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 |
SECTION/ RULES |
RATIO
(S) |
|
NO |
CITATIONS |
SUBJECT |
CASE (NAME OF ASSESSEE) |
|
1.1 |
P&H - HC |
40A(3), ITA |
Various cash payments made to one
party on one day were not required to be clubbed and treated as one cash
payment. |
|
1.2 |
213 CTR 174 |
Bus. Disallowance |
Bal Krishan Jagdish Chand |
|
2.1 |
HYD - TRIB |
115JB, ITA |
Extra–ordinary items appearing in
profit and loss a/c to be deducted in computing MAT liability. |
|
2.2 |
111 ITD 124 |
MAT |
Gulf Oil Corporation Ltd. |
|
3.1 |
RAJ - TRIB |
11, ITA |
In order to serve a charitable
purpose, it is not necessary that the object of the ‘a’ trust should be to
benefit the whole of mankind or all persons in a country. It is sufficient if
the intention is to provide benefit to a section of the public as
distinguished from specified individual. |
|
3.2 |
111 ITD 238 |
Ch. Trust |
|
|
4.1 |
CHD - TRIB |
199, ITA |
Credit for TDS is to be given to the
‘a’ on pro-rata basis and when income is assessable. |
|
4.2 |
109 TTJ 445 |
TDS |
Pradeep Kumar Dhir |
|
5.1 |
BANG - TRIB |
37(1), ITA |
Payment made by ‘a’ company as
one-time charges to (NDSL) for converting shares of company from physical into
dematerialized from is allowable. |
|
5.2 |
109 TTJ 631 |
Bus. Exp. |
Infosys Technologies Ltd. |
|
6.1 |
BANG - TRIB |
80G, ITA |
Deduction u/s.80G is allowable
even if it is made out of exempted
income; S.14A does not apply S.80G. |
|
6.2 |
109 TTJ 631 |
Deduction |
Infosys Technologies Ltd. |
VOLUME NO. LLAT/ 281 OF 2008-09
DATE: 31 ST JULY 2008
|
SR |
AUTHORITY |
SECTION/ RULES |
RATIO
(S) |
|
NO |
CITATIONS |
SUBJECT |
CASE (NAME OF ASSESSEE) |
|
1.1 |
BOM – HC |
23, ITA |
Annual value is the rent received
or receivable by the ‘a’-owner from the tenants, irrespective whether the
tenants have received higher rents by subletting the properties. |
|
1.2 |
214 CTR 316 |
Property Income |
Akshay Textiles Trading &
Agencies (P) Ltd. |
|
2.1 |
MUM - TRIB |
14, ITA |
‘a’, a share broker, returning,
income from sale and purchase of shares under the heads ‘Business income’ and
‘Capital gains’ AO not justified in taxing capital gains as business income. |
|
2.2 |
2801/Mum./2000 |
Head of Income |
J.M. Share & Stock Brokers
Ltd. |
|
3.1 |
MAD - HC |
251, ITA |
Commissioner (Appeals) had no power
to direct the assessing officer to reopen the assessment for another year. |
|
3.2 |
2 DTR 143 |
Powers of CIT (A) |
T.A. Krishnaswamy |
|
4.1 |
|
115JA, ITA |
Provision for doubtful debts and damage
in stock relate to “asset” and not any “liabilities” incurred by ‘a’, also
not “any uncertain liability” can not be added. |
|
4.2 |
11 SOT 688 |
Book Profit / MAT |
E.I. Dupont India Ltd. |
|
5.1 |
All - HC |
2(22)(e), ITA |
Loan or advance to shareholder:
Shareholder means registered shareholder: Partners of ‘a’-firm shareholders
in company: Advance by company to ‘a’-firm: ‘a’ not registered
shareholder:Advance not taxable as deemed dividend in hands of ‘a’. |
|
5.2 |
295 ITR 9 |
Deemeed Div. |
Raj Kumar Singh and Co. |
|
6.1 |
JD - TRIB |
147, ITA |
The second set of proceedings was
taken up only in response to the letter of Dy. Commissioner, which was again
based on the original letter of ITC(CIB), for which the AO had already
completed the assessment not valid. |
|
6.2 |
110 TTJ 728 |
Reassessment |
Amarchand Rathi |
VOLUME NO. LLAT/ 280 OF 2008-09
DATE: 15 TH JULY 2008
|
SR |
AUTHORITY |
SECTION/ RULES |
RATIO
(S) |
|
NO |
CITATIONS |
SUBJECT |
CASE (NAME OF ASSESSEE) |
|
1.1 |
|
115JA, ITA |
Lease equalisation charges debited
to Profit & Loss A/c. cannot be added back while computing book
profit. |
|
1.2 |
17 SOT 173 |
MAT |
GE Capital Transportation
Financial Services Ltd. |
|
2.1 |
|
12AA, ITA |
If order u/s.12AA is not passed
within the stipulated period, then registration is deemed to have been granted.
|
|
2.2 |
17 SOT 281 |
Trust |
Bhagwad Swarup Shri Shri Devraha
Baba Memorial |
|
3.1 |
MUM - TRIB |
23, ITA |
If a property is held with an intention
to let out and efforts are made to let it out, the annual letting value
will be calculated u/s.23(1)(c) as if
it is a let-out property. |
|
3.2 |
17 SOT 293 |
Annual Value |
Premsudha Exports (P.) Ltd. |
|
4.1 |
MUM - TRIB |
143, ITA |
An ‘a’ who makes an offer of
additional income during the course of an inquiry can retract by furnishing
full details of his income in the course of assessment proceedings. |
|
4.2 |
17 SOT 574 |
Income |
Jain Trading |
|
5.1 |
PUNE-TRIB |
2(14),ITA |
Receipt from sale of immovable
property is capital gains, irrespective of imperfect title. |
|
5.2 |
110 TTJ 460 |
Cap. Gains |
Rina B. Parwani
|
|
6.1 |
|
147&148,ITA |
After having issued notice u/s.148
to the ‘a’ as an individual, ITO had no jurisdiction to assess the HUF of the
‘a’, even though the ‘a’ had consented to assessment in the status of HUF. |
|
6.2 |
110 TTJ 834 |
Assessment |
Suraj Mal HUF |
VOLUME NO. LLAT/ 279 A OF 2008-09
DATE: 30 TH JUNE 2008
|
SR |
AUTHORITY |
SECTION/ RULES |
RATIO
(S) |
|
NO |
CITATIONS |
SUBJECT |
CASE (NAME OF ASSESSEE) |
|
1.1 |
|
37(1), ITA |
Provision for expenses allowable
if reasonably ascertained (not contingent) actual (not devise) and consistent
practice. |
|
1.2 |
212 CTR 314 |
Allowability Provision |
Honda Siel Power Products
Ltd.
|
|
2.1 |
MP – HC |
17(2)(ii), ITA |
It is open to the 'a' if there is
no "concession" in the matter of accommodation provided by the
employer to the employee and
hence the case did not fall within the mischief of section 17(2)(ii). |
|
2.2 |
212 CTR 338 |
Perquisite |
All India State Bank of |
|
3.1 |
ALL-TRIB |
7, ITA |
The reversionary value of the land
cannot be taken into consideration where the value of the property is determined by capitalising the
annual letting value. |
|
3.2 |
165 TM 171 |
Wealth Tax |
Gopal Sutwala
|
|
4.1 |
MUM - TRIB |
80-O, ITA |
A registered trademark not
necessarily registered in |
|
4.2 |
17 SOT 663 |
Deduction |
P.N. Writer & Co. Ltd. |
|
5.1 |
MAD - TRIB |
271(1)(c), ITA |
Penalty may not apply when
addition to income is not by detection but disallowance of expenses. |
|
5.2 |
294 ITR 134 |
Penalty |
Cafco Syndicate Shipping Co. |
|
6.1 |
JD - TRIB |
50C, ITA |
Where transfer of property was
through agreement which was not registered with the stamp duty
authority, the provisions of section
50C is not applicable. |
|
6.2 |
112 TTJ 76 |
Capital Gains |
Navneet Kumar Thakkar |
VOLUME NO. LLAT/ 279 OF 2008-09
DATE: 30 TH JUNE 2008
|
SR |
AUTHORITY |
SECTION/ RULES |
RATIO
(S) |
|
NO |
CITATIONS |
SUBJECT |
CASE (NAME OF ASSESSEE) |
|
1.1 |
|
145, ITA |
In determining whether there has in
fact, been accrual of liability or income, the accountancy standards
prescribed by ICAI would have to be followed and applied. |
|
1.2 |
210 CTR 354 |
Acc. Method |
Woodward Governor |
|
2.1 |
|
11(2), ITA |
Accumulation of income ‘a’ stated
in application that amount would be utilised for objects of the trust:
Condition is fulfilled. |
|
2.2 |
211 CTR 352 |
Ch. Trust |
Mitsui & Co. Environmental
Trust |
|
3.1 |
HYD - TRIB |
2(47), ITA |
Transfer under a development
agreement takes place when right to construct was given and not (in a later
year) when constructed place was
given in consideration thereof. |
|
3.2 |
108 TTJ 420 |
Cap. Gains |
Dr. T. Achyutha Rao
|
|
4.1 |
MUM - TRIB |
90, ITA |
Once PE existed (in an earlier year),
income, attributable is taxable even if received ( in a later year) when
PE ceased to exist.
