HIGH COURT RULING (INCOME TAX)taxindiaonline.com/RC2/pdfdocs/headnotes_index/Index_January_20… · HIGH COURT RULING (INCOME TAX) 2013-TIOL-543-HC-DEL-IT CIT Vs Income Tax Settlement

HIGH COURT RULING (INCOME TAX)

2013-TIOL-543-HC-DEL-IT

CIT Vs Income Tax Settlement Commission (Dated: July 02, 2013)

Income Tax – Section 245C, 245D(1), 245F – Whether it is mandatory for the Settlement Commission to record its findings with regard to the issues of “full and true disclosure” of particulars of undisclosed income and “the manner” in which such income was derived by the assessee – Whether the Settlement Commission would not have the jurisdiction to pass any order u/s 245D(4) of the Act setting out the terms of settlement unless it records its satisfaction on these aspects – Whether the point of maintainability of an application u/s 245C(1) does not get foreclosed by virtue of the Settlement Commission passing an order u/s 245D(1) or Section 245D(2C) of the Act and such an issue could be examined by the Settlement Commission at the final hearing of the matter, that is, at the stage of passing an order u/s 245D(4) of the Act.

Also see analysis of the Order


CIT Vs DLF Commercial Developers Limited (Dated: July 11, 2013)

Income Tax – Sections 43(5), 73 - Securities Contract (Regulation) Act, 1956 - Section 2 - "speculative transaction", "derivatives","unless the context otherwise requires", "contextual application", "Parliamentary intendment" - Whether loss in trading of derivatives can be allowed u/s 73, when derivative transactions have been excluded by amendment from the definition of speculative loss in section 43(5) – Whether the scope of the definition of speculative transaction is restricted in its application only for working out the mandate of Sections 28 to 41 of the Act – Whether a definition enacted for only a restricted purpose or objective should not be applied to achieve other ends or purposes - Whether doing so would be contrary to the intention of the statute – Whether it is tempting to hold that section 73 is inapplicable, since the expression “derivatives” is defined only in Section 43(5) and it excludes such transactions from the odium of speculative transactions – Whether contextual application of a definition or term is stressed; wherever the context and setting of a provision indicates an intention that an expression defined in some other place in the enactment, cannot be applied - Whether the definition of speculative transactions, only underlines that such exclusion is limited for the purpose of sections 28 to 41 – Whether derivatives which are based on stocks and shares, fall squarely within the explanation to Section 73 (4) – Whether it is idle to contend that derivatives do not fall within that provision, when the underlying asset itself does not qualify for the benefit.

2013-TIOL-541-HC-MAD-IT

CIT Vs M/s Rayala Corporation Pvt Ltd (Dated: June 18, 2013)

Income Tax – Sections 10(2A), 41(1), 139, 140A - "waiver of interest", "one time settlement", "self assessment", "legal fiction", "non-est " - Whether section 41(1) can be applied to the waiver of interest by Bank pursuant to one time settlement of loan, although the returns were treated as non-est in the eye of law, and there was no consideration on the granting of deduction of such loan interest by the AO – Whether assessment made by an assessee as to his taxable income can be equated with an assessment to be made by a competent authority under the provisions of the Act –

Whether even in the absence of an assessment order passed on the question of allowance or deduction, the expression "where an allowance or deduction made for any year" in section 41(1) has to be considered as a claim made per se - Whether for invoking Section 41(1), the prerequisite condition is that an allowance or deduction with respect to an expenditure has been made in the previous AYs and subsequently the assessee has rece ived remission or obtained refund of the said amount – Whether Section 41(1) creates a legal fiction and has to be strictly complied with, if any addition to the income is sought to be made by the Revenue

2013-TIOL-540-HC-ALL-IT

CIT Vs M/s Raj Jewellers (Dated: July 9, 2013)

Income Tax – Sections 68, 113 - "VDIS", "unexplained investment" - Whether when the Tribunal has given the details of the vouchers after examining the same as well as the wealth tax statement of the partners the genuineness of the vouchers cannot be questioned – Whether when both the appellate authorities have observed that diamond jewellery studded with gold is the same jewellery which was received by the assessee from partners and family members and the said jewellery was declared by them under VDIS or in wealth tax return before the date of survey/search, the same cannot be treated as unexplained investment - Whether the surcharge u/s 113 of the Act is mandatory and is applicable with retrospective effect

2013-TIOL-539-HC-KAR-IT

CIT Vs M/s Garniwal Exports (P) Ltd (Dated: June 6, 2013)

Income Tax - Section 80HHC - Whether the assessee is entitled to the benefit of Section 80HHC when the quota allotted to the assessee for effecting export is transferred to others who paid a price or a premium for the quota.

2013-TIOL-538-HC-GUW-IT

CIT Vs M/s Meghalaya Steels Ltd (Dated: May 29, 2013)

Income Tax – Sections 80IB, 80IC - Whether transport subsidy, power subsidy, insurance subsidy and interest subsidy, received by the assessee, are allowable for computation of deduction u/s 80IB of the Act - Whether the amount of these subsidies would go on to reduce the expenses incurred under that particular head and the resultant profits and gains of the business of Industrial Undertaking would be eligible for deduction u/s 80IB of the Act - Whether the subsidies are inter-linked, inter-laced and having a direct nexus with the manufacturing activities of the assessee, which are inseparable from the expenditure incurred by the assessee on account of transportation, purchase as well as sales of the business of the assessee are allowable for deduction u/s 80IB.



CIT Vs M/s Manjunatha Cotton And Ginning Factory (Dated: December 13, 2012)

Income Tax – Sections 271(1)(c), 274 – Whether penalty u/s 271(1)(c) is a civil liability – Whether mens rea is not an essential element for imposing penalty for breach of civil obligations or liabilities – Whether existence of conditions stipulated in Section 271(1)(c) is a sine qua non for initiation of penalty proceedings u/s 271 and such condition should be discernible from the Assessment Order – Whether the imposition of penalty is automatic even if the tax liability is admitted – Whether if the assessee has not challenged the order of assessment levying tax and interest and has paid tax and interest, that by itself would be sufficient for the authorities either to initiate penalty proceedings or impose penalty – Whether notice u/s 274 of the Act should specifically state the grounds mentioned in Section 271(1)(c), i.e., whether it is for concealment of income or for furnishing of incorrect particulars of income.


M/s Sri Balaji Educational And Charitable Public Trust Vs CIT(Dated: June 3, 2013)

Income Tax - Sections 12A, 80G, 132A - "principle of natural justice" - Whether there is no violation of principle of natural justice, when the materials seized during search conducted u/s 132 were not shared with the assessee, although such seized materials was the basis for rejecting assessee's application for status u/s 80G - Whether in view of such facts, the matter needs to be remanded for denovo consideration.


CIT Vs Shri M Thiruvengadam (Dated: June 3, 2013)

Income Tax - Sections 133A, 271(1)(C), 276C - "wilful concealment" - Whether penalty provisions are not attracted, when amounts claimed towards service charges was utilised in assessee's business and diverted for investment in various properties, but consciously claimed as expenditure as payment towards such service charges - Whether this amounts to an attempt to fabricate evidence to make an illegal gain - Whether for civil liability proceedings u/s 276C of the Income Tax Act, the wilful concealment is an essential ingredient.

2013-TIOL-532-HC-UKHAND-IT

Rajesh Kumar Agarwal Vs ITO (Dated : June 25, 2013)

Income tax - Sections 2(47), 143(2), 147, 148, 150 - Transfer of Property Act - Sec 53A - AOP, capital gain, capital asset, agricultural land, industrial land - Whether when the assessee transfers its agricultural land to an AOP, such transfer is valid only if there is an agreement between the assessee and the AOP.


2013-TIOL-531-HC-GUW-IT

CIT Vs Smt Gita Rani Ghosh (Dated : June 28, 2013)

Income tax - Sections 142(1), 143(2), 144 - Whether when the notices issued under Ss 142(1) and 143(2) contained wrong PAN number and wrong address and also wrong assessment year, such notices can be construed as being served even if the

assessee received one of such notices - Whether the onus to prove the poing of serving the notice is on the Revenue first.


CIT Vs R Mallika (Dated : June 17, 2013)

Income Tax - Sections 68, 132, 158BC- "undisclosed investment", "unexplained investments" - Whether the purchase of immovable property can be considered as undisclosed investment, when the asssessee has failed to discharge the burden of proving the source of investment in such property - Whether the AO is correct in making additions u/s 68, when there is absolutely no material to establish that the assessee had borrowed money from her son-in-law for the purpose of investing it in such property, which was later on returned to the son-in-law.


N Ranjit Vs CIT (Dated : June 18, 2013)

Income Tax - Sections 143, 147, 148, 271(1)(c) - Whether penalty proceedings are warranted, when the revised return disclosing the capital gains arising out of transaction in shares was filed, only when the assessee was confronted with adverse evidence, during the process of investigation and enquiry - Whether further, the fact that the assessee had filed revised returns and the same was accepted by himself, can efface the fact of non-disclosure of the income arising under the head of "capital gains" in the original return - Whether such conduct of assessee can be viewed as contumacious and mala -fide - Whether the application of penal provisions are not automatic and the levy itself depends upon the facts and circumstances of each case.



The Institue Of Chartered Accountants Of India Vs DGIT (Dated : July 4, 2013)

Income Tax - Writ petition - Sections 2(15), 10(23C)(iv), 13 - Whether the exemption u/s 10(23C)(iv) can be denied on account of the assessee-institute holding coaching classes or carrying on certain incidental activities for a fee - Whether funds paid by the assessee to ICAI Accounting Research Foundation is to be construed as in violation of Section 13, which would disentitle the assessee from claiming exemption under the Act.


CIT Vs M/s AAR BEE Industries (Dated : July 2, 2013)

Income Tax – Sections 80-IB, 120, 127, 260-A, ITAT Rules – Rule 4 – "transfer of cases" - Whether jurisdiction of the High Court is determined by the situs of the Assessing Officer – Whether when the Assessing Officer itself has been changed from one place to another, the High Court exercising jurisdiction in respect of the territory covered by the transferee Assessing Officer would be the one which would have

jurisdiction to hear the appeal u/s 260-A - Whether it would be appropriate for an appeal to be filed before the Delhi High Court against the decision of Amritsar Bench of Tribunal, when the case was transferred from ITO, Jammu to ITO, Delhi – Whether it is the date on which the appeal is filed, which would be the material point of time for considering as to in which court the appeal is to be filed.

2013-TIOL-524-HC-MUM-IT

CIT Vs M/s Mansukh Deying & Printing Mills (Dated : June 24, 2013)

Income Tax - Section 271(1)(c) - Whether penalty u/s 271 (1)(c) can be imposed when there has been no concealment of particulars of income or furnishing of inaccurate particulars of income on the part of the assessee in filing its return of income.

2013-TIOL-522-HC-MP-IT

CIT Vs Fujistu Optel Ltd (Dated : June 28, 2013)

Income Tax - Sections 115JB, 147, 148 - Whether a reassessment is warranted on the same existing set of facts, when a return was already scrutinized and the initial assessment order was passed on thorough examination of those facts - Whether it a case of change of opinion , if the assessing officer is of the view that income has escaped assessment although there are no new materials on record.


Rajesh Rajora Vs UoI (Dated : June 27, 2013)

Income Tax – IAS vs IRS - the issuance of warrant of authorization and consequent search and seizure proceedings quashed – No arbitrary authority for revenue officers: Petitioner is an IAS officer. His house was searched by Income Tax Authorities on a warrant given by Director, Investigation. Petitioner challenges search and seizure as mala fide and resulting out of prejudice.

High Court observed that the Supreme Court had in the Seth Brothers case held that section 132 of the Act does not confer any arbitrary authority upon the revenue officers. The Commissioner or the Director of Inspection must have, in consequence of information, reason to believe that the statutory conditions for the exercise of the power to order search exist. He must record reasons for the belief. Since by the exercise of the power a serious invasion is made upon the rights, privacy and freedom of the taxpayer, the power must have been exercised strictly in accordance with the law or only for the purposes for which the law authorizes it to be exercised. If the action of the officer issuing the authorization or of the designated officer is challenged, the officer concerned must satisfy the court about the regularity of his action. If the action is maliciously taken or power under the section is exercised for a collateral purpose, it is liable to be struck down by the Court. If the conditions for exercise of the power are not satisfied the proceeding is liable to be quashed.

High Court found find that the entire action which was initiated and taken was based without sufficient ground or material and it appears that because of dispute in respect of allotment of house, the respondents issued the warrant and search was conducted.

The action of the respondents cannot be sustained under the law and accordingly this petition is allowed and the issuance of warrant of authorization and consequent search and seizure proceedings are hereby quashed.


CIT Vs M/s Children's Education Society (Dated : March 18, 2013)

Income Tax - Sections 10(22), 10(23C), 32, Rule 2BC - "educational institutions", "registered society", "artificial juridical person", "association of persons", "Aggregate annual receipts", "Other educational institution", "any person".

Whether once an educational society has been incorporated under the Societies Registration Act, it assumes the character of a juridical person - Whether when the status of such society is described as an association of juridical person in the return of income, the question of treating the assessee as an association of persons does not arise - Whether the real test for application of exemption benefits u/s 10 is the assessee, who claiming these exemptions is running educational institutions solely for education purposes and not for purpose of profit - Whether the word “aggregate annual receipts” of other educational institution is to be understood as clubbing of annual receipts of all educational institutions run by an assessee society - Whether such interpretation shall render the intention of the Legislature to separately treat the educational institutions wholly or substantially financed by the Government for the purpose of granting exemption as otiose - Whether if the intention of the Legislature was to club the annual rece ipts of all educational institutions run by the assessee society, the same should have been said so in clear terms - Whether the term "Other educational institution" appearing in subclause (iii)(ad) of section 10(23C) is to be understood with the context of the first word i.e., the University - Whether if the word “aggregate” has to be understood as suggested by the Revenue as the annual receipts of such educational institutions put together, the objective of providing exemption to genuine institutions, who are rendering education would be lost - Whether the word “aggregate annual receipt” has to be understood with the context in which it is used and the purpose for which section 10(23C) was inserted, keeping in mind, the Scheme of the Act - Whether the Legislature has created three different categories of educational institutions in section 10(23C) for the purpose of availing exemption - Whether expenditure incurred in providing hostel building subsidy to the tune of Rs 2.2 cores for constructing a comprehensive hostel facility, which is otherwise, required for running several education institutions by the assessee is a large scale expenditure - Whether incurring such expenditure is not in line with the objective of the assessee society and cannot be allowed any deduction - Whether notional interest paid on such subsidy cannot be allowed as deduction - Whether if the advances received by the parents of the students is properly accounted for under the heading of Building Fund/infrastructure fund and the said amount is utilized for construction of the building, it would constitute as charity - Whether in such a case, the society would be entitled to the benefit of exemption - Whether the matter needs to be remanded, when proper verification of the ledger books and other accounts showing the receipt of such payment and utilization of the said amount for construction of hostel building, is not yet done - Whether deduction u/s 32 can be claimed on the written down value of the building constructed by the assessee on the leased property, after it was surrendered to the lessor on the expiry of such lease period.



M/s FL Smidth Minerals Pvt Ltd Vs DCIT (Dated : June 3, 2013)

Income Tax - Section 37 - "provision for warranty", "liquidated damages", "non performance warranty", "scientific basis" - Whether deduction can be allowed towards provision of warranty for non-performance, when reliable estimate has been made based on the past experience of performance capacity, quality and materials provided by the warrantor - Whether provision made towards the non performance guarantee is more in the nature of warranty, when the company assured quality and performance and on any shortfall agreed for damages making provision based on the performance capacity of the machineries supplied - Whether provision for warranty can cover liquidated damages payable in the event of delay in execution and non performance - Whether the description of the claim would govern the claim on the provision for warranty, when the terms of the agreement specifically provided that the liquidated damages was for non performance - Whether provision towards rectification expenses can be allowed, when equipments supplied by the company required repair and replacement, and the technical team has already provided the estimated expenses for making provision in the account.


M/s Cholamandalam Ms General Insurance Co Vs ACIT/DCIT (Dated : June 17, 2013)

Income Tax - Sections 9, 195, 254 - "remand" - Whether the Tribunal has failed to exercise its jurisdiction, by remanding the matter back to the AO, when all the materials necessary for deciding the issue was present before the Tribunal and already considered by the AO before completing the assessment - Whether remand may be warranted, only when documents were not there before the AO, yet, the Officer did not bestow his attention and arrived at a wrong conclusion - Whether remand is warranted, when in the course of pendency of the appeals, amendments are effected retrospectively in section 9 in view of the Vodafone judgment, touching on the very same issue in the context of the amendment provision - Whether the Tribunal is competent to address the legal provision arising out of such retrospective amendment, which would govern the issue, instead of remanding the matter on this ground - Whether there is an apparent error on the face of record of Tribunal's order, when the matter was remanded to AO for producing fresh materials, although both assessee and the Revenue have agreed that there are no fresh materials to be produced - Whether such a case wa rrants rectification and not review - Whether the Tribunal as a fact finding authority, should act with greater circumspection to order a remand, particularly when the Revenue itself does not dispute that the materials were all those that were considered by the AO - Whether remand is not a power to be exercised in a routine manner and should be used sparingly as an exception only when the facts warranted such course of action.


CIT Vs M/s Infosys Technologies Ltd (Dated : April 22, 2013)

Income Tax - Sections 10A, 37(1), 80G, 80HHE - Depositories Act, 1996, SEBI (Depositories and Participants) Regulations, 1996 - "corporate social responsibility", "depository", "dematerialization of shares" - Whether payment of one time custodian charges to NSDL pursuant to statutory obligation upon the assessee to enter into an agreement with the depository for dematerialization of securities can be allowed as revenue expenditure - Whether, if, the assessee has taken over the liability of the shareholders as a goodwill measure and has paid the said amount as one time custody charges, the said expenditure is not allowable u/s 37(1) of the Act - Whether such expenditure is effective in reducing the administrative expenses of the assessee on the account of handling physical share certificates - Whether such expenses incurred squarely falls within the phrase “laid out or expended wholly and exclusively for the purpose of business” - Whether the aim and object of the expenditure would determine the character of the expenditure whether it is a capital expenditure or a

revenue expenditure - Whether if the a dvantage consists merely facilitating the assessee's business to be carried on more efficiently or more profitably while leaving the fixed capital untouched, the expenditure would be on revenue account, even though the advantage may endure for an indefinite future - Whether the test of enduring benefit is not a certain or conclusive test, and cannot be applied blindly and mechanically without regard to the particular facts and circumstances of a given case - Whether the fact that somebody other than the assessee is also benefited by the expenditure can come in the way of an expenditure being allowed by way of deduction u/s 37(1), if it satisfies otherwise the tests laid down by law - Whether expenditure incurred on installing traffic signals in order to discharge the corporate social responsibility which also facilitates the assessee's business, by ensuring the employees manage to reach office safely and early, can be allowed as business expenditure - Whether there is any stipulation in Section 80G to the extent that donation is to be paid only out of taxable income of the year - Whether there would be a case of double deduction in respect of the same item, if a benefit under both the sections 10A and 80G has been claimed - Whether the claim of deduction u/s 80G on the total income is forfeited, if donation is paid out of unit, whose income is exempted u/s 10A - Whether a company should scrutinize the historical trend of warranty provisions made and the actual expenses incurred against it at the year end before creating a provision - Whether such estimates needs reassessment every year - Whether provision created for post-sales customers support can be allowed, when the assessee has neither maintained separate account nor able to state what is the total amount spent towards the post sale expenses.


2013-TIOL-504-HC-AHM-IT

Vodafone West Ltd Vs ACIT (Dated : March 5, 2013)

Income Tax - Writ - Sections 40(a)(ia), 133A, 147, 148, 194H - "twin conditions", "roaming charges", "prepaid SIM cards" - Whether reopening of assessment is warranted after the expiry of four years, although the assessee has, in pursuant to queries raised by the AO, disclosed all details of the dealers, who have received payments in excess of Rs 50 lakhs - Whether further assessment can be reopened on the alternate ground that the assessee has not provided details of payments below Rs 50 lakhs, when there is no distinction with respect to TDS liability due to the size of payments - Whether assessment can be reopened beyond the expiry of four years, although the AO has failed to raise the issue of non-deduction of TDS, at the time, when all details of payments and dealers were provided by the assessee - Whether it is the responsibility of the assessee to raise the contention that such tax at source is not required to be deducted and justify the same by pointing out legal provisions and judgements, if any - Whether the fact that tax at source was not deducted on such payments made by the assessee was part of the returns filed, does not mean that there was no failure on part of the assessee to disclose true and full material facts - Whether prior to conferring jurisdiction on the AO, for issuing notice for reopening assessment beyond a period of four years, twin conditions of section 147 must be simultaneously satisfied - Whether once primary facts are before the AO, he requires no further assistance by way of disclosure from the assessee - Whether the assessee is duty bound to tell the assessing authority what inferences, whether of facts or law, should be drawn.



CIT Vs Ramkishore Nandkishore (Dated : February 12, 2013)

Income Tax - Sections 139, 256, 260A - Whether appeal filed on 10.1.2005 is covered by the CBDT instruction dated 27.3.2000, wherein it has been instructed not to file any appeal or reference in a matter, where the amount to be recovered is below Rs. 2 lakhs - Whether the instructions of the CBDT are binding to all the authorities working under the Board.


CIT Vs M/s Novell Software Development India Pvt Ltd (Dated : June 10, 2013)

Income Tax - Sections 80HHC - Whether gains from fluctuation in foreign exchange rates received in Indian currency as the total amount for the export of the goods, should be taken together with the value of the goods for claiming deduction u/s 80HHC - Whether the fluctuation in exchange rates is an aspect beyond the control of the assessee or the revenue, but affects the actual value of the exported goods either way - Whether benefit of deduction u/s 80HHC should be first given and only thereafter, adjustments to be made of the carried forward unabsorbed depreciation and losses of the earlier years.


Neesa Leisure Ltd Vs DCIT (Dated : May 9, 2013)

Income Tax - Sections 141, 142(2A), 153A, 250, 271 [1](b), 288, Rule 23 - "special audit", "personal hearing", "reasoned order" - Whether opportunity of hearing always includes the right of personal hearing - Whether the right of personal hearing must depend on the statutory provisions from which such right flows; the nature of the proceedings and the consequences likely to follow from such proceedings - Whether only when complex and technical questions of law and facts are involved, right of personal hearing would be necessary - Whether the proviso to Section 142 (2A) of the Act does not envisage any personal hearing, before an order under sub-section (2A) can be passed - Whether complexity of accounts and complexity of the question whether accounts are complex or not are two totally different things - Whether it can be contended that since the AO believed that the accounts were complex, it must mean the issues were complex and the personal hearing was required - Whether the order passed by the Commissioner is not a reasoned order, although the detailed representation of the assessee was duly considered, before giving the final approval for the special audit - Whether special audit can be ordered by the Commissioner u/s 142 (2A), when the AO has sufficient material at his command to form an opinion that the accounts are complex and that it was in the interest of the Revenue to get them audited by the special auditor.


CIT Vs M/s Mahanagar Gas Ltd (Dated : June 10, 2013)

Income Tax - Section 36(1)(iii) - Whether disallowance of expenditure as interest u/s 36(1) (iii) is justified on the ground that the entire amount invested in mutual funds came out of a common fund maintained by the assessee when sufficient interest free funds were available with the assessee - Whether the Tribunal is justified in confirming the order of CIT(A) in deleting the disallowance on account of prior period expenses when the liability in respect of work/services rendered in earlier year was crystallized only on receipt of the bill in the current A.Y.


