computer
software-Software maintenance contract with foreign company. Unlike
maintenance of a tangible asset like plant and
machinery which keeps it useful, maintenance of a software is a part of its development for enhancing its capabilities
and correcting error, 'a', therefore, was
entitled to exemption. |
|
3.2 |
116 TTJ 841 |
Exemption |
Direction Software Solutions |
|
4.1 |
SC TRIB |
6(6), ITA |
Individual is not ordinarily
resident unless he satisfies both the conditions
i.e.,(i)he must have been a resident in nine out of ten preceding years; and
(ii) he must have been in India for more than two
years in the preceding seven years. |
|
4.2 |
169 TM 454 |
Oridinary Resident |
Pradip J. Mehta |
|
5.1 |
KOL
CESTAT |
86, FA 94 |
Irrespective of where the
service may be provided, the location of the 'a'
would determine the jurisdiction of the Central Excise Commissioner to
adjudge service tax cases. |
|
5.2 |
18 STT 86 |
Jurisdiction |
Ores |
|
6.1 |
MUM TRIB |
133A, ITA |
During the course of
survey the officer can record the statement of a person u/s.133A(3)(iii) but
the officer is not authorized to record the statement
on oath and hence, statement taken during the
course of survey has no evidentiary value. It is simply an information which
can be used for corroboration purpose for deciding
any issue in favour or against the 'a'. |
|
6.2 |
22 SOT 429 |
Survey |
Unitex Products Ltd. |
VOLUME NO. LLAT/ 299 OF
2009-10
DATE: 30 TH APRIL 2009
|
SR |
AUTHORITY |
SECTION/ RULES |
RATIO
(S) |
|
NO |
CITATIONS |
SUBJECT |
CASE (NAME OF ASSESSEE) |
|
1.1 |
|
9(1)(vii),ITA |
'A' taking internet
bandwidth from a |
|
1.2 |
217
CTR 102 |
TDS |
Estel Communications (P) Ltd. |
|
2.1 |
|
143(1)(a),ITA |
Scope of intimation order
is very limited and AO has only to determine the
tax payable on the basis of return of income and the scope does not extend to
altering the status of 'a'. |
|
2.2 |
112 ITD 143 |
Intimation |
Herbert |
|
3.1 |
|
234B, ITA |
Pre-condition for leavy
of interest u/s. 234B is liability to pay advance
tax u/s.208. As the entire income was subject to TDS, 'a' not liable to pay
interest. |
|
3.2 |
23 SOT 209 |
Advance Tax |
BHPE Kinhill Joint Venture |
|
4.1 |
|
44BBA, ITA |
NR 'a' having admittedly
incurred loss in the relevant assessment year, provisions of s.44BBA will
not, per se, apply and no income can be computed under that section. |
|
4.2 |
119 TTJ 145 |
Loss |
Royal Jordanian Airlines |
|
5.1 |
DEL- CESTAT |
65, FA 1994 |
'a' was engaged in
purchasing various service products from a telephone operator and selling
same to ultimate customers and earned commission at pre-defined rate - 'A' was
paying sales tax in respect of goods by it impugned order demanding service
tax from 'a' was to be set aside. |
|
5.2 |
17 STT 318 |
Service Tax |
Chetan Traders |
|
6.1 |
JP TRIB |
37(1), ITA |
Expenditure incurred on issue of debentures, whether
convertible or non-convertible, is allowable as
revenue expenditure. |
|
6.2 |
61 TTJ 273 |
Bus. Exp. |
Rajasthan Financial Corporation |
VOLUME NO. LLAT/ 298 OF 2009-10
DATE: 15 TH APRIL 2009
|
SR |
AUTHORITY |
SECTION/ RULES |
RATIO
(S) |
|
NO |
CITATIONS |
SUBJECT |
CASE (NAME OF ASSESSEE) |
|
1.1 |
|
115JA, ITA |
Interest under Ss.234B
and 234C is to be charged after MAT credit available u/s.115JAA is set off against
tax payable on the total income of the year in
question. |
|
1.2 |
222 CTR 8 |
Int & MAT Credit |
Jindal
Exports Ltd & Ors. |
|
2.1 |
|
94(7),
ITA |
For applicability of
s.94(7), all the clauses, (a), (b) and (c ) are required
to be satisfied cumulatively and not any of the said clauses. |
|
2.2 |
304 ITR 36 |
Dividend
Stripping |
Shambhu Mercantile Ltd. |
|
3.1 |
JD TRIB |
271(1)(c),
ITA |
What was required to be
recorded was the satisfaction in so many words and failure
to do so could not amount to mere and sheer irregularities. In the absence of
specific note of satisfaction, impugned
penalty quashed. |
|
3.2 |
23 ITCL 58 |
Penalty |
Ashapurna Buildcon (P) Ltd. |
|
4.1 |
P&H TRIB |
2(29B), ITA |
(a)Land Purchased in 1970
(b)Incomplete construction house came into being in
1980 and sold in 1982 : (a) is LTCG (b) is STCG. |
|
4.2 |
304 ITR 27 |
Capital Gain |
A. S. Aulakh |
|
5.1 |
|
112(1), ITA |
In the case of non-resident
'a' the tax payable on the long term capital gains arising on the sale of
originally purchased shares of the Indian company will be 10 per cent as per
proviso to s.112(1). |
|
5.2 |
221 CTR 734 |
Cap.