|
|
4.2 |
106 TTJ 889 |
DTAA |
Van Oord Dredging & Marine
Contractors |
|
5.1 |
MUM - TRIB |
55, ITA |
Though ‘a’ was a non-resident it
can take benefit of fair market value as on 1-4-1981 under section
55(2)(b)(i). Further, proviso to
section 48 does not restrict or undo the option available to ‘a’. |
|
5.2 |
16 SOT 8 |
Cap. Gains |
Alcan Inc. |
|
6.1 |
|
10(33), ITA |
Loans received from payer
companies in which ‘a’ not a share holder. |
|
6.2 |
12 SOT 260 |
Deemed Dividend |
Nulon |
VOLUME NO. LLAT/ 278 OF 2008-09
DATE: 15 TH JUNE 2008
|
SR |
AUTHORITY |
SECTION/ RULES |
RATIO
(S) |
|
NO |
CITATIONS |
SUBJECT |
CASE (NAME OF ASSESSEE) |
|
1.1 |
JAIPUR - TRIB |
80HHC, ITA |
AO not justified in allowing
deduction u/s.80HHC, After reducing the deduction allowable u/s.80IB. |
|
1.2 |
247/JP/2005 |
Deduction |
Vijay Industries |
|
2.1 |
MAD - HC |
69A, ITA |
When books of A carry name of
related person AO can ask them to explain and on failure add. He need not
link up amounts with books of firm, as it is incomplete. |
|
2.2 |
292 ITR 673 |
Undisclosed Income |
K. Chinnathambi |
|
3.1 |
GAU - HC |
10(2A), ITA |
Partner creating sub-partnership :
Sub partnership entitled to exemption on share of partner. |
|
3.2 |
294 ITR 28 |
Partnership firm |
Radha Krishna Jalan |
|
4.1 |
AHD - TRIB |
80-IB(10), ITA |
Ownership of land is not essential
condition to be eligible For claiming deduction |
|
4.2 |
ITA/2482/Ahd./2006 |
Deduction |
Radhe Developers |
|
5.1 |
|
143, ITA |
Failure of revenue to produce
relevant document on basis of which addition was made - Addition not
justified. |
|
5.2 |
164 TM 48 |
Assessment |
Hardat Rai Suresh Kumar |
|
6.1 |
P&H - HC |
37(1), ITA |
The premium paid on redemption of
debentures is to be revenue
expenditure. |
|
6.2 |
162 TM 272 |
Cap/Rev Exp |
Industrial Cables (P) Ltd. |
VOLUME NO. LLAT/ 277 OF 2008-09
DATE: 31ST MAY 2008
|
SR |
AUTHORITY |
SECTION/ RULES |
RATIO (S) |
|
NO |
CITATIONS |
SUBJECT |
CASE (NAME OF ASSESSEE) |
|
1.1 |
|
2(15)/11, ITA` |
Charitable activity limited to
benefit of particular community eligible for benefit. |
|
1.2 |
109 TTJ 286 |
Ch. Trust |
|
|
2.1 |
P&H - HC |
40A(3), ITA |
When income of ‘a’ is estimated by
applying gross profit rate, provisions of S. 40A(3) could not be invoked. |
|
2.2 |
159 TM 392 |
Busi. Exp. |
Smt. Santosh Jain |
|
3.1 |
MUM - TRIB |
147, ITA |
During pendency of rectification
proceedings under section 154, it was not open to assessing officer to resort
toreassessment proceedings. |
|
3.2 |
109 TTJ 1 |
Reassessment |
Jethalal K. Morbia |
|
4.1 |
MP - HC |
43B, ITA |
Amount of deferred tax converted
into loan shall be deemed to have been paid same could not be disallowed. |
|
4.2 |
212 CTR 145 |
Bus. Disallowance |
Perfect Pumps (P) Ltd. |
|
5.1 |
HYD – TRIB |
194C, ITA |
If equipment are manufactured as
per customer specifications it is not works contract when all material
belongs to supplier, even though it produces a tailor made product. |
|
5.2 |
13 SOT 347 |
TDS |
Power Grid Corpn. of India Ltd. |
|
6.1 |
MUM - TRIB |
80G, ITA |
Gross total income – Computation –
long term capital gains must be reduced. |
|
6.2 |
15 SOT 104 |
Deduction |
Hari K. Taneja & Rohan (P)
Shah |
VOLUME NO. LLAT/ 276 OF 2008-09
DATE: 15TH MAY 2008
|
SR |
AUTHORITY |
SECTION/ RULES |
RATIO (S) |
|
NO |
CITATIONS |
SUBJECT |
CASE (NAME OF ASSESSEE) |
|
1.1 |
MUM - TRIB |
54F, ITA |
Expenditure incurred to make new
house habitable is also allowable. |
|
1.2 |
108 TTJ 894 |
Cap. Gains |
Saleem Fazelbhoy |
|
2.1 |
MUM - TRIB |
80 HHC, ITA |
For reducing export turnover in respect
of trading goods from total turnover, only realised sale proceeds of trading
export turnover was to be considered. |
|
2.2 |
108 TTJ 850 |
Deduction |
Artmis Exports (P) Ltd. |
|
3.1 |
KARN - HC |
32, ITA |
Where ‘a’ acquired asset and leased
to a closely related tax exempt entity, which paid security deposit out of
which the asset was purchased, it was not entitled to depreciation,
transaction not being genuine. |
|
3.2 |
291 ITR 18 |
Depreciation |
ICDS Ltd. |
|
4.1 |
P&H - HC |
127, ITA |
Order of transfer cannot be
challenged in appeal against assessment order. |
|
4.2 |
291 ITR 80 |
Trf of Case |
Jaswinder Kaur Kooner |
|
5.1 |
ALL - HC |
12A, ITA |
Where objects of trust are altered
without informing revenue, its assessment as unregistered trust is valid. |
|
5.2 |
291 ITR 116 |
Ch. Trust |
|
|
6.1 |
ALL - HC |
Cr. Dt.21.8.1969 |
It cannot be said that even where
there is no prima facie case,recovery should be stayed merely because
assessed incomeis much higher than returned income. |
|
6.2 |
291 ITR 116 |
Recovery of Tax |
|
VOLUME NO. LLAT/ 275 OF 2008-09
DATE: 30 TH APRIL 2008
|
SR |
AUTHORITY |
SECTION/ RULES |
RATIO
(S) |
|
NO |
CITATIONS |
SUBJECT |
CASE (NAME OF ASSESSEE) |
|
1.1 |
|
10A, ITA |
Undertaking in free trade zone –
Interest income receivedon various deposits no nexus with the activity of the
industrial undertaking cannot be allowed as deduction. |
|
1.2 |
16 SOT 350 |
Exemption |
Perot Systems TSI ( |
|
2.1 |
|
11(4A), ITA |
Entrance fee and subscription fee received
by ‘a’ trust was entitled to exemption |
|
2.2 |
163 TM 146 |
Ch. Trust |
Apparel Export Promotion Council |
|
3.1 |
MUM - TRIB |
28(i), ITA |
Merely for the reason that ‘a’ was
not having any money lending licence it could not be concluded that ‘a’ was
not engaged in money lending business. |
|
3.2 |
16 SOT 343 |
Busi. Income |
B.N. Khandelwal |
|
4.1 |
|
11, ITA |
Accumulation of income for
plurality of purposes was permissible in law. |
|
4.2 |
290 ITR 535 |
Accumulation |
Eternal Science of Man’s Society |
|
5.1 |
|
145, ITA |
Accounting method-unless there are
change in the facts and circumstances, the department should not take
contrary view. |
|
5.2 |
15 SOT 353 |
Acc. Method |
|
|
6.1 |
MP - TRIB |
131(1)(d), ITA |
Commission issued by Dy. CIT to
DVO to ascertain cost of construction where no assessment proceedings was
pending was not valid. |
|
6.2 |
162 TM 13 |
IT Authorities |
Choudhary Builders (P) Ltd. |
VOLUME NO. LLAT/ 274 OF
2008-09
DATE: 15TH APRIL
2008
|
SR |
AUTHORITY |
SECTION/ RULES |
RATIO
(S) |
|
NO |
CITATIONS |
SUBJECT |
CASE (NAME OF ASSESSEE) |
|
1.1 |
NAG - TRIB |
145,ITA |
When interest and remuneration are
credited to accounts of partners by the firm based on mercantile system of
the accounting and the firm has claimed deduction of the same, then the same
is taxable in the hands of the partners to the full extent, even though the
partners are following cash system of accounting and have withdrawn only a
part of it. |
|
1.2 |
108 ITD 409 |
Income |
Vijay Kumar Patni |
|
2.1 |
MUM - TRIB |
73(1), ITA |
Dividends earned by ‘a’ company from
shares held as stock-in-trade in the course of purchase and sale of such
shares have to be viewed as profits of speculation business. Although
assessable under the head ‘Income from other sources’, such dividend is
eligible for set-off against speculation loss from share dealings. |
|
2.2 |
108 TTJ 321 |
Busi. Loss |
Starline Ispat & Alloys Ltd. |
|
3.1 |
MUM - TRIB |
32, ITA |
A partner who has used the assets
owned by him for the purpose of business of the firm in which he is a
partner, can claim depreciation on such assets as a deduction allowable
against the share income, remuneration and interest received from such firm. |
|
3.2 |
109 TTJ 30 |
Depreciation |
Virendra K. Mehta |
|
4.1 |
MUM - TRIB |
37(1), ITA |
Non-refundable premium paid for
acquiring leasehold land, in addition to annual rent, was capital
expenditure. |
|
4.2 |
109 TTJ 172 |
Cap. Exp. |
Mukand Ltd. |
|
5.1 |
MUM - TRIB |
143(3), ITA |
Notice issued for ‘limited scrutiny’
but assessment made based on ‘detailed scrutiny’ – AO not justified. |
|
5.2 |
4457/M/2004 |
Scrutiny |
Pericles Foods Pvt. Ltd. |
|
6.1 |
MUM - TRIB |
43(5), ITA |
Trading in derivatives could not
be considered as speculative transaction. |
|
6.2 |
3182/M/2004 |
Speculation |
SSKI Investors Services Pvt. Ltd. |
VOLUME NO. LLAT/ 273 OF 2007-08
DATE: 31ST MARCH 2008
|
SR |
AUTHORITY |
SECTION/ RULES |
RATIO
(S) |
|
NO |
CITATIONS |
SUBJECT |
CASE (NAME OF ASSESSEE) |
|
1.1 |
MUM - TRIB |
11, ITA |
Capital expenditure is to be
considered as amount applied towards attainment of its objectives. |
|
1.2 |
14 SOT 318 |
Ch. Trust |
|
|
2.1 |
MUM - TRIB |
14A, ITA |
The provisions for quantification
of disallowance as contained in sub-sections (2) and (3) of section 14 A are procedural
and therefore apply to all pending matters. |
|
2.2 |
14 SOT 66 |
Exp.not allowable |
Seksaria Biswan Sugar Factory
Ltd. |
|
3.1 |
CHEN - TRIB |
28(i), ITA |
Advance was given by the assessee
to a contractor for the construction of cold storage plant. Works could not
be executed due to some reasons. Only a part of amount was received back the
balance was capital loss. Since it was not a debt. it could not be allowed as
bad debt also. |
|
3.2 |
109 TTJ 112 |
Loss |
Kwality Fun Foods &
Restaurants (P) Ltd.
|
|
4.1 |
MUM - TRIB |
154, ITA |
For the rectification it is the mistake
that should be apparent from record and not rectification. There is no bar to
spirited debate and long-drawn process of reasoning in the process of
rectification of mistake apparent from record. |
|
4.2 |
108 ITD 501 |
Rectification |
V.S. Apte & Sons
|
|
5.1 |
JD - TRIB |
37(1), ITA |
Expenditure incurred on obtaining
ISO 9002 certificate-Certificate valid for three years, the fixed capital of company
was not enhanced in any manner. entire amount spent is revenue in nature. |
|
5.2 |
111 TTJ 149 |
Cap/Rev Exp |
Tirupati Microtech (P) Ltd. |
|
6.1 |
|
23, ITA |
Annual value – Determination -
Notional income by way of interest on interest free security taken by
assessee not
valid. |
|
6.2 |
13 SOT 149 |
Annual value |
Midland International Ltd. |
VOLUME NO. LLAT/ 272 OF 2007-08
DATE: 15TH MARCH 2008
|
SR |
AUTHORITY |
SECTION/ RULES |
RATIO
(S) |
|
NO |
CITATIONS |
SUBJECT |
CASE (NAME OF ASSESSEE) |
|
1.1 |
|
115JA, ITA |
Capital gain an slump sale of unit
was to be included in book profit for the purpose of computation of book profit. |
|
1.2 |
15 SOT 671 |
MAT |
ECE Industries Ltd.