CIT Vs ITSC (Dated : June 13, 2013)

Income Tax - Sections 132, 245C, 245D - "settlement commission" "recording satisfaction"- Whether an applicant who comes before the Commission for settlement has to make a clean disclosure of the income, which has not been disclosed before the AO; the manner in which it was derived and the additional amount of income tax payable on the income - Whether before conferring upon an applicant a locus to apply for a settlement of a case, Parliament has mandated a full and true disclosure - Whether an applicant cannot make a partial disclosure of his undisclosed income by taking a chance that the rest will escape scrutiny or, if it does not escape scrutiny of then making another disclosure - Whether unless the applicant fulfills the jurisdictional requirements of section 245C, the application would not be maintainable - Whether permitting an application to proceed without the satisfaction being recorded by the Commission, is a fundamental aspect which goes to the root of its jurisdiction to entertain an application u/s 245C - Whether the Commission can move over to the stage of Section 245D(4) without entering upon the fundamental issue as to whether the application was or was not invalid - Whether the exercise of ascertaining the full and true disclosure by the assessee has to be carried out by the Commission at the initial stage of proceeding the application on the basis of the report submitted by the Commissioner and after hearing the applicant - Whether the Commission can abdicated its discharge of this fundamental obligation at the initial stage, by deferring its consideration at a later stage - Whether the Commission has to proceed with the settlement application, unless it is established by a competent authority that the transaction was bogus, though the department may have in its possession certain evidence indicating the fact that the income has not been truly and fully disclosed - Whether the Commission is allowed to decline to determine as to whether the application fulfilled the requirements or prerequisites of a valid application u/s 245C(1) of the Act - Whether the existence of the Commission's power at a subsequent stage to reject the settlement application cannot obviate the discharge of a statutory duty to determine whether the jurisdictional requirements are fulfilled.


Guru Gobind Singh Educational Society Vs CIT (Dated : February 5, 2013)

Income Tax - Section 80G - Whether in the interest of justice, another opportunity can be given to the assessee for furnishing details, which it had failed to produce earlier even after seeking five separate adjournments, when such lapse was entirely on the part of the employees


B Gajendra Kumar Vs ITO (Dated : June 3, 2013)

Income Tax - Sections 119(2)(a), 234A, 234B, 234C - Whether when request for waiver of interest has not received due consideration by the Chief Commissioner while passing order u/s 119(2)(a), the same can be again remanded to him for re-consideration.


New Delhi Hotels Ltd Vs ACIT (Dated : May 17, 2013)

Income Tax – Section 260A - Whether rental income derived from the unsold flats which are shown as stock-in-trade in the books of assessee would fall within the head “Profits and gains from business and profession”.


CIT Vs M/s Dolphin Builders Pvt Ltd (Dated : April 30, 2013)

Income Tax - Sections 44AD, 132 - Whether the AO is justified in making addition in the income when there is no evidence that the excess amount, if any, is collected was passed on to the respondent - Whether the benefit to the Assessee on the finding that the provisions of Section 44AD are not applicable is justified when to the assessee had maintained accounts books, vouchers and other documents as required u/s 2 Sub Section 44 AA and got them audited and furnished it alongwith audit report.


M/s Bharat Oman Refineries Ltd Vs CIT (Dated : April 29, 2013)

Income Tax - Section 56 - Whether the interest earned on FDRs made out of zero coupon convertible bonds can be taxed as income from other sources.


M/s A Murali & Co Pvt Ltd Vs ACIT (Dated : June 4, 2013)

Income Tax - Section - 37 - Whether interest paid on borrowed funds can be allowed, when the assessee has not shown any nexus of such borrowings and loans advanced to Directors out of such funds, utilised in the business and continued to be used in the business - Whether it is incumbent upon the assessee to produce substantial materials before the Court or any other authority to show that the borrowed funds are not diverted for any purpose other than business - Whether amount borrowed should not only be invested in the business, but should also continue to remain in the business for claiming the interest paid on such borrowing as a business expenditure.



DHFL Venture Capital Fund Vs ITO (Dated : June 14, 2013)

Income Tax - Sections 147, 148 - AOP, Venture Capital Fund, SEBI - Whether the statute contemplates the reopening of an assessment u/s 148 on a hypothesis or a contingency which may emerge in the future.


M/s Textile Dye-Chem Corporation Vs ACIT (Dated : June 4, 2013)

Income Tax - Sections 143, 147, 234B (1)&(3) - Whether interest under section 234B can be attracted, if the assessment was completed as per the provisions of Section 147 read with Section 143 of the Income Tax Act - Whether such completed assessment cannot be considered as a regular assessment, but only a re -assessment.


CIT Vs M/s Iqbalpur Cooperative Cane Development Union Ltd (Dated : May 31, 2013)

Income Tax - Sections 44 AB, 139, 271B - U.P. Cooperative Societies Act, 1965 - Section 64 - "specified date" - Whether penalty proceedings are warranted, when completion of audit under any other statute, was delayed beyond the "specified period" mentioned in section 44AB of the Income Tax Act, due to non-appointment of the auditors by the authorities.


M/s Penta Media Graphica Ltd Vs ACIT (Dated : June 5, 2013)

Income tax – Section 10B – EOU - Whether the benefit available u/s 10B is an exemption or a deduction – Whether the benefit u/s 10B can be allowed only in case an assessee is indulged in activities as pre-determined under the statute – Whether u/s 10B, which is a clear exemption provision, unless the assessee is in a position to show any ambiguity in the provisions of the Act, there can be any liberal interpretation given to the provisions of the Act, for the purpose of granting relief to the assessee - Whether an assessee is entitled for exemption u/s 10B with respect to receipts from training activity, when no foreign inward remittance has taken place.



CIT Vs Shri Sanjay Kumar Bansal (Dated : May 31, 2013)

Income Tax - Sections 80-IA, 288 - Whether emphasis in sub-section (7) of section 80-1A of the Act is to have the claim audited by an accountant, and not furnishing the report of such audit alongwith the return of income - Whether deduction u/s 80-IA cannot be denied, merely because the audited report was not filed alongwith the return of income.


M/s Mindtree Ltd Vs UoI (Dated : June 12, 2013)

Income Tax - Sections 10AA, 80-IAB, 115JB, 115-O - Special Economic Zone Act, 2005 - Sections 26, 27, Schedule II - Constitution of India - Article 14, 226 - "Government of India (Allocation of Business) Rules", "Doctrine of Promissory Estoppel", "Doctrine of Legitimate Expectation" "Sunset Clause", "Legislative

Competence".

Whether the Courts should not invalidate the law made by the legislature, unless the legislature lacks the competency to do and the law enacted is violative of any of the constitutional provisions - Whether under the pretext of judicial review the Courts can encroach onto the domain of the executive or legislature in economic and social spheres - Whether Government of India (Allocation of Business) Rules are applicable to the proceedings and the business of Parliament - Whether the action of Finance Minister to move a bill seeking amendment of the SEZ Act, which comes under the domain of Ministry of Commerce, lacks legislative competence - Whether it is a settled principle that there can be no permanent tax exemption or incentive in fiscal legislation - Whether a roadmap to end the tax exemption is not a condition precedent for the Parliament to introduce sunset clause - Whether the Parl iament has the sovereign legislative power to withdraw the tax exemption by way of legislative amendment - Whether amendment introduced to end the discrimination between companies in domestic tariff area paying MAT and DTT, as opposed to units in SEZ enjoying extensive tax exemptions, though earning huge profits, amounts to violation of Article 14 of the Constitution - Whether when exemptions provided to SEZ companies results in erosion of tax base, the same can be revoked on the ground of public interest - Whether all decisions in the economic and social spheres are essentially adhoc and experimental and requires special treatment for special situations - Whether the State must be left with wide latitude in devising ways and means of fiscal or regulatory measures without any interference from the Courts, unless there is any breach of Constitutional provisions - Whether legislature can be precluded from exercising its legislative power by resort to the Doctrine of Promissory Estoppel - Whether the Doctrine of Promissory Estoppel is an equitable doctrine, and must yield when equity so requires - Whether Doctrine of Promissory estoppel and Legitimate expectation are the offsprings of equity and flexible in nature - Whether there is a difference between the doctrine of promissory estoppel and Doctrine of Legitimate Expectancy - Whether the former is based on a legal relationship and constitutes a superior relief.


2013-TIOL-481-HC-HP-IT

Himachal Futuristic Communication Ltd Vs CIT (Dated : May 30, 2013)

Income Tax – Sections 80HH, 80HHC, 80I, 80IA - Whether for the purpose of availing benefit u/s 80IA, the profits must be generated from the business activity only – Whether when there is a pre -condition of business activity to keep margin money in FD, the interest income therefrom can be considered as a first source income linked with business, in order to provide benefit u/s 80IA.


M/s Bhoruka Engineering Inds Ltd Vs DCIT (Dated : April 9, 2013)

Income Tax – Sections 10(38), 50C - Whether if shareholders choose to transfer lands to purchaser of shares it would be valid transaction in law - Whether when assessee is able to avo id payment of capital gains tax through such transaction, it can be said to be a colourable device - Whether the provisions of section 10(38) grant exemption on sale of long term shares only, or it can also apply in case of immovable property – Whether in case there is a doubt regarding nature of asset sold by an assessee , lifting of corporate veil is tenable as per law.



Bipinkumar P Khandheria Vs Dy.CIT (Dated : August 13, 2012)

Income Tax - Writ - Sections 143(1), 147 – Whether reopening of the assessment on the ground that the assessee had filed the returns before a wrong officer was justified when on the basis of the returns filed by the petitioner, and the intimation sent by the Department u/s 143(1) the assessee discharged his tax liabilities.


The Karnataka Bank Ltd Vs ACIT (Dated : March 11, 2013)

Income tax - Sections 45JA, 145 - Depreciation, NPA, held for trading, held to maturity, available for sale, 1998 Directions, RBI guidelines - Whether the provisions of I-T Act, the Companies Act and RBI Directions with respect to taxability of income from securities operate in different fields - Whether when the assessee-bank holds its securities as investment in compliance with the RBI Regulations, but shows the same as stock -in-trade, deduction for any loss arising from such stock at the end of FY can be denied merely because it was shown as investment in books.



CIT Vs K Jayakumar (Dated : June 4, 2013)

Income Tax - Sections 131, 133(6), 142(2) - Whether the CPWD rates can be applied to the commercial cum residential complex constructed at Coimbatore, on the ground that it is a small town – Whether for the purpose of arriving at the cost of construction, the CPWD rates can be blindly adopted.


CIT Vs L & T Infrastructure Development Projects Ltd (Dated : June 3, 2013)

Income Tax - Sections 14A, 263 - "twin conditions" - Whether, unless the basis of revision satisfying the twin conditions, namely, erroneous and prejudicial to the interest of the Revenue, are pointed out by the Commissioner in invoking Section 263 of the Income Tax Act, the asssessee is entitled to raise the question of jurisdiction - Whether such notice must make specific reference to materials showing the assessment as erroneous and prejudicial to the interest of the Revenue - Whether when the notice for revision fails to point out any correlation between the investment made and the issue of the debentures during the relevant period, the notice cannot be sustained .


M/s Fateh Chand Charitable Trust Vs CIT (Dated : May 27, 2013)

Income Tax – writ – Sections 11, 12A, 12AA, 142(2), 143(2), 147, 148 – reasons to believe - Whether an assessment order can be declared as void in case it does not mention any detail about the core issue to be adjudicated – Whether an assessing officer is only an adjudicator or it is an investigator also - Whether the existence of belief can be challenged by the assessee but not sufficiency of reasons for belief – Whether at the time of issue of notice u/s 147, mere ‘reasons to belief' that an income has escaped assessment are sufficient – Whether in case, even the taxable income and tax payable thereon is not determined by the assessing authority, it can be said that it has formed any opinio n with regard to the amount payable as tax – Whether an assessing authority on the basis of some other authority's observation, believe that the assessee's income has escaped assessment and issue notice of reassessment u/s 147 – Whether an order being bere ft of any reason is no order in the eyes of law and is liable to be ignored being illegal and void – Whether failure to give reasons amounts to denial of justice.



M/s CHW Forge Pvt Ltd Vs UoI (Dated : May 24, 2013)

Income Tax – Writ - Sections 143(3), 144, 145, 220(6), 246, 246A, CBDT Instruction Nos 1914 & 1969 - Central Excise Act - Section 35F - Whether while exercising discretionary power u/s 220(6), a strong prima facie case acts as an indicator or a motivating factor – Whether the genuine hardship of an assessee should be considered on the basis of well known principle that ‘a person cannot take advantage of his own wrong' – Whether even if the financial health of an assessee is sound enough, it can be granted further stay for demand outstanding, without any cogent reasons.

2013-TIOL-469-HC-AP-IT

CIT Vs Sayed Ali Adil (Dated : December 20, 2012)

Income tax - Sections 54, 142(1), 143(1) & (2) - Whether the expression 'a residential house' mentioned in Sec 54 effectively means one flat - Whether when assessee purchases two adjoining flats from two different sellers under two separate sale deeds, the same is to be treated as a single house for the purpose of Sec 54 benefits.



CIT Vs Smt Neenu Dutta (Dated : May 31, 2013)

Income Tax – Sections 54F, 260A, 271(1)(c) – Long Term Capital Gains (LTCG) – Short Term Capital Gains (STCG) - Whether gains arising out of exercise of cashless options is a STCG or LTCG – Whether when it has been proved beyond doubt, that an assessee had not concealed any income or furnished inaccurate particulars regarding income, levy of penalty for concealment is justifiable – Whether making of a wrong claim can be taken as a ground for imposing penalty u/s 271(1)(c).


Shervani Hospitalities Ltd Vs CIT (Dated : May 28, 2013)

Income Tax – Sections 32(1)(iii), 40(a)(ii), 80G, 143(3), 250, 254, 271(1)(c ) - Whether quantum and penalty proceedings are distinct – Whether every addition or disallowance made, warrants levy of penalty for concealment – Whether mere making of a claim which is held as not sustainable under law, could lead to penalization – Whether a legal opinion has to be in writing only – Whether when a question arises, which is debatable, but the claim of the assessee is not finally accepted, penalty u/s 271(1)(c) can be imposed – Whether in absence of due care by assessee, it can be presumed that it is guilty of either furnishing inaccurate particulars or attempting to conceal its income – Whether penalty for concealment can be levied on every legally unsustainable claim made by an assessee.


CIT Vs M/s Delhi Press Patra Prakashan Ltd (Dated : May 31, 2013)

Income Tax - Sections 11, 12, 32(A), 80I, 80IB, 254, 260A - Income Tax Act, 1922 - Section 4(3)(i) - Whether the requisite conditions of sec. 80-I are to be satisfied only in first year or in all the assessment years in which the deduction u/s 80I is claimed - Whether the activity of printing carried out by the assessee constituted profits and gains derived by the assessee from an industrial undertaking within the meaning of section 80I - Whether the assessee could claim deduction u/s 80-I in respect of Units, even though it did not employ 10 or more workers on its rolls - Whether when an undertaking employs workers of sister concern and has total control over him regarding the work done, deduction u/s 80I can be denied to such undertaking - Whether the industrial undertaking which undertakes job work are entitled to claim deduction u/s 80-I - Whether the term ‘manufacture' and ‘produce' can be assigned similar meaning in context of section 80I deduction - Whether the benefit of Section 80-I should be denied to the assessee as the units have been formed by splitting up of the business of the assessee - Whether in order to test the independence of two undertakings, the criteria of analyzing their work style is the only decisive one - Whether in case there is a material change in justifying the revenue to take a different view, the earlier view which has been settled and accepted of a several years can be disturbed.



CIT Vs M/s G S Tiwari And Co (Dated : May 30, 2013)

Income Tax - Sections 44AD, 144, 260A - Whether when addition made regarding creditors is not supported by convincing evidences, addition can be made to the income in respect of same - Whether when business income is determined on estimate basis, AO is prevented from treating the unexplained sundry creditors standing in the books of account as income from undisclosed sources - Whether assessment u/s 144 can be made due to non-cooperation of the assessee, in every case.


CIT Vs M/s Delhi Press Patra Prakashan (Dated : May 31, 2013)

Income Tax - Sections 80IA, 80IB, 260A - Whether the deduction under Section 80-IA is allowable only on the book results of the Industrial unit - Whether the deduction u/s 80-IA can be allowed on the profits of printing house without considering the expenditure incurred by the publishing house on raw material as well as marketing and distribution incurred by the publishing house - Whether a decision can be made on the basis of the order of the Tribunal for previous assessment years, in case there are no material changes in the factual parameters.


Rural Electrification Corporation Ltd Vs CIT (Dated : April 23, 2013)

Income Tax - Writ - Sections 147, 148, 149, 150, 153(3) - Whether when certain income of an 'intimately connected' assessee is held to be taxable in the hand of another assessee, reassessment beyond six years cannot be initiated without affording an opportunity to the petitioner - Whether a finding in respect of a different year can also be used for the purposes of invoking the provisions of Section 150 - Whether when opportunity of being heard is not provided to an assessee in case of reopening, the assessment of any other person can be reopened u/s 150, on such basis - Whether in such case, deeming fiction would remain unaffected and assessment can be reopened beyond time limit of six years also.



Spectra Shares And Scrips Pvt Ltd Vs CIT (Dated : February 21, 2013)

Income Tax - Sections 10(38), 28, 45, 115JB, 143(3), 263, Circular NO 4 of 2007 - Whether it is not incumbent on the AO to pass a detailed order - Whether merely because the order of the AO does not contain reasons as to why he accepted that the assessee's claim, his order becomes susceptible for revision u/s 263 - Whether it is open to the Commissioner to reopen the assessment on the ground that a different view is possible - Whether merely because of large frequency and volume of transactions, a conclusion that an assessee is a trader cannot be drawn without considering the period of holding of those shares by the assessee - Whether merely because of large frequency and volume of transactions, a conclusion that an assessee is a trader can be drawn without considering the period of holding of those shares by the assessee - Whether the fact that the assessee has an administrative set up and incurs considerable administrative expenditure can be a factor to hold that the assessee is a trader.



Gujarat State Energy Generation Ltd Vs ACIT (Dated : May 6, 2013)

Income Tax - Sections 156, 220(1) - Whether a mere discussion in the meeting of Income Tax officers is a sufficient compliance for Joint Commissioner approval required for serving notice u/s 156 - Whether curtailing the time limit granted u/s 220(1), without any sufficient reason, would cause considerable inconvenience to the

assessee.


CIT Vs M/s Shastha Pharma Laboratories Pvt Ltd (Dated : April 24, 2013)

Income Tax – Sections 22, 23(1)(a) & (b) - Whether interest received on lease rent deposit is to be added to the actual rent agreed to be paid between the parties for the purpose of determining the annual letting value of the property u/s 23 - Whether notional interest on advance received can be added to the actual rent paid, but the annual rental value has to be determined independently.

2013-TIOL-453-HC-P&H-IT

CIT Vs M/s Jodha Ram Tarlok Chand (Dated : May 22, 2013)

Income Tax - Sections 143(3), 260A, Rule 46A (2) - Whether when an assessee has satisfactorily explained source of an income before the Tribunal, it can be further disputed by the Revenue before the High Court.


CIT Vs Infomediary India Pvt Ltd (Dated : May 21, 2013)

Income Tax - Sections 147, 148 - Whether in case the original assessment proceedings u/s 147 are held as invalid, the consequent remand proceedings would automatically become invalid.


CIT Vs M/s Kichha Sugar Company Ltd (Dated : May 20, 2013)

Income Tax - Sections 2(24)(x), 36(1)(va), 43(B)(b), 139(1) - Whether at the time of allowing deduction u/s 36(1)(va) in respect of PF contribution made by employe r to concerned authorities, time limit as per the Provident Fund Act, is to be followed.


CIT Vs Jain Exports Pvt Ltd (Dated : May 24, 2013)

Income Tax – Sections 41(1), 133(6), 143(1), 260A, - cessation of liability - Whether enforcement of a debt being barred by limitation, ipso facto leads to the conclusion that there is cessation or remission of liability – Whether in order to attract the provisions of Section 41(1), there should be an irrevocable cession of liability without any possibility of the same being revived – Whether section 41(1) also includes the benefit obtained by an assessee by virtue of remission or cessation of a liability – Whether there can be a cession of liability in case, where the debt has been

acknowledged by the assessee company, has already been accepted by the revenue.


2013-TIOL-448-HC-KOL-IT

CIT Vs Madan Theatres Ltd (Dated : May 14, 2013)

Income Tax – Sections 48, 50C(1) & (2), 271(1)(c) – Whether when all the material facts have been meticulously analyzed by the Tribunal, it is still possible for the Revenue to raise a question before the High Court – Whether such question raised, is a valid question of law.


CIT Vs M/s Insecticides (India) Ltd (Dated : May 20, 2013)

Income Tax – Sections 143(1), 143(3), 147, 148 - Whether when the information on the basis of which, AO has initiated proceedings u/s 147 are undoubtedly vague and uncertain and cannot be construed to be sufficient on the basis of which a reasonable person could have formed a belief that income had escaped assessment, such initiation of reassessment is valid as per law.


M/s Dalal & Broacha Stock Broking Pvt Ltd Vs ACIT (Dated : May 7, 2013)

Income Tax – Writ – Sections 36(1)(ii), 37(1), 129, 143(1), 143(3), 147, 148 - Whether in case of reopening of assessment u/s 147 within the normal time limit of four years, stipulation of failure on the part of assessee to disclose all material facts is a prerequisite – Whether within a period of four years, AO can reopen an assessment merely on the basis of a change of opinion – Whether at the stage of reopening of assessment, conclusive proof regarding escapement of income is required - Whether in case of a subsequent re-opening of assessment, consideration can be given to a High Court decision which was not considered at the time of original assessment – Whether while reopening, ‘recording of reasons for such reopening' and ‘the actual reopening' may be carried out by different assessing officers.


Bloom Decor Ltd Vs DCIT (Dated: May 6, 2013)

Income Tax - Sections 80HHC, 80IA, 80IB - DEPB license - industrial undertaking - Accounting Standard 2 - AS-2 - Whether DEPB credits should be considered for the purpose of computing deduction u/s 80IA and 80IB - Whether for the purpose of inventory valuation as per AS 2, cenvat credits should be included in the cost of purchase of inventories.


Unitech Ltd Vs Addl.CIT (Dated: May 15, 2013)

Income Tax - Writ - high-pitched order - demand - Whether a particular decision of a Commissioner loses its legality automatically, after passing of a subsequent order by the same authority.


Charotar Nagrik Sahakari Bank Ltd Vs DCIT (Dated: May 7, 2013)

Income Tax - Sections 28(i), 143(3), 147, 148 - reassessment - Whether when the material facts have already been disclosed in the original return of income filed, reopening of such return on same basis is valid in law - Whether after cancellation of registration certificate of a banking company, lodging of false claim, would indicate that there is any failure on the part of the assessee to disclose material facts.