Gains |
Compagnie Financiere Hamon, In Re |
|
6.1 |
RAJ - HC |
254(2),
ITA |
If an application is
moved within the period allowed, i.e., four years
and remains pending before the Tribunal, even after the expiry of four years,
the Tribunal cannot reject the application on
the ground of limitation alone. |
|
6.2 |
301 ITR 435 |
Rectification |
Sree Ayyanar Spinning & Weaving
Mills Ltd. |
VOLUME NO. LLAT/ 297 OF 2008-09
DATE: 31 ST MARCH 2009
|
SR |
AUTHORITY |
SECTION/ RULES |
RATIO
(S) |
|
NO |
CITATIONS |
SUBJECT |
CASE (NAME OF ASSESSEE) |
|
1.1 |
MP HC |
4, ITA |
No Capital gain accrues
on sale of calves, by a person carrying on the business of selling milk. |
|
1.2 |
299 ITR 183 |
No Cost No Gain |
Suniti Singh |
|
2.1 |
RAJ HC |
2(22)(e),
ITA |
Where advances are given
by a company to a firm in which some shareholders of company are partner then
dividend cannot be deemed in the hands of firm
rather it would be taxed in the hands of the
shareholders. |
|
2.2 |
22 ITCL 370 |
Deemed Dividend |
Hotel Hill Top |
|
3.1 |
MUM TRIB |
4, ITA |
Forfeiture of application
money against PCD amounted to capital receipt and the same could not be
charged to tax. |
|
3.2 |
304 ITR 167 |
Cap/Rev
Receipt |
Deepak Fertilisers & Petrochemicals
Corporation Ltd. |
|
4.1 |
MUM TRIB |
32(1), ITA |
Purchase of shares of
company entitling 'a' to exclusive right to use and occupy flats constructed
by said company. Held that 'a' was owner of the premises
allotted to it by virtue of purchase of shares & consequently it was
entitled to depreciation thereon. Word
'owned' in s.32 has to be understood in as a wider sense & not in the
legal sense in terms of provisions of TP Act. |
|
4.2 |
304 ITR 167 |
Depreciation |
Deepak Fertilisers & Petrochemicals
Corporation Ltd. |
|
5.1 |
MUM TRIB |
14A, ITA |
No limit u/s.14A that
disallowance there under cannot exceed the exempted income. |
|
5.2 |
25 SOT 57 |
Disallowance |
Sanchayita Mercantile (P.) Ltd. |
|
6.1 |
MUM TRIB |
133A, ITA |
During the course of
survey the officer can record the statement of a person under s. 133A(3)(iii)
but the officer is not authorized to record the
statement on oath and hence, statement taken during the course of survey has
no evidentiary value. It is simply an
information which can be used for corroboration purpose for deciding any issue in favour or against the 'a'. |
|
6.2 |
22 SOT 429 |
Survey |
Unitex Products Ltd. |
VOLUME NO. LLAT/ 296 OF
2008-09
DATE: 15 TH MARCH 2009
|
SR |
AUTHORITY |
SECTION/ RULES |
RATIO
(S) |
|
NO |
CITATIONS |
SUBJECT |
CASE (NAME OF ASSESSEE) |
|
1.1 |
MUM TRIB |
67A(1),
ITA |
A company who is a member of an AOP, is
entitled to set off its share in loss of AOP against income under other
heads. |
|
1.2 |
23 SOT 215 |
Set off |
Mahendra Holdings & Finance Ltd. |
|
2.1 |
|
271(1)(c),
ITA |
'A'-filed return disclosing all facts,
no penalty leviable if AO holds a different view. |
|
2.2 |
172 TM 83 |
Penalty |
Virgo Marketing (P) Ltd. |
|
3.1 |
P&H TRIB |
271(1)(c),
ITA |
Penalty cannot be levied where 'a' did
not include certain amount in total turnover on bona fide belief. |
|
3.2 |
172 TM 52 |
Penalty |
SSP (P) Ltd. |
|
4.1 |
MAD TRIB |
37(1),
ITA |
Expenditure on software replacement is
revenue in nature. |
|
4.2 |
304 ITR 84 |
Cap. vs.