|
|
2.1 |
|
37(1), ITA |
Commission paid by assessee to
agents could not be disallowed where officer failed to issue summons, etc.,
to call them for assessee could not produce them. |
|
2.2 |
163 TM 482 |
Bus. Exp. |
Genesis Commet (P) Ltd. |
|
3.1 |
ALL - TRIB |
263, ITA |
‘A’ was not required to make
payment of excise duty on goods kept in bonded warehouse, unless those were
removed therefrom, and therefore, the assessing officer was justified in his
action that the excise duty was not liable liable to be included in closing
stock. |
|
3.2 |
14 SOT 475 |
Revenue |
Shyam Biri Works Ltd. |
|
4.1 |
JP -TRIB |
271(1)(c), ITA |
Addition on estimate basis and also
satisfaction of concealment not recorded specifically : Penalty not
valid. |
|
4.2 |
109TTJ 421 |
Penalty |
Shyam Nathani
|
|
5.1 |
DEL-TRIB |
234B, ITA |
Interest chargeable not upto the
date of reassessment order but, upto the date of original assessment only. |
|
5.2 |
15 SOT 617 |
Advance Tax |
Freightship Consultants (P)
Ltd. |
|
6.1 |
MAD – TRIB |
32(1), ITA |
Construction of building on
leasehold land : Construction only for business advantage and assessee not
acquiring capital asset : Cost of construction is revenue expenditure. |
|
6.2 |
293 ITR 432 |
Cap/Rev Exp |
TVS Lean Logistics Ltd. |
VOLUME NO. LLAT/ 271 OF 2007-08
DATE: 29TH FEBRUARY 2008
|
SR |
AUTHORITY |
SECTION/ RULES |
RATIO
(S) |
|
NO |
CITATIONS |
SUBJECT |
CASE (NAME OF ASSESSEE) |
|
1.1 |
KARN-TRIB |
86(V),ITA |
‘A’ was not eligible for relief as a member of
AOP in respect of specific portion of income of the AOP the said portion
being below taxable limit had not suffered tax in the hands of AOP |
|
1.2 |
162 TM 487 |
Income |
Smt. Revathi
|
|
2.1 |
MP - TRIB |
131(1),ITA |
Commission issued by Dy. CIT to
DVO to ascertain cost of construction where no assessment proceedings was
pending was not valid.
|
|
2.2 |
162 TM 13 |
Powers |
Choudhary Builders (P) Ltd. |
|
3.1 |
DEL- TRIB |
54, ITA |
‘A’ acquired a house which consisted of three
flats for his family, i.e., son's family and widowed daughter family. Revenue
allowed in respect of first two flats, excluding the last not justified |
|
3.2 |
110 TTJ 440 |
Cap.Gains |
Prem Prakash Bhutani |
|
4.1 |
CHEN - TRIB |
148,ITA |
AO issued a second notice as the
condition precedent was satisfied because neither any assessment nor reassessment
was pending on issuing of second notice therefore inaction on part of
assessing officer to complete proceedings after issuing first notice did not
amount to dropping of proceedings. |
|
4.2 |
107 ITD 357 |
Reassessment |
Srinivasa Computers Ltd. |
|
5.1 |
|
194, ITA |
Since amount paid by assessee to
landlord as security deposit was to be adjusted against rent as per terms of
agreement, it was in fact payment of advance rent and TDS was required to be
made as per provisions of section 194-I. |
|
5.2 |
291 ITR 455 |
TDS |
Reebok India Company |
|
6.1 |
MUM - TRIB |
4 - ITA |
Levy collected from customer while
doing business of generation of power, its ultimate destination or
application would not change its character from being business receipt to
capital receipts |
|
6.2 |
15 SOT 451 |
Income |
Nuclear Power Corporation of India
Ltd. |
VOLUME NO. LLAT/ 270 OF 2007-08
DATE: 15TH FEBRUARY 2008
|
SR |
AUTHORITY |
SECTION/ RULES |
RATIO
(S) |
|
NO |
CITATIONS |
SUBJECT |
CASE (NAME OF ASSESSEE) |
|
1.1 |
MAD |
S.68, ITA |
Even if it was assumed that the
subscribers to the increased share capital were not genuine, under no
circumstances could the amount of share capital be regarded as undisclosed
income of the company. |
|
1.2 |
294 ITR 661 |
Cash Credit |
Electro Polychem Ltd. |
|
2.1 |
|
S.37(1), ITA |
Customised s/w is of an enduring
nature. Non customised s/w requires frequent upgradation and expenditure on
such software is revenue expenditure. |
|
2.2 |
164Taxman46 |
Business Exp |
G.E.Capital Services Ltd. |
|
3.1 |
|
S.23r.w.S.22 |
While taxing the rental income of
property under the head "Income from House Property", the assessing
Officer cannot consider the element of notional income by way of interest on
interest-free security deposit received by the "A" for the purpose
of determining Annual letting value (ALV). |
|
3.2 |
109 ITD 198 |
Income |
Midland International Ltd. |
|
4.1 |
MUM |
Article 12 |
The amount paid to a person
resident of |
|
4.2 |
80 TTJ 120 |
DTAA |
Raymond Limited. |
|
5.1 |
|
S.115A |
Fees for technical services which
are not effectively connected with project PE are chargeable to tax in |
|
5.2 |
17 SOT 197 |
DTAA |
Sumitomo Corporation. |
|
6.1 |
|
Sec.9(1)(i) |
Transfer of shares of Indian
company from one non resident to another non-resident effected outside |
|
6.2 |
295 ITR 258 |
Trf of Share |
Triniti Corporation |
VOLUME NO. LLAT/ 269 OF 2007-08
DATE: 31ST JANUARY 2008
|
SR |
AUTHORITY |
SECTION/ RULES |
RATIO
(S) |
|
NO |
CITATIONS |
SUBJECT |
CASE (NAME OF ASSESSEE) |
|
1.1 |
MAD |
S.32, ITA |
‘A’ had put up the impugned
construction of building only on leaseholdm land and no building was taken on
lease by the ‘a’ therefore, the fiction that the building put up by him in
the leasehold land or structure or
work shall be constructed as if the
same is owned by the ‘a’, is not applicable. |
|
1.2 |
293 ITR 432 |
Business Exp |
TVS Lean Logistics Ltd. |
|
2.1 |
DEL-TRIB |
S.199, ITA |
Interest income shown but no TDS
certificate filed. TDS certificate filed subsequently. Credit must be
allowed. |
|
2.2 |
15 SOT 368 |
TDS |
Escorts Ltd. |
|
3.1 |
ALL |
S.132(1),ITA |
Petitioner doctor was on air
travel from |
|
3.2 |
162Taxman200 |
Search & Seizure |
|
|
4.1 |
BANG-TRIB |
S.9(1)(vii) |
Non-resident-company did not have
PE in |
|
4.2 |
110 TTJ 698 |
Taxability |
Abishek Developers. |
|
5.1 |
KARN |
S.133A, ITA |
On mere speculation and mere
possibilities, it is not open to the authorities to exercise their powers for
survey for the continued retention just because the statutory provisions
enable such retention. |
|
5.2 |
293 ITR 57 |
Survey |
Raj & Raj Investments. |
|
6.1 |
P&H |
S.139, ITA |
A return filed could not be
revised merely by filing a letter and still further that a return filed under
section 139(4) could not possibly be revised. The AO can not take cognizance
of such letter and extended period of limitation. |
|
6.2 |
163Taxman 234 |
Return |
Mittal Alloys & Steels. |
VOLUME NO. LLAT/ 268 OF 2007-08
DATE: 15TH JANUARY 2008
|
SR |
AUTHORITY |
SECTION/ RULES |
RATIO
(S) |
|
NO |
CITATIONS |
SUBJECT |
CASE (NAME OF ASSESSEE) |
|
1.1 |
P & H - HC |
271(1)(C) |
Where an assessee files a revised
return showing higher income andcgives an explanation that he offerred higher
income to buy peace of mind and avoid litigation, penalty could not be
imposed merely on account of higher income having been subsequently declared. |
|
1.2 |
294 ITR 481 |
Penalty |
Suraj Bhan |
|
2.1 |
|
S.132, ITA |
Where the tax liability is
discharged and the court has not granted any stay, department cannot retain
the seized jewellery either for the reason’ that it was not possible to
distinguish the jewellery belonging to the husband. |
|
2.2 |
212 CTR 475 |
Search & Seizure |
Asha Devi & Anr. |
|
3.1 |
|
S.132, 145 |
Where unaccounted sales was found in
pre search period there cannot be any presumption that such unaccounted sales
would continue for post search period. |
|
3.2 |
294 ITR 497 |
Search & Seizure |
Anand Kumar Deepak Kumar. |
|
4.1 |
MAD |
S.37(1), ITA |
The question whether the
expenditure on replacement of machinery is capital or revenue is not
determined by the treatment given in the books of account or in the
balance-sheet. The claim has to be determined only by the provisions of the
act. |
|
4.2 |
292 ITR 605 |
Cap/Rev Exp |
Fenner ( |
|
5.1 |
SC |
S.37(1), ITA |
The amount paid under the
agreement was a premium or "salami" and not advance payment of rent
for leasehold rights and also being non-refundable on termination of lease, therefore,
an enduring benefit was obtained by the assessee company and as such it was
capital in nature. |
|
5.2 |
57 ITR 422 |
Cap/Rev Exp |
Panbari Tea Co. Ltd. |
|
6.1 |
SC |
194C, 201(1) |
Department cannot recover tax from
deductor where deductee has already paid the tax payable. |
|
6.2 |
163Taxman 355 |
TDS |
|
VOLUME NO. LLAT/ 267 OF
2007-08
DATE: 31ST DECEMBER 2007
|
SR |
AUTHORITY |
SECTION/ RULES |
RATIO
(S) |
|
NO |
CITATIONS |
SUBJECT |
CASE (NAME OF ASSESSEE) |
|
1.1 |
ALL |
10(16), ITA |
Scholarship granted by the
employer to his employee’s children is not taxable at all. |
|
1.2 |
289 ITR 218 |
Taxability |
B. L. Garg |
|
2.1 |
SC |
138, ITA |
114 Evidence Act, ‘Communication
by Post = delivered. 27 Gen Clauses Act, Communication by Registered AD =
Delivered even if “refused”. 138,
Negotiable Instruments Act, follows latter. |
|
2.2 |
6 SCC 555 |
Notice |
Palapetty Muhammad |
|
3.1 |
MUM - TRIB |
45, ITA |
‘A’ Signed share transfer forms
and lodged with solicitor to be handed
over when full payment received. No transfer, no Capital Gain |
|
3.2 |
12 SOT 84 |
Capital Gain |
Rajiv A Shah |
|
4.1 |
MUM – TRIB |
193, ITA |
Transferable Bonds – Interest
payable on 9-6-1994 partly accrued on 31-3-1994. No tax deductible
wrt.31-3-1994 as payees not known then, correctly deducted on 9-6-1994 wrt
the final payees. |
|
4.2 |
10 SOT 497 |
Transfer |
Industrial Development Bank of |
|
5.1 |
KOL-TRIB |
194H, ITA |
Sale of SIM cards by franchisees –
so structured that difference Which they charged was actually commission. Tax
was deductible. |
|
5.2 |
108 TTJ 38 |
TDS |
Bharti Cellular LTd. |
|
6.1 |
BOM |
234C, ITA |
Application for waiver of interest cannot rejected on flimsy Grounds. |
|
6.2 |
291 ITR 557 |
Interest |
Chief Commissioner & Others |
VOLUME NO. LLAT/ 266 OF
2007-08
DATE: 15TH DECEMBER
2007
|
SR |
AUTHORITY |
SECTION/ RULES |
RATIO
(S) |
|
NO |
CITATIONS |
SUBJECT |
CASE (NAME OF ASSESSEE) |
|
1.1 |
|
12AA, ITA |
The application was not acted upon
by the CIT within the limitation prescribed, it could therefore be presumed
that registration had been granted. |
|
1.2 |
106 TTJ 468 |
Ch. Trust |
Sardari Lal Oberoi Memorial
Charitable Trust. |
|
2.1 |
MUM – TRIB |
2(47)(v), ITA |
Development agreement executed but
transferee not performing his obligations, no transfer, no Capital Gains. |
|
2.2 |
108 TTJ |
Capital Gain |
General Glass Co. (P) Ltd. |
|
3.1 |
SC |
2(9), ITA |
Supreme Court Distinguishes
Between ‘ Intimation’ and ‘Assessment Order’ in Income Tax Act. Intimation
not Assessment, CIT’s cannot revise. |
|
3.2 |
291 ITR 500 |
Intimation |
Rajesh Jhaveri Stock Brokers (P)
Ltd. |
|
4.1 |
PUNE – ITAT |
254(1),ITA |
A decision of a non jurisdictional
High Court is a binding precedent for the Tribunal until a contrary decision
is given by any other competent High Court. |
|
4.2 |
111 TTJ 741 |
Precedent |
|
|
5.1 |
HYD – ITAT |
23(1)(a), ITA |
When the property, by way of a
device is let out only for one day in a year, it cannot be said that the
character of the property is that of a ‘let out property’, ignoring the predominant
character of vacancy of the property
for 364 days. |
|
5.2 |
111 TTJ 994 |
Annual Value |
Ajay Jain |
|
6.1 |
SC |
78(2), ITA |
Section 78(2) of the Rajasthan
Sales Tax Act, is a mandatory monetary penalty which is neither criminal nor quasi
criminal in nature |
|
6.2 |
293 ITR 584 |
Penalty |
Gulzag Industries |
VOLUME NO. LLAT/ 265 OF
2007-08
DATE: 30TH NOVEMBER 2007
|
SR |
AUTHORITY |
SECTION/ RULES |
RATIO
(S) |
|
NO |
CITATIONS |
SUBJECT |
CASE (NAME OF ASSESSEE) |
|
1.1 |
BANG- TRIB |
37(1), ITA |
Corporate membership fee paid to
clubs is an allowable revenue expenditure and not capital in nature. |
|
1.2 |
109 TTJ 631 |
Cap/Rev Exp |
Infosys Technologies Ltd. |
|
2.1 |
PUNE – TRIB |
32(1), ITA |
Licence fee paid for acquisition
of SAP R -13 computer software and for use of same is capital expenditure
entitled to depreciation. |
|
2.2 |
108 TTJ 28 |
Cap/Rev Exp |
Sudarshan Chemical Industries Ltd. |
|
3.1 |
KARN - TRIB |
40 A(2), ITA |
Commission to sister concern
allowed taking into consideration the long standing relationship and also
reputation of brand and agent and also taking into consideration that there
was no intention to avoid tax. |
|
3.2 |
160Taxman244 |
Bus.Disallow |
Microtex Separators Ltd. |
|
4.1 |
SC |
271(1)(c) |
Burden of proof - initially on
Revenue then on assessee then finally/fully on revenue |
|
4.2 |
291 ITR 519 |
Revenue |
Dilip Shroff
|
|
5.1 |
SC |
43B, ITA |
Additional levy paid in terms of
executive order of Commissioner of Excise - Amount not in the nature of
penalty or excise duty. No disallowance.