CIT Vs Nipuan Auto Pvt Ltd (Dated : April 30, 2013)

Income Tax - Sections 68, 271D, 271E, 269SS, 269TT - Whether mere furnishing of the bank statements of the share subscribers without any explanation for the deposits in the accounts can meet the requirements of Section 68 - Whether to establish the creditworthiness of the investors, is it necessary to know the business activities of the share-subscribers and also the repaying capacity, in case the amount has been borrowed for making the investment - Whether when the assessee has filed the income-tax returns of the subscriber companies and also their bank statements and balance sheets in addition to the confirmation letters from the said two companies, the assessee can be considered to have discharged the burden of proof - Whether once the assessee has established its case, the AO cannot shift the burden back onto the assessee without the AO producing any tangible material to doubt the veracity of the documents furnished by the assessee.



CIT Vs Panchmahal Steel Ltd (Dated: March 28, 2013)

Income Tax - Section 43 - The assessee had claimed the loss on cancellation of forward contract. The AO disallowed the same, however on appeal, the Tribunal had deleted the addition. The Revenue aggrieved with this order has filed this an appeal before the High Court.


U P Samaj Kalyan Nirman Nigam Ltd Vs CIT (Dated: May 1, 2013)

Income Tax - Sections 10 (26B), 142(2A), Companies Act - Section 617 - "accounts of the assessee", "special audit"- Whether the submission of audited accounts per se would oust the jurisdiction or authority of the AO to pass a direction for special audit u/s 142 - Whether when a Government company provides unsatisfactory response to the queries and the show cause notice issued u/s 142 pursuant to discrepanices noticed by the AO, a special audit is rightfully warranted - Whether there can be any violation of principle of natural justice, when the the assessee was duly served with a show cause notice, before issuing direction for special audit - Whether the expression 'accounts of the assessee' can be given a narrow interpretation, so as to confine it to only the accounts of the assessee - Whether the proceedings u/s 142 (2A) is strictly a judicial proceeding and requires elaborate reasoning - Whether when the opportunity has been given to the assessee alongwith proper reason for framing the opinion that the nature of the accounts is complex and in the interest of the revenue, special audit is necessary, the approval granted by the Commissioner cannot be said to be mechanical and without application of mind.



CIT Vs Flex Foods Ltd (Dated: May 10, 2013)

Income Tax – Sections 80HHC, 115JB - Whether miscellaneous income and interest income earned, need to be reduced while computing the deduction of eligible profits u/s 80HHC, which would also be the same for the purposes of Section 115JB.


CIT Vs M/s MBL & Co Ltd (Dated : May 17, 2013)

Income Tax – Sections 82A, 87, 88E, 115J, 115JB, 260A - Securities Transaction Tax – MAT – Whether rebate available to an assessee u/s 88E is liable to be adjusted from the tax payable irrespective of whether the tax was computed under the provisions of Section 115JB or under the normal provisions of the Act - Whether the provisions of Sections 87 and 88E apply to the total income computed u/s 115JB and the assessee would be entitled to a deduction to the extent of the STT borne by him during the course of business.


CIT Vs Kamal Kumar Bansal (Dated: April 3, 2013)

Income Tax – Sections 45(2), 131, 142(1), 143(2) - fair market value – capital gains - Whether when the infirmity pointed out by the AO during assessment is not refuted by any cogent evidence, the assessee can demand equal treatment as given to any other assessee in a different case.


National Dairy Development Board Vs DCIT (Dated : April 22, 2013)

Income Tax - Sections 41(1), 43(b), 143(3), 147, 148 - Whether when an assessment is reopened after the normal time period of four years, failure on the part of assessee to disclose material facts is a precondition - Whether in case an assesssee has written back provision, which was made in the year when the income was claimed as exempt, it can be taxed in the current year u/s 41(1).


Smt Uma Kuthiala Vs CIT (Dated: May 9, 2013)

Income Tax – Writ - Sections 143(3), 147, 148, 153(3) - Article 226 of constitution of India – valuation - capital gains – Whether an assessment can be reopened on the basis of valuation relating to another assessee.


CIT Vs Living Media India Ltd (Dated: April 26, 2013)

Income Tax - Sections 14A, 147, 148, 260A - Whether additional reasons recorded after the date of issuance of notice u/s 148 can be looked into for the purposes of determining the validity of the proceedings initia ted u/s 147 - Whether until and unless, there was an addition on the basis of the original reasons, no other additions could be made in view of the expression “and also” used in Explanation 3 to Section 147 - Whether the validity of the proceedings initiated upon a notice u/s 148 have to be judged from the stand point of the reasons which existed at the point of time, when the Section 148 notice was issued - Whether it is permissible for the AO to conjure up a different set of reasons by combining the original reasons and the additional reasons, recorded sometime later after the issuance of notice u/s 148 - Whether the AO is supposed to be fair to the Department as also to the assessee and to be honest to the record.



Maruti Suzuki India Ltd Vs DCIT (Dated: May 13, 2013)

Income Tax – Writ – Sections 143(3), 147, 148 – reassessment – bad debts – royalty - Whether in absence of examination of a deduction claimed by the assessing officer, it can form a case of change of opinion subsequently – Whether even if no query has been raised by the AO during assessment regarding a particular issue, it can be said that the impugned issue has been examined properly – Whether when the AO had examined an issue at the time of the original assessment and had formed an opinion by not making any addition in respect thereof, subsequent reopening of assessment on the same issue would amount of change of opinion.


M/s Sai Ram Education Trust's Vs ACIT (Dated: May 8, 2013)

Income Tax – Sections 12A, 120, 220(6) – Article 226 of the constitution of India – Whether in case of a trust, if an amount has been expended towards indirect expenses, the entire amount can be disallowed by the assessing authority.


Patel Alloy Steel (P) Ltd Vs ACIT (Dated : May 7, 2013)

Income Tax - Sections 14-A, 36(a)(ia), 147, 148, 195, Rule 8D, - Whether when the assessment is sought to be reopened beyond the expiry of four years from the end of the relevant AY, it must be distinctly established that the assessee has failed to disclose truly and fully material facts necessary at the time of original assessment - Whether in the absence of such strong grounds, the assessment will merely amount to a fishing inquiry - Whether in operation of Rule 8D during the relevant AY for computing disallowance u/s 14A, it can be taken as a valid ground for reopening assessment - Whether when AO has based his reasons on verification of the material already on record during the original assessment, such records must atleast allege that there was failure on the part of the assessee to disclose truly and fully all material facts.


M/s Narmadha Chemicals Pvt Ltd Vs ACIT (Dated : April 29, 2013)

Income Tax - Sections 32(1)(i), 80IB, 115JB, 143(2) &(3), 148, Rule 5(1) - interim order, status quo, writ petition, reopening of assessment, depreciation, principles of natural justice, appellate authority, Registry - Whether when the Revenue had concluded the re-opened assessment against the assessee, in the presence of an interim order of staus quo passed by the High Court upon a writ petition filed against the reopening of the assessment, the effective remedy is to bring another writ against the violation of the interim order of status quo or to appeal before the CIT(A) against the demand.


Deep Construction Co Vs DCIT (Dated : May 6, 2013)

Income Tax - Section 44AD - "rectification powers" - Whether when the Tribunal has consciously ascertained a percentage of profit for computing depreciation, such order cannot be rectified by merely excercising rectification powers - Whether the power of rectification can be exercised for correcting an error apparent on the face of the record and not for reviewing an order.


CIT Vs Crescent Export Syndicate (Dated : April 3, 2013)

Income Tax - Section 40(a)(ia) - Whether the Tribunal is correct in relying upon the majority opinion given in Merilyn Shipping & Transports wherein section 40(a)(ia) was held to be applicable to only such expenses which are payable and not already paid without deducting tax .


Cognizant Technology Solutions India Pvt Ltd Vs DCIT (Dated : April 30, 2013)

Income Tax - Sections 10-A, 10-AA, 14-A, 92-CA, 115-JB, 142, 143(3), 145, 156, 220, 240, 245 - "set-off", "tax refund", "prior intimation"- Whether in lieu of payment of the tax refund, the same can be set-off against the sum, if any, remaining payable under the Income Tax Act by the person to whom the refund is due, without giving prior writing in writing to the assessee - Whether intimation sent to the assessee after the refund has been set off against the tax payable, is in compliance of section 245 of the Act - Whether any set off of tax refund against the sum due under the Act can be made only in strict compliance with the procedure given in section 245 of the Act - Whether the Revenue is at liberty to adjust the refund amount payable to the assessee with the amount payable for any other AY's, provided it is in strict compliance with section 245 of the Act.


S K Agarwal Vs UoI (Dated : April 5, 2013)

Income Tax - Writ - Sections 220(2), 222, 226(3), 243 C(1) - assessee in default - Show cause notice - Tax recovery officer - lien - garnishee notice - Open Cash Credit - Whether when a notice issued u/s 226(3), is not pursued further by the Revenue in terms of any show cause notice, the assessee can still be treated as deemed 'assessee in default' qua this notice - Whether in case an assessee has been transferred from a bank branch, it can be held as a defaulter subsequentally - Whether a notice can have a valid enforceable effect in law, even if it has been waived - Whether in case of a general lien, bank has a lien on the account in respect of dues of the party and the said parties are indebted to bank - Whether in absence of a garnishee order, the saving bank account and open cash credit account can be clubbed together - Whether proceedings u/s 226(3) are in nature of garnishee proceedings - Whether a person to whom garnishee notice is issued, must be in the position of a creditor with respect to the assessee in default - Whether at the time of the garnishee notice, the sum must be due to the assessee - Whether in order to create Banker's lien on several accounts it is necessary that they must belong to the payer in one and in the same capacity.



CIT Vs M/s Southern Bottlers Pvt Ltd (Dated: May 7, 2013)

Income Tax - Sections 37, 260A - trading receipt, commercial expediency, security deposits, interest free loans, secured loans, interest, advances, directors, sister concerns - Whether when the assessee had received excess of security deposits over refunds on sale of bottles, the Revenue is justified to hold it as a trading receipt - Whether when the assessee company has availed of secured loans and paid interest to

the Banks, which was almost equal to the advances made as interest free loans to its directors and sister concerns, as well as availed of interest free loans from these companies in which the directors were interested, it could claim commercial expediency on the advancement of interest free loan to the sister concerns or the Directors - Whether when the assessee company had availed of secured loans and paid interest to the Banks, which was almost equal to the advances made as interest free loans to its directo rs and sister concerns, the assessee could claim the interest paid to banks as a business expenditure on account of commercial expediency, especially when the assessee had also borrowed interest free loans from these sister concerns and companies in which the directors were interested.


CIT Vs Shivali Construction Pvt Ltd (Dated: May 1, 2013)

Income Tax - Section 41(1) - Whether when deduction in respect of an item has not been allowed in an earlier year, disallowance u/s 41(1) can be made on the basis of cessation of a liability.


CIT Vs Samara India Pvt Ltd (Dated : May 10, 2013)

Income Tax - Sections 32(1), 36(1)(vii), 260A - lease - bad debt - recoverability - Whether pendency of a civil suit is a bar on writing off the debt, even if in the opinion of assessee its probability of recovery is remote - Whether in order to claim a bad debt, mere writing off the same in assessee’s books is a sufficient compliance of section 36.



Adani Ports And Special Economic Zone Ltd Vs DCIT (Dated: May 7, 2013)

Income Tax - Sections 44AB, 143(3), 147, 148, 151 - Whether in case of issue of notice for reopening assessment u/s 147, after the normal time period of four years, satisfaction of Chief Commissioner or commissioner is a necessary pre -condition - Whether the satisfaction as referred, can be borrowed or dictated from any other, even any superior, authority - Whether in case such approval was not taken, perusal of audit party’s recommendations by the commissioner, can be considered as a sufficient compliance under the Act.


Bharat Sanchar Nigam Ltd Vs DCIT (Dated: May 9, 2013)

Income Tax - Writ – Sections 43(1), 115JB, 143(3), 147, 148 - telecom services - Memorandum of Understanding – share capital - Whether merely due to absence of detailed reasons in the order of assessment u/s 143(1), an assessing authority is

authorized to reopen assessment u/s 147 – Whether an order passed regularly u/s 143(1) or (3), can be presumed as passed after application of mind - Whether when an assessment is sought to be reopened on the basis of an adjustment which was not effected in the original assessment proceedings, it would amount to change of opinion – Whether in order to reopen an assessment, reasons to believe need to have a live link with the formation of belief - Whether, on the basis of the capital structure of the petitioner, an inference could be drawn that reserves represented cost of assets met by the government so as to fall within the ambit of Explanation 10 to Section 43(1) - Whether free reserves and surpluses accumulated by a company can represent a subsidy, grant or reimbursement from which the cost of assets of assessee company are met - Whether the whole consideration received by the Government of India for transfer of business is limited to the value of loans and the face value of the shares issued.


CIT Vs Sikandarkhan N Tunvar (Dated: May 2, 2013)

Income Tax – Sections 10(20), 40(a)(ia), 43(2), 139(1), 192, 194A, 194C, 200, 201, 271C - Hyden’s rule - Mischief rule - Whether the provisions of Sec 40(a)(ia) cover not only the sums, which are payable as on March 31 of a particular year but also which are payable at any time during the year - Whether the principle of conscious omission can be applied in case there is a doubt regarding the draft presented in Parliament and the final legislation passed.



CIT Vs M/s Dey's Medical Stores Manufacturing Pvt Ltd (Dated: May 9, 2013)

Income Tax – Reference – Sections 37(2A), 37(3B)(iv), 256(1) - Whether deduction u/s 37 can be allowed in case assessee has incurred sales promotion expenses through any other company – Whether the aforesaid amount can be denied in case it was not incurred in connection with the business of the assessee – Whether expenditure incurred for advertisement of the assessee’s business can be said to be of capital in nature – Whether disallowance u/s 37, in case of expenditure incurred through some other assessee, would not cause undue justice to the assessee - Whether any contrary interpretation will amount to inserting words not contemplated by the legislature, in order to interptret law clearly.


Riddhi Siddhi Bullion Ltd Vs DCIT (Dated : April 30, 2013)

Income Tax - Writ - Section 143(3) - Whether it is necessary to make further deposits, in case an appeal is pending for a decision by the Revenue authority, in order to safeguard the interest of the Revenue - Whether in case an assessee has defaulted in payment of dues as directed by the Revenue authority, stay granted for the balance demand can be withdrawn.

2013-TIOL-386-HC-MUM-CX

Um Cables Ltd Vs UoI (Dated: April 24, 2013)

Central Excise – Rebate under Rule 18 of Central Excise Rules, 2002 rejected on the ground of non-submission of original and duplicate ARE1s – Submission of ARE1s is only a procedural requirement under the Notification issued under Rule 18 - The procedure which has been laid down in the notification is to facilitate the processing of an application for rebate and to enable the authority to be duly satisfied that the two fold requirement of the goods having been exported and of the goods bearing a duty paid character is fulfilled - The procedure cannot be raised to the level of a mandatory requirement - Rule 18 itself makes a distinction between conditions and limitations on the one hand subject to which a rebate can be granted and the procedure governing the grant of a rebate on the other hand - While the conditions and limitations for the grant of rebate are mandatory, matters of procedure are directory – Rebate sanctioning authority is directed to process the rebate claim without insisting on the original and duplicate ARE1s if it is otherwise satisfied that the conditions for the grant of rebate have been fulfilled.

However, with regard to one rebate claim, the rejection of rebate claim is upheld as the goods came to be exported and the vessel had sailed on 18 April 2008 even before a Let Export Order was passed by the customs authorities. The primary requirement of the identity of the goods exported was not fulfilled and hence rebate is not admissible.



CIT Vs Akme Projects Ltd (Dated : May 2, 2013)

Income Tax - survey - merit - Whether a question of fact can be decided by a High court on merit - Whether when an income has already been embedded in the receipt assessed by the assessing authority, the same can be included again on the basis of additional disclosure of income made by an assessee during survey proceedings.


CIT Vs M/s Suren International Pvt Ltd (Dated : May 7, 2013)

Income Tax – Sections 68, 131, 139, 143(1), 147, 148, 260A - Whether addition on the basis of unexplained income u/s 68, can be made even if there is repetition of same entry several times while recording reasons for such addition – Whether it is open for an assessing authority to reopen assessment u/s 147 beyond a normal time period of four years, unless the income has escaped assessment on account of failure, on the part of the assessee, to disclose all the material facts – Whether an assessment can be reopened merely on the basis that certain goods of assessee were seized by DRI and penalty was also levied.


CIT Vs Nirmal Bansal (Dated : April 30, 2013)

Income Tax - Section 2 (14)(iii) - Whether a Tribunal has jurisdiction to examine a question of law which “arose from the facts as found by the Income Tax Authorities” and which had a bearing on the tax liability of the assessee.

2013-TIOL-380-HC-RAJ-IT

CIT Vs M/s Godha Chemicals Pvt Ltd (Dated : January 10, 2013)

Income Tax - Sections 32AB, 80HHC, 260A - Whether the expression “alongwith return of income” occurring in Sub-section (4) of Section 80HHC of the Income Tax Act is directory in nature insofar it relates to the time for furnishing of the report of an accountant by the assessee in the prescribed form - Whether even if such a report in the prescribed form is not furnished alongwith the return of income, but is furnished during the course of assessment proceedings, the deduction claimed cannot be denied merely because the same was not filed at the initial stage of filing of the return.


Gowri Ashram Vs DIT (Dated : April 29, 2013)

Income Tax – Sections 2(15), 12AA - Whether benefit of registration u/s 12AA can be granted to an institution whose primary objective is to benefit a particular community - Whether when objects of the society are not approved by High court, can the trust file an application for its registration u/s 12AA.


M/s Green Power Realtors Pvt Ltd Vs DCIT (Dated : April 23, 2013)

Income Tax – Writ - Sections 5, 139, 143(2), 147, 148 - Whether when notice issued u/s 143(2) has been received by assessee even after the date of hearing, can it be assumed that the assessee has been given proper opportunity of being heard – Whether when once an impugned order is set aside, the question of limitation can arise.


M/s U P Projects Corporation Ltd Vs CIT (Dated : April 22, 2013)

Income Tax - Writ - Section 142(2)(a) - Whether when the assessing authority before referring a case to special auditor, has made a genuine attempt to understand the accounts so maintained, such reference can be considered as invalid - Whether the term 'accounts' is confined only to books of accounts in case of a company - Whether while excercising jurisdiction during writ, High Court acts as a court of appeal.

2013-TIOL-368-HC-GAUHATI-IT

CIT Vs Sonitpur Solvex Ltd (Dated : March 19, 2013)

Income Tax - Sections 34(1)(a), 138, 139, 142, 147, 148, 260A - Whether merely on the ground that the assessee has received greater reliefs, than what he was entitled to, cannot give jurisdiction to the AO to make a re-assessment - Whether the AO can take the benefits of either Explanation 1 or Explanation 2 to Section 147 of the Income Tax Act for re-opening a time barred assessment, although the AO has acted negligently and rashly during the original assessment - Whether Explanation to Section 147 does not have the effect of enlarging the Section by casting a duty on the assessee to disclose inferences, which are really for the AO to draw - Whether the assessment can be reopened on the grounds that the assessee had not included the amount received as transport subsidy in its annual income, although the assessee's audited balance sheet and statement submitted along with the return contained the details of receipt of transport subsidy - Whether disclosure made in the balance sheet, amounts to full and true disclosure of material facts necessary for assessment - Whether limitation of a time barred assessment can be overridden, only when there is an omission or failure on the part of the assessee in disclosing 'fully and truly' all material facts necessary for the assessment.


CIT Vs Shri Jitendra Singh Rathore (Dated : January 10, 2013)

Income Tax - Sections 143(3), 260A, 269SS, 271D, 271E, 275(1)(a), 275(1)(c) - Whether the penalty for default in not making transactions through bank is distinct from assessment proceedings - Whether completion of assessment proceedings may have any impact on the penalty proceedings u/s 271D or 271E - Whether period of limitation for the purpose of such penalty proceedings can be reckoned from the issue of first show cause by the competetent authority.


Rural Electrification Corp Ltd Vs CIT (Dated : April 23, 2013)

Income Tax - Sections 148, 149 - Whether assessment can be reopened, when the reasons recorded by the Commissioner no where contains that the assessee has failed to disclose fully and truly all the material facts necessary for its assessment - Whether in such a case, the essential conditions given in section 147 required for reopening of assessment are not met.


CIT Vs M/s Mahan Marbles Pvt Ltd (Dated : January 9, 2013)

Income Tax - Sections 145, 260A - Whether profit margin of another concern can be applied to enhance the total income of the assessee, merely because assessee has declared lower profit margin - Whether AO can make additions to the sales declared by the assessee, although the same has been accepted by the sales tax authorities and the AO has failed to bring on record any cogent material to show the quantum of sales out of books of accounts - Whether the profits earned by two companies can be compared, although they have functioned for different duration in the year under consideration.


CIT Vs Rajarani Exports Pvt Ltd (Dated : April 24, 2013)

Income Tax – Section 37(1) – Whether the commission paid as an agent can be disallowed u/s 37(1), even if it is paid due to commercial expediency - Whether when the payment made as commission is highly excessive vis -à-vis the local costs, can this fact affect the deductibility of such commission in the hands of assessee .


Transocean Offshore Deepwater Drilling Inc Vs DIT (Dated : May 3, 2013 )

Income Tax - Writ Petition - Wastage of Court's time - Cost of Rs . 1000 imposed on petitioner.


CCIT Vs Geetanjali University Trust (Dated: February 21, 2013)

Income Tax - Writ - Sections 10(23C)(vi) & (via), 11, 12A(a), - Article 142 of constitution of India - Whether when assessee Trust exists only for medical education purpose, it loses entitlement to exemption under I-T Act once it is held that its admission procedures were not as per MCA regulations.



Ram Kishan Gupta Vs UoI (Dated : April 11, 2013)

Income Tax - Writ - Sections 132, 132B(4), 132(5), 240, 244A - refund - interest - search - adjustment - Kar Vivad Samadhan Scheme, 1998 - Whether the provisions of section 240 relating to refund can apply in case the same is not arising out of any appeal - Whether in case the amount of pending demand is higher than that of cash retained by the Revenue, any interest can be made due to the assessee - Whether when an assessee avails benefit of any Central Govt tax waiver scheme, interest if any, payable on the amount due to assessee, would be payable only on such amount only for the post scheme period till the date of actual payment only.

2013-TIOL-353-HC-P-H-IT

CIT Vs Ang Securities Ltd (Dated : April 23, 2013)

Income Tax - Sections 10(38), 260A - Chapter III - Whether loss on account of sale of shares, can be set off against income from sale of shares exempted and not forming part of income u/s 10(38).


CIT Vs Mangi Lal (Dated : February 6, 2013)

Income Tax - Sections 148, 260A - legal representative - peremptory order - review petition - Whether initiation of proceedings u/s 148 by issuing notice to only one of the Legal Representatives of deceased without issue of notices to other representatives is valid initiation of proceedings - Whether it is possible for the non-petitioners to file a seperate appeal for the purpose of raising their objections.

2013-TIOL-351-HC-ALL-WT

R L Sharma Vs CIT/WT And Others (Dated : April 29, 2013)

Wealth Tax - Writ - Sections 17(b), 31(2A), 156 - Whether when the levy of interest u/s 31(2) is causing undue hardship to the assessee, who had supported the Revenue officials in income tax proceedings, waiver of interest can be denied without any cogent reasons - Whether consideration for the question regarding the allowability of waiver application in its entirety or not, is a question which can be remanded back - Whether the issue of allowing application u/s 32(2A) is a matter of discretion of the Revenue authority - Whether in the absence of any reason being recorded for rejecting the waiver application, such order can sustain in law.