Revenue |
Southern Roadways Ltd. |
|
5.1 |
P&H TRIB |
271(1)(c),
ITA |
No Penalty for concealment leviable where
in preceding year on similar issues no penalty was levied. |
|
5.2 |
304 ITR 279 |
Penalty |
Sood Harvester |
|
6.1 |
MAD HC |
264, ITA |
'Entire assessment does not get reopened
before assessing officer when commissioner sets aside order for
Re-examination pursuant to S.264 Application. |
|
6.2 |
216 CTR 238 |
Re-examination |
N. Setharaman |
VOLUME NO. LLAT/ 295 OF 2008-09
DATE: 28 TH FEBRUARY 2009
|
SR |
AUTHORITY |
SECTION/ RULES |
RATIO
(S) |
|
NO |
CITATIONS |
SUBJECT |
CASE (NAME OF ASSESSEE) |
|
1.1 |
P&H HC |
271(1)(c),
ITA |
No penalty for
concealment leviable where in preceding year on similar issues no penalty was
levied. |
|
1.2 |
304 ITR 279 |
Concealment |
Sood Harvester |
|
2.1 |
|
80-O,
ITA |
The key element in
Sec.80-O is not so much the location where the services are utilized but the fact
that it is rendered to an entity outside |
|
2.2 |
1 DTR 89 |
Deduction |
Eicher Consultancy Services Ltd. |
|
3.1 |
SC |
113, ITA
|
Surcharge was leviable in
case of block assessment even prior to insertion of
proviso to section 113. |
|
3.2 |
166 TM 313 |
Block
Assessment |
Suresh N. Gupta |
|
4.1 |
|
4, ITA |
Interest income received
by an |
|
4.2 |
19 SOT 730 |
Chargeability
|
British Bank of |
|
5.1 |
MUM TRIB |
254(2), ITA |
Reappreciation of
evidence produced during appellate proceedings is not permissible at the time
of hearing of rectification
application u/s 254(2). |
|
5.2 |
18 SOT 315 |
Rectification |
Bimal Bhatt |
|
6.1 |
MUM TRIB |
35(i)(iv), ITA |
'a' did carry research
but not as "business" but realy extended arm
of two concerns. Not eligible Sci. Research. 'A' can only be called to be an
extended unit of these two concerns in |
|
6.2 |
18 SOT 268 |
Bus. Deduction |
CIPA |
VOLUME NO. LLAT/ 294 OF 2008-09
DATE: 15 TH FEBRUARY 2009
|
SR |
AUTHORITY |
SECTION/ RULES |
RATIO
(S) |
|
NO |
CITATIONS |
SUBJECT |
CASE (NAME OF ASSESSEE) |
|
1.1 |
MUM TRIB |
5(vi),
WTA |
The flats being adjacent
to each other are being used by the 'a' as a common residence for himself and
his joint family members. The exemption is allowable to a house, which is a unity
of structure and may consist of more than one dwelling units. |
|
1.2 |
18 SOT 150 |
Net-Wealth |
Abdulah Khatri |
|
2.1 |
ALL HC |
37(1),
ITA |
Payment of commission to
government doctors for prescribing medicines manufactured by the 'a' was
illegal and offence under Prevention of Corruption Act,
1988 and therefore disallowable. |
|
2.2 |
4 DTR 246 |
Bus.
Exp. |
Vishwanath Sharma |
|
3.1 |
RAJ |
4, ITA |
'The amounts received by
'a' as subscription for life membership, could not be said as amounting to
revenue receipts liable to tax, rather they were in
nature of capital receipts, liable to be returned to the subscribers/member constituents. |
|
3.2 |
2 DTR 269 |
Cap./Rev.
Rec. |
Mantra Tantra Yantra Vigyan |
|
4.1 |
MAD - TRIB |
10A, ITA |
Interest earned out of
export realisation and kept in foreign currency deposit account not eligible
for deduction. |
|
4.2 |
304 ITR 322 |
Deduction |
|
|
5.1 |
MUM TRIB |
263, ITA |
Tentative suspicion
lurking in the mind of CIT. CIT was not justified in exercising section 263
powers. |
|
5.2 |
18 SOT 136 |
Validity
|
Unilever PLC |
|
6.1 |
|
22, ITA |
'a' was in full control
of the property in its capacity as a tenant and earned income from
sub-letting of the house property, therefore, ownership of premises was not
essential for the purpose of levying income-tax under the head 'Income from
house property'. |
|
6.2 |
166 TM 53 |
Head of Income |
Smarts (P) Ltd. |
VOLUME NO. LLAT/ 293 OF 2008-09
DATE: 31 ST JANUARY 2009
|
SR |
AUTHORITY |
SECTION/ RULES |
RATIO
(S) |
|
NO |
CITATIONS |
SUBJECT |
CASE (NAME OF ASSESSEE) |
|
1.1 |
P&H
TRIB |
237, ITA |
Signing of return by employee of
the 'a' co., subsequently 'a' filed another return signed and verified by MD
defect cured return valid. |
|
1.2 |
169
TM 302 |
Refund |
Hind Samachar Ltd. |
|
2.1 |
AHD
TRIB |
244A, ITA |
In the context of S.244(1)(b), the
expression 'tax' would include interest also and the definition of tax in
S.2(43) meaning 'income tax' may not be applicable in the context of 244A(1).