|
|
5.2 |
160 Taxman 252 |
Disallowance |
Distillers Co. Ltd.
|
|
6.1 |
P&H – ITAT |
43B, ITA |
Excise duty paid in advance not
disalowable involking section 43B |
|
6.2 |
293 ITR 12 |
Bus.Disallow |
Raj & San Deeps Ltd. |
VOLUME NO. LLAT/ 264 OF 2007-08
DATE: 15TH NOVEMBER 2007
|
SR |
AUTHORITY |
SECTION/ RULES |
RATIO
(S) |
|
NO |
CITATIONS |
SUBJECT |
CASE (NAME OF ASSESSEE) |
|
1.1 |
MP-HC |
2(13), ITA |
Land sold after converting into
plots for securing better price. Not an adventrue in the nature of trade.
Surplus on sale is capital gain. |
|
1.2 |
209 CTR 410 |
Capital Gain |
Suresh Chand Goyal |
|
2.1 |
MAD – HC |
37(1), ITA |
Expenses incurred on partly
convertible debentures cannot be treated as partly capital expenditure.
Entire expenditure on debebtures is allowable as revenue expenditure. |
|
2.2 |
209 CTR 233 |
Bussiness Expenses |
South India Corporation (Agencies
) Ltd. |
|
3.1 |
COCH-TRIB |
14A, ITA |
Unless method for working out
disallowance of expenditure in case of an indivisible business is prescribed
as provided in Sub. Sec (2) of S.14A, no disallowance is permissible. |
|
3.2 |
12 SOT 625 |
Disallowance |
Dhanlakshmi Bank Ltd. |
|
4.1 |
KAR – HC |
37, ITA |
Corporate guarantee paid by
assessee on behalf of subsidiary companies and legal expenses in regard to
guarantee. Deductible business expenditure. |
|
4.2 |
292 ITR 188 |
Business Expenses |
United Breweries Ltd. |
|
5.1 |
SC |
90, ITA |
Back office operations would not
constitute a fixed place PE under article 5(1). Not all profits of
Multinational enterprise would be taxable in |
|
5.2 |
162 TM 165 |
Intl. Taxn |
Morgan Stanley & Co. |
|
6.1 |
AHD – ITAT |
80-IB(10)ITA |
The mere fact that the land owner
and the undertaking developing and building housing project are two different
entities would not make any differences. |
|
6.2 |
141 CAT 684 |
Deduction |
Radhe Developers |
VOLUME NO. LLAT/ 263 OF 2007-08
DATE: 30TH OCTOBER 2007
|
SR |
AUTHORITY |
SECTION/ RULES |
RATIO
(S) |
|
NO |
CITATIONS |
SUBJECT |
CASE (NAME OF ASSESSEE) |
|
1.1 |
JAIPUR-ITAT |
154, ITA |
If on the basis of material on
record, assessee is entitled to a relief which has remained to be allowed,
then it would constitute mistake apparent from record and consequently, such
relief cannot be denied merely because the assessee omitted to claim by
mistake |
|
1.2 |
109 TTJ 794 |
Rectification |
Lustre Tiles Ltd |
|
2.1 |
SC |
80HH ITA |
Sections 80HH and 80-I are
independent of each other and therefore a new industrial unit can claim
deductions under both sections on gross total income independently. |
|
2.2 |
163 Taxman 337 |
Deductions |
Madideep Engg & Pkg. India Pvt
Ltd |
|
3.1 |
|
S.148, ITA |
Where assessee had made full and
true disclosure of all material facts and the AO while passing original
assessment order chose not to give any finding of the issue and later on took
a view on same facts, it clearly amounted to a change |
|
3.2 |
163 Taxmann 259 |
Reassessment |
Eicher Ltd. |
|
4.1 |
DEL-TRIB |
S.11(1), ITA |
If the business carried on by a
trust on an institution is incidental to attainment of its objectives and
separate books of account are maintained, then assessee would be entitled to
exemption under section 11(1) |
|
4.2 |
107 ITD 403 |
Trust |
Beer Shiva Educational Social
welfare Society. |
|
5.1 |
PUNE – ITAT |
90(2), ITA |
Even though under the DTAA between
Indian and |
|
5.2 |
109 TTJ 742 |
DTAA |
Patni Computer Systems Ltd |
|
6.1 |
GAU – HC |
S.263, ITA |
Rectification proceedings based on
audit objections dropped Notice u/s.263 on the basis of same audit objection.
Not valid. |
|
6.2 |
290 ITR 395 |
Rectification |
B & A Plantation and
Industries Ltd. |
VOLUME NO. LLAT/ 262 OF
2007-08
DATE: 15TH OCTOBER 2007
|
SR |
AUTHORITY |
SECTION/ RULES |
RATIO
(S) |
|
NO |
CITATIONS |
SUBJECT |
CASE (NAME OF ASSESSEE) |
|
1.1 |
SC |
145, ITA |
Where fall in price of closing stock
had the effect of merely reducing prospective profits and it
was not a case of anticipated loss, value thereof could
not be reduced.