Montecarlo Ltd Vs ACIT (Dated : April 2, 2013)

Income Tax - Sections 143(1), 220(2), 245 - demand notice - interest - assessee in default - Whether in case neither the computation of refund payable nor the right to seek such refund has been crystallized, it can be adjusted against the outstanding tax demand, even if assessee has voluntarily offered such adjustment.


CIT Vs Sathyanarayan P Rathi (Dated: January 28, 2013)

Income Tax - bogus trade - profit element - reasonable estimation - Whether in case of bogus purchases made by an assessee, entire purchase consideration can be added as an undisclosed income - Whether only the profit element from such purchase made through undisclosed sources can be added to the income of an assessee.


CIT Vs Amrutbhai S Patel (Dated : April 15, 2013)

Income Tax - Sections 2(14)(iii), 10(37), 45(5) - agricultural land - personal cultivation - enhanced compensation - Whether assessee can be denied exemption merely because he himself did not cultivate the agricultural land - Whether the concept of personal cultivation also recognizes, cultivation of a land through hired labourer or through member of one’s family - Whether the exemption u/s 10(37) can be denied merely on the basis that the assessee was not residing close to the land or was also pursuing some other business and thus the land was not used for agricultural purposes by the assessee.



Hamdard Laboratories India And Anr Vs DGIT (Dated : April 11, 2013)

Income Tax - Writ - Sections 2(15), 10(23C)(iv), 11(4A), 12A, 12AA, CBDT instruction No. 1132 of 1978 - special purpose vehicle - charitable institution - trust - advancement of any other object of public utility - Whether the residual proviso added in section 2(15) can apply to assessees carrying on charitable activities for purposes which have been specifically enumerated in the section - Whether a charitable trust would lose exemption granted if it passes some amount of its funds to another trust to be utilised for charitable purpose - Whether the activities of a special purpose vehicle set up having same activities as of a charitable trust can be treated as charitable activity of the petitioner for the purpose head u/s 2(15).



CIT Vs M/s Dhoomketu Builders & Development Pvt Ltd (Dated : April 23, 2013)

Income Tax - Sections 3, 57(iii) - Whether when assessee borrows funds from holding company on interest and participates in tender for land allotment it can be said to have set up its business even if it fails to get the land allotted.



Mahesh Kumar Gupta Vs CIT & Another (Dated : April 17, 2013)

Income Tax - Writ - Sections 148, 149(1)(b), 151(1), 230A(i) - FD - UTI bonds - freehold - leasehold - land - lease - STCG - Whether in case the permission to reopen an assessment u/s 148, beyond the normal time limit of four years, has been taken from Joint or Additional CIT, it cannot be challenged on any other ground - Whether such reopening is valid even if the JCIT/ACIT was not aware about the amount of escaped income which was liable to tax - Whether in order to get covered by the exception of section 149(1), recording of facts by the assessing authority is of paramount importance .


M/s Manflik Enterprises Vs ITO (Dated: April 17, 2013)

Income Tax - Writ - Sections 143(1), 148, 149 - reassessment - Whether when the twin conditions regarding reopening of assessment beyond the normal time limit of four years are complied with, such notice u/s 148 can still be challenged on ground of insufficiency of reasons for reopening - Whether reassessment u/s 148 is possible only on such return of income which has already been assessed under the Income Tax Act.


CIT Vs Shiv Kumar (Dated: April 8, 2013)

Income Tax - Section 40A(2)(b)(i) - relative - interest - Whether a question regarding allowability of a particular expenditure or interest payment on loan taken in view of section 40A is essentially a question of fact and does not involve any issue of law - Whether a High Court can interfere in the order passed by the Tribunal on question of facts .


Transwind Infrastructure Pvt Ltd Vs ITO (Dated : April 16, 2013)

Income Tax - Sections 40(a)(ia), 143(2), 147, 148 - reassessment - TDS - labour charges - contractor - Whether when the assessee has not deducted TDS on labour charges, even though statutorily required under the Act, the assessing authority can deduct TDS on adhoc basis - Whether in such a case re -examination of facts by means of reopening is tenable in law - Whether during reassessment proceedings, an assessing authority has the power to review - Whether when once a claim is fully examined, power of reopening is also available .


Vijay Prakash Agrawal And Others Vs CIT (Dated : April 17, 2013)

Income Tax - Writ - Sections 132, 132A, 132B, 134B, 143(3), 153A, 244A, 292CC - business interest - commercial relation - association of persons - body of individuals - Whether the mention of more than one name in the warrant of authorisation will make it in the name of AOP or BOI and would adversely affect an assessee - Whether the status of an assessee can be changed as the result of joint warrant of authorisation - Whether interest on interest can be allowed u/s 244A.


CIT Vs ABT Industries Ltd (Dated : April 17, 2013)

Income Tax - Sections 154, 244A - Whether any interest obligation arises u/s 244A when assessee is entitled to receive refund arising out of excess TDS payment.


Madhav Marbles & Granites Ltd Vs ACIT (Dated : January 29, 2013)

Income Tax - Sections 10B, 80AB, 80HHC, 260A - average - proportinate profits - turnover - Whether deduction u/s 80HHC can be allowed in case assessee is incurring losses only - Whether in order to compute such profits, the losses and profits of respective units of the same assessee can be adjusted - Whether the differe nt units of the same assessee company engaged in manufacturing of different goods can be considered as different assessees for the purpose of allowing deduction u/s 80HHC.


Atam Prakash Batra Vs ACIT (Dated : April 15, 2013)

Income Tax - Sections 143(1), 143(2) & (3), 147, 148 - Whether merely because an assessment was not previously framed after scrutiny, it would give unlimited right to an AO to reopen assessment by issuing a notice without valid reasons - Whether the validity of reason permitting the AO to form a belief that income chargeable to tax had escaped assessment is a relevant consideration even in the cases, where court is examining challenge to a notice for reopening in case no scrutiny assessment was previously framed - Whether power u/s 147 can be exercised to circumvent the proceedings u/s 143(3) in case notice u/s 143(2) has become time barred.


CIT Vs Shri K S Puttaswamy (Huf) (Dated: April 1, 2013)

Income Tax – Sections 139(1), 158BD - Chapter XIV B – search – FD - Whether income detected in search can be brought to tax as undisclosed income for the block period even if this income is not disclosed in the normal books maintained as per Section 158BA(3).


CIT Vs Mahabaleswara Enterprises (Dated: April 1, 2013)

Income Tax – Sections 50, 50B – WDV - Whether mere execution of a conveyance deed in respect of a immovable property by itself can constitute its sale – Whether in order to characterize a sale as slump sale, it is essential that sale should be of only those assets which are used in running of business operations – Whether when facts were not presented before the authorities below Tribunal, and an order has been passed by the Tribunal before referring to those evidences then produced, such a case is fit for remand to lower authorities again.


CIT Vs Kuruvilla Abraham (Dated : April 16, 2013)

Income Tax - Section 2(14) - Whether the Tribunal is right in law in holding that the paintings would be personal effects and sale of the same would not attract the capital gains for A.Y is 2005-2006.


Ms Chain Vs Under Secretary, Govt of India (Dated : April 8, 2013)

Income Tax - Writ - Whether when facts are established that the assessee was unnecessarily driven to litigation, awarding costs against Revenue cannot be avoided.


Ms Chain Vs Under Secretary, Govt of India (Dated : December 17, 2012)

Income Tax - Writ - Sections 132B(3), 158BD - Enforcement Directorate - search - gold - seizure - jwellery - luggage van - Whether when CIT(A) order attains finality as Revenue opts out of choice to file appeal against, any further delay in releasing seized gold can still be justified.


Bharat Petroleum Corporation Ltd Vs ITAT (Dated : April 10, 2013)

Income Tax - Writ - Sections 80HH, 80I, 80IA, 143(3), 254(2) - Whether a petition can be accepted before the HC, after the period for filing application u/s 254(2) has been elapsed and assessee has no justification for such delays.

2013-TIOL-315-HC-KERALA-IT

Mangalam Service Co-Operative Bank Ltd Vs ITO (Dated : February 13, 2013)

Income Tax - Writ - Sections 2(31), 80P, 133(6), 142(1), 144, 194A(viia) - Whether co-operative socities can be included in the definition of persons u/s 2(31) - Whether in case the appeal of the assessee has been stayed by the supreme court, can it be held as a reason to entertain the writ petition on the same issue - Whether the decision of a division bench is bound on the single bench judge in every case - Whether when an assessee is registered under the Co-operative Societies Act, can it be treated as bodies corporate, a juristic person capable of exercising all rights of natural person as provided in the Act.


CIT Vs M/s U P Hotels Pvt Ltd (Dated : March 18, 2013)

Income Tax - Section 43B – Whether the amount of luxury Tax which was not collected can be treated as income of the Assessee and any addition can be made in this respect.


M/s Kraft Palace Vs CIT (Dated : March 19, 2013)

Income Tax - Section 80HHC - Whether benefits under Section 80HHC on counter sales made to foreign tourist against foreign currency are available to the assessee.


CIT Vs M/s Classic Enterprises (Dated : April 17, 2013)

Income Tax - Sections 143(3), 153C - Whether Tribunal is justified in law in upholding the order of the CIT (A) who quashed the assessment Order when the books were already handed over to the AO who issued the notice after recording satisfaction thereby, meeting all the substantive requirements of law.


HDFC Bank Ltd Vs ACIT (Dated : April 4, 2013)

Income Tax - Writ - Sections 10(23D), 10(35A), 10(35D), 14A, 36(1)(viia), 115R, 143(3), 156 - Held-To-Maturity - TDS - interest - assessee in default - recovery - amortization of premium - mutual fund - dividend distribution tax - Whether when an issue has been covered in favour of the assessee in respect of another AY on the same point, Department can still make an adjustment to recover the dues from refund amount lying with it - Whether adjustment in the amounts legitimately due to the assessee, can be made merely on the basis that Revenue has filed an appeal before the Tribunal against the CIT(A)'s judgment on the same issue - Whether exemption in respect of Dividend Income, can be denied, even if certificates of confirmation for payment of DDT has been produced.


M/s Kone Elevator India Pvt Ltd Vs ACIT (Dated : April 10, 2013)

Income tax – Section 145 – Whether when the assessee has not exhausted the alternative appeal remedies before the appropriate authorities as against the order of the original authority, writ jurisdiction of High Court under Article 226 of the Constitution cannot be invoked.


CIT Vs Dilip Kumar Lalwani (Dated : April 1, 2013)

Income Tax - Sections 148, 260A - CBDT Circular no 611 of 1991 - bonds - gifts - fiduciary - corporate - Whether immunity granted under the Remittance of Foreign Exchange & Investment in Foreign Exchange Bonds (Immunities & Exemptions) Act, 1991 is absolute and no inquiry for any purpose whatsoever is possible regarding the remittances involved - Whether in case an issue was not arising out of the Tribunal's order, the High Court can entertain the same.


CIT Vs Dr A K Bansal (Dated : April 5, 2013)

Income Tax - Writ Petition - Sections 132 (1), 143(3), 158BC, 255(4) - Whether the Tribunal, while deciding the appeal, can look into the validity of the search operations.


CIT Vs M/s Arya Auto Financers (Dated : March 21, 2013)

Income Tax - Sections 68, 131, 133(6), 143(3), 260A - hire purchase - deposits - cash credits - Whether when the Revenue Authorities failed to consider the assessee's request for calling for information u/s 133(6) or u/s 131, addition on account of unexplained cash credits can be made in such a case - Whether in case without assigning any reason, the final fact finding authority had discharged onus laid on it u/s 68 and has not considered the assessee's request, the addition on such basis can be sustained in law.

2013-TIOL-303-HC-DEL-RTI

Joginder Pal Gulati Vs The Officer On Special Duty (Dated : April 02, 2013)

Income Tax Department directed to supply copy of ‘scrutiny guidelines' and upload them on the website: Petitioner seeks a direction to the Income Tax Department to supply the copy of the Central Board of Direct Taxes (in short CBDT ) circular/ instruction dated 19.06.2009. The information sought under the RTI Act from the Department which was refused.

The Department's argument is that in order to ensure that, there is no unfairness in selection of cases for scrutiny; guidelines are issued to the Assessing Officers in this behalf which, if revealed, would enable the assessees to manipulate their returns; that the information falls within the realm of Section 8(1)(a) of the RTI Act and thus stands excluded as it would impact the economic interest of the country .


CIT Vs Sri T Arivunidhi (Dated : April 8, 2013)

Income Tax - Section 143 - wage disbursement - work-in-progress - mercantile system - floods - vouchers - Whether in case an assessee is following mercantile system of accounting, addition to income can be made on the reason that there is no matching entry of income in the said account with the corresponding expenses and without rejecting the books - Whether an order passed by the CIT(A), can base upon presumption and assumption - Whether when assessee has produced sufficient supporting documents before assessing authority and due to any natural calamity, not able to reproduce same before CIT(A), subsequent disallowance can be made.


RPG Cellular Investment & Holdings (P) Ltd Vs ACIT (Dated : April 5, 2013)

Income Tax - Writ - Sections 10(23G), 80-IA(4), 143(3), 147, 148, Rule 2E - eligible business - investor - investee - Whether the benefit of exemption u/s 10(23G) is available to an investee company only - Whether an investor company can be required to furnish an approval in context of claiming exemption u/s 10(23G) and its assessment can be reopened on the basis of such non-furnishing.


CIT Vs M/s Infosys Technologies Ltd (Dated: February 13, 2013)

Income Tax - Sections 30(a), 37, 80HHE, 260A, Circular No 3/2004 - foreign remittance - transmission - Whether the deduction u/s 80HHE can be allowed without excluding the foreign exchange expenditure incurred by the Assessee - Whether when the amount of foreign exchange remittance is attributable to the activity in rendering technical services for production of software outside India, it can be assumed that the activities were in the nature of a deemed export.


CIT Vs Times Business Solution Ltd (Dated : April 9, 2013)

Income Tax - Section 36(1)(vii) - Companies Act, 1956 - Sections 391 to 394 - online services - co-branded income - Whether an assessee is entitled to write off irrecoverable bad debts in its books although, the said debts have been acquired from the holding company - Whether in order to claim bad debts, there must be some evidence to show that the debts have actually become bad.


Saa Ispahani Trust Vs ITO (Dated : April 8, 2013)

Income Tax - Sections 194C, 201(1), 201(1A), CBDT Circular No.275/201/95-IT(B) of 1997 - assessee in default - Whether demand once contemplated u/s 201(1) should be enforced after the tax deductor has satisfied the Revenue, that the said due taxes have been paid by the deductee - Whether such aversion for payment of taxes can absolve the deductor of its liability to pay interest u/s 201(1A) from the date of its liability till the date of actual payment made by the recipient.


Smt Rekha Krishnaraj Vs ITO (Dated: March 13, 2013)

Income Tax – Sections 44AB, 68, 133A, 144, 144A - Whether provisions of Section 68 regarding unexplained credit apply only to cash credit - Whether a heading needs to be given prime importrance while deriving interpretation to the provisions of a statute – Whether heading can control operation of the enacting words.


CIT Vs M/s Sahu Enterprise Pvt Ltd (Dated : February 20, 2013)

Income Tax - Sections 36(1)(iii), 37, 260A - commercial expediency - corporate veil - Rule of Consistency - business interest - advances - Whether deduction u/s 37(1) can be allowed to an assessee, even if a third party gets benefit out of that expenditure incurred - Whether in order to claim interest u/s 36(1)(iii), it is necessary that the amount is advanced only for earning profits - Whether the yardstick to evaluate commercial expediency is to be taken from the businessman point of view but the businessman must be a prudent businessman - Whether lifting of corporate veil in case of allow ability of interest u/s 36(1)(iii) is justified as per law - Whether business interest of an assessee and personal interest can be equated.


DDIT Vs The State Bank Of India (Dated : April 1, 2013)

Income Tax - Sections 33ABA, 156, 194A, 220(1) - Site Restoration Fund - Whether a Revenue official can take step, to realize the amount pending under demand until the expiry of time statutorily granted to assessee to prefer appeal - Whether in case an assessee has directly applied to the writ court for mere protection of its outstanding demand, same needs to be referred back.


CIT Vs Sanjay Ghai (Dated : March 21, 2013)

Income Tax - Sections 271A, 271(1)(c), 234A, 234B - penalty for concealment - suppression - overstatement - inaccurate particulars - Whether penalty for concealment u/s 271(1)(c) can be initiated without recording of satisfaction by the assessing authority during original assessment proceedings.


United Education Society Vs CCIT (Dated: March 13, 2013)

Income Tax - Writ - Section 10(23)(vi) - trust - donation - monetary profits - Whether for the purpose of exemption u/s 10(23), collection of donation from students by educational body amounts to profit, and thus, calls for rejection of exemption application.



Singhal Agro Industries Pvt Ltd Vs CIT (Dated: March 19, 2013)

Income Tax - speculative - contracts - loss - genuineness - business profits - Whether when the issue of genuineness of loss is not in dispute, the remand of the case to the file of AO is still necessary.


CIT Vs M/s SPR Group Holdings (P) Ltd (Dated: March 5, 2013)

Income Tax - Sections 90(2), 92 - Kar Vivad Samadhan Scheme (KVSS), 1988 - Whether Revenue could prosecute an appeal in respect of an AY which is covered under the KVSS - Whether a certificate issued under the aforesaid scheme attain finality and no argument is possible by the Revenue authority against the same.


CIT Vs Karimangalam Onriya Pengal Semipu Amaipu Ltd (Dated: March 20, 2013)

Income Tax - Sections 2(15), 12A, 12AA - condonation of delay - registration - statutory provision - directory - micro finance - deemed registration - Whether in order to ascertain the nature of a statutory provision, the expression 'shall' is always decisive - Whether when the application for registration wa s not disposed off within the limitation of six months, the assessee Company is deemed to have been granted registration u/s 12AA - Whether the non-consideration of registration application u/s 12AA can amount to "deemed registration", in case the issue wa s not disposed of within the stipulated period of six months.


KDH Properties Pvt Ltd Vs ACIT (Dated: April 2, 2013)

Income Tax - Writ - Sections 132(5), 133A, 143(2), 245C, 245D, 281B - provisional attachment - impounded - On money transaction - Whether when the value of property involved in provisional attachment, is sufficient to satisfy the tax liability and safeguard the interest of the Revenue, attachment in respect of other debts and security deposits due is justified - Whether the power to provisionally attach property u/s 281B is a mandate to attach all the properties of the assessee - Whether the aforesaid power can be excercised indiscriminately by the Revenue Authorities.


CIT Vs M/s Sapthagiri Enterprises (Dated: March 5, 2013)

Income Tax - Sections 4, 40A(3), 143(3), 147 - public interest litigation - enhanced compensation - Whether when the amount received by the assessee is wrapped with litigation, the assessee becomes the absolute owner of such sum received and liable to pay tax thereon - Whether the PIL filed by a third party can abstain an assessee from its liability to pay tax on the amount received as enhanced compensation - Whether when amount received by assessee is not in pursuance to any interim order of the court wherein, the interim order merges with the final order and such payment is contingent depending upon the final verdict, such amount can be held taxable in its year of receipt.


M/s Sri Sivapriya Shelters Pvt Ltd Vs DCIT (Dated: March 11, 2013)

Income Tax - Sections 153A, 234A, 234B - default in interest - seized - search - Whether when the assessee is not granted enough time to file return as a result of delay by the Revenue authorities in release of seized material, the demand for waiver of interest u/s 234A and B can be sustained.


CIT Vs M/s India Telephone Industries Ltd (Dated: March 18, 2013)

Income Tax - Sections 41, 143(3), 263 - grant in aid - scientific research - subsidy - Whether the grant-in-aid received by the assessee as an incentive for conducting research is liable to tax as revenue receipt - Whether for the purpose of deciding the nature of incentive subsidy received, the utilisation of such amount is only relevant - Whether in that context the object for which the subsidy is received also deserves due relevance - Whether in case an assessee is able to acquire new ideas to improve its manufacturing activity, such acquisition would constitute an intellectual property.


CIT Vs Aradhana Drinks & Beverages Pvt Ltd (Dated : April 1, 2013)

Income Tax - Section 69 - Business Transfer Agreement - rights - interest - leased assets - liabilities - perversity - Whether a previous finding of fact, already decided by the Appellate Authority and Tribunal, can be disturbed by the High court, unless there is no perversity found in these findings.


CIT Vs Ram Singh (Dated : February 5, 2013)

Income Tax - Sections 132(1), 158BC, 158BD - Chapter XIV-B - search - ex parte - block assessment - Whether the assessment u/s 158BC can be initiated without an authorisation of search warrant issued u/s 132(1) - Whether an illegal search is a valid search as per the provisions of chapter XIV B - Whether the assessment made on the assumption of jurisdiction by issuance of notice u/s 158BC is valid, though the jurisdiction over the person in whose case search warrant was issued and the other person in whose case warrant was not issued, rests with the same AO.


CIT Vs M/s Riya Travels & Tours (I) Pvt Ltd (Dated : March 26, 2013)

Income Tax - Sections 132, 143(3), 153A, 263 - bogus - refund - assessment - expenditure - Whether when the Tribunal, on the basis of facts, has held that amount claimed as bogus refund cannot be added to the income of the assessee, further interference can be made by the High Court.


CIT Vs M/s Silvassa Industries Ltd (Dated: March 26, 2013)

Income Tax - Section 32 - written down value - depreciation - Whether it is not possible to upset the assessment finalised as a result of insertion of an explanation in the statute book - Whether the WDV of the current year's asset can be corrected without affecting WDV of the same asset in previous years.


Karnataka State Industrial Investment Development Corporation Ltd Vs CIT (Dated: March 13, 2013)

Income Tax - Writ - Section 281B - The State Financial Corporations Act, 1951 - Section 29, 31(1)(a) and (aa), 46B - Constitution of India - Article 372 - Tax Recovery Officer - mortgagor - mortgagee - Whether the realization of income-tax dues will have priority over the secured debt in terms of the State Financial Corporations Act, 1951 - Whether rule 93 of Second Schedule of the Act creates a prior charge over the assets of the assessee even though there is a provisional attachment order issued u/s 281B.


DCIT Vs Inox Leisure Ltd (Dated: January 8, 2013)

Income Tax - Section 115JB - Capital receipts - revenue receipts - Whether tax exemption granted by the State Governments under a specified scheme for promoting capital investments in the multiplex units, can be considered as revenue in nature, merely because the assessee has received the funds after commencement of its operations - Whether provision of gratuity liability of a company is required to added back to its book profit u/s 115JB, although the provision for gratuity is made on the basis of actuarial calculations .



S K Jain Vs CIT (Dated: March 12, 2013)

Income Tax - Writ - Sections 132, 132B, 143(3), 153A, 244A(1)(b) - search - unexplained cash - inordinate delay - Whether the interest payable u /s 132B(4)(a)(b) on the left out amount seized during search, is to be paid from the next day of the search conclusion till the date of actual release of the said amount - Whether such interest is payable even if it is not demanded by the assessee.


CIT Vs Titan Securities Ltd (Dated: February 28, 2013)

Income Tax - Sections 68, 131, 142(1) , 143(1), 148, 151, 260A - accommodation entries - modus operandi - Whether in order to make addition u/s 68, the burden to prove creditworthiness of the parties involved is on the assessee - Whether mere submission of the bank statements of the share subscribers without any explanation for the deposits in the accounts meet the requirements of Section 68 - Whether in certain cases, in order to prove the genuineness of the transactions u/s 68, it becomes mandatory for the assessee to ensure the attendance of the share subscriber companies - Whether a Tribunal, which is not a court, is vested with a judicial power to be exercised in a manner similar to the exercise of power of an appellate court acting under the Code of Civil Procedure.