Therefore, interest was payable on refund of interest. |
|
2.2 |
111
ITD 320 |
Refunds |
Alembic Glass Industries Ltd. |
|
3.1 |
|
2(22)(e), ITA |
The 'a' was involved in booking
resorts for customer of two companies and entered into normal business transactions
as a part of day-to-day business activities. The financial transactions
cannot in any circumstances be treated as loans or advances received by these
two concerns. No deemed Dividend. |
|
3.2 |
8 DTR
108 |
Dividend |
Ambassador Travels (P) Ltd. |
|
4.1 |
BANG
TRIB |
80-IB, ITA |
Interest on FD cannot be a profit
derived from industrial undertaking and therefore, not eligible for
deduction. However, in respect of FD made from borrowed fund only the net
interest would be so considered. |
|
4.2 |
5 DTR
410 |
Deduction |
Emmvee Solar Systems (P) Ltd. |
|
5.1 |
P&H
TRIB |
143(1)(a), ITA |
After having issued notice
u/s.143(2) for regular assessment, After having issued notice u/s.143(2) for
regular assessment, u/s.143(1)(a). |
|
5.2 |
170 TM
25 |
Intimation |
Nahar Spg. Mills Ltd. |
|
6.1 |
DEL-TRIB |
143(1)(a), ITA |
Scope of intimation order is very
limited and AO has only to determine the tax payable on the basis of return
of income and the scope does not extend to altering the status of 'a'. |
|
6.2 |
112
ITD 143 |
Intimation Order |
Herbert |
VOLUME NO. LLAT/ 292 OF 2008-09
DATE: 15 TH JANUARY 2009
|
SR |
AUTHORITY |
SECTION/ RULES |
RATIO
(S) |
|
NO |
CITATIONS |
SUBJECT |
CASE (NAME OF ASSESSEE) |
|
1.1 |
|
4, ITA |
Restrictions imposed by
non-compete agreement and accepted by a' adversely affected the income
earning potential by exploiting his entrepreneur skill, knowledge,
experience, etc. Therefore, non- compete fees was in the nature of a capital
receipt not business Income. |
|
1.2 |
191 SOT 74 |
Non-Compete fees |
Saurabh Srivastava |
|
2.1 |
|
115JA,ITA |
Provision made by foreign branches
of 'a' bank for payment of tax in foreign countries would be added in book
profit as arrived at by clause (a) of Explanation to section 115JA. |
|
2.2 |
213 CTR 522 |
Book Profit |
Bank of |
|
3.1 |
MUM TRIB |
115JA, ITA |
Wherever the receipts credited in
the profit and loss account were not of income nature, such items could not
be held forming part of book profit, even though those items have not been
specifically excluded u/s.115JA. |
|
3.2 |
19 SOT 30 |
Book Profit |
Oriental Containers Ltd |
|
4.1 |
|
2(42A), ITA |
a' sold the industrial plot in
2000 allotted to him on payment of first instalment in 1994 and last
instalment in 1997 and possession given in 1998. This is a long term gain. |
|
4.2 |
165 TM 524 |
Cap. Gains |
Jitendra Mohan |
|
5.1 |
MUM TRIB |
37(1), ITA |
Expenditure incurred on
construction of toilets, borewells, schools and colleges to improve working
relations with the native people and improve the condition of the area
Inhabited by its employees and others is allowable. |
|
5.2 |
113 TTJ 227 |
Bus. Exp. |
B.S.E.S. Ltd. |
|
6.1 |
|
37(1), ITA |
Non-refundable tooling advance to vendors
for continuous supply of components. Though the 'a' obtained an enduring
advantage, the advantage is not in the capital field, but it is in the
revenue field. |
|
6.2 |
112 TTJ 702 |
Bus. Exp. |
Honda Siel Power Products Ltd. |
VOLUME NO. LLAT/ 291 OF 2008-09
DATE: 15 TH DECEMBER 2008
|
SR |
AUTHORITY |
SECTION/ RULES |
RATIO
(S) |
|
NO |
CITATIONS |
SUBJECT |
CASE (NAME OF ASSESSEE) |
|
1.1 |
|
32, ITA |
UPS not being integral part of computer just as
scanner and printer, a was, therefore, not entitled for depreciation at
higher rate of 60 per cent and the assessing officer was justified in
allowing depreciation treating it to be plant & machinery. |
|
1.2 |
111 TTJ 498 |
Depreciation |
Nestle India Ltd. |
|
2.1 |
ALL HC |
48, ITA |
Amount paid to clear off the
mortgage created by a himself not to be deducted in computation of capital
gains. |
|
2.2 |
169 TM 67 |
Capital Gain |
Sharad Sharma |
|
3.1 |
|
10(10CC), ITA |
As tax paid by the employer on
behalf of employee is perquisite u/s.17(2)(iv) and includible in salary the
tax paid on such perquisite once again cannot be added in salary. |