|
|
1.2 |
19 CAPJ 12 |
Method of Accounting |
Hindustan Zinc Ltd. |
|
2.1 |
MUM-ITAT |
194H, ITA |
Amount realised by the travel
agent in excess of the net fare cannot be
considered as commission liable to TDS. |
|
2.2 |
19 CAPJ 193 |
TDS |
Korean Air. |
|
3.1 |
MAD-ITAT |
68, ITA |
Profit and loss account and
balance sheet are not books of account as contemplated
under provisions of Act. |
|
3.2 |
291 ITR 232 |
Cash Credits |
Taj Borewells |
|
4.1 |
MUM-ITAT |
32, ITA |
Depreciation can be allowed to assessee on assets
owned by him and used for purpose of business of firm in which
he is a partner |
|
4.2 |
109 TTJ 30 |
Depreciation |
Virendra K Mehta. |
|
5.1 |
SC |
271, ITA |
A duty may be enjoined
on the assessee to make a correct disclosure of income but if
such disclosure is based on opinion of an expert
being registered valuer, only because his opinion is not accepted or
some other expert gives another opinion, there is no Concealment. |
|
5.2 |
19 CAPJ 170 |
Concealment |
Dilip N Shroff |
|
6.1 |
MUM – ITAT |
80IB(10),ITA |
Distance between municipal limit and the
project site is to be Measured based not on the straight line
but on the road distance. |
|
6.2 |
39D BCAJ 420 |
Deduction |
Laukik Developers |
VOLUME NO. LLAT/ 261 OF
2007-08
DATE: 30TH SEPTEMBER 2007
|
SR |
AUTHORITY |
SECTION/ RULES |
RATIO
(S) |
|
NO |
CITATIONS |
SUBJECT |
CASE (NAME OF ASSESSEE) |
|
1.1 |
|
40(a)(i), ITA |
Legal fees paid in UK in
connection with legal proceedings in UK is not subject to tax. |
|
1.2 |
159 TM 22 |
Busi.Exp |
Muthoot M.George Bankers |
|
2.1 |
ALL - TRIB |
272A(2) (c), ITA |
The 'a' had not deducted any tax at
source, and therefore, there was no occasion for him to file the detail of
the tax or to file return. |
|
2.2 |
158 TM 435 |
Penalty |
Sahara |
|
3.1 |
ALL - TRIB |
2(15), ITA |
Trusts provides medical help, education
and relief to poor. Small amounts given to devotees of particular deity
immaterial – Trust is charitable. |
|
3.2 |
288 ITR 79 |
Ch.Trust |
S.S.Nayak |
|
4.1 |
PUNE- TRIB |
45(4), ITA |
Distribution of assets to
ex-partners in satisfaction of their capital on date of retirement will not
be a capital gain. |
|
4.2 |
107 TTJ 228 |
Cap. Gain |
Gandamal & Sons. |
|
5.1 |
DEL-HC |
11(2), ITA |
Trust can specify all its objects
in notice for accommodation and need not be more specific. |
|
5.2 |
160 TM 216 |
Ch.Trust |
Bharat Kalyan Pratisthan. |
|
6.1 |
|
68, ITA |
Opinion of AO of 'a' explanation
being not satisfactory itself constitutes prima facie evidence against 'a'
and if he fails to rebut same, it can be used against him by holding that it
was a receipt of an income nature. |
|
6.2 |
18 CAPJ 954 |
Cash Credit |
Mohanakala. |
VOLUME NO. LLAT/ 260 OF
2007-08
DATE: 15TH
SEPTEMBER 2007
|
SR |
AUTHORITY |
SECTION/ RULES |
RATIO
(S) |
|
NO |
CITATIONS |
SUBJECT |
CASE (NAME OF ASSESSEE) |
|
1.1 |
|
54F, ITA |
'a' constructing a house on a plot
of land belonging to her husband - Title to the property not transferred in
favour of the 'a' she is entitled to exemption. |
|
1.2 |
82 ITR 570 |
Cap.Gain |
R.B. Jodhamal Kulthiala. |
|
2.1 |
MUM - TRIB |
7(3), DTAA |
Non - discrimination provision can
not be invoked because PE is taxed at higher rate than Indian co-operative
society carrying on same business activity. |
|
2.2 |
108 TTJ 554 |
PE |
Mashreobank PSC |
|
3.1 |
BANG - TRIB |
80 HHE, ITA |
Canadian tax is levied on gross
receipts which is not same as income which is taxed in |
|
3.2 |
108 TTJ 282 |
Deduction |
Infosys Technologies Ltd. |
|
4.1 |
MUM - TRIB |
5 (8), DTAA |
Payment of arm's - length
remuneration to dependent agent PE does not extinguish tax liability of
non-resident. |
|
4.2 |
108 TTJ 445 |
PE |
SET Satellite ( |
|
5.1 |
DEL-HC |
12, DTAA |
To constitute service PE, it is
not required that installation or assembly project should belong to the
foreign company. |
|
5.2 |
108 ITD 679 |
PE |
Steel Authority of India Ltd. |
|
6.1 |
HYD - TRIB |
195, ITA |
Default of TDS comes to an end if
deductee has paid tax. |
|
6.2 |
105 ITD 423 |
TDS |
A.P.Power Generation Corporation
Ltd. |
VOLUME NO. LLAT/ 259 OF
2007-08
DATE : 31ST AUGUST
2007
|
SR |
AUTHORITY |
SECTION/ RULES |
RATIO
(S) |
|
NO |
CITATIONS |
SUBJECT |
CASE (NAME OF ASSESSEE) |
|
1.1 |
BANG-TRIB |
115JA, ITA |
'a' requires to increase profit
only in respect of provision for meeting unascertained liabilities. |
|
1.2 |
105 ITD 1 |
MAT |
IBM India Ltd |
|
2.1 |
MUM-TRIB |
234B, 115JA, ITA |
When income is computed u/s 115JA,
interest u/s. 234B cannot be levied. |
|
2.2 |
64 ITD 232 |
Interest |
Voltas Ltd. |
|
3.1 |
MUM-ITAT |
80 - IB(10),
ITA |
In view of CBDT clarification
under F.No 205/3/2001/IT A - II dt. 4th May 2001, any project which has been
approved by a local authority as a housing project, should be considered
adequate and no disallowance could be made on account of shops included in
it. |
|
3.2 |
109 TTJ 335 |
Deduction |
Harshad P.Doshi |
|
4.1 |
DEL- HC |
271(1)(c), ITA |
It is not necessary that in every
case where the return is not accepted correct and assessment is framed at
income higher, penalty must be initiated. |
|
4.2 |
159 TM 9 |
Penalty |
P.H.I. Seeds India Ltd. |
|
5.1 |
DEL-HC |
260A, ITA |
Revenue cannot pick and choose
cases in which to file appeal w.r.t. some 'a' and not to file w.r.t.
identical orders for another 'a'. |
|
5.2 |
159 TM 22 |
Appeal |
Muthoot M. George |
|
6.1 |
DEL-HC |
90, ITA |
Main services rendered by non-resident
'a' to indian hotels being business profits were not liable to tax in |
|
6.2 |
106 TTJ 620 |
DTR |
Sheraton International Inc. |
VOLUME NO. LLAT/ 258 OF
2007-08
DATE : 15TH AUGUST
2007
|
SR |
AUTHORITY |
SECTION/ RULES |
RATIO
(S) |
|
NO |
CITATIONS |
SUBJECT |
CASE (NAME OF ASSESSEE) |
|
1.1 |
BANG-TRIB |
37(1), ITA |
The liability to pay warranty is
not a contingent liability but an accrued one and is rightfully allowable in
the year of sale. |
|
1.2 |
105 ITD 1 |
Busi.Exp |
IBM India Ltd. |
|
2.1 |
BANG-TRIB |
37(1), ITA |
When in a course of business, application
software is acquired which merely results in operational efficiency, though
of an enduring nature, it must be treated as revenue expenditure as no new
asset comes into existence. |
|
2.2 |
105 ITD 1 |
Busi.Exp |
IBM India Ltd. |
|
3.1 |
BANG-TRIB |
4, 2(24), ITA |
'Income' in its ordinary sense
would include all the monetary returns coming in and also voluntary and
gratuitous payments which are linked with office, vocation or occupation of
the 'a'. |
|
3.2 |
105 ITD 1 |
Income |
IBM India Ltd. |
|
4.1 |
BANG-TRIB |
4, 2(24), ITA |
When 'a' imparts training, skills
and work culture to its personnel, it can be rightly connected with the
office or occupation of the 'a'. If such personnel are transferred the
consideration received will be the income of 'a' and not cap.rec |
|
4.2 |
105 ITD 1 |
Income |
IBM India Ltd. |
|
5.1 |
BANG-TRIB |
4, 2(24), ITA |
When an 'a' merely shares a
database without actually transferring the rights in it, it can be classified
as revenue receipt chargeable to tax. |
|
5.2 |
105 ITD 1 |
Income |
IBM India Ltd. |
|
6.1 |
BANG-TRIB |
90, DTAA |
The assessing officer should allow 'a' credit
for taxes paid by it in |
|
6.2 |
105 ITD 1 |
DTR |
IBM India Ltd. |
VOLUME NO. LLAT/ 257 OF
2007-08
DATE : 31ST JULY
2007
|
SR |
AUTHORITY |
SECTION/ RULES |
RATIO
(S) |
|
NO |
CITATIONS |
SUBJECT |
CASE (NAME OF ASSESSEE) |
|
1.1 |
MAD-HC |
37(1), ITA |
'a' had to shift its factory due
to opposition by public against discharge of sewage water : Expenditure on
shifting of factory is revenue expenditure. |
|
1.2 |
207 CTR 436 |
Busi. Exp |
Loyal Super Fabrics. |
|
2.1 |
MUM-HC |
80IA, ITA |
Deductible amount to be computed
on the basis of Profit /total income arrived at after claiming depreciation. |
|
2.2 |
207 CTR 599 |
Depreciation |
Scoop Industries (P) Ltd., |
|
3.1 |
DEL-HC |
80HHC, ITA |
Exclusion of interest in clause
(baa) to explanation: Is indicative of 'net interest' i.e, gross interest
less the expenditure incurred in earning such interest. |
|
3.2 |
207 CTR 689 |
Export Profit |
Shri Ram Honda Power Equip. |
|
4.1 |
GUJ- TRIB |
14, ITA |
Rental Income from property held
as stock-in-trade is income from business and not income from house property. |
|
4.2 |
207 CTR 231 |
Heads |
Neha Builders (P) Ltd., |
|
5.1 |
MUM-TRIB |
80RR, ITA |
Amount received by 'a' from
foreign company for anchoring TV game show was derived by him as an 'artist'
and deduction is allowable. |
|
5.2 |
106 TTJ 925 |
Deduction |
Amitabh Bachchan. |
|
6.1 |
MUM-TRIB |
115JA, ITA |
Receipt of capital subsidy
credited to profit and loss account will not form part of book profit. |
|
6.2 |
4 SOT 376 |
MAT |
Pal Synthetics Ltd. |
VOLUME NO. LLAT/ 256 OF
2007-08
DATE : 15TH JULY
2007
|
SR |
AUTHORITY |
SECTION/ RULES |
RATIO
(S) |
|
NO |
CITATIONS |
SUBJECT |
CASE (NAME OF ASSESSEE) |
|
1.1 |
AAR-TRIB |
45, ITA |
No capital gains tax consequent
upon corporate restructuring due to specific treaty provision. |
|
1.2 |
289 ITR 464 |
Capital Gain |
Veneburg Group B.V |
|
2.1 |
AAR-TRIB |
47,ITA |
No capital gain arises on transfer
of shares of Indian company consequent upon amalgamation of owner German
company with its (latter's) 100% holding company at |
|
2.2 |
289 ITR 312 |
Capital Gain |
Hoechst GmbH |
|
3.1 |
MUM-TRIB |
176(3A), ITA |
Compensation for additional
project work received after PE ceased to exit pursuant to arbitration award
is taxable. |
|
3.2 |
105 ITD 97 |
Income |
Van Oord Dredging & Marine |
|
4.1 |
AAR-TRIB |
195, ITA |
Treaty India-Singapore - Fees paid
by Indian subscribers for access and use of portal located on server at
Singapore for booking cargo with airlines, getting updated information, etc.