Sri S M Dayanand Vs DCIT (Dated: September 4, 2012)

Income Tax - Sections 142(1), 143(2), 260A - capital expenditure - tenancy right - transfer - lease - Whether when after making the payment to a vendor no asset or right is acquired, it can still be treated as a capital expenditure - Whether when the advantage secured by the assessee by incurring the expenditure is absolution or immunity from liability to pay municipal rates or taxes, in case these liabilities have to be paid, the payments can be considered as capital expenditure.


Konkan Railway Corporation Ltd Vs ACIT (Dated: March 21, 2013)

Income Tax - Writ - Section 271(1 )( c) - Union Ministry of Railways - Board for Reconstruction for Public Sector Enterprises - financial restructuring - Whether when stay has been sought in respect of recovery proceedings, an order of dispensation ought to be granted.


M/s J K Industries Ltd Vs ACIT (Dated: February 19, 2013)

Income Tax - Sections 32(2), 80HHC - Whether deduction u/s 80HHC is to be allowed before the adjustments of unabsorbed depreciation.


CIT Vs Neera Bhandari (Dated : March 22, 2013)

Income Tax - Sections 54EC, 56(2)(v) - Whether when an assessee has received a share of capital gains, as an amount under the will on the death of father, the same can be treated as the income of the assessee.


Whirlpool Of India Ltd Vs UoI (Dated : February 28, 2013)

Income Tax - Sections 9, 10A, 10B, 80HHC, 80HHE, 80HHF, 80J, 115JA, 115JB, 119(2)(a), 195, Rule 19A - Constitution of India - Article 14, 19(1)(G) - "retrospective amendment", "Statement of Objects and Reasons" - Whether when the Supreme Court pointed out the inadequacy of the existing clause (c) of Section 115JB to cover a provision for the diminution in the value of any asset, the legislatative action to plug the lacuna by inserting clause (i) which permitted an upward adjustment of the book profit by the provision made for diminution in the value of any asset with retrospective operation, is unconstitutional - Whether the principle that fiscal benefits specifically provided under the Income Tax Act to foster growth in a sector, cannot be revoked retrospectively, be compared with the provisions of Minimum Alternate Tax - Whether it is unusual for the legislature to make amendments with retrospective effect to cure the lacuna pointed out by judicial decisions - Whether to challenge the retrospectively of the amendment, it is necessary to show that the retrospective operation so completely alters the character of the tax as to take it outside the limits of the entry which gives the legislature competence to enact the law - Whether when the amendment in the section operates retrospectively by merely adding one more category of a debit to the profit and loss account by which the book profit of the company can be increased, amounts to alteration in the character of the tax levied - Whether in the absence of any reason or justification given in the statement of objects and reasons for an amendment would invalidate the legislative action and would render the amendment unconstitutional on that ground alone - Whether the statement of objects and reasons for enacting a statute can be read only for a limited purpose - Whether it would be correct to treat the provisions of Section 80J and the provisions of Section 115JB on par and require the same standards to be fulfilled to enact a valid legislative amendment with retrospective effect in both of them - Whether an amendment made in the larger public interest to curb the practice of tax avoidance by the companies, due to lacuna in the present law can be challenged on the mere

grounds of its retrospective operation - Whether legislature has to necessarily wait till the Supreme Court pronounced its view and, only then can the legislature make a retrospective amendment - Whether retrospective amendment can be applied only to cases whose assessment or appellate proceedings are still pending - Whether a completed assessment, if reopened on genuine grounds can be treated separately on the basis of retrospective amendment.



M/s J K Industries Ltd Vs JCIT (Dated : February 26, 2013)

Income Tax - Sections 28(iiib), 80HHC(3) - Whether the benefit of deduction u/s 80HHC can be availed by the assessee only on the total income as computed after setting off the unabsorbed depreciation of the earlier years - Whether the Tribunal is justified in not holding that notional duty benefit derived by the assessee amounts to cash assistance u/s 28(iiib).


CIT Vs M/s Infosys Technologies Ltd (Dated : February 18, 2013)

Income Tax - Sections 80HHE, 260A - Whether for the purpose of allowing deduction u/s 80HHE, the interest and dividend receipts are excludable - Whether for the purpose of allowing deduction u/s 80HHE, miscellaneous income is to be excluded from the total turnover.


Ester Industries Ltd Vs UoI (Dated : March 1, 2013)

Income Tax - Writ - Sections 115JB, 129, 148, 147, 151(1) - Whether no action can be taken for re -opening the assessment, just because action for rectification is permissible - Whether when the assessing authority has the power to rectify the assessment u/s 154, based on a retrospective amendment as permitting the action u/s 147, such order is erroneous - Whether a retrospective amendment of law can permit action for rectification of the assessment on the ground of mistake apparent from record - Whether when the action u/s 154 is permissible, action u/s 147 to reopen the assessment is automatically permissible.


CIT Vs Somany Evergreen Knits Ltd (Dated : March 21, 2013)

Income Tax – No Penalty for wrong claim due to a bona fide mistake/wrong advice of CA – High Court


Hitesh R Shah Vs ITO (Dated : March 11, 2013)

Income Tax - Writ - Sections 147, 148 - Whether when the reassessment proceedings are cancelled because of incorrect reasons recorded by the AO, nothing prevents the Revenue for initiating re-assessment again if it has adequate materials on record - Whether the order of CIT(A) can be treated as a bar for initiating fresh proceedings u/s 148.



M/s Krishi Discs (P) Ltd Vs CIT (Dated : March 11, 2013)

Income Tax - Sections 142(1), 143(2)(ii) - valuation - Whether the method of valuation of stock can be changed midway - Whether when an assessee, being an SSI, is not liable to pay excise duty on its initial clearance upto Rs. 100 lakhs, the valuation of inventory in that year can be made without including the duty amount in the value of closing stock.


CIT Vs M/s Jay Kay Feeds (P) Ltd (Dated : March 13, 2013)

Income Tax - Sections 132(4), 215, 217, 256(2) - Whether during assessment, the Gross profit rate can be applied by the assessing authority, only on the sales made by the assessee outside the books of account - Whether when the Revenue has more amount in its control than the amount of advance tax payable by the assessee, it can be held liable to pay interest on the said amount of advance tax.


CIT Vs Shri Jagtar Singh Chawla (Dated : March 20, 2013)

Income Tax - Sections 54(2), 54F, 139, 142(1), 260A - period of limitation - capital gains account scheme - Whether the unutilized portion of the capital gain on the sale of property used for residence, should be deposited before the date of furnishing the return of income tax - Whether section 139 would cover only section 139(1) in its purview - Whether when the assessee has invested the sale proceeds in a residential house within the extended period of limitation, the benefit of exemption u/s 54F can still be denied.


CIT Vs M/s Hindustan Petroleum Corporation Ltd (Dated : March 7, 2013)

Income Tax - Sections 80I, 80IA, 80IB(4), 80HH - Whether the activity of bottling LPG Gas amounts to production or manufacturing activity for the purpose of deduction u/s

80HHC, 80I and 80IA - Whether every activity which brings into existence a new product would constitute production, for the purpose of availing deduction u/s 80IA.


Hardayal Charitable & Educational Trust Vs CIT (Dated : March 15, 2013)

Income Tax - Sections 11(1)(a), 12, 12A(1), 12AA, 80G - Whether at the time of registration u/s 12AA of the Income Tax Act, it is necessary for claiming exemption u/s 11 and 12 of the Act, to look into the activities, where such activities have not or are in the process of its initiation - Whether when a trust, set up to achieve its objects of establishing educational institution, is in the process of establishing such institutions, and receives donations, the registration u/s 12AA can be refused, on the ground that the Trust has not yet commenced the charitable or religious activity - Whether the enquiry at such preliminary stage should be restricted to genuineness of the objects and not the activities unless such activities have commenced - Whether when the Commissioner of Income Tax was satisfied with the genuineness of the objects of the trust for the subsequent AY, the refusal of the registration for the previous AY is not justified - Whether the question of the exemption of the application of income received by way of donation, is an issue required to be considered, only when the return is filed by the Trust.


UB Global Corporation Ltd Vs CCIT (Dated: March 11, 2013)

Income Tax - Sections 80HHC, 119(2)(a), 132, 234A, 234B, 234C, Order F. No 400/234/95 IT(B) dated 30.1.1997, Order F.No 400/129/2002 IT (B) dated 26.6.2006 - Whether when an assessee has genuinely availed benefits under the Income Tax Act, relying upon the decision of Kerala High Court, which was later overruled by the Supreme Court, it cannot be granted the waiver of penal interest u/s 119(2)(a), merely because the assessee is not located within the jurisdiction of the Kerala High Court - Whether the power of waiver of penal interest u/s 119(2)(a) can be exercised only in the perspective of the decision of the High Court or Supreme Court passed necessarily in assessee's own case - Whether the fact that the decision covers the field of Income Tax legislation, as may be applicable to any assessee, would not amount to a sufficient circumstance for reduction of waiver of interest - Whether the decision of the other High Courts have any persuasive value.



CIT Vs Weizmann Homes Ltd (Dated: March 4, 2013)

Income Tax – Sections 201(1), 201(1A) – Royalty – contract – TDS - Whether when the royalty agreement stands cancelled, even then any TDS obligation arises for the assessee - Whether Revenue is right in rais ing demand u/s 201(1).


CIT Vs Wipro Healthcare IT Ltd (Dated : March 5, 2013)

Income Tax – Sections 201(1), 201(1A) – Royalty – contract – TDS - Whether when the royalty agreement stands cancelled, even then any TDS obligation arises for the assessee - Whether Revenue is right in raising demand u/s 201(1).


CIT Vs M/s Trident Ltd (Dated: March 13, 2013)

Income Tax - Sections 260A, 263, 271(1)(c) - penalty - subsidy - Whether when the penalty proceedings have been set aside in an appeal, the Commissioner can still impose penalty on the basis of an order which has been set aside by the CIT(A).


CIT Vs Roadmaster Industries Of India Ltd (Dated: March 18, 2013)

Income Tax - Reference - Sections 32AB, 80HHC, 143(3), 154, 256(2), 263 - Whether in case of a reference application u/s 256(2), Revenue is open to reopen the concluded assessments - Whether the Commissioner has the power to excercise revisional jurisdiction u/s 263 only when the assessee has been given an opportunity to be heard.


ACIT Vs Nilofar Currimbhoy (Dated: March 13, 2013)

Income Tax - Sections 142(1), 276CC, 278E - Constitution of India - Article 227 - pre charge evidence - revision petition - Whether in case of section 278E, the Court has to presume the existence of culpable mental state, and absence of such mental state can be pleaded by an accused as a defence in respect to the act charged as an offence in the prosecution - Whether after filing of the compliant, the trial court is merely required to examine whether cognizance should be taken or not - Whether a complaint before a trial court becomes unmaintainable, in case the assessee has applied for the compounding of the offence before the filing of the compla int.


National Agricultural Cooperative Marketing Federation Of India Ltd Vs CIT (Dated: March 15, 2013)

Income tax - Stay/pre -deposit - Whether when the AO has adjusted refunds against the demand raised, the CIT should have examined the facts before directing the assessee to make deposits of the demand raised.


Kuhshpat Shah Vs DGIT (Dated: March 13, 2013)

Income Tax - Writ - Sections 131, 132, 153A, 153C - Constitution of India - Article 226 - Hawala - Whether when it has been proved that before the assessing authorities, sufficient opportunity has been provided to an assessee, the same can be granted relief again before the appellate authorities.


CIT Vs M/s Banswara Syntex Ltd (Dated: January 15, 2013)

Income Tax - Section 260A - Operational lease - financial lease - Whether once the agreement has been accepted as real and genuine, the said agreement can be considered as financial lease and not an operational lease - Whether a conclusion can be drawn that there is a “substantial” transfer of ownership though “apparent” non-transfer of title, although the agreement suggests that the assessee has no right to transfer or alienate the machinery in any form, and obliged to re-deliver the equipment upon termination of lease agreement - Whether the rule of corollary warrants that, when the assessee has been allowed in the past the claim of depreciation on the machinery given on hire to another concern by way of different agreements; cannot be refused from claiming the hire charges as revenue expenditure.


CIT Vs Consumer Health Care Ltd (Dated: March 18, 2013)

Income Tax - Sections 36(1)(iii), 57(iii), 80M, 80AA, 256(2), 263 - investment - dividend income - Whether in order to avail deduction u/s 57(iii), only the amount of interest relatable to the dividend income alone is liable to deducted from the dividend income - Whether the income from dividend can be recorded after adjusting the interest on loan availed for making investment and not the interest paid on other borrowings.


M/s Avadh Transformers Pvt Ltd Vs UoI (Dated: March 20, 2013)

Income Tax - Writ - Sections 80IA, 80IB, 139(1), 143(2), 143(3), 147, 148 - Constitution of India - Article 226 - Whether in case there is any retrospective amendment in law, it can be deemed that the assessee has failed to disclose fully and truly all material facts necessary for assessment as a result of such amendment - Whether in such a case a notice for reopening of assessment, is allowed to be issued beyond the normal time limit of four years.


CIT Vs M/s Cheslind Textiles Ltd (Dated: March 4, 2013)

Income Tax - Sections 10A, 10B, 32(2), 72(2), 263 - Whether the benefit of set off or

carry forward of loss u/s 72 is allowed while computing deduction u/s 10B - Whether an assessee has the option to opt out of section 10A - Whether in such a case, the normal provisions of the Act would apply - Whether the loss of non-Sec 10A unit can be set off against the income of section 10A unit u/s 72 - Whether at the time of ascertaining the profit or loss of an undertaking, the unabsorbed depreciation of other undertaking can be allowed as set-off for computing deduction u/s 10B.


Centre For Development Of Telematics Vs UoI (Dated: March 12, 2013)

Income Tax - Writ - Sections 10(21), 35(1), Rule 5D - scientific research association - Whether when an assessee receives royalty and support services fee and consultancy charges which were ancillary to its sole object of undertaking scientific research, it is not entitled to deduction u/s 35(1) - Whether in case of a scientific research association claiming deduction 35(1), any income can be included in the total income by virtue of section 10(21).


M/s Venture Metal Products Pvt Ltd Vs DCIT (Dated: March 12, 2013)

Income Tax - Writ - Sections 10B, 206 - status-quo - Whether the power of stay can be excercised ordinarily in a routine way or as a matter of course - Whether even when the stay proceedings are in existence, can the recovery proceedings be pursued simultaneously.


M/s Crimson Properties Pvt Ltd Vs ITO (Dated: March 14, 2013)

Income Tax - Writ - Sections 147, 148 - Whether when assessee is given many opportunities to explain how rental income has become business income as claimed in the return, lack of response from the assessee justifies re -assessment u/s 147.



Katira Construction Ltd Vs UoI (Dated: February 28, 2013 & March 4, 2013)

Income Tax - Sections 80IA(4) & (13), 80IB - Constitution of India - Articles 14, 19(1)(g) - "retrospective amendment", "works contract", "developer", "contractor", "explanation", "legislative competence" - Whether Explanation introduced in Section 80IA(4) by the Finance Act, 2009 having retrospective operation w.e.f 1.4.2000 is unconstitutional, although it only attempts to clarify that deduction under section 80IA(4) of the Act would not be available in case of execution of works contracts - Whether the intrinsic difference between developing an infrastructure facility and executing a 'works contract' was already made clear in the amendment itself introduced in the year 2002 - Whether the amended Section 80IA(4) with effect from 1.4.2002 could be construed as not including execution of 'works contract' as one of

the eligible activities for claiming deduction - Whether when the intention of the legislature is clear from the substantive provision of a Section, can an explanation later introduced in the same Section be interpreted as something different, from a mere clarification - Whether the question of levying any tax with retrospective effect would arise, when the impugned explanation is purely explanatory in nature and did not mend the existing statutory provisions - Whether an explanation is introduced by the Legislature only for clarifying some doubts or removing confusion which may be possible from the existing provisions. - Whether an explanation while making the implicit into explicit, can expand the scope of the main provisions - Whether an exception to this general rule can be made, while interpreting the main intention of the legislature - Whether if the language of the explanation is plain and suggests departure from the above conventional usage of an explanation, full effect to the contents of the explanation would be given as would emerge from the plain language of the provision - Whether presumption in favour of the constitutionality of an enactment and the burden is on him who attacks it to show that there has been a clear transgression of the constitutional principles - Whether the question of unreasonableness and arbitrariness can arise, if deductions which have been existing till now are withdrawn by virtue of an Explanation, introduced through retrospective amendment in the Act.



Uti Mutual Fund Vs ITO (Dated : March 6, 2013)

Income Tax - Writ - Sections 10(23D), 143(3), 161(1), 177(3), 220(6) - Whether the assessee is entitled for a Stay of demand when a prima facie case raising serious triable issues has been made out for stay of the enforcement of the demand in the hands of the assessee in pursuance of the impugned notices.


M/s Pranawa Leafin Pvt Ltd Vs DCIT (Dated : March 14, 2013)

Income Tax - Writ - Sections 147, 148 - Whether the invocation of the jurisdiction to reopen the assessment beyond the period of four years is justified when there is a failure on part of the assessee to disclose fully and truly all material facts necessary for the assessment of that A.Y.


CIT Vs M/s Amarjit Singh Bajwa (Dated: March 14, 2013)

Income Tax - Sections 144, 260A - Whether when the books of accounts of the assessee are not rejected by the assessing authority, the assessment can be framed on the basis of best judgement method - Whether in case of income tax proceedings, each assessment year is an independent proceeding.


CIT Vs Birla Vxl Ltd (Dated: February 12, 2013)

Income Tax - Whether the Sales Tax exemption granted to the assessee by the State Government is in the nature of ‘Capital Receipt’.


CIT Vs Sri D G Gopala Gowda (Dated: March 5, 2013)

Income Tax - Section 263 - Whether the CIT is justified in invoking jurisdiction u/s 263 when there is no evidence to show how it is prejudicial to the interest of Revenue.


CIT Vs Tainwala Chemicals & Plastics India Ltd (Dated: March 6, 2013)

Income Tax - Sections 14A, 36(1)(vii), 36(2) - Whether the Tribunal is justified in deleting the disallowance u/s 14A and directing the AO to decide the same in the light of the decision of the Bombay High Court in the case of Godrej & Boyce Manufacturing ?Whether the debt qualifies for deduction u/s 36(1)(vii) r/w Section 36(2) when the assessee has lent surplus money and offered the interest to tax as business income.


CIT Vs Smt Sakuntala Devi Khetan (Dated: March 4, 2013)

Income Tax - Section 132 - Whether addition to the income can be made solely based on the information received in the course of search conducted in the premises of a business party - Whether such addition can be made by totally ignoring the sales tax return filed by the assessee and accepted by the sales tax Authorities.


CIT Vs Shri Jora Singh (Dated: March 8, 2013)

Income Tax - Sections 143(1), 147, 148, 152 - Whether failure to take steps u/s 143(3) will render the AO powerless to initiate reassessment proceedings, even when intimation u/s 143(1) had been issued - Whether scope and effect of Section 147 as substituted with effect from April 1, 1989, as also sections 148 to 152 are substantially different from the provisions as they stood prior to such substitution - Whether Section 143 warrants that the recourse to Section 147 can be had only when the period of limitation to complete assessment proceeding has expired or the Assessing Authority should wait for the expiry of the said period.

2013-TIOL-224-HC-JHARKHAND-IT

CIT Vs M/s Tata Yodogawa Ltd (Dated: March 18, 2013)

Income Tax - Reference - Sections 32AB, 41(1)(a), 154, 256(1), CBDT Circular No. 461 of 1986 - Whether dividend, capital gains and provision of Excise Duty written back can be considered as profit from business for the purpose of deduction u/s 32AB - Whether mere change in liability in toto and not in quantitative terms only, can make the liability as un-ascertained liability, which was ascertained when demanded - Whether such liability can be considered as contingent depending upon ambiguity in legal opinion.


Saipem Triune Engineering Pvt Ltd And Anr Vs ACIT (Dated: March 1, 2013)

Income Tax - Writ - Sections 40A(2), 220(2) - Whether a sum can be added to the income of the assessee u/s 40A(2), although the same has not been claimed as expenditure - Whether depreciation can be disallowed on the intangible assets, although the same has been allowed on the tangible assets - Whether an amount which has been paid as a part of the sale price in a slump sale transaction can be added back to income of the assessee, merely on the pretext that the transaction was alleged to be sham in nature .



Classic Share & Stock Broking Services Ltd VS ACIT (Dated: March 7, 2013)

Income Tax - Writ - Sections 143(3), 147, 154, 254, 263 - Whether when an assessing officer has given effect to the order of the Tribunal, his successor in office had jurisdiction to pass a fresh order u/s 254 - Whether in case an assessing officer has no jurisdiction to pass on order u/s 254, will this also preclude the Revenue from availing other remedies available under the Act.


CIT Vs M/s Kisan Engineering Works Ltd (Dated: March 6, 2013)

Income Tax - Sections 34A, 72(1)(i), 143(3), 147, 148, 260A, 263 - Whether in case the business income is a loss, such loss can be set off against the income under the head capital gains - Whether the same was allowable in case such situation arose in assessment year 1992-93 - Whether the commissioner can exercise its jurisdiction u/s 263 in such a matter - Whether the business loss, unabsorbed depreciation and unabsorbed investment allowance are one and the same thing from the perspective of set off of losses.


M/s Global Energy Pvt Ltd Vs CIT (Dated: February 19, 2013)

Income Tax - Writ - Sections 127(1), 127(2), 132(1) - Constitution of India - Articles 136, 226 - Whether the requirement of recording reasons u/s 127(1) is a mandatory direction under the provisions of law - Whether in order to transfer a case for further investigation, the mere mentioning that it is necessary to transfer it for co-ordinated investigation is sufficient - Whether while transferring the case on the ground of co -ordinated investigation, some reason has to be given by the commissioner which reveals why it is necessary to transfer the case for the purpose of co -ordinated investigation.


Punjab Urban Planning And Development Authority (Pda) Vs CCIT (Dated: March 12, 2013)

Income Tax - Writ - demurrage charges - deterioration - Whether as per the provisions of law, there can be a deemed stay on liability after the enforceable order is passed by an authority under the statute - Whether without obtaining an order of stay or other appropriate direction from the authorities, an assessee can refuse to implement the order under appeal - Whether mere filing of an appeal can be construed as a stay or suspension of the order appealed against.


CIT Vs R Sugantha Ravindran (Dated: March 6, 2013)

Income Tax - Sections 50C, 260A, - CBDT Circular No.5/2010 - Whether the circulars issued by the Department are binding on the Department - Whether the Revenue official himself can repudiate that they are inconsistent with the statutory provisions - Whether when a new class of transactions are inserted in the statute through amendmend, can the same have a retrospective effect - Whether the provisions of section 50C can be invoked, where the sale deed is not registered - Whether the assessing authority is entitled to take the value of the property assessable by the authority of the State Government for the purpose of payment of stamp duty in respect of said transfer or not.