|
3.2 |
109 ITD 141 |
TDS Salary |
RBF Rig Corpn. |
|
4.1 |
|
4, ITA |
Compensation received for
termination of development of construction project which was entered into
ordinary course of business would be a revenue in character and a revenue
receipt chargeable to tax. |
|
4.2 |
19 SOT 391 |
Compensation Inc. |
Ansal Properties & Industries
Ltd. |
|
5.1 |
BOM TRIB |
5, ITA |
Interest on compensation awarded
by arbitrator accrues year to year and not chargeable to tax on receipt
basis. |
|
5.2 |
213 CTR 575 |
Income |
Konkan Barge Builders (P) Ltd. |
|
6.1 |
CHD TRIB |
37(1), ITA |
Expenditure incurred on
implementation of a new ERP package for recording manufacturing and
accounting transactions was revenue in nature as the same enabled the a to
carry on its manufacturing business more smoothly and efficiently |
|
6.2 |
112 TTJ 94 |
Cap/Rev Exp.-ERP |
Glaxo Smith Kline Consumer
Healthcare Ltd. |
VOLUME NO. LLAT/ 290 OF 2008-09
DATE: 15 TH DECEMBER 2008
|
SR |
AUTHORITY |
SECTION/ RULES |
RATIO
(S) |
|
NO |
CITATIONS |
SUBJECT |
CASE (NAME OF ASSESSEE) |
|
1.1 |
HYD TRIB |
54, ITA |
Where several flats are purchased
in same building and are contiguous with each other, they would be treated as
one house and not several houses for purposes of S.54. |
|
1.2 |
22 SOT 58 |
Exemption |
Prabhandam Prakash |
|
2.1 |
MUM TRIB |
69, 28(iv) ITA |
Pursuant to an MOU between the
'a'-company and the group of promoters, shares of two group companies
were transferred to
the 'a' at cost. Neither S.69 not 28(iv) canbe applied. |
|
2.2 |
22 SOT 174 |
Investment |
Rupee Finance & Management
(P.) Ltd. |
|
3.1 |
MUM TRIB |
28(iv), ITA |
Gifts received
by a social reformer and philosopher from followers in recognition of
personal qualities and noble thoughts could not be taxed u/s.28(iv). |
|
3.2 |
22 SOT 197 |
Gift-Income |
Nirmala P. Athavale |
|
4.1 |
P&H
HC |
194C, ITA |
Purchase
of packing material carrying printed work: Essentially a sale/purchase : Not
a works contract : Purchaser not liable to deduct tax at source. |
|
4.2 |
304
ITR 17 |
TDS |
Dy.
Chief Accounts Officer, Markfed, Khanna |
|
5.1 |
|
37(1),36(1)(ii),ITA |
Good
work reward, paid to employees, not dependent on profit/loss : Does not
constitute bonus u/s.36(1)(ii) : Allowable as normal
business expenditure. |
|
5.2 |
171 TM
81 |
Bus. Exp. |
Shriram
Pistons & Rings Ltd. |
|
6.1 |
|
234B, ITA |
No interest
was chargeable u/s. 234B and 234C. When income determined u/s. 115JA (MAT). |
|
6.2 |
111
TTJ 464 |
Interest |
Amtek
Auto Ltd. |
VOLUME NO. LLAT/ 289 OF 2008-09
DATE: 30 TH NOVEMBER 2008
|
SR |
AUTHORITY |
SECTION/ RULES |
RATIO
(S) |
|
NO |
CITATIONS |
SUBJECT |
CASE (NAME OF ASSESSEE) |
|
1.1 |
BOM - HC |
147, ITA |
Revenue had relied upon statement
of B to the effect that these were only Hawala entries and B having expired,
no purpose would be served in proceeding further as there is no sufficient
reason for re-opening the assessment. |
|
1.2 |
2 DTR 89 |
Reassessment |
Indian Express Newspapers ( |
|
2.1 |
KER HC |
154, ITA |
Preliminary expenditure for
construction of shopping complex which was abandoned is still a capital. |
|
2.2 |
3 DTR 350 |
Capital Exp. |
Malabar & Pioneer Hosiery (P)
Ltd. |
|
3.1 |
MUM TRIB |
41(2), ITA |
Amount from insurance received by a
on account of wind-mills destroyed in cyclone. a had claimed depreciation
u/s.32(i)(ii) and not (i) w.r.t. which the balancing change u/s.41(2) is
leived. Hence not taxable. |
|
3.2 |
8 DTR 393 |
Balancing Charge |
Rajhans metals (P) Ltd. |
|
4.1 |
BANG TRIB |
4, ITA |
a is hereditary trustee and
pradhana archaka of the temple. It has source of income from seva commission
received from devotees in the capacity of trustee of the temple. As the
source of income was right which accrued to a due to inheritance, the
income therefore was assessable only as HUF income. |
|
4.2 |
298 ITR 231 |
Income of HUF |
Laxminarayana Asranna |
|
5.1 |
RAJ HC |
53, ITA |
A plot of land with boundary wall and
a garage-cum-room constructed thereon cannot be said to be a residential
house and therefore, exemption under section 53 could not be granted to a.