amounts to royalty payment liable to tax in India. |
|
4.2 |
289 ITR 355 |
TDS |
Cargo Community Network Pte. Ltd. |
|
5.1 |
CHE-TRIB |
80IA, ITA |
Excise/Import duty refunded in the
name of duty drawback and amount received on account of foreign exchange
fluctuation are eligible for deduction under this section. |
|
5.2 |
11 SOT 43 |
Deduction |
P.S. Apparels |
|
6.1 |
DEL- HC |
5,ITA |
Interest on enhanced compensation
awarded under Land Acquisition Act has to be taken as accrued year after year
from date of delivery of possession of land till date of order, and not on
the date of court order granting enhanced compensation. |
|
6.2 |
11 SOT 198 |
Accrual |
Swaroop Singh (HUF) |
VOLUME NO. LLAT/ 255 OF
2007-08
DATE: 30TH JUNE
2007
|
SR |
AUTHORITY |
SECTION/ RULES |
RATIO
(S) |
|
NO |
CITATIONS |
SUBJECT
|
CASE (NAME OF ASSESSEE) |
|
1.1 |
|
11, ITA |
'a' trust's object of promoting
general public utility – profits of business carried on by trust used for
charitable objects - Held, trust cannot be said to be existing solely for
profits - entitled for exemption under this section. |
|
1.2 |
105 ITD 29 |
Ch. Trust |
Samaj Kalyan Parishad |
|
2.1 |
MUM-TRIB |
2(22)(e),ITA |
Payments made through mutual, open
and current account were payments in ordinary course of business, and would
not be covered under this section. |
|
2.2 |
11 SOT 302 |
Dividend |
NH Securities Ltd. |
|
3.1 |
BANG-TRIB |
194C, ITA |
Procurement of printed packing
material was not a case of payment for
works contract and TDS under this section did not apply to such payments. |
|
3.2 |
11 SOT 539 |
TDS |
Bangalore District Co-op. Milk
Producers. |
|
4.1 |
MUM-TRIB |
54F, ITA |
Exemption is available even though
'a' and his family members did not stay in new residential flat and flat was
used for coaching classes. |
|
4.2 |
11 SOT 646 |
Property |
S.K.Luthra |
|
5.1 |
ASR-TRIB |
24, ITA |
Deduction for interest paid on
loan taken for purchase of property cannot be denied on the ground that the
property was not " house " property. |
|
5.2 |
11 SOT 674 |
Property |
Dr.Amrit Lal Adlakha. |
|
6.1 |
MUM-TRIB |
14, ITA |
Rani Mukherji's mother was her
secretary - Income taxable as professional income. |
|
6.2 |
ITA no.45/ Mum./2004 |
Heads |
|
VOLUME NO. LLAT/ 254 OF 2007-08
DATE : 15TH JUNE 2007
|
SR |
AUTHORITY |
SECTION/ RULES |
RATIO
(S) |
|
NO |
CITATIONS |
SUBJECT |
CASE (NAME OF ASSESSEE) |
|
1.1 |
KAR - HC |
234B & 234C, ITA |
Interest not leviable where tax is
payable on the basis of book profits. |
|
1.2 |
284 ITR 434 |
Interest |
Kwality Biscuits |
|
2.1 |
ALL - SC |
254, ITA |
Claim of deduction not possible
otherwise than by way of Revised
Return. |
|
2.2 |
284 ITR 323 |
Revision |
Goetze ( |
|
3.1 |
ASM - SC |
43B, ITA |
Retrospective amendment must be
indicated specifically. |
|
3.2 |
283 ITR 484 |
Amendment |
Varas international (P) Ltd. |
|
4.1 |
AHM -TRIB |
43B, ITA |
Stamp duty and registration for
issue of bonus shares is a revenue expenditure. |
|
4.2 |
225 ITR 789 |
Rev. Exp |
BrookeBond India Ltd. |
|
5.1 |
MUM -TRIB |
17(2), ITA |
There is no merit in submission
that medical reimbursements do not amount to perquisite. |
|
5.2 |
W.P No. 114 |
Salaries |
All India State Bank Officers
Federation |
|
6.1 |
MAD -TRIB |
37(1), ITA |
Expenditure incurred on
upgradation of computers by changing
certain parts, is revenue expenditure. |
|
6.2 |
158 TM 1 |
Busi. Exp. |
Southern Roadways Ltd. |
VOLUME NO. LLAT/ 253 OF
2007-08
DATE : 31ST MAY
2007
|
SR |
AUTHORITY |
SECTION/ RULES |
RATIO
(S) |
|
NO |
CITATIONS |
SUBJECT |
CASE (NAME OF ASSESSEE) |
|
1.1 |
ASR-TRIB |
23(1)(a), ITA |
No annual value can be attributed
to inhabitable flat. |
|
1.2 |
99 TTJ 1147 |
Annual Value |
Shyam Sunder Behl. |
|
2.1 |
|
14A, ITA |
The main business of 'a' was to
earn profit in share dealing, financing and leasing and earning dividend is
incidental to the main business, then the expenses such as interest,
depository, etc. cannot be disallowed. |
|
2.2 |
10 SOT 284 |
Income |
Vidyut Investment Ltd. |
|
3.1 |
DEL-HC |
234 A/B/C, ITA |
The objections raised by the 'a'
has to be disposed by passing a separate speaking order but also there should
be reasonable time gap ( in this case 4 months) between the date when objections
are disposed and date when reassessment order is passed. |
|
3.2 |
287 ITR 337 |
Interest |
Smt.Kamlesh Sharma. |
|
4.1 |
AAR - |
192 - 194LA, ITA |
Expression ‘chargeable under the provisions
of the Act’, cannot include an income which under the specific provisions of
the applicable DTAA is not exigible to tax in |
|
4.2 |
90 ITD 793 |
International Tax |
MSEB Ltd. |
|
5.1 |
AII- HC |
132(4),ITA |
Statement is not last word, and if
person concerned retracts/ clarifies same subsequently on ascertainment of
correct state of affairs and explains same, it can be allowed. |
|
5.2 |
104 ITD 166 |
Search & Seizure |
Ms. Aishwarya K.Rai |
|
6.1 |
MUM-TRIB |
5(2)(b), ITA |
It cannot be said that since no
one can be expected to make profits out of transactions with himself,
intraorganisation transactions are to be ignored for purposes of computing
profits accruing or arising to an Indian PE of a Foreign Company. |
|
6.2 |
11 SOT 158 |
Income |
Dresdner Bank AG. |
VOLUME NO. LLAT/ 252 OF 2007-08
DATE : 15TH MAY 2007
|
SR |
AUTHORITY |
SECTION/ RULES |
RATIO
(S) |
|
NO |
CITATIONS |
SUBJECT |
CASE (NAME OF ASSESSEE) |
|
1.1 |
P&H-HC |
36(1)(iii), ITA |
Interest free advances to sister
concern attracts disallowance- whether there is direct nexus with borrowed or
not. |
|
1.2 |
30.12.06 BL |
Interest |
Rico Auto Industries Ltd. |
|
2.1 |
ALL-SC |
147,148, ITA |
When a notice for reassessment is
issued, the proper course of action
for the taxpayer is to file a return and, if he so desires seek reasons for
issue of the notice. |
|
2.2 |
287 ITR 337 |
Reassessment |
GKN Driveshafts India Ltd. |
|
3.1 |
ALL-SC |
90, 91 ITA |
It is open to the ITAT not to
follow a decision of the |
|
3.2 |
286 ITR 60 |
DTAA |
Green Emirate Shipping and
Travels. |
|
4.1 |
ALL-TRIB |
28, 37, ITA |
Though the 'a' was committing an
immoral act in illegally manufacturing and selling heroin, the deduction as a
business loss is independent of the act, which is otherwise illegal. |
|
4.2 |
287 ITR 547 |
Busi. Loss |
Dr.T.A.Quereshi. |
|
5.1 |
KAR-HC |
2(24), ITA |
Surplus on repurchase and
redemption of debentures is not income. |
|
5.2 |
285 ITR 310 |
Income |
Industrial Credit and Development
Syndicate Ltd. |
|
6.1 |
KOL-HC |
32, ITA |
No depreciation can be claimed in
respect of gratuity liability even if it is regarded as capital expenditure
in take over of a going concern. |
|
6.2 |
206 CTR SC 301 |
Depreciation |
Hooghly Mills Ltd. |
VOLUME NO. LLAT/ 251 OF
2007-08
DATE : 30TH APRIL
2007
|
SR |
AUTHORITY |
SECTION/ RULES |
RATIO
(S) |
|
NO |
CITATIONS |
SUBJECT
|
CASE (NAME OF ASSESSEE) |
|
1.1 |
DEL-HC |
245, ITA |
The authorities cannot withhold
the return of due amount to 'a' in perpetuity. |
|
1.2 |
ET- 29/01/07 |
IT Refund |
Economic Times - 29/01/2007 |
|
2.1 |
MAD-TRIB |
45, ITA |
Income from sale of shares never
treated as stock-in-trade held to be capital gains and not business income. |
|
2.2 |
158 TM 13 |
Income |
Investments (P) Ltd. |
|
3.1 |
MP-TRIB |
43B, ITA |
Conversion of funded interest into
loan would not amount to actual payment of interest. |
|
3.2 |
157 TM 501 |
Busi. Disallowance |
Eicher Motors Ltd. |
|
4.1 |
DEL- TRIB |
22, ITA |
When there was no commercial
exploitation of asset involved in realization of rental income it is ‘
property income’. |
|
4.2 |
9 SOT 358 |
Property |
Chintels India Ltd. |
|
5.1 |
MUM-TRIB |
199, ITA |
Even though final result is
ascertained only on completion of
Income is latent in the yearly working result – Credit allowed in Year
1 while income taxable in year 2. |
|
5.2 |
5 SOT 616 |
TDS |
Toyo Engg. India Ltd |
|
6.1 |
|
4, ITA |
A CHS under agreement with Govt to
place money in deposit and maintain itself out of that earned interest which
was held inextricably linked with acquisition of land and hence capital
receipt. |
|
6.2 |
157 TM 166 |
Cap. Recpt |
|
VOLUME NO. LLAT/ 250 OF
2007-08
DATE : 15TH APRIL
2007
|
SR |
AUTHORITY |
SECTION/ RULES |
RATIO
(S) |
|
NO |
CITATIONS |
SUBJECT |
CASE (NAME OF ASSESSEE) |
|
1.1 |
ASR-TRIB |
68, ITA |
POA to sell property recovered
from possession of 'a' – not sufficient basis for estimating income of 'a'. |
|
1.2 |
102 TTJ 297 |
Income |
Janak Raj Chauhan. |
|
2.1 |
MUM-TRIB |
54F, ITA |
Expenditure incurred by 'a' in
making the house habitable also qualifies for exemption. |
|
2.2 |
9 SOT 601 |
CG-Exemption |
Saleem Fazelbhoy |
|
3.1 |
CAL-HC |
23, ITA |
Vacancy allowance can be claimed
even if the property was let out only for a short period during the year and
it was under renovation for the rest of the year. |
|
3.2 |
83 ITR 470 |
Vacancy Allowance |
Mahmudabad Properties Ltd. |
|
4.1 |
BANG-TRIB |
2(47), 45(4), ITA |
Firm converted into a company
under part IX of the CA 56 - No
transfer, no gain. |
|
4.2 |
120 ITR 49 |
Cap Gain |
Malabar Fisheries Co. |
|
5.1 |
MUM-TRIB |
54, ITA |
While one of two joined flats was
made for residence; other made for business - Exemption allowed for both. |
|
5.2 |
7 SOT 527 |
CG – Exemption |
Sandhya Saxena |
|
6.1 |
CHE-TRIB |
32, ITA |