CIT Vs M/s Armour Consultants Pvt Ltd (Dated: March 1, 2013)

Income Tax - Sections 31, 35(1)(ii), 37, 43(2) - payment for scientific research - Whether when assessee requests other companies to pay for scientific research and makes payment to them in the subsequent year but claims deduction in return, such benefits u/s 35(1)(ii) can be denied by Revenue - Whether deduction sought in respect of the expenses made towards designing and lay out as well as other temporary partition and construction made for making the office functional is capital in nature - Whether when the assessee is in negotiations with the parties in respect of consultancy charges and professional fees, for reducing them, and finality on the quantum could not be reached even at the time of closing the accounts, whether the assessee is entitled to make a provision for the same based on the original claims made by those parties - Whether provision can be made for the entire amount of liability, although it is contingent in nature and negotiations are ongoing with the third party.



Court On Its Own Motion Vs CIT (Dated: March 14, 2013)

Income tax - PIL - Sections 44AD, 140A, 143(1), 154(7), 234A, 234E, 244A, 245, 272BB, Rule 37BA - PIL - TDS - Form No 26A - Whether when it is admitted by the CBDT that the data uploaded in the CPC database by the Department has serious errors, it is necessary for the assessees to file applications for correction of such errors - Whether AOs are required by law to suo moto carry out corrections and upload the data again so that refunds could be issued in genuine cases - Whether before making adjustement of refunds the onus is on the AO to issue an intimation to the assessee - Whether interest can be disallowed to the assessee even though the Revenue admits that it made wrong uploading of data at CPC - Whether when AO makes adjustment in the returned income, it is necessary to issue intimation u/s 143(1) - Whether the onus to show that intimation was communicated, is on the Revenue - Whether TDS benefit can be denied to the deductee for the fault of deductor.



Grasim Industries Ltd Vs Secy, Deptt of Science & Technology Govt of India & Ors (Dated: March 7, 2013)

Income Tax - Writ - Section 32(2B)(ii) - Whether usage of composite technology, which involved application of know-how of the original technology in manufacturing another product, like caustic soda, can qualify as 'employing of new machinery or plant for the purpose of business' within the meaning of Section 32A(2B), when both the technology has been developed by the same recognized scientific laboratory.


Dr C Mohanan Vs DCIT (Dated: December 6, 2012)

Income Tax - Sections 132, 139(5), 158BC, 158BD, 158BFA(2) - undisclosed income - Whether the requirements of section 158BD are cumulative in nature - Whether when an assesese has filed NIL 'Return of Income', can he avail the benefit of waiver of penalty as mentioned u/s 158BFA.


M/s D B Bandodkar & Sons Pvt Ltd Vs ACIT (Dated: February 25, 2013)

Income Tax - Sections 133(a), 142(1), 148 - additional evidence - consignment - Whether when an opportunity of being heard has already been given to the assessee by the lower authorities, the further plea regarding submission of additional evidence before higher authorities can be accepted.


CIT Vs Sheela Christian Charitable Trust (Dated : February 27, 2013)

Income Tax - Section 12AA(2) - assumed registration for the Respondent Trust - Whether when there is no clear statutory intent regarding the time limit to be complied, it is to be considered as directory only - Whether when the consequence for non-compliance of the time frame has not been spelt out in the statute, can it be held that the said time limit is mandatory in nature - Whether negative words indicate a mandatory intent all the times - Whether in case of a trust, when an application for registration was not a ccepted within a period of six months from the end of the month in which such application was filed, the registration can be assumed to be automatically given.


CIT Vs Sadhna Gupta (Dated: March 6, 2013)

Income Tax - Sections 69B, 142A, 260A, - Fair Market Value - District Valuation Officer - Whether when there is some other evidence to indicate that extra consideration had flowed in the transaction of purchase of property, the report of the DVO can form the basis of any addition on the part of the Revenue - Whether reliance on the report of the DVO can be made only when, Revenue had discharged its burden of proof with regard to concealment of income.


Padmini M Nair Vs UoI (Dated : January 7, 2013)

Income Tax - Sections 132, 158BD - Whether notices u/s 158BD can be issued on the basis of an undated note, recording satisfaction of the AO with respect to the search conducted, although such note was not in existence on the date when the notices were issued - Where the provisions of Section 158BD can be invoked, even before meeting the conditions prescribed in the said section.


M/s OHM Stock Brokers Pvt Ltd Vs CIT (Dated : February 20, 2013)

Income Tax - Sections 36(1)(ii), 40A(2)(b), 147, 148 - Whether when the nature of the payment, the basis of the computation and the rationale for computing the remuneration to the directors have been duly disclosed by the assessee, assessment can still be reopened on the ground that such payments were made in violation of Section 36(1)(ii) - Whether reopening of assessment can be warranted, when the Revenue has admittedly treated the amounts paid to the directors in question as salary income in their hands and their assessments have been completed accordingly - Whether the mere fact that the order of assessment did not specifically deal with the issue as to whether the payment fell within the purview of Section 36(1)(ii) is sufficient to reopen the assessment.


CIT Vs Blue Ocean Sea Transport Ltd (Dated: March 1, 2013)

Income Tax - Section 115VP - Tonnage Taxation - directory provision - Whether when the statute does not provide for any penal consequence in case of non-complinace of any legal compliance, the said provision can still be considered as mandatory.


CIT Vs Delhi Apartments Pvt Ltd (Dated: March 7, 2013)

Income Tax - Sections 2(47)(v), 260A - Transfer of property Act - Sec 53A - Whether when assessee has received only advance payment against a sale transaction, Revenue is right in law to bring entire sum to tax in same year - Whether when there is no evidence that borrowed capita l has been used for the purchase, the gain on sale of such asset can be taxed under the head 'Profits and Gains for Business & profession'.



M/s Sri Lakshmi Brick Industries Vs Tax Recovery Officer (Dated: February 1, 2013)

Income Tax - Writ - Sections 80IB, 156, 224, 225 - Whether when the highest fact finding authority has held a decision in favour of the assessee, the Revenue is bound to give effect to the order of the lower authority, wh o has accepted the order of the Tribunal.


CIT Vs Renato Finance & Investment Ltd (Dated: March 4, 2013)

Income Tax - Sections 45, 47(v) - Whether the profit on sale of shares is capital gain instead of business income when the Tribunal observes that the shares sold by the assessee to its holding company is not tradeable in the market like any other normal trading asset.


CIT Vs Shri P Balasubramanian (Dated: March 6, 2013)

Income Tax - Sections 132, 132(4), 133A, 143(1), 143(2), 148, 158BB - Whether the material collected and the statement recorded during the survey operation under Section 133A has any evidentiary value - Whether the statement recorded during search u/s 133A and 132(4) can be taken as interchangeable - Whether the Income Tax officer has the authority to examine a person on oath u/s 133A - Whether the statement u/s 132(4) gives power to an authorised officer to examine a person on oath and any such statement can also be used in evidence under the Act - Whether the material found in the course of survey proceeding could be used as a basis for making addition in the block assessment.


NTPC Ltd Vs DCIT (Dated: March 7, 2013)

Income Tax - Writ - Sections 80IA, 147, 148 - Whether the issue of change of opinion is equally relevant for matters in which the reopening was sought beyond four years, as it is to the cases where the reopening was sought within four years of the end of the relevant assessment Year.


CIT Vs Hughes Communication India Ltd (Dated: March 7, 2013)

Income Tax - Section 260A - Whether when it has been acepted by the Tribunal that the neccessary details have been filed before the assessing authority, the Revenue can still contend that the claim of the assessee was unsupported - Whether in order to avoid distortion of profit, it is sufficient to follow consistent method of inventory valuation.


CIT Vs RKBK Fiscal Services Pvt Ltd (Dated: February 19, 2013)

Income tax - Sections 14A, 263, Rule 8D - Whether when assessee fails to maintain separate accounts for taxable and non-taxable income, no wrong can be found with the CIT invoking revisionary powers to disallow interest expenditure incurred on account of non-taxable income.

Also see analys is of the Order


Shikshana Prasaraka Mandali Vs CIT (Dated: March 5, 2013)

Income Tax - Writ - Sections 127(2), 153C - Audi Alteram Partem Rule - Whether before passing an order of transfer of case u/s 127(2), an opportunity of personal hearing to the assessee is mandatory - Whether the giving of notice containing the reasons for the pro posed action is a basic postulate for compliance of the Audi Alteram Partem Rule - Whether when the assessee himself has not asked or a personal hearing, will it absolve the revenue of its obligation to ordinarily grant such a hearing.


CIT Vs Sambhav Media Ltd (Dated: February 19, 2013)

Income Tax - Sections 36(1)(va), 36(1)(vii), 36(2), 72A(7)(aa) - Whether in case of

amalgamation, the transferee company, in order to claim bad debts of the amalgamated company, needs to prove that the debts have actually become bad - Whether the provisions of section 72A can apply in case of claiming of bad debts with respect to doubtful debts of the amalgamating company.


CIT Vs Technovate E Solutions Pvt Ltd (Dated: February 26, 2013)

Income Tax - Sections 10A, 10B - software expenses - copyrighted article - Whether the approval granted by the Director of STPI is a sufficient approval so as to satisfy the conditions relating to approvals under section 10A - Whether the software expenses incurred by the assessee, is a sale of copyrighted article, thus it cannot be claimed as revenue in nature.


M/s Usha Polytex Ltd Vs CCIT (Dated: March 4, 2013)

Income Tax - Writ - Sections 244A(1)(a), 245 - Whether there is any provision in law to allow the set-off of the refund of a person against the dues of any other person, without intimating the person about such set-off.


CIT Vs M/s Aggarwal Tubes (P) Ltd (Dated: March 4, 2013)

Income Tax - Sections 80I, 139(1), 143(2), 260A - manufacture - processing - Whether even after a certain process of manufacturing, the identity of the product does not change, it can still be termed as 'manufacture' for the purpose of availing benefit u/s 80I.


CIT Vs Madhushree Gupta (Dated: February 27, 2013)

Income Tax - Sections 80AB, 80HHC - Whether the provisions of section 80AB have an overriding effect over the entire Income Tax Act - Whether mere making of a wrong claim can give rise to penalty for concealment - Whether the current year's loss can be set off against the amount of profit after claiming deduction u/s 80HHC.


CIT Vs P Rojes (Dated: February 5, 2013)

Income Tax - Sections 44AF, 271(1)(c) - Whether there cannot be any imposition of penalty based on estimation of income.


Faiz Murtaza Ali Vs CIT (Dated: February 20, 2013)

Income Tax - Sections 2(14), 254(2) - "personal effects" - Whether when the assessee has been able to show that the articles in question were inherited by way of gift, and indicated them as "personal effects" in the affidavit, which has not been challenged by the Revenue, the same can be considered as capital assets within the meaning of Section 2(14) - Whether when a factual point already decided by the Tribunal and left undisturbed by the High Court on appeal, can be reopened and decided by the Tribunal, when the matter is remanded back for deciding only a question of law - Whether frequency of use of the property must necessarily depend on the nature of the property - Whether merely because from the nature of the property, it could be used on ceremonial occasions only, it does not follow that the property is not held by the assessee for personal use - Whether amended Section 2(14), vide Finance Act, 2007 w.e.f. 1.4.2008, which alters the clause pertaining to 'personal effects' can be applied retrospectively to the assessment year 2002-03.


DSL Enterprises Pvt Ltd Vs Mrs N C Chandratre (Dated: February 21, 2013)

Income Tax - Writ - Sections 197, 244A - Arbitration and Conciliation Act, 1996 - Section 34 - Constitution of india - Article 226 - Code of Civil Procedure, 1908 - Section 144 - Whether an amount which was permitted to be withdrawn against a bank guarantee represents income - Whether when an arbitral award is alive and is pending, the amount which has been awarded can be included in the income of the awardee - Whether income tax can be levied on the right to receive compensation - Whether tax can be deducted at source even if the income has not accrued to the assessee.


M/s Asma Enterprises Vs ITO (Dated: January 21, 2013)

Income Tax - Writ - Section 279(2) - compounding - offence - stay - Whether when a particular offence has been compounded by the statute itself, the judiciary can continue to proceed with such proceedings.


ITO Vs M/s Anil Kumar And Company (Dated: February 1, 2013)

Income Tax - Sections 40(a)(ia), 139, 143(3), 194C, 200(1), Rule 30(b)(i) - Whether in case of a retrospective amendment in law, the benefit can be extended in favour of the assessee - Whether the assessment finalised earlier can be disturbed as a result of such retrospective amendmend in law.


Jeans Knit Pvt Ltd Vs DCIT (Dated: February 13, 2013)

Income Tax - Writ - Sections 10(B), 245, CBDT Circular No.530, Instruction No.1914 - Whether an intimation, which mentions that refund due to an assessee stands adjusted against the tax demand, can be construed as prior intimation of the proposed action u/s 245 of the Act - Whether a stay order can be claimed on the basis of favourable order passed by CIT(A) in assessee's own case, although the same has been challenged by the Department before the Tribunal - Whether assessee is entitled to a stay against the assessment order on the basis of Circular No. 530, when the assessee has failed to discharge the tax demand payable in monthly installments.



DIT Vs Abul Kalam Azad Islamic Awakening (Dated: February 26, 2013)

Income Tax - Sections 11(5), 12A, 12AA(3) - Whether the provisions of section 11(5) prescribe investment in the commercial property as an approved mode of investment - Whether when there is no conclusive proof that the rent received from the commercial property of the assessee had been applied for non-charitable purposes, the registration application for trust can be rejected.


CIT Vs M/s Bennett Coleman & Co Ltd (Dated: February 26, 2013)

Income Tax - Section 271(1)(c) - Whether the interest receivable on 6% GOI bonds can be considered as interest received on tax free bonds - Whether the premium received on redemption of debentures can be included as an income from other sources - Whether the provisions of penalty for concealment can be attracted in case of change of a mere change in the head of income.


Gangadhar N Agrawal (Huf) Vs MR T K Chatterjee (Dated : February 19, 2013)

Income Tax - Writ - Sections 143(3), 234B - CBDT notification No. 4000/234/95-IT(B) of 1996 - Whether when once it is held that no expense was incurred by the assessee, the question of any allowable expense being deducted in computing the income from the profits and gains of the assessee does not arise.


M Basheer Ahamed Vs CIT (Dated : February 18, 2013)

Income Tax - Sections 133A, 143(3), 144A, 148 - Whether the adoption of value of property as declared by the assessee in its confession statement, can be accepted as

a basis for reopening an assessment already finalised.


CIT Vs Smt Rani Tara Devi (Dated : February 28, 2013)

Income Tax - Sections 2(14), 45(5)(c) 155(16), 260A - Land Acquisition Act, 1894 - Sections 4, 18 - Constitution of India - Article 243P, 243Q - General Clauses Act - Section 3 (31) - "Municipality", "local authority", "ejusdem generis" - Whether an urban area developed by Haryana Urban Development Authority forms part of the Municipality - Whether land acquired by notification issued under the Land Acquisition Act, which falls within 5 kms of Haryana Urban Development Authority, can be considered as capital asset - Whether an authority which has been established to promote and secure the development of all or, any of the areas comprised in an ‘urban area’ and vested with all powers to hold, acquire, dispose of property or frame schemes, can be considered as 'Municipality' within Section 2(14) of the Act - Whether the expression 'Municipality' in Section 2(14) of the Income Tax Act is restricted to a Municipality constituted under the relevant Municipal Laws and cannot include any other area known by any other name - Whether local authority in terms of Section 3 (31) of the General Clauses Act means a 'Municipality' - Whether the nature of land whether it is agriculture or not is not relevant, if the land is within municipal limits - Whether the expression 'by any other name' appearing in Item (a) of clause (iii) of Section 2 (14) has to be read ejusdem generis with the earlier expressions i.e. municipal corporation, notified area committee, town area committee, town committee.



CIT Vs Shri Suresh Chander Mehra (Huf) (Dated : February 14, 2013)

Income Tax - Sections 40A(2)(b), 260A - Whether amount debited on account of debit note raised by the supplier of goods can be debited in the books and claimed as a deduction - Whether the assessing authority can invoke the provisions of section 40A(2) in such a case.


CIT Vs Meera Goyal (Dated : January 17, 2013)

Income Tax - Sections 51, 56(2)(vi), 133A, 144A - Whether before invoking the provisions of Section 56(2)(vi), it needs to be proved that a transaction is without any consideration - Whether forfeited earnest money needs to be taxed immediately and cannot be adjusted for the purpose of computation of capital gain, as and when the property is sold - Whether when once a transaction has been held to be genuine, there is no further question of it being without any consideration.


Khanna And Annadhanam Vs CIT (Dated: January 29, 2013)

Income Tax - Section 260A - Whether compensation received by an accountancy firm due to termination of the sole referral arrangement with an international accountancy firm, amounts to revenue receipts - Whether when a source of income, which has acquired permanency is abruptly terminated, can be considered as loss of source of income - Whether the situation would have been treated differently, when a firm enters into several referral arrangements with international firms and termination of one of such arrangements has no effect on its usual operations.


CIT Vs M/s Sakthi Finance Ltd (Dated : February 12, 2013)

Income Tax - Sections 145 - Reserve Bank of India Directions, 1988 - Interest income - Real income theory - Whether when an NBFC is following mercantile system of accounting, it could only be taxed on "real income" and not on accrued interest on the non-performing assets, which is merely a hypothetical income - Whether the accrued interest on such non productive assets cannot be taxed, even though there is nothing to indicate that the "interest income" is non-recoverable - Whether the income recognition norms prescribed in the RBI's Directions, 1988 and the Income-tax Act operate in different fields - Whether the accounting treatment required under the RBI norms can be applied for taxability of 'income' under the Income Tax Act - Whether mere characterization of an account as NPA would by itself be sufficient to say that, there is uncertainty as regards realizability of income or interest income thereon - Whether accrual of interest is a matter of fact to be decided separately for each case on the basis of examination of the facts and circumstances - Whether only when there is uncertainty of realizability of income or interest income then it is not chargeable to tax - Whether the adopted accounting policy i.e., recognising income on NPA accounts only subject to realisation does not serve as a standard category.


M/s Tamilnadu Magnesite Ltd Vs DCIT (Dated : February 11, 2013)

Income Tax - Sections 40A(7), 143(1), 154 - "mistake apparent on the face of the record" - Whether when the assessee has not objected to rectification of mistake carried out by making disallowance of gratuity provision, whether the consequential levy of additional tax, which is only a sequence to the prima facie adjustment, can now be objected - Whether rectification of an order can be allowed for removing an error, although it disturbs the finality.


Gangadhar N Agrawal, (Huf) Vs ITAT

Income Tax - Sections 143(2), 271(1)(c) - Mining Land Restoration - Whether when an appeal is filed by the Revenue against the order passed by the CIT(A), it is mandatory on part of the Tribunal to first decide the issue of jurisdiction, before passing any order.


OBC Vs CIT (Dated : February 14, 2013)

Income Tax - Sections 115J, 115JB, 260A - Whether the provision created for 'payment of Bonus' can be considered as an ascertained liability for the purpose of computing book profits u/s 115JB - Whether the 'provision created for bad and doubtful debts in respect of Rural branches' can be considered as a ascertained liability for the purpose of computing book profits u/s 115JB.


Vinod Kumar Agarwal Vs UoI (Dated : February 12, 2013)

Income Tax - Writ - Taxation Laws (Amendment) Act, 1975 - Sections 2(7), 2(31), 131(1A), 132(1) - person - assessee - such person - class of persons - Whether it is within authority of the assessing officer to investigate a person other than that of the person to whom the notice u/s 131(1A) was issued - Whether when the substantial commercial transaction, including the bank account of an assessee is in a particular jurisdiction, the assessment by the concerned assessing officer can be averted by the assessee.


Confederation Of India Pharamaceutical Industry (Ssi) Vs CBDT (Dated : December 26, 2012)

Income Tax - Writ - Section 37(1) - CBDT Circular No. 5/2012 - Whether when the Medical Council's amended regulations prohibit freebies gifted to practitioners by pharma companies, any fault can be found with CBDT Circular disallowing the expenditure incurred on such freebies in violation of MCI's rules.



Ajay Kumar Sharma Vs CIT (Dated: February 18, 2013)

Income Tax - Writ - Sections 80IB, 80IC, 143(1), 143(3), 147, 148 - Whether when a particular product is not in the range of the prohibited products as mentioned in schedule 13 of the Act and the assessee had mentioned 'Not applicable' for the concerned item in the relevant form, it can be held as a failure to all material facts necessary for its assessment - Whether such mentioning in the relevent form can be termed as failure to disclose all material facts, in case the issue of limitation of four years for reassessment, does not apply.


CIT Vs M/s Adonis Electronics Pvt Ltd (Dated : February 15, 2013)

Income Tax - Sections 41(1), 271(1)(c) - sham transaction - colourable device - protective assessment - Whether penalty for concealment can be levied, even if all the relevant particulars relating to assignment of business were fully furnished.


CIT Vs Mohmed Juned Dadani (Dated: January 29, 2013)

Income Tax - Sections 80HHC, 147, 148 - "Clarificatory amendment" - Whether if the reason for which the assessment is reopened u/s 147 fails, the AO can still proceed to assess other income, which had escaped assessment - Whether when the very foundation of the reopening is knocked out, any further proceeding in respect to such assessment can still survive - Whether where notice for reopening has been issued beyond a period of four years, the assessment would continue, even though on all the grounds on which the additions are being made, there was no failure on part of the assessee to disclose true and full material facts - Whether the position that for assuming jurisdiction to frame an assessment u/s 147, what is essential is a valid reopening of the assessment, stands materially altered by virtue of introduction of Explanation 3 to Section 147 - Whether if an Explanation introduced in a statute vide amendment does not bring any change in the interpretation of the existing legal position, will that not render the Explanation redundant - Whether such an interpretation will run counter to a well known legal principle that the Legislature cannot be seen to have enacted a redundant legislation - Whether a clarificatory amendment can be interpreted in a manner, while it does not alter the legal position, but still it is not rendered otiose -Whether an clarificatory amendment introduced in the form of explanation in a Section, to settle ambiguities arising out of legal interpretation of the said section, can expand the scope and sweep of the main body of the statutory provision - Whether when wide powers are vested with the AO under any Section, the same needs to be interpreted strictly to avoid arbitrary exercise of powers.



E I Dupont India Pvt Ltd Vs DCIT (Dated: February 12, 2013)

Income Tax - Writ - Sections 143(3), 147, 148 - Whether there is a pre-condition to be followed for reopening the assessment after the expiry of four years from the end of the relevant AY - Whether when there is a clear finding that the assessee had not failed to disclose necessary facts for the assessment in the original round of assessment, the assessment finalised can still be reopened after the expiry of four years.


CIT Vs Delhi Housing & Finance Corporation (Dated: February 12, 2013)

Income Tax - 'cross-examination' - Whether when the Income Tax Inspector has only made verbal inquiries with regard to the prevailing market rate of the property and has not collected any instances of actual sales, the valuation of such property can be decided only on the basis of an Inspector's report.


CIT Vs Gita Duggal (Dated: February 21, 2013)

Income Tax - Sections 54, 54F, 260A, - General Clauses Act - Section 13(2) - Whether whenever the singular is used for a word, it is permissible to include the plural by default - Whether in case of availing exemption u/s 54, the phrase "a" residential house would mean one residential house only - Whether the term 'a residential house' as mentioned under the provisions of section 54, can be equated with that of 'a residential unit' - Whether in order to avail exemption u/s 54, the emphasis is on the residential use of the property only.