More so, the testator described it in the will as a plot and not residential
house. |
|
5.2 |
2 DTR 237 |
CG: Exemption |
Rajesh Surana |
|
6.1 |
KOL TRIB |
37(1), ITA |
In view of Circular No.200,
dt.28-6-1979 the Claim allowed in respect of expenditure on advertisement
actually incurred. |
|
6.2 |
5 DTR 59 |
ADVT. Exp. |
ITC Ltd. |
VOLUME NO. LLAT/ 288 OF 2008-09
DATE: 15 TH NOVEMBER 2008
|
SR |
AUTHORITY |
SECTION/ RULES |
RATIO
(S) |
|
NO |
CITATIONS |
SUBJECT |
CASE (NAME OF ASSESSEE) |
|
1.1 |
|
37(1), ITA |
Expenses incurred on issuance of
non-convertiable debenture (NCD) which was debited to share premium account
was Allowable though the expenditure was not debited to P&L A/c |
|
1.2 |
20 SOT 144 |
Cap/Rev. Exp |
Siel Ltd. |
|
2.1 |
|
37(1), ITA |
Payment of non-compete
compensation - no new asset was created thereby, nor was the assessee's
profit-making apparatus expanded or increased, held allowable as a business
expenditure. |
|
2.2 |
5 DTR 50 |
Non-Compete |
Eicher Ltd. |
|
3.1 |
MUM - TRIB |
11(2), ITA |
'a' can give notice in writing for
more than one year and the claim of the 'a' cannot be denied merely on the
ground that in the subsequent year no further notice is given by the 'a'. |
|
3.2 |
20 SOT 187 |
Ch. Trust |
Cotton Textiles Export Promotion
Council |
|
4.1 |
PUNE - TRIB |
32, ITA |
Where 'a' a manufacturing company
earning large profits purchased assets of one of the group companies, who was
running into losses, leased back the assets and claimed 100 per cent
depreciation; the sale and leased back transaction was a colourable device to
reduce tax liability and therefore, was not allowable and the interest paid
on borrowing made to purchase assets was also not allowable. |
|
4.2 |
3 DTR 307 |
|
Finolex Cables Ltd. |
|
5.1 |
|
37(1), ITA |
As expenditure on traveling and
seminar, advertisement, technical guidance fee, etc. for launching new model of
car was incurred in respect of on going business, therefore, was allowable as
revenue expenditure. |
|
5.2 |
111 TTJ 630 |
Product Launching |
Honda Siel Cars India Ltd. |
|
6.1 |
MUM - TRIB |
37(1), ITA |
Expenditure in connection with non-compete
agreement-Acquisition of brand ownership of product by separate agreement
both held to be on transaction capital in nature. |
|
6.2 |
18 SOT 194 |
Non-Compete |
Global Products (P) Ltd. |
VOLUME NO. LLAT/ 287 OF 2008-09
DATE: 31 ST OCTOBER 2008
|
SR |
AUTHORITY |
SECTION/ RULES |
RATIO
(S) |
|
NO |
CITATIONS |
SUBJECT |
CASE (NAME OF ASSESSEE) |
|
1.1 |
KOL - TRIB |
9(1)(i), ITA/DTAA |
Outright sale of documentation pertaining
to the plant supplied does not constitute royalty, either u/s.9(1)(vi) or
under Article 12. Mere Shareholding by a foreign supplier of plant in the
purchaser Indian company does not result in business connection. |
|
1.2 |
22 SOT 297 |
Royalty |
Zimmer AG |
|
2.1 |
MUM - TRIB |
2(14) & 45, ITA |
Amount received by a member of the
housing society from a developer holding TDR, who constructed additional
floors in a building owned by the housing society, not liable to tax as
Capital Gain. |
|
2.2 |
40A BCAJ 569 |
Capital Gains |
Deepak S. Shah |
|
3.1 |
MAD - HC |
5, 35, |
Family arrangement or partition
deed: For the purpose of stamping and
Registration the contents of documents are to be taken into consideration and
not nomenclature. |
|
3.2 |
40A BCAJ 357 |
Nature of Docu. |
Vincent Lourdhenathan Dominique |
|
4.1 |
|
28(iv), ITA |
a received interest-free deposit
in respect of shops given on rent: Notional interest on interest-free deposit