Asset not put to use by lessee -
Not relevant for allowing depreciation to lessor. |
|
6.2 |
102 ITD 135 |
Depreciation |
Annamalai Finance Ltd. |
VOLUME NO. LLAT/ 249 OF
2006-07
DATE : 31ST MARCH 2007
|
SR |
AUTHORITY |
SECTION/ RULES |
RATIO
(S) |
|
NO |
CITATIONS |
SUBJECT |
CASE (NAME OF ASSESSEE) |
|
1.1 |
MAD-HC |
4, ITA |
Security deposits received from
agents by bottling companies - not income. |
|
1.2 |
276 ITR 607 |
Income |
|
|
2.1 |
MP-HC |
2(47) , ITA |
Giving up right to specific
performance liable as Capital Gains. |
|
2.2 |
147 TM 642 |
Capital Gain |
Smt.Laxmidevi Natani. |
|
3.1 |
BANG-TRIB |
28, ITA |
Operational loss from closure of
'a' is business segment was allowable as business loss. |
|
3.2 |
5 SOT 805 |
Busi.Loss |
Wipro Ltd. |
|
4.1 |
DEL- TRIB |
37, ITA |
Provision for warranty expenses is
allowable. |
|
4.2 |
278 ITR 337 |
Busi.Exp |
Vinitec Corporation (P) Ltd. |
|
5.1 |
BANG-TRIB |
10A, ITA |
Royalty from licensing of software
products are eligible for exemption under this section. |
|
5.2 |
5 SOT 805 |
Exemption |
Wipro Ltd. |
|
6.1 |
ALL-HC |
148, ITA |
Reassessment invalid where notice under
this section is issued to three persons forming AOP but assessment made only
on AOP consisting of two persons. |
|
6.2 |
149 TM 247 |
Reassessment |
Ashok Kumar Bharti & Vijay
Kumar Goel. |
VOLUME NO. LLAT/ 248 OF
2006-07
DATE : 15TH MARCH
2007
|
SR |
AUTHORITY |
SECTION/ RULES |
RATIO
(S) |
|
NO |
CITATIONS |
SUBJECT |
CASE (NAME OF ASSESSEE) |
|
1.1 |
|
4, ITA |
Interest income earned by a mutual
society on deposit of surplus fund with a bank is covered by mutuality
principle and therefore no addition for the same could be made under this
section. |
|
1.2 |
101 ITD 391 |
Income |
Shivalika Co-operative Group
Housing Society Ltd. |
|
2.1 |
DEL-SC |
139(4),ITA |
Deduction cannot be claimed by
filing a letter to the assessing officer. |
|
2.2 |
284 ITR 323 |
Deduction |
Goetze ( |
|
3.1 |
DEL-SC |
132(4A), ITA |
Presumption/Money , books, etc that
seized belong to ‘a’ is only for retention and return thereof, not for
regular assessment. |
|
3.2 |
287 ITR 209 |
Search |
P.R.Metrani |
|
4.1 |
MUM- TRIB |
4, ITA |
Instead of trf fees 'a' society
collected refundable interest free deposits from incoming members - not income. |
|
4.2 |
8 SOT 668 |
Income |
Shree Parleshwar Co-op. Housing
Society Ltd. |
|
5.1 |
DEL-SC |
36(1)(iii) |
Borrowed funds diverted to sister
concern as interest free loan - interest on borrowed capital ordinarily
allowable. |
|
5.2 |
206 CTR 631 |
Business Exp |
S.A. Builders Ltd. |
|
6.1 |
DEL-SC |
37(1), ITA |
Illegal loss can be claimed as
deduction while computing income from such illegal business by following the
decision given even after inserting explanation. |
|
6.2 |
124 ITR 40 |
Busi.Loss |
Dr.T.A. Qureshi |
VOLUME NO. LLAT/ 247 OF
2006-07
DATE : 28TH
FEBRUARY 2007
|
SR |
AUTHORITY |
SECTION/ RULES |
RATIO
(S) |
|
NO |
CITATIONS |
SUBJECT |
CASE (NAME OF ASSESSEE) |
|
1.1 |
DEL-TRIB |
148, ITA |
Writ against notice is
maintainable even if alternative remedy exists. |
|
1.2 |
283 ITR 212 |
Writ |
Techspan |
|
2.1 |
COCH-TRIB |
2(22)(e), ITA |
Advance given to the 'a' in the
normal course of business-to be deemed as dividend. |
|
2.2 |
7 SOT 906 |
Deemed Div. |
Smt.Lakshmikutty Narayanan. |
|
3.1 |
MUM-TRIB |
22, ITA |
The 'a' to be deemed as owner of
property where the property was taken on lease for unlimited period. |
|
3.2 |
8 SOT 441 |
Prop. Inc |
Premavati Estates &
Investments (P) Ltd. |
|
4.1 |
MUM-TRIB |
37(1), ITA |
Provision for losses arising due
to fluctuation of foreign exchange rate not allowable. |
|
4.2 |
8 SOT 318 |
Busi. Exp |
Allied Photographics India Ltd. |
|
5.1 |
MUM-TRIB |
32, ITA |
'a' can claim remaining 50%
depreciation in succeeding year where it was eligible for 100%. |
|
5.2 |
8 SOT 334 |
Depreciation |
Shah Investments Financial
Developments Consultants Ltd. |
|
6.1 |
MUM-TRIB |
68, ITA |
'a' cannot be supposed to bring
the moneylenders which AO can and should. |
|
6.2 |
102 TTJ 110 |
Cash Credit |
Gayak Trading |
VOLUME NO. LLAT/ 246 OF
2006-07
DATE : 15TH
FEBRUARY 2007
|
SR |
AUTHORITY |
SECTION/ RULES |
RATIO
(S) |
|
NO |
CITATIONS |
SUBJECT |
CASE (NAME OF ASSESSEE) |
|
1.1 |
CHEN-TRIB |
2(24), ITA |
Collection of sales tax pending
writ petition - held to be trading receipt. |
|
1.2 |
7 SOT 309 |
Busi. Inc |
Sundaram Finance Ltd. |
|
2.1 |
DEL-ITAT |
80HHC, 80IB, ITA |
AO cannot determine business
profits by reducing deduction allowable. |
|
2.2 |
10 SOT 178 |
Deduction |
Eltek SGS (P) Ltd. |
|
3.1 |
DEL-TRIB |
54, ITA |
On sale of residential house,
purchase of four portions of property by four sale deeds - exemption allowed. |
|
3.2 |
284 ITR 20 |
Cap.Gain |
Smt.Sunita Aggarwal. |
|
4.1 |
RAJ-TRIB |
17(2), ITA |
Salary - Perquisite under this
section is constitutionally valid. |
|
4.2 |
266 ITR 70 |
Salary |
Aditya Cement Staff Club. |
|
5.1 |
DEL-TRIB |
37(1), ITA |
Deduction for debenture's premium
on proportionate basis was allowable. |
|
5.2 |
266 ITR 70 |
Busi.Exp |
Jagatjit Industries Ltd. |
|
6.1 |
RAJKOT-ITAT |
158BFA, ITA |
This interest being penal in
nature, levy is automatic. |
|
6.2 |
103 ITD 66 |
Interest |
Bachubhai S. Antrolia. |
VOLUME NO. LLAT/ 245 OF
2006-07
DATE : 31ST JANUARY
2007
|
SR |
AUTHORITY |
SECTION/ RULES |
RATIO
(S) |
|
NO |
CITATIONS |
SUBJECT |
CASE (NAME OF ASSESSEE) |
|
1.1 |
COCH-TRIB |
54F, ITA |
Exemption not available where
house was constructed before the date of transfer. |
|
1.2 |
2 SOT 375 |
Exemption |
K. A. Abdul Salam. |
|
2.1 |
MUM-TRIB |
9(1)(IV), ITA |
No TDS in case of payment to
non-resident where there is an import of software and payee has no PE in |
|
2.2 |
92(1)Tax Ref |
TDS |
Focus Estates (P) Ltd. |
|
3.1 |
CHEN-TRIB |
234B,234C, ITA |
Interest is chargeable even though
income of 'a' company is computed u/s 115JA. |
|
3.2 |
100 TTJ 594 |
Interest |
SMR Cotton Mills (P) Ltd. |
|
4.1 |
MUM-SC |
2(14), ITA |
No capital gain leviable on sale
of agricultural land. |
|
4.2 |
282 ITR 618 |
Capital Loss |
Minguel Chandra Pais. |
|
5.1 |
COCH-TRIB |
2(22)(e),ITA |
No cash flow from company to
shareholder - transaction in regular course of business, no deemed dividend. |
|
5.2 |
7 SOT 906 |
Deemed Dividend |
Smt.Lakshmikutty Narayanan. |
|
6.1 |
GUJ-HC |
32(2), ITA |
On dissolution double depreciation
is allowable. |
|
6.2 |
280 ITR 86 |
Depreciation |
Fluid Controls Mfg.Co., |
VOLUME NO. LLAT/ 244 OF 2006-07
DATE : 15TH JANUARY
2007
|
SR |
AUTHORITY |
SECTION/ RULES |
RATIO
(S) |
|
NO |
CITATIONS |
SUBJECT |
CASE (NAME OF ASSESSEE) |
|
1.1 |
BOM-HC |
263, ITA |
AOP and not the members to carry
forward the loss. |
|
1.2 |
234 ITR 239 |
Loss – C/F |
Smt.Lalita M.Bhat. |
|
2.1 |
DEL-TRIB |
68, ITA |
In the absence of adequate
material as to the nature and ownership of transaction, the alleged undisclosed
income could not be added in the hands of the 'a' merely by arithmetically
totaling the various figures. |
|
2.2 |
99 ITD 177 |
UDI |
Bansal Strips (P) Ltd. |
|
3.1 |
DEL-TRIB |
10(3), ITA |
Foreign company as a shareholder waived
its right to get back share capital contributed by it - not income. |
|
3.2 |
276 ITR 136 |
Casual Income |
Impsat (P) Ltd. |
|
4.1 |
MUM-TRIB |
80-O, ITA |
Income does not have to be under
head business to be eligible. |
|
4.2 |
5 SOT 570 |
Income |
Bermaco Industries Ltd. |
|
5.1 |
MUM-TRIB |
115JA, ITA |
No discretion is available to the
assessing officer to alter the "net profit" as shown in the profit
and loss account prepared. |
|
5.2 |
2 SOT 461 |
MAT |
Max Well Dyes & Chemicals (P)
Ltd. |
|
6.1 |
MUM - TRIB |
158BA, 132, ITA |
AO has power to assess only the
person searched and not automatically all persons found there. |
|
6.2 |
1 SOT 535 |
Search |
Latika V.Waman. |
VOLUME NO. LLAT/ 243 OF
2006-07
DATE : 31ST DECEMBER 2006
|
SR |
AUTHORITY |
SECTION/ RULES |
RATIO
(S) |
|
NO |
CITATIONS |
SUBJECT |
CASE (NAME OF ASSESSEE) |
|
1.1 |
LUCK-TRIB |
2(29b),2(14), ITA |
Property booked with builder - Possession
of property taken and sold thereafter immediately. Period of holding for long
term capital gains to be reckoned from the date of booking of property and
not the possession. |
|
1.2 |
7 SOT 431 |
Cap.Gains |
Sharad Thadani |
|
2.1 |
ALL-TRIB |
68, ITA |
Capital contributed by partners in
the firm in the first year of its operations , no addition can be made. |
|
2.2 |
7 SOT 457 |
Cash Credits |
Surendra Prasad Misra. |
|
3.1 |
DEL-TRIB |
37, ITA |
Business development ex pense /
commission paid to agent is allowable even though there is no written
agreement or the agent avoided to appear before the tax authorities for any
reason. |
|
3.2 |
ITA No. 3050 |
Busi.Exp |
Anupam synthetics Pvt.Ltd. |
|
4.1 |
AAR-TRIB |
195(1), ITA |
It contemplates not only amounts,
the whole of which are taxable as well as other disbursements which are of
the nature of business. Gross revenue receipts and are yet chargeable. |
|
4.2 |
204 CTR 519 |
TDS |
Headstart Business Solutions (P)
Ltd. |
|
5.1 |
DEL-TRIB |
4, ITA |
There is no immunity from income
tax to a Foreign State Enterprise. |
|
5.2 |
97 TTJ 434 |
Income |
Royal Jordanian Airlines. |
|
6.1 |
MP-TRIB |
45(4), ITA |
No capital gains was chargeable to
tax on dissolution of a firm consequent upon the death of one of the two