Madhu Gupta Vs DIT (Dated: January 11, 2013)

Income Tax - Writ - Sections 131, 132, 132(1), 132(3), 142 (1), 153A - 'secret discreet inquiries' - Whether the authorisation for initiation of search u/s 132 can be issued by any officer of the Revenue Department - Whether the assessment in such case can be made on the basis of a mere 'belief' - Whether when the warrant of authorisation for search is in the name of an individual, who is a mere shareholder in a company, in that case the information and the reason to believe can be formed in connection with the company concerned also.


Vodafone Mobile Service Ltd Vs UoI (Dated: February 15, 2013)

Income Tax - Writ - Sections 143(3), 154, 156, 220(2), 234B - Whether when the liability for payment of additional tax itself was created for the first time, based on the subsequent amendment, with retrospective effect, it would be incongruent to expect the assessee to have satisfied the requirement of payment of advance tax - Whether the payment of interest u/s 234B for failure to pay advance tax in anticipation of such liability created on a future year, based on an amendment can be made.


Shree Ram Vessel Scrap Pvt Ltd Vs CIT (Dated: January 23, 2013)

Income Tax - Section 127(2) - Whether for the purpose of transfer of a case u/s 127(2), the mere mention of the reason ''for effective and coordinated investigation' by the Revenue in the Show Cause Notice is neither vague nor insufficient.



CIT Vs Discovery Estates Pvt Ltd (Dated : February 18, 2013)

Income Tax - Sections 50C, 69B, 92BA, 144, 145, Wealth Tax Rules 1BB, 3 - Notorious practice - Rent Capitalisation Method - Whether mere suspicion of “notorious practice” prevailing in real estate sector about non-disclosure of full

consideration can per se constitute the basis of enhancement of income - Whether features like absence of registered sale documents, sale of shops to a sister concern, difference in sale prices of the shops etc. is merely a starting point of further inquiry, and not the basis on which additions can be made - Whether the AO can reject the accounts as being incorrect and invoke the principle of best judgment assessment, when the evidence does not show the precise amount of suppressed sale price, but shows clearly and categorically that there was understatement of sale consideration - Whether when the assessee has sold property at a price lesser than market value, the AO merely on the basis of what he perceives to be the market conditions, can make additions, although there is no evidence of understatement - Whether only in the limited circumstances arising u/s 50C, 92BA and 145, the AO has the power to reject the accounts and invoke the principle of best judgment assessment - Whether in the absence of any evidence, the sales can be considered as sham transactions, merely because the goods were sold at a concessional rate - Whether the rent capitalisation method prescribed under the Wealth Tax Act, can be applied for estimating fair market value of the asset under the Income Tax Act - Whether a mechanical addition of the difference between the market value and the price at which the assessee sold the property on the basis of the rent capitalisation method is justified.


CIT Vs Jaswinder Singh Ahuja (Dated : February 8, 2013)

Income Tax - Sections 260A, 271(1)(c) - 'Stock options ' - Whether when the facts of the case are not clear, concealment penalty is warranted.


Novopan India Ltd Vs CIT (Dated : December 31, 2012)

Income Tax - Sections 37(3A) to (3D), 143(3) - Whether daily allowance paid to the employees partakes the character of hotel expenses for the purpose of disallowance u/s 37(3-A) to (3D).


CIT Vs Vinod Kumar Gupta (Dated : February 7, 2013)

Income Tax - Section 133A - Independent valuer - Whether when the assessing authority had not considered the revised return filed by the assessee during the survey proceedings, the addition made thereon is not justifiable .


CIT Vs Viniyas Finance & Investment Pvt Ltd (Dated : February 11, 2013)

Income Tax - Sections 147, 148 - Whether the AO has jurisdiction to issue notice for reopening assessment beyond the expiry of four years, although the reasons recorded do not mention any failure on part of the assessee to disclose fully and trully the material facts.


CIT Vs M/s K And Co (Dated : February 14, 2013)

Income Tax - Sections 32AB, 56 - Whether mere dispatch of lottery tickets by organising agent to its stockist amounts to sale, irrespective of actual sale of such tickets to the ultimate public - Whether when the lottery tickets have been dispatched to stockist on returnable basis, in an event when they are not sold to the public, has any relevance for determining the point of sale of such tickets - Whether when assessee has opted not to show the unsold sold lottery tickets in its income, can also exclude the same from its closing stock - Whether when the assessee is in the business of leasing out commercial vehicles, it shall be deemed that the vehicles have been used for business purpose, once they are leased out, although the lessee may not have the requisite permit to run those vehicles - Whether interest earned on margin money deposited with Bank, is taxable as income from other sources, although the requirement of margin money was inextricably linked to the lottery business, under the contract of organising lottery awarded by the State Government.


M/s Sankhla Polymers (P) Ltd Vs ITO (Dated: January 29, 2013)

Income Tax - Sections 80-IB, 115JA, 115JB, 148, 234B - "Promissory Estoppel", "Legitimate Expectation" - Whether a company is immuned from the liability of minimum alternate tax, once it is eligible for tax benefits u/s 80-IB - Whether interpreting Section 80-IB in such a manner, can amount to discrimination in violation of Article 14 of the Constitution - Whether when there is a conflicting situation between two provisions of a statute, the same needs to be interpreted harmoniously to avoid rendering the provisions unconstitutional - Whether the principal of promissory estoppel can be invoked, once tax concession granted under a specific Section of the Income Tax Act, is taken away by any other Section under the Act - Whether Section 80-IB can have any effect or control over the provisions of Section 115JB, although the latter is a specific charging section introduced later in the Act - Whether companies availing benefits u/s Chapter VI are excluded from the domain of operation of Section 115JB - Whether reliance can be placed on the provisions of predecessor Section 115JA, although the scheme of charging u/s 115JB is totally different and provides a specified rate of taxation - Whether the budgetary speech of the Finance Minister or language of the Board Circular can be used as tools for interpretation, although there is no ambiguity in the statutory provision - Whether the application of Section 115JB amounts to denial of benefits granted u/s 80-IB, although they are independent sections operating in different spheres - Whether penalty u/s 234B can be imposed for failure in paying correct amount of advance tax liability, even though the liability prescribed under the Section was introduced retrospectively.



CIT Vs Shri C S Srivatsan (Dated: February 1, 2013)

Income Tax - Sections 2 (24)(iv), 133A, 147, 148 - "Hindu Undivided Family" - Whether commission paid by the company to an HUF consisting of the Directors of the company can be construed as perquisites in the hands of Directors u/s 2(24)(iv) - Whether it is irrelevant through whom the amount was paid/routed, when once it is

established that amount received from the company is used for meeting personal expenses of the directors - Whether admission made during survey proceedings u/s 133-A can be made basis for making any addition of amount, which is liable to be taxed - Whether when there is contradiction on the factual aspects of modus operandi of payment of commission arising out of complex group of transactions, the matter can be remanded for fresh consideration.



M/s K H Traders Vs CIT (Dated: January 9, 2013)

Income Tax - Writ - Section 264 - Article 226 of Constitution of India - Whether an appeal presented out of time is an appeal, and an order dismissing it as time-barred is an order passed in the appeal - Whether a revision petition u/s 264 is possible against such an order.

2013-TIOL-128-HC-P&H-IT-LB

CIT Vs M/s Groz Beckert Asia Ltd (Dated : January 24, 2013)

Income Tax - Section 37 - Whether when assessee acquires corporate membership of a Golf Club for a limited period, any payment made in this regard brings any 'enduring benefits' to be treated as capital expenditure - Whether merely because such payments do not create any capital asset, it cannot be treated as capital in nature - Whether the real test to treat an expenditure as capital or revenue is to consider the nature of the advantage in a commercial sense.



Shri Ramesh Chand (HUF) Vs CIT (Dated: January 28, 2013)

Income Tax - Sections 40(A)(2)(b), 40A(3), 260A - Whether the provisions of section 40A(3) can be applied, even if the assessing authority has not appreciated the available evidences and express provisions of law - Whether the interest on the purchase advance given by the assessee, can be disallowed hypothetically during assessment - Whether a question regarding payment of a higher interest rate on the amounts borrowed from relatives, can constitute a valid question of law.


Sri Krishna Educational & Social Trust Vs ITO (Dated: January 31, 2013)

Income Tax - Sections 10(22), 11, 68, 69, 143(3), 147, 148 - Whether when the assessee has not supressed the income and only the nature and source of credit alone was brought under challenge by the Revenue, the assessee can be deprived of the opportunity to being cross examined - Whether the addition u/s 68 can be made even if the income of the assessee is exempt u/s 10(22).Income Tax - Sections 10(22), 11,

68, 69, 143(3), 147, 148 - Whether when the assessee has not supressed the income and only the nature and source of credit alone was brought under challenge by the Revenue, the assessee can be deprived of the opportunity to being cross examined - Whether the addition u/s 68 can be made even if the income of the assessee is exempt u/s 10(22).


M/s Alappat Jewels Vs ACIT (Dated: January 9, 2013)

Income Tax - Sections 133A, 147, 148, 154, 263 - Whether notice for reopening of assessment, can be quashed in a writ on the grounds of merit, although the objections against such notice are yet to be disposed off - Whether a separate order needs to be passed by the Division Bench, when the Single Bench has already allowed the assessee to file objections against the notice u/s 148 - Whether speaking order is a prerequisite before disposing off objections raised by the assessee - Whether there is a legal requirement at the initial stage, to establish income escapement, before issuing notice for reopening the assessment - Whether subjective satisfaction of the AO regarding income escaping assessment is not a sufficient ground to reopen assessment - Whether duty of the assessee is discharged by mere production of the books of account, without bringing to the notice relevant particular items in the books of account or documents.


Smt Asha George Vs ITO (Dated: January 16, 2013)

Income Tax - Sections 54B, 54F - Whether the assessee is entitled to exemption u/s 54B when the Tribunal has affirmed the findings of the authorities that the assessee was not entitled to the benefit of Section 54B for the reason that the property which was sold was not used for agricultural purposes for a period of two years prior to the date of the sale as required u/s 54B and no substantial question of law about the finding be perverse being raised.


Ester Industries Ltd Vs UoI (Dated: January 28, 2013)

Income Tax - Writ - Sections 115JB, 129, 143(3), 145, 147, 148, 151(1) - AS-2 - Whether it is within the legislative competence of the Parliament to give effect to certain provisions of law retrospectively - Whether reassessment can be initiated on the strength of retro amendments - Whether when the objections filed by the assessee are heard by an officer, there is any merit in the plea that the order has to be passed by the predecessor-in-office and not by his successor.


CIT Vs Jakson Ltd (Dated: January 29, 2013)

Income Tax - Sections 80IB, 271(1)(c) - Whether the mere making of a wrong claim in the return, would automatically give rise to levy of penalty for furnishing inaccurate

particulars of income.


Society Of The Franciscan (Hospitaller) Sisters Vs DDIT (Dated: January 23, 2013)

Income Tax - Sections 11, 12A, 80G, 147, 148, 226(3) - Whether when recourse to recovery proceedings u/s 226 is taken against a public trust, then no prior notice is warranted, although there exists no apprehension of diversion of funds - Whether money recovered from the bank account of a public trust under such recovery proceedings, when appeals and stay applications are pending, amounts to abusive usage of coercive process of law - Whether in such a case an equitable relief can be granted to the assessee in the exercise of the jurisdiction under Article 226 of the Constitution - Whether the option of not serving a prior notice to the assessee in recovery proceedings u/s 226, can be applied uniformly to all cases - Whether application for stay pending before the Department needs to be disposed off expeditiously - Whether interest of the Revenue can take precedence over the fairness of proceedings, merely because it is before the quasi judicial authorities of the Department.



Patanjali Yogpeeth (Nyas) Vs Chairman Central Board of Direct Taxes (Dated: February 11, 2013)

Income Tax - 'Writ' - 'Stay on demand' - Whether when an appeal is pending before the adjudicating authority, can the stay on demand be insisted on the part of the Trust assessee by excercising its constitutional right.


CIT Vs Yatish Trading Co Pvt Ltd (Dated: January 28, 2013)

Income Tax - Sections 47, 48 - Whether when the shares which are sold, were held by the assessee as investments, gains from such sales can be offered for tax under the head capital gains from the date of conversion - Whether the gains prior to the date of conversion can be taxed as business profits.


Tolani Education Society Vs DDIT (Dated: January 31, 2013)

Income Tax - Writ - Sections 2(15), 10(22), 10(23)(iiiab), 10(23)(vi), 10(23C), 12A, 80(G)(5), 143(1), 143(3) - Article 226 of the Constitution of India - Whether when an educational institution receives substantial grant from the state government, it can avail the benefit of exemption u/s 10(23)(vi) - Whether an educational society can simultaneously avail benefit u/s 10(23)(vi) and 10(23)(iiib) - Whether when the surplus arises in the course of activities incidentally in case of an educational trust, the purpose of such an institution as existing for profit would defeat and the benefit of exemption u/s 10(23) would be deprived.


CIT Vs M/s Vijay Granites Pvt Ltd (Dated: January 28, 2013)

Income Tax - Sections 80HHC, 80I, 148 - Whether cut and polished granite can qualify for deduction under the unamended Section 80HHC - Whether an amendment can have retrospective operation, although the same is not expressly provided by the legislature - Whether the benefit of deduction u/s 32A and 80I can be granted, without determining the fact whether the act of cutting and polishing granite slabs would amount to manufacture or production.


Kayji Real Estate Pvt Ltd Vs ACIT (Dated: January 22, 2013)

Income Tax - Section 145 - Accounting Standard 7 - Whether when an assessee is changing it stock valuation method as per the AS prescribed by the ICAI, the assessing authority can make addition in the income of the assesese.


CIT Vs Smt M Yesodha (Dated: February 5, 2013)

Income Tax - Sections 269SS, 271D, 273B - Whether when the amount was borrowed by the assessee for a bona fide reason from a relative, still the penalty u/s 273B can be levied - Whether the transaction between a daughter-in-law and father-in-law is a reasonable and genuine one owing to the urgent necessity involved.


CIT Vs Ashok Mittal (Dated: February 7, 2013)

Income Tax - Sections 71, 73, 143(3), 154, 260A - Whether the circulars beneficial to the assessee, issued by the CBDT, are binding on the income tax authorities - Whether a circular issued under the purview of the previous Act is still in effect, even if the new statute has been enacted.


CIT Vs Amardeep Singh Dhanjal (Dated: January 11, 2013)

Income Tax - Sections 132(4), 139(1), 271(1)(c) - Whether when an assessee has himself disclosed his income during the course of search u/s 132(4), the penalty for concealment u/s 271(1)(c) can still be levied.

2013-TIOL-105-HC-JHARKHAND-WT

Sri Gyan Chand Jain Vs CWT (Dated: December 12, 2012)

Wealth Tax - Section - 256 - Income Tax - Section 68 - Whether even after a lapse of a sufficiently long period, Revenue can raise a presumption that secret profit earned by the assessee in the past AYs continued to be held on the valuation date - Whether when once a presumption is drawn, that can be rebutted by evidence by the person against whom such presumption was made.


The Oriental Insurance Co Ltd Vs CIT (Dated: January 17, 2013)

Income Tax - Reference - Sections 30 to 43A, 35B, 37(4), 44 - 'Balance of Profits' - 'Export Market Development Allowance' - Whether during assessment, an assessing authority is bound to follow the requirements of the Insurance Act - Whether the claim for deduction of reserves created for export market development allowance is allowable under the Act.


CIT Vs Sambhav Media Ltd (Dated: January 21, 2013)

Income Tax - Whether when the claim of the assessee is dependent upon the subsequent decision of a HC, the remand of such an issue is the only recourse - Whether after claiming bad debts in its books of accounts, it is neccessary for the assessee to prove that the debts actually became bad - Whether the assesssee can claim investment in the windmills as bad debt, even though it has changed its method of valuation of stock during the year.


Menezes Fernandes Enterprises Vs ITO (Dated: January 21, 2013)

Income Tax - Sections 139(1), (2), (4) & (5), 143, 254 - Whether the benefit of filing revised return u/s 139(5) can be extended to an assessee, who has failed to file return within the statutory time limit, but has filed a rectified return before the intimation u/s 143(1) was served - Whether when the legislature has not expressly covered a particular class of assessees eligible for availing a specific benefit under any section, the same can be availed based on inference - Whether it is open to the High Court to intepreat the judgment of the Supreme Court, on an issue, which has been expressly settled by the Apex Court.



CIT Vs M/s Parle Biscuits Pvt Ltd (Dated: January 28, 2013)

Income tax - Sections 194C, 197(1) & (2), 204(iii), Rule 28AA - Whether merely because the assessee has got separate TAN for its Head Office and a field office, the certificate for lower TDS deduction issued u/s 197(2) would become redundant - Whether when such certificate is addressed to the principal officer of the assessee at its HO, other officers of the assessee company located at other places can also grant lower TDS benefits to contractors covered u/s 194C.



CIT Vs Oriental Structural Engineers Pvt Ltd (Dated: January 15, 2013)

Income Tax - Section 14A, Rule 8D - Whether when a qusetion of fact has been settled by the Tribunal, the assessee can further argue it before the High Court - Whether such qusetion of fact can be entertained by the High Court.


CIT Vs Gangeshwari Metal Pvt Ltd (Dated: January 21, 2013)

Income Tax - Sections 68, 271(1)(c) - Whether when the assessee had furnished complete particulars of its income, Revenue can still make addition u/s 68 and penalty proceedings u/s 271(1)(c) can be further initiated.


CIT Vs M/s Double Dot Finance Ltd (Dated: January 21, 2013)

Income Tax - Sections 143(1), 147, 148 - Whether an assessing authority can made addition on the basis of certain sets of pre-existing reasons to believe - Whether it is open for that assessing authority to reassess or assess any other income chargeable to tax which had escaped assessment and comes to his notice only during the reassessment proceedings.


M/s Bagri Impex Pvt Ltd Vs ACIT (Dated: January 16, 2013)

Income Tax - Sections 2(47)(v), 48, 50C - Whether u/s 50C, the tax is payable on the valuation made for the purpose of stamp duty only - Whether before the amendment in section 50C, the value of the capital asset can be assessed by the Stamp Valuation Authority instead of actual transfer price.


CIT Vs Ashray Premises Pvt Ltd (Dated: January 23, 2013)

Income Tax - Section 80IB - Whether the claim of deduction u/s 80IB (10) can be denied even after the DVO's certification that the size of the flat was less than 1500 sq ft and the project was approved post-1998.


CIT Vs Abhinav Kumar Mittal (Dated: January 23, 2013)

Income Tax - Sections 69, 132, 133A, 153C - Whether when there are no supporting documents found during the search, to differ from the valuation made by the assessee, the Revenue officer can still make any corresponding addition.


CIT Vs Ashwani Chopra (Dated: January 10, 2013)

Income Tax - Section 260A - Transfer of Property Act - Sec 55(4) - Principle of Owelty - Whether a sum paid as owelty during the course of partition to settle inequilities is deemed to be immovable property, and will not attract capital gains - Whether a compensation paid by one party to another in a partition proceedings attracts invocation of principle of owelty and thus is not liable to tax - Whether any transfer of assets takes place in case group partition proceedings.



CIT Vs M/s Vardhman Holdings Ltd (Dated: January 25, 2013)

Income Tax - Sections 14A, 36(1)(iii), 57, 80AA, 80M, 260A - Whether while computing deduction u/s 80M, the interest expenditure pertaining to section 36(1)(iii) can also be allowed as a deduction - Whether for the purpose of disallowance u/s 14A, presumptive expenditure can be taken into account in the absence of actual expenditure - Whether presumptive expenditure, in the absence of actual expenditure, can be reduced from the amount of 'gross dividend received', while computing deduction u/s 80M.


Upsic Ltd Vs CIT (Dated: January 10, 2013)

Income Tax - Section 256(2) - Whether the liability of interest payable on unconditional loan sanctioned by the State Government does not accrue, merely because such liability has been disputed by the grantee and no provision was made for such liability - Whether such interest liability arising in previous years can be claimed as deduction in the later AYs, although the assessee follows accrual system of accounting - Whether assessee is entitled to a particular deduction or not depends on the provision of law relating thereto and not on the view which the assessee might

take of his rights.


Sudharshan P Amin Vs ACIT (Dated: January 8, 2013)

Income Tax - Section 132(4) - Whether any fault can be found with the addition made on the basis of evidence on record - Whether when assessee makes confession in a statement during the search and later retracts without furnishing any reasons, additions can still be made.


Torrent Pvt Ltd Vs CIT (Dated: January 15, 2013)

Income Tax - Writ - Sections 115-O, 237, 264(1) - Dividend Distribution Tax - Whether when the refund application is not in proper format, it changes the character of the application seeking refund - Whether when the transferor company sanctions dividend after the date of amalgation but before the same was sanctioned by a competent court, such payment can still retain the character of dividend - Whether tax paid on such dividend is liable to be refunded.



Super Spinning Mills Ltd Vs ACIT (Dated: January 8, 2013)

Income Tax - Sections 156, 220(6), 234B, 234C, 234D - Whether when an issue has not been directly raised before the appellate forum, the same can be allowed indirectly in a writ petition - Whether appellate proceedings can be pre-empted by filing writ petition to dispute factual aspects - Whether one can take recourses to writ petition, when statutory remedies before the appellate forums under the Income Tax Act have not expired - Whether writ petition can be filed to challenge the validity of letter issued by the Department for demand of interest u/s 234B and 234C, when substantial appeal challenging the assessment order is already pending before other forums - Whether the contention that the assessment order did not include the demand of interest, can be raised in writ petition, when the assessment order has been already appealed - Whether a plea for grant of benefit under Board's Circular No.530 dated 6.3.89 can be taken up in writ petition, although no application is pending before the AO on this plea.


CIT Vs Modi Charitable Fund Society (Dated: January 9, 2013)

Income Tax - Sections 2(15), 11, 13(1)(bb), 256 - "res judicata" - Whether when facts and law in a subsequent AY are the same, no authority whether quasi-judicial or judicial can be permitted to take a different view - Whether when in the previous AYs, the assessee has been consistently assessed as charitable trust with the dominant activity of general public utility, it can be denied in subsequent AYs, the benefit of

exemption u/s 11.


CIT Vs Elgin Mill Co. Ltd (Dated: January 3, 2013)

Income Tax - Reference - Sections 41(1), 256(1) - Whether when the assessee has unilaterally passed transfer entries in its books before Assessment Year 1997-98, it warrants additions u/s 41 of the Act - Whether such unilateral act of the assessee is still outside the purview of the section 41.


CIT Vs Bhushan Capital And Credits Services Ltd (Dated: February 1, 2013)

Income Tax - Sections 143(1), 147, 148 - Whether assessment can be reopened after a period of four years even if there is no failure attributable to the assessee to disclose income.


Bhagirath Aggarwal Vs CIT (Dated: January 22, 2013)

Income Tax - Sections 132, 153A - Whether onus lies upon the Department to corroborate the admission made by the assessee u/s 132 - Whether when assessee has admitted and voluntarily surrendered certain amount as his income, he can be allowed to resile to attribute a portion of such income in the hands of his family members, although no evidence was produced by him to establish the incorrectness of his earlier admission - Whether a clear admission, voluntarily made, on the part of the assessee, can constitute a good piece of evidence at the hands of the Revenue - Whether CBDT circular dated 11.03.2003 can come to rescue an assessee, when the statement has been made voluntarily, without any coercion from the Department - Whether a letter addressed to the Department after a month of recording of statements, indicating a change from earlier stand, can be considered as statement made u/s 132.


CIT Vs Smt Shelly Passi (Dated: October 6, 2012)

Income Tax – Sections 40A (3), 143(1), 260A, 271(1 )( c ), Rule 6DD - Whether disallowance u/s 40A(3) can be made in case the assessee is merely an agent of the transacting party.