can-not be treated as benefit or perquisite u/s.28(iv). |
|
4.2 |
168 TM 59 |
Property Income |
Asian Hotels Ltd. |
|
5.1 |
|
45, ITA |
Amalgamation of the wholly-owned
subsidiary foreign company with its parent company does not result in transfer
for consideration and therefore, does not give rise to any capital gains. The
liability to capital gains tax (if any) can only be on the transferor company
(subsidiary), which in the instant case has lost its identity and ceased to
exist. |
|
5.2 |
208 CTR 197 |
Capital Gains |
In re Hoechst GMB |
|
6.1 |
MUM - TRIB |
115JA, ITA |
Capital gain earned during the
year was directly credited to capital reserve in balance sheet not to be
added for book profit tax. |
|
6.2 |
40A BCAJ 698 |
Book Profit |
Vijay Furniture Mfg. Co. Pvt. Ltd. |
VOLUME NO. LLAT/ 286 OF 2008-09
DATE: 15 TH OCTOBER 2008
|
SR |
AUTHORITY |
SECTION/ RULES |
RATIO
(S) |
|
NO |
CITATIONS |
SUBJECT |
CASE (NAME OF ASSESSEE) |
|
1.1 |
|
231(1)(a), ITA |
Notional interest on interest free
refundable deposit made by the tenant with landlord would not be added in the
annual letting value under section 23(1)(a). The same also not a business
income under section 28(iv). |
|
1.2 |
2 DTR 129 |
Annual Value |
Asian Hotels Ltd. |
|
2.1 |
MUM - TRIB |
37(1), ITA |
The receipts as well as the
connected expenditure can be considered only under one head. Hence, a could
not contend that receipt can be considered under one head while expenditure related to it
can be considered under another head. |
|
2.2 |
19 SOT 640 |
Business Exp. |
S. G. Chemicals & Dyes Trading
Ltd. |
|
3.1 |
ALL - HC |
391, 394, COA |
When amalgamation was in nature of
merger and reserve of transferor-company which was
available for distribution as dividend before amalgamation, would also be
available for distribution as dividend after amalgamation. |
|
3.2 |
76 SCL 352 |
Merger |
High Land Distilleries Ltd. |
|
4.1 |
RAJ - HC |
535, ITA |
A lessee of property which belongs
to company in liquidation has no preferential right to purchase it by filing
application under section 535 of the Companies Act, 1956. |
|
4.2 |
76 SCL 525 |
Liquidation |
Swadeshi Polytex Ltd. |
|
5.1 |
BOM - HC |
R.3 WTA |
For Valuation the rent and deposit
received by the a from the tenant and not the rent and deposit received by
the tenant from the sub-tenant or ultimate user of the premises are to be
taken into account. |
|
5.2 |
214 CTR 324 |
Valuation |
Spellbound Trading (P) Ltd. |
|
6.1 |
|
271(1)(c), ITA |
Penalty for concealment not
leviable where relevant satisfaction not arrived at by the assessing officer. |
|
6.2 |
165 TM 593 |
Penalty |
Bharat Hotels Ltd. |
VOLUME NO. LLAT/ 285 OF 2008-09
DATE: 30 TH SEPTEMBER 2008
|
SR |
AUTHORITY |
SECTION/ RULES |
RATIO
(S) |
|
NO |
CITATIONS |
SUBJECT |
CASE (NAME OF ASSESSEE) |
|
1.1 |
|
ITA |
Concept of Real Income Investment
in debentures a company decided not to recognise interest income on
debentures due to financial difficulties of Investee Company Held that, No
interest income accrued to the a. |
|
1.2 |
300 ITR (AT) 159 |
Real Income |
Pranav Vikas ( |
|
2.1 |
MUM - TRIB |
23(1)(b), ITA |
Income from house property
Annual letting value Stamp Duty and brokerage paid by the
landlord-a allowable as deduction from the rent received |
|
2.2 |
4581/Mum./2006 |
Property Income |
Govind S. Singhania |
|
3.1 |
JAIPUR - TRIB |
148, ITA |
When time limit for issuance of
notice u/s.143(2) had not expired AO not justified in issuing notice u/s.