partners as there was no transfer as contemplated by section 2 (47). |
|
6.2 |
281 ITR 52 |
Dissolution |
Moped & Machwes. |
VOLUME NO. LLAT/ 242 OF
2006-07
DATE : 15TH DECEMBER 2006
|
SR |
AUTHORITY |
SECTION/ RULES |
RATIO
(S) |
|
NO |
CITATIONS |
SUBJECT |
CASE (NAME OF ASSESSEE) |
|
1.1 |
AHD-TRIB |
73, ITA |
The transactions of purchase and
sale of shares adopted by the 'a' broker under compulsion could not be termed
as speculative business. |
|
1.2 |
2 SOT 257 |
Income |
Parkar Securities Ltd. |
|
2.1 |
DEL-TRIB |
201(1), ITA |
If the receipient of income pays
tax on that income and files the return of the same, then the person
responsible for deducting tax at source cannot be treated as an
assessee-in-default. |
|
2.2 |
8 SOT 312 |
TDS |
Alfred Alan Advertising |
|
3.1 |
DEL- TRIB |
17(2), ITA |
This section does not apply to
contingent payment to which employee has no right till contingency occurs. |
|
3.2 |
8 SOT 72 |
Salaries |
Pramod Bhasin |
|
4.1 |
MUM-TRIB |
2(24), ITA |
Receipt of gift by the 'a' from
the donor before taking employment under him - could not be considered as
income . |
|
4.2 |
ITA No. 7204 |
Income |
Riyaz S.Padvekar. |
|
5.1 |
MUM-TRIB |
234C, ITA |
'a' earned income from speculation
in October, Advance tax instalment due in September not paid - the 'a'
is not liable to pay interest. |
|
5.2 |
ITA No.3048 |
Advance Tax |
|
|
6.1 |
MUM-TRIB |
2(22)(e), ITA |
The advance was made in the
ordinary course of its business activity by the company, the revenue
authorities were not justified in treating the loan as deemed dividend. |
|
6.2 |
99 ITD 1 |
Deemed Div. |
|
VOLUME NO. LLAT/ 241 OF 2006-07
DATE : 30TH NOVEMBER 2006
|
SR |
AUTHORITY |
SECTION/ RULES |
RATIO
(S) |
|
NO |
CITATIONS |
SUBJECT |
CASE (NAME OF ASSESSEE) |
|
1.1 |
MUM - TRIB |
2(22)(e), ITA |
The lender company could not be
said to have engaged in lending of money to sister concern on interest in
ordinary course of business merely because income from financing
activities was more than income from pharma business. |
|
1.2 |
98 ITD 339 |
Deemed Dividend |
Oscar Investments Ltd. |
|
2.1 |
MUM-TRIB |
4, ITA |
The gain arising from cancellation
of foreign exchange forward covers contracts was in connection with
acquisition of capital assets, and therefore, the same was to be treated as
capital receipt. |
|
2.2 |
5 SOT 217 |
FE Gain |
Mahindra & Mahindra Ltd. |
|
3.1 |
MUM-TRIB |
48, ITA |
The cost of acquisition of the
house property would be the total value of all the instalments paid by the
'a' for the purpose of indexation and not the value of the first instalment only
as adopted by assessing officer. |
|
3.2 |
5 SOT 89 |
Capital Gain |
Charanbir Singh Jolly. |
|
4.1 |
DEL-TRIB |
54F, ITA |
Non-Residential use of house
property does not render property ineligible for benefit. |
|
4.2 |
5 SOT 353 |
Exemption |
Mahavir Prasad Gupta |
|
5.1 |
BANG-TRIB |
80-I, ITAT |
Unexplained stock surrendered
during survey results in income eligible to deduction. |
|
5.2 |
9(II) ITCL 484 |
Deduction |
Deepa Agro Agencies |
|
6.1 |
HYD-TRIB |
4, ITA |
Interest income on deposits with corporate
members - mutuality applies. |
|
6.2 |
97 ITD 541 |
Mutual Concern |
M/s. Secunderabad Club. |
VOLUME NO. LLAT/ 240 OF
2006-07
DATE : 15TH NOVEMBER 2006
|
SR |
AUTHORITY |
SECTION/ RULES |
RATIO
(S) |
|
NO |
CITATIONS |
SUBJECT |
CASE (NAME OF ASSESSEE) |
|
1.1 |
ALL - HC |
4, ITA |
Income from property inherited by
Hindu son from father -- individual, not HUF income. |
|
1.2 |
7 (I) ITCL 288 |
Status |
Dr.H.N.Mehrotra |
|
2.1 |
ALL-HC |
45, ITA |
'A' sold land which was fixed
asset, some one else subdivided and sold in plots no adventure in the nature
of trade but capital gain. |
|
2.2 |
77 ITR 253 |
Cap. Gain |
Raja Bahadur Kamakhya Narain
Singh. |
|
3.1 |
AHM-TRIB |
36(2)(I), ITA |
On withdrawal of money for payment
of income-tax, disallowance of proportionate interest on overdraft could not
be made as the ‘a’ had deposited its entire income in the same bank account |
|
3.2 |
95 ITD 199 |
Income |
Nirma Industries Ltd. |
|
4.1 |
KOL-TRIB |
37 , ITA |
Exp incurred by ITC to restructure
loss making ITC-classic is to protect its goodwill and image - is allowable. |
|
4.2 |
95 TTJ 1017 |
Busi.Exp |
ITC LTD |
|
5.1 |
DEL-HC |
43(1), ITA |
Actual cost of building purchased
from HC will be same in the books of SC and will remain same even if ceases
to be SC. |
|
5.2 |
194 ITR 294 |
Actual Cost |
|
|
6.1 |
MUM-TRIB |
4, ITA |
Receipts from right to manage
profession held to be capital receipt. |
|
6.2 |
2 SOT 189 |
Income |
Amitabh Bachchan. |
VOLUME NO. LLAT/ 239 OF 2006-07
DATE : 31ST OCTOBER 2006
|
SR |
AUTHORITY |
SECTION/ RULES |
RATIO
(S) |
|
NO |
CITATIONS |
SUBJECT |
CASE (NAME OF ASSESSEE) |
|
1.1 |
MUM - ITA |
54(1) & 115D, ITA |
Benefit is available even if the
residential property purchased is abroad |
|
1.2 |
282 ITR 211 |
Foreign Assets |
Mrs.Leena J.Shah. |
|
2.1 |
BANG - ITAT |
9 (1) (vi), ITA |
Payment for import of software not
royalty - no TDS. |
|
2.2 |
6 SOT 700 |
Deduction |
Sonata Software Ltd. |
|
3.1 |
MUM - HC |
115 JA , ITA |
Profit on sale of shares credited
to capital reserve and not to profit and loss account - AO cannot increase
the book profit by profit so earned. |
|
3.2 |
262 ITR 330 |
Deemed Inc |
Kinetic Motor Co. Ltd. |
|
4.1 |
MUM -TRIB |
133A, ITA |
During survey, income was
surrendered on condition that no penalty would be levied - no other evidence
found to suggest concealment - AO not justified in levying penalty. |
|
4.2 |
69 TTJ 14 |
Decision |
Harnam Singh Bishan Singh
Jewellers Pvt.Ltd. |
|
5.1 |
AI I-HC |
271(1)(c), ITA |
Surrender of undisclosed income
during search in statement u/s 132(4) : Tax and interest paid after filing
return : Penalty not justified. |
|
5.2 |
151 TM 187 |
Penalty for concealment |
Nem Kumar Jain |
|
6.1 |
ALL - HC |
80HHC, ITA |
The 'a' who had purchased
machinery from |
|
6.2 |
222 ITR 606 |
Export Profit |
Ram Babu & Sons. |
VOLUME NO. LLAT/ 238 OF 2006-07
DATE : 15TH OCTOBER 2006
|
SR |
AUTHORITY |
SECTION/ RULES |
RATIO
(S) |
|
NO |
CITATIONS |
SUBJECT |
CASE (NAME OF ASSESSEE) |
|
1.1 |
DEL-HC |
11 & 12 ITA |
Membership fees and subscriptions
received by the ‘a’ trust from its members are income derived from property
held under trust, entitled to exemption. |
|
1.2 |
146 TM 653 |
Ch.Trust |
Divine Light |
|
2.1 |
DEL-HC |
11 & 68, ITA |
The 'a' has disclosed donations
received. The fact that the complete list of donors was not filed or that the
donors were not produced, does not necessarily lead to the inference that the
'a' was trying to introduce unaccounted money by way of donation receipts. |
|
2.2 |
9 (1) ITCL 7 |
UDI |
Keshav Social & Charitable
Foundation. |
|
3.1 |
GUJ-HC |
11, ITA |
Write off of irrecoverable loans =
application of trust's income. |
|
3.2 |
198 CTR 189 |
Ch.Trust |
Sacred |
|
4.1 |
MUM - ITAT |
80-O ITA |
Deduction will not be denied on
sole ground that foreign enterprise is trading with |
|
4.2 |
1 SOT 618 |
Dedu. FE |
Khimji Visram & Sons. |
|
5.1 |
|
194C, ITA |
Supply of corrugated boxes with printed
labels - where the predominant object underlying the contract was one for
sale of goods then such contract was clearly out of the purview in this
section. |
|
5.2 |
198 CTR 375 |
TDS |
Dabur India Ltd. |
|
6.1 |
|
234A to 234C, ITA |
Deletion of interest was justified
when there was no direction in the assessment order for such charging of
interest. |
|
6.2 |
276 ITR 164 |
Advance Tax |
Gold |
VOLUME NO. LLAT/ 237 OF 2006-07
DATE : 30TH SEPTEMBER 2006
|
SR |
AUTHORITY |
SECTION/ RULES |
RATIO
(S) |
|
NO |
CITATIONS |
SUBJECT |
CASE (NAME OF ASSESSEE) |
|
1.1 |
MAD-HC |
36(1)(vii), ITA |
Unilateral write-off of
debts without any evidence of irrecoverability may not be allowed. |
|
1.2 |
201 CTR 289 |
Bad Debt |
|
|
2.1 |
RAJ-HC |
37(1), ITA |
Advertisement expenditure incurred
in A.Y.1993-94 spread over and claimed by 'a' in two years: Tribunal
accepting spread over for three years: Tribunal bound to allow balance
1/3 in A.Y 1995-96. |
|
2.2 |
151 TM 233 |
Busi.Exp |
Bajaj Sevashram Limited |
|
3.1 |
DEL- TRIB |
158 BD & 132(4A), ITA |
a) Statement recorded by the department
cannot be used against any other person, unless opportunity of cross
examination is given to such other person. b) Presumption can be raised on
the basis of documents Found against searched person & not another
person. |
|
3.2 |
97 ITR 696 |
Search |
Ms.Lata Mangeshkar. |
|
4.1 |
CLB NEW |
408, CA |
Auditors report reflecting the
fact that affairs of company oppressive and prejudicial to interest of
shareholders and the public - immediate corrective action necessary -
Government Directors to be appointed. |
|
4.2 |
131 CC 6 |
Audit |
Sterling Holiday Resorts ( |
|
5.1 |
DEL- TRIB |
397/398 ITA |
Dispute regarding the term
'promoter' mentioned in the scheme sanctioned by BIFR - dispute cannot be
decided by the CLB in a petition - BIFR appropriate forum to decide the
issue. |
|
5.2 |
71 CLA 84 |
BIFR |
Pasupati Fabrics Ltd. |
|
6.1 |
J&K - HC |
4,145, ITA |
Difference in value of stock in
the statement given to bank: Stock position shown to bank without giving quantity
and weight: Addition on the basis of value difference not justified. |
|
6.2 |
201 CTR 178 |
Income |
Mr. Ashok Kumar |