Khurana Engineering Ltd Vs DCIT (Dated: January 28, 2013)

Income Tax - Writ - Section 142(1) - Whether even after amalgamation of the transferor company with the transferee company, the Revenue can assessee the transferor company independently.


CIT Vs Kuldeep Sood (Dated: January 30, 2013)

Income Tax - Sections 139, 158BC - Whether when Revenue has accepted that the income from the proprietorship concern is taxable in the hands of wife, it can be allowed to take a different stand, while assessing income of the husband - Whether the principle of consistency has to be followed, when a factual finding has been settled in a previous assessment order.


Shivalik Bimetal Controls Ltd Vs ITO (Dated: January 24, 2013)

Income Tax - Sections 80IC, 115JB, 147, 148 - Whether it is sufficient that the income chargeable to tax has escaped assessment, even though it was not attributable to any failure of the assessee to disclose material facts - Whether the reasons recorded for reopening assessment beyond the expiry of four years, need not specify that the assessee has failed to disclose material facts relevant for assessment.


CIT Vs MAK Data Ltd (Dated: January 22, 2013)

Income Tax - Writ - Sections 133A, 143(3), 144A, 260A, 271(1)(C) - Whether first part of clause (A) of Explanation 1 to section 271(1)(C) is attracted, although the assessee has voluntarily offered income for taxation, however, failed to explain the source of such income - Whether no penalty can be imposed, merely when there is a voluntary surrender of income with the motive of avoiding litigation for arriving at an amicable settlement with the departmen t- Whether when the nature and source of any income is not explained, Revenue is entitled to draw an inference that the amount represents the assessee's taxable income - Whether such failure to offer explanation is statutorily considered as concealment of income - Whether the principle of burden of proof as embedded in Section 106 of the Evidence Act, can be extended to Section 271(1)(C) of Income Tax Act.



M/s Simka Hotels And Resorts Vs DCIT (Dated : January 17, 2013)

Income Tax - Writ - Sections 2(47), 45, 147, 148, 264 - Whether the amount of gain arising on relinquishment of rights acquired to a specific plot, is taxable under the head of income from other sources, although " No Objection Certificate" was obtained from the Income Tax Department - Whether relinquishment of vested rights in an immovable property cannot be considered as "transfer" within the meaning of Section

2(47) of the Income Tax Act , merely because the sale deed could not be executed - Whether a claim made under a wrong head of income amounts to concealment of income, even though the assessee has made a full and complete disclosure in the return of income.



Pardesi Developers and Infrastructure Pvt Ltd Vs CIT (Dated: January 16, 2013)

Income Tax - Writ - Sections 132, 133(6), 143(3), 147 - Whether assessment can be reopened u/s 147 even if AO had prior information about the alleged accommodation entries provided to the assessee and the AO had also issued notice u/s 133(6) before completing the assessment order - Whether when the assessee has replied to the questionnaire and the information sought u/s 133(6), it can be said that AO has failed to apply his mind to the factum of the case - Whether foundation of the notice issued u/s 148 is not vitiated, although the requisite belief u/s 147 has not been established.



Replika Press Pvt Ltd Vs ACIT (Dated: January 22, 2013)

Income Tax - Sections 10B, 147, 148 - Whether when the AO has dealt with the issue of inclusion of DTA sales in the export turnover, at the time of original assessment, the same can be again made a ground for reopening assessment - Whether the AO can change its opinion to reopen assessment, based on the opinion set out in the audit note - Whether audit personnel are allowed to give an interpretation of the statutory provisions of the Act.


Remfry And Sagar Vs CIT (Dated: January 17, 2013)

Income Tax - Sections 40A(2)(b), 133, 143, 147, 148, 272, 272A - "primary fact" - Whether reopening of assessment on the grounds of non-disclosure of information is warranted, when a law firm, although discloses the details of license fee paid to a sister concern for using the goodwill of its name, but fails to provide the "primary fact" i.e. license agreement at the time of original assessment - Whether mere disclosure of information in the profit and loss account and tax audit report is sufficient, although the "primary fact"/document for justifying the allowability of payment of license fee was never produced - Whether the partnership deed and the letter submitted by the assessee, which refers to the licence agreement, can be considered to be "primary facts" on the basis of which an inference as to the allowability of the licence fee payment, could have been properly drawn by the AO - Whether the reassessment proceedings can be invalidated, merely because there is a failure to specifically refer to the omission of the assessee to file the "primary fact" in the reasons recorded for reopening such assessment - Whether it will be a sufficient compliance of requirements u/s 148, once it is established that the assessee has failed to provide the "primary facts" at the time of assessment - Whether when deduction for payment of license is claimed on the basis of licence agreement, the same qualifies to be a "primary fact" - Whether when the AO has failed to ask for a "primary fact", the

assessee is no longer duty bound to place such documents at the time of assessment - Whether the question of initiating reopening of assessment on a mere change of opinion can arise, when there is a failure on the part of the assessee to furnish the primary facts - Whether there is anything in Section 147, which prohibits reopening of an assessment completed u/s 143(1) on the ground that the assessee failed to furnish the primary facts fully and truly - Whether it is difficult to attribute any knowledge to the AO while he is dealing with a return for a particular year u/s 143(1), as to what he had done in the case of the same assessee in the earlier AYs.



Shri Pawan Kumar Vs CIT (Dated: January 10, 2013)

Income Tax - Section 260A - 'commercial expediency' - Whether an addition made on the basis of available facts by the Tribunal, can be re-entertained in further appeal - Whether an assessee is allowed to claim interest paid on loan taken, on its cash credit account, as a business expenditure.


Supreme Agro Foods Pvt Ltd Vs Income Tax Settlement Commission (Dated : January 14, 2013)

Income Tax - Writ - Section 245C - Income Tax Settlement Commission (Procedure) Rules, 1997 - Rule 9 - 'Settlement commission' - Whether the assessment proceedings before the commissioner of income tax are distinct from the proceedings before the Settlement Commission - Whether during a process of judicial review before a high court, interference in the decision of the SETCOMM can be made, even if all the relevant material has been already taken on record.


Export Credit Guarantee Corporation Of India Ltd Vs ACIT (Dated : January 11, 2013)

Income Tax - Sections 5(1), 44, 143(3), 147, 148, Rule 5(a) - Whether stipulation u/s 147, which requires a failure on the part of the assessee to disclose fully and truly all material facts, is applicable, if the assessment is sought to be reopened before the expiry of four years - Whether presence of tangible materials causing AO to have "reasons to believe" that income has escaped assessment, is sufficient to reopen assessment before the expiry of four years from the relevant AY - Whether the AO must be deemed to have accepted, what he has plainly overlooked or ignored in the assessment order within the scope of Section 147 - Whether a reason to believe that income has escaped assessment is sufficient, and not an established fact of the escapement of income - Whether initially when the AO has failed to apply his mind and raise queries on issues, which eventually lead to income escaping assessment, can assessment be reopened - Whether it would be appropriate to preempt an enquiry whatsoever by the AO, once a tangible basis has been disclosed for reopening the assessment - Whether the merits of the grounds on which assessment is sought to be reopened, can be questioned and tested, only once the assessment has been reopened.


CIT Vs Shri Kamal Wahal (Dated: January 11, 2013)

Income Tax - Sections 54, 54F, 260A - 'pari-materia' - Whether, for the purpose of claiming Sec 54F benefits, it is essential for the assessee to invest in residential house in his own name and not his wife - Whether purposive construction of law prevails over literal construction.



CIT Vs Ajai Shukla (Dated: January 16, 2013)

Income Tax - Section 69 - 'unexplained investment' - What are the two situations in which addition on account of unexplained investment u/s 69 can be made - Whether a matter agitated in the assessment proceedings can be decided merely on the basis of inferences - Whether it is mandatory for the Tribunal to decide the terms of a case in clear and express terms, as it is a final fact finding authority.


Association Of Corporation & Apex Societies Of Handlooms Vs ADIT (Dated: January 10, 2013)

Income Tax - Sections 2(8), 11, 143(3), 147, Rule 17 - Whether the relevant form for availing deduction u/s 11 can be furnished by the a ssessee during the reassessment proceedings - Whether while reopening of an assessment, an assessee is remediless and is barred from furnishing any document, not filed at the time of original assessment.


CIT Vs Avinash Jain (Dated: January 9, 2013)

Income Tax - ' CBDT circular No 4/2007 ' - 'Investment Portfolio' - 'Trading Portfolio' - Whether an assessee is allowed to maintain two different portfolios for trading and investment purpose - Whether the gains arised out of the investment account can be taxed as business income.


CIT Vs M/s Malhar Information Services (Dated: January 8, 2013)

Income Tax - Section 80HHE - 'customized electronic data' - Whether deduction u/s 80HHE can be allowed, when an assessee had exported customized electronic data - Whether when the allowability of a deduction was under dispute before HC in the previous years, the same can be allowed in the current year.

2013-TIOL-46-HC-JHARKHAND-IT

CIT Vs M/s Shakti Spring Industries Pvt Ltd (Dated: January 3, 2013)

Income Tax - Section 43B - Whether for the purpose of claiming deduction u/s 43B, the payment in cash or through cheque or demand draft is a mandatory stipulation - Whether under the provisions of section 43B, the payment of Statutory liability of interest can be claimed to have been made by 'book adjustment' rather than by 'actual payment'.


Rambagh Palace Hotels Pvt Ltd Vs DCIT (Dated: January 10, 2013)

Income Tax - Sections 142(1), 143(2), 147, 148, 151, 154 - Whether AO has the authority to reopen assessment after expiry of four years, on receipt of complaint of siphoning of funds, filed by one of the Directors of the assessee company - Whether the fact that such complaint has been filed before a statutory authority like Company Law Board can have any material relevance to ascertain its credibility - Whether when the complaint can constitute tangible material for reopening the assessments, it can equally constitute tangible material giving rise to the belief that the income had escaped assessment - Whether there is no duty of the assessee to disclose all relevant information at the time of original assessment, merely because the AO has not asked for it - Whether non-disclosure of substantial expenditure incurred by the assessee on foreign travel, which it is contractually not liable to incur, is income escaping assessment within the meaning of section 147 - Whether for a notice to be issued u/s 148, there must be tangible material to form the belief that, there was escapement of income - Whether when once this requirement has been satisfied, the validity of a notice issued u/s 148 cannot be challenged - Whether the fact that the assessee submitted all the details to the AO along with the return of income is not relevant, where only an intimation u/s 143(1) is issued, after merely processing the return without any scrutiny.



CIT Vs M/s Glenmark Pharmaceutical Ltd (Dated: January 8, 2013)

Income Tax - Sections 14A, 32, 115J, 115JA, 115JB, 234B, 234, 260A - Whether the expenditure incurred for non-compete fees relates to business and commercial expediency or it relates to capital nature expenses - Whether when an expenditure leads to an improvement in the existing business resulting in higher sales and consequently higher profitability, the said expenditure can be on account of the revenue nature - Whether an expenditure can change its nature only because of the fact that the assessee had himself not carried out the work a nd had outsourced it - Whether when the royalty paid is a part of the cost of the asset acquired, it can be claimed as business expenditure - Whether interest u/s 234B and C can be charged while computing income u/s 115JB.


CIT Vs M/s Aafloat Textile India Ltd (Dated: January 7, 2013)

Income Tax - Sections 43B, 193, 201(1), 201(1A) - Whether when during the original assessment, a fact has been accepted by the Assessing Authority, the same can be denied at a subsequent stage - Whether the liability to deduct TDS on interest may arise, even if the assessee has entered in an MOU for waiver of such contract.


M/s Alappat Jewels Vs ACIT (Dated: January 9, 2013)

Income Tax - Sections 133A, 148, 154, 263 - Whether the notice for reopening of assessment, can be quashed in a writ petition on the grounds of merit, at a stage, when the objections are yet to be filed and disposed off - Whether when the Single Judge has allowed the objections to such notice to be filed by the assessee, and to be considered by the Revenue, whether a separate order needs to be passed by the Divisional Bench - Whether speaking order is a prerequisite before disposing off the objections raised by the assessee - Whether there is a legal requirement at the initial stage for establishment of income having escaped assessment, before issuing the notice for reopening assessment - Whether subjective satisfaction of the AO regarding income escaping assessment is not a sufficient ground to reopen assessment - Whether duty of the assessee is discharged by merely production of the books of account or other evidence, without bringing to the notice of the officer the particular items in the books of account or the portions of the documents, which are relevant.


Ashwinbhai B Pokiya Vs ACIT (Dated: December 3, 2012)

Income Tax - Section 254 (2) - Whether the application preferred u/s 254 (2) can be rejected, by holding that it amounts to review and not a recall of the order - Whether when the Tribunal has not admitted the assessee's contention of repeated adjournment, the said order passed 'ex parte' can be termed as an order passed committing any serious error.


Yashwant Chhajta Vs DCIT (Dated: December 28, 2012)

Income Tax - Section 64(1)(ii) - 'interpreta tion of statutes' - Whether the requirement of technical or professional qualification as mentioned under section 64(1)(ii), is general in nature - Whether a mere degree qualification is sufficient in case of qualification referred as of a professional or technical nature - Whether the income arising to spouse, having professional qualification, which is solely attributable to the application of his or her technical or professional knowledge and experience will be out of the purview of clubbing - Whether for the purpose of clubbing income u/s 64, knowledge and experience are relevant - Whether it is a cardinal rule of interpretation of statutes that a construction which would leave without effect any part of the statute should be rejected.


M/s Hastalloy India Ltd Vs DCIT (Dated: August 16, 2012)

Income Tax – Sections 69, 132 – Whether when the Revenue finds FDR receipts in the names of employees of the assessee company, showing the sum as advance during a search, and the assessee admits on confrontation, no fault can be found with additions made u/s 69.



CIT Vs Amit Jain (Dated: December 21, 2012)

Income Tax – Section 271(1 )( c) - Whether when the AO characterises the returned income differently under a different head, this amounts to furnishing of inaccurate particulars and may warrant penalty.


CIT Vs Hardarshan Singh (Dated: January 9, 2013)

Income Tax – Sections 40(ia), 40(a)(ia), 143(2), 194C – ‘privity of contract' - Whether when the assessee is the not the ‘person responsible' for making payments to the contractor, still the TDS u/s 194C needs to be deducted from the payments made by it – Whether when the assessee acts only as an ‘intermediary for facilitation of the contract' and the principal contract is between some other parties, the liability to deduct TDS can arise.


CIT Vs Nipun Builders & Develpers Pvt Ltd (Dated: January 7, 2013)

Income Tax – Sections 68, 131, 143(1), 147, 148 - Whether in the context of undisclosed income, the burden of proof to establish genuineness of the transaction is on the assessee – Whether the assessee can instruct an assessing authority about the mechanism of doing investigation, even if the onus is on himself - Whether in order to prove creditworthiness of the assessee, submission of copies of bank accounts of its subscriber companies is a sufficient compliance - Whether there can be an embargo on the powers of the assessing authority to invite the assessee to prove its realness - Whether the investigation report on the basis of which the reassessment was initiated, can be a valid ground for cancellation of reassessment, in case it was not presented before the assessee for rebuttal - Whether when an assessee fails to prove satisfactorily the source and nature of certain amount of cash received, the ITO is entitled to draw the inference that the receipts are of assessable nature – Whether when it is held that an amount credited in the books of the assessee is the income of the assessee, it is not necessary for the department to locate its exact source.


Anto Nitto Vs CIT (Dated: January 3, 2013)

Income Tax - Writ - Section 220(2A) - Whether when the properties of the petitioner was under attachment and that the entire liabilities were subsequently cleared by making appropriation of the compensation amount, it is to be seen as a genuine cause for hardship to the petitioner.


NTPC Ltd Vs DCIT (Dated: January 10, 2013)

Income Tax – Sections 147, 148 – Whether reassessment can be opened on the very same facts which was there at the time of assessment proceedings, by drawing a different set of inferences – Whether such inferences amount to “Change of Opinion” and hence reassessment is not justified – Whether the AO can reopen the assessment when the pre-conditions for triggering the exception in the proviso to Section 147 are not satisfied.


CIT Vs M/s Intercontinental Trading & Investment Co Ltd. (Dated: January 4, 2013)

Income Tax - Sections 132, 158BC, 158BD, 260A - Whether the proceedings u/s 158BD can be initiated even on an assessee whose premises have not been searched or whose documents or assets have not been requisitioned u/s 132A – Whether prior to issue of notice for assessment u/s 158BD, satisfaction of the assessing authority is a mandatory condition.


CIT Vs Orient Craft Ltd (Dated: December 12, 2012)

Income Tax - Sections 80HHC, 143(1) & (3), 147, 148 – Whether reassessment can be opened by the AO by disturbing the intimation u/s 143(1) on any ground which appeals to the AO – Whether the expression “reason to believe” cannot have two different standards or sets of meaning, one applicable where the assessment was earlier made u/s 143(3) and another applicable where an intimation was earlier issued u/s 143(1).


Rollatainers limited Vs DCIT(Dated: December 11, 2012)

Income Tax – Writ - Sections 143(3), 147, 148, 151 – Whether when the correct factual position has been duly informed to the assessing authority, along with the relevant evidences at the time of original assessment, the Revenue can still reopen assessment finalised.


Xerox Modicorp Ltd Vs DCIT (Dated: January 2, 2013)

Income Tax – Writ - Sections 40(a)(i), 43B, 143(3), 147, 148, 154, 250 - Whether in any assessment or reassessment proceeding, an assessing authority can keep improving its case from time to time – Whether the reassessment u/s 147 can be made on the basis of reasons recorded beyond the one as mentioned in the notice u/s 148 – Whether an assessment can be opened on the basis of the opinion expressed by the revenue audit committee – Whether the Revenue audit committee is competent to pronounce on issues of law – Whether it is impermissible to look into any record other than the reasons recorded to judge the validity of the reopening of the assessment - Whether the assessee can be allowed to advice the Revenue authority regarding the inference to be drawn on a matter.


M/s Shebin Jewellery Vs CCIT & ITO (Dated: December 3, 2012)

Income Tax - Writ - Sections 132, 148, 234A - Board's order in F.No.400/129/2002-IT(B) of 2006 - Whether when the assessee is only trying to point out the non-availablity of records as a reason for not filing the returns in time, the extension of the scope of judicial review is a proper recourse.


Andhra Pradesh State Seed Certification Agency Vs CCIT (Dated: December 17, 2012)

Income Tax – Sections 2(15), 10(23C) – Whether the activities of the assessee engaged in certifying standards for seeds are to be construed as in relation to any trade, commerce or business and thus not a body for charitable purpose - Whether the proviso to the section 2(15) would come into operation in such a case – Whether, therefore, the CIT is justified in rejecting the application of the petitioner for approval u/s 10 (23C) (iv) of the Act.



CIT Vs Mehta Charitable Prajnalay Trust (Dated: November 20, 2012)

Income Tax - Section 11 - Whether the Katha business carried on by the assessee can be said to be incidental to the attainment of the objects of the trust for purpose of exemption u/s 11 when the object of the trust is to advance education, patriotism, Indian culture, running of hospitals and dispensaries, etc.



CIT Vs Ms Sania Mirza (Dated: February 9, 2012)

Income tax - Section 143(1) - Penalty - Whether when assessee fails to offer award money to tax shown in the capital account but the same is surrendered after error being pointed out by the AO, it is a fit case for imposition of penalty.


CIT Vs Udaipur Hotels Ltd (Dated: December 13, 2012)

Income Tax - Section 271(1)(C) - Whether mere submission of a claim which is incorrect in law would amount to giving inaccurate particulars of the income, hence penalty for concealment can be levied on the same.


CIT Vs Select Holiday Resorts Pvt Ltd (Dated: December 6, 2012)

Income Tax - Sections 14A, 79 - Circular No. 528 of 1988 - Whether the brought forward losses of subsidiary company can be denied on the basis that the share transfer took place in between the sister concerns only.


CIT Vs Kiranbhai Jamnadas Sheth - HUF (Small) (Dated: November 6, 2012)

Income Tax - Sections 143(1), 143(2), 147, 148, 156 - Whether when the original assessment was not made after scrutiny, the reassessment can be openened beyond the time limit of four years - Whether in case notice u/s 143(2) is not issued, the assessment u/s 143(3) is possible - Whether the intimation issued u/s 143(1) can per se preclude the right of the AO to proceed u/s 143(2)(a) - Whether when there is no assessment u/s 143(1)(a), the question of change of opinion can arise - Whether in order to reopen an assessment u/s 147, the AO should have reason to believe that any income chargeable to tax has escaped assessment.


Ilag Industries Pvt Ltd Vs ACIT (Dated: November 5, 2012)

Income Tax - Sections 28(iiid), 80HHC, 147 - Whether when the assessee has disclosed all the relevant information at the time of original assessment, the reopening of such case without any cogent basis amounts to 'mere change of opinion' - Whether a mistake on the part of the assessing officer can be a valid ground to reopen an assessment previously framed after scrutiny beyond a period of four years.


DCIT Vs M/s Natural Fragrances (Dated: December 24, 2012)

Income Tax - Section 80IC - Whether when the raw material required for manufacturing finished product is processed outside the assessee's work place, this activity can be considered as a 'manufacturing activity' for availing the benefits u/s 80IC.


CIT Vs M/s Dewan Chand Satyapal (Dated: December 21, 2012)

Income Tax - Sections 80IA, 143, 263 - Whether a Diagnostic Centre is an industrial undertaking within the meaning of Section 80-IA.



CIT Vs M/s Abhishek Industries Ltd (Dated: December 20, 2012)

Income Tax - Sections 80HHC, 80IA, 143(3), 260A, 263 - Whether section 80HHC is a self-contained provision and the deduction thereunder can be allowed ignoring the restrictive clause contained u/s 80 IA(9) - Whether when as a result of erroneous order of the assessing officer, the Revenue is losing tax payable by an assessee, the said order can be said as an 'erroneous order'.


CIT Vs M/s Fairdeal Construction Co (Dated: December 3, 2012)

Income Tax - Section 260A - 'unexplained cash credit' - Whether when the evidences in respect of addition on account of unexplained cash credit have been properly verified by the assessing authority, the addition u/s 68 can still be made.


CIT Vs M/s Nikunj Eximp Enterprises Pvt Ltd (Dated: December 17, 2012)

Income Tax - Section 260A - Whether disallowance regarding purchases made, can be made merely on the basis that the suppliers and other relating evidences are not produced before the assessing authority or before the first appellate authority.


Suzuki Motorcycle India Pvt Ltd Vs CIT (Dated: December 21, 2012)

Income Tax - Sections 143(3), 145, 260A - Accounting Standards (AS-2) on “valuation of inventories - Whether in order to claim deduction on account of discounted value of raw material, components and consumable stores, the calculation

has to be proved by the assessee before the assessing authority.


Sh Ashwani Oberoi Vs CIT (Dated: December 20, 2012)

Income Tax - Whether it can be considered the entry of Rs. 2,50,000/- to be fake and as undisclosed income routed by the appellant when there was concurrent finding of the authorities that assessee routed his undisclosed income to his capital account after appreciation of material collected.

Documents

HIGH COURT RULING (INCOME TAX)taxindiaonline.com/RC2/pdfdocs/headnotes_index/Index_January_20… · HIGH COURT RULING (INCOME TAX) 2013-TIOL-543-HC-DEL-IT CIT Vs Income Tax Settlement