148. |
|
3.2 |
988/J.P./2006 |
Reassessment |
B. R. Industries |
|
4.1 |
MUM - TRIB |
271(1)(c), ITA |
No penalty for concealment of
income when Claim for deduction denied resulting into higher assessed income. |
|
4.2 |
1160 & 1161/Mum./2006 |
Penalty |
Nasu Properties Pvt. Ltd. |
|
5.1 |
|
2(22)(e), ITA |
Balance in share premium account
can not be considered as part of accumulated profit |
|
5.2 |
2266/Del./ 2005 |
Deemed Div. |
MAIPO India Limited |
|
6.1 |
MP - HC |
47A, MP.SA |
|
|
6.2 |
AIR 2008 MP 133 |
|
Dilip Kumar Sangni |
VOLUME NO. LLAT/ 284 OF 2008-09
DATE: 15 TH SEPTEMBER 2008
|
SR |
AUTHORITY |
SECTION/ RULES |
RATIO
(S) |
|
NO |
CITATIONS |
SUBJECT |
CASE (NAME OF ASSESSEE) |
|
1.1 |
AHD - TRIB |
32 & 43(6), ITA |
a no being a taxable entity in
ealier years, it was entitled to depreciation on the original cost of the
assets without reducing from original cost the notional depreciation
accounted for in the books of a |
|
1.2 |
114 TTJ 145 |
Depreciation |
National Dairy Development Board |
|
2.1 |
CHE - TRIB |
10B,32(2)&72, ITA |
Set-off of business loss and
unabsorbed depreciation of earlier assessment
years is allowable against the profits and gains of a unit eligible for
deduction u/s.10B. |
|
2.2 |
114 TTJ 881 |
Depreciation |
|
|
3.1 |
|
28(iv), ITA |
Gift received in return for help rendered
to a person on various occasions is not income. |
|
3.2 |
18 SOT 362 |
Gift Income |
Sunil Mittal |
|
4.1 |
|
40(a)(i), ITA |
Even if there is default of TDS,
there can be no disallowance u/s. 40(a)(i) for non-deduction of tax at source
in view of provisions of non-discrimination Article of the Treaty. The a
who has remitted funds without tax deduction by obtaining requisite certificate of a CA and by following CBDT-laid
down procedure cannot be faulted with for not obtaining prior NOC of the AO
u/s.195(2) |
|
4.2 |
21 SOT 152 |
Disallowance |
M/s. Millenium Infocom
Technologies Ltd. |
|
5.1 |
|
9(1)(ii), ITA |
Salary income of an expatriate who
partly rendered services in |
|
5.2 |
TIOL145ITAT |
Income |
Mr. Erick Moroux C/o. Air |
|
6.1 |
|
17(2)(v), ITA |
Sum received under non-compete
agreement is a capital receipt. |
|
6.2 |
300 ITR 113 |
Non-Compete Agreement |
Saurabh Srivastava |
VOLUME NO. LLAT/ 283 OF 2008-09
DATE: 31 ST AUGUST 2008
|
SR |
AUTHORITY |
SECTION/ RULES |
RATIO
(S) |
|
NO |
CITATIONS |
SUBJECT |
CASE (NAME OF ASSESSEE) |
|
1.1 |
BOM - HC |
40A, ITA |
a is a sports club: Entrance
fees: Commuted value of subscription for life members: Is capital receipt not
chargeable to tax as principle of mutuality applies. |
|
1.2 |
BCAJ 155 |
Mutuality |
Willingdon Sports Club |
|
2.1 |
BOM - HC |
55(2)(b), ITA |
Shares acquired prior to 1-4-1981
and held as stock in trade up to 2-11-1987 : |
|
2.2 |
215 CTR 72 |
Cost of Acquisition |
Jannhavi Investments (P) Ltd. |
|
3.1 |
MAD - HC |
48(i), ITA |
Interest on capital borrowed for
investment in shares is liable to be added to the cost of acquisition of
shares. |
|
3.2 |
215 CTR 96 |
Int - Cost of Inv. |
Trishul Investments Ltd. |
|
4.1 |
KAR - HC |
48(i), ITA |
|
|
4.2 |
215 CTR 267 |
Deduction |
Mrs. June Perrett |
|
5.1 |
MUM - TRIB |
154, ITA |
Intimation issued under section
143(1)(a) is not obliterated by the issue of notice under section 143(2). So
long as it is not quashed or cancelled by courts/appellate authorities. It
would always remain in force. Such intimation would always be amenable to
rectification where a mistake apparent from record has been committed by the
assessing officer. |
|
5.2 |
112 TTJ 151 |
Rectification |
GTC Industries Ltd. |
|
6.1 |
MUM - TRIB |
45, ITA |
Distribution of assets on dissolution
of firm amounted to transfer liable for taxation of capital gains. |
|
6.2 |
16 SOT 370 |
Capital Gains |
Vijay Talkies |
VOLUME NO. LLAT/ 282 OF 2008-09
DATE: 15 TH AUGUST 2008
|
SR |
AUTHORITY |