PART I: TEXT 1 Chapter 1: Basic Concepts and Tax Rates 3

Transcription

1 Preface About the Book About the Author V VII IX PART I: TEXT 1 Chapter 1: Basic Concepts and Tax Rates 3 Powers of Central or State Government to Levy Tax 4 List I : Union List 4 List II : State List 4 List III : Concurrent List 5 The Elements of Income Tax Law 5 1. The Income Tax Act, Annual Amendments through Finance Act 5 3. Circulars /Notifications from Central Board of Direct Taxes (CBDT) 5 4. Supreme Court and High Court Decisions 5 Determining The Rates of Tax Under The Income Tax Act, Finance Act, Direct Tax and Indirect Tax 6 Direct Taxation in India 6 Person 7 An Individual 7 A Hindu Undivided Family (HUF) 7 Association of Persons (AOP) or Body of Individuals (BOI) 7 Company 8 Partnership Firm 9 Change in Definition of Firm, Partner & Partnership 9 Limited Liability Partnership (Features of a LLP) 9 A Local Authority 10 Artificial Judicial Person 10 Assessee [sec. 2(7)] 10

2 XIV Direct Taxation Financial Year (F.Y.) 10 Assessment Year (A.Y.) 11 Previous Year (P.Y.) 11 Accounting Year vs. Previous Year 11 Determination of the First Previous Year in case of a newly set-up Business or Profession or for a New Source of Income 11 Income 12 Computation of Total Income for the AY Rounding off of Total Income 13 Rounding off of Tax 13 Rates of Income Tax 13 1) Individual 13 For Very Senior Citizen 14 For Resident Senior Citizen (male/ female) 14 Education Cess and Secondary Higher Education Cess 15 2) HUF 15 3) Partnership Firm and Limited Liability Partnership (LLP) 15 4) Company - The Tax on Income 15 Dividend Distribution Tax 15 Minimum Alternate Tax 16 Marginal Relief 17 5) Co-operative Societies 17 6) Local Authorities 17 7) Capital gains 17 8) Securities Transaction Tax 18 9) Wealth Tax 18 Review Questions 18 Multiple Choice Questions 19 Chapter 2: Residential Status 21 Determination of Residential Status of Different Kind of Assesses 22 Residential Status of an Individual 22 Residential Status of an HUF [Sec. 6(2)] 23 Residential Status of a Firm or Association of Persons (AOP) [Sec. 6(2)] 24 Residential Status of a Company Assessee [Sec. 6(3)] 24 Residential Status of Body of Individual (BOI)/Artificial Judiciary Person (AJP) /Local Authority (LA) [Sec. 6(4)] 25 Scope of Total Income with respect to Residential Status (Sec. 5) 25 Income Received of Deemed to be Received 26

3 Detailed Contents XV XV Income Deemed to be Received (Sec. 7) 26 Income Deemed to be Accrue or Arise in India [Sec. 9] 26 Income from Property, Asset or Source of Income 27 Income from Transfer of Capital Assset 27 Income from Salary 27 Review Questions 28 Multiple Choice Questions 36 Chapter 3: Agricultural Income and Exempted Income 39 Examples of Agricultural Income 40 Examples of Non-agricultural Income 40 Income Partly Agricultural and Partially Non-agricultural 41 Some Points should be Kept in Mind While Computing Agricultural Income 41 Taxability of Agricultural Income 41 Aggregation of Agricultural Income with Other Income 41 Calculation of Income Tax when Agricultural Income and Non-agricultural 42 Income are Given Exempted Income 42 Review Questions 43 Problems with Solutions 43 Multiple Choice Questions 48 Chapter 4: Income from Salary 49 Definition of Salary [Sec. 17(1)] of Income Tax Act, Basis of Charge of Salary Income [u/s 15] 50 Employer-employee Relationship 50 Directors 51 Professionals 51 Judges 52 Arrears of Salary 52 Retirement Payments 52 UN Pension 52 Remuneration Received by Working Partner of PFAS 53 System of Accounting 53 Type of Emoluments 53 Computations of Income under the Head Income from Salaries 53 Other Allowances 54 Allowances to Govt. Officials for Services Rendered Outside India [Sec. 10(7)] 54 House Rent Allowance [Sec. 10(13A)] 54

4 XVI Direct Taxation Other Inclusions in Salary 56 Gratuity [Sec. 10(10)] 57 Retirement 57 Commutation of Pension [Sec. 17(1)(ii)] 59 Commuted Value of Full Pension 59 Leave Encashment [Sec. 10(10AA)] 60 Sec. 10(10AA) 60 Leave at Credit 60 Retrenchment Compensation [Sec. 10(10B)] 61 Compensation Received at the Time of Voluntary Retirement (VRS) Rule 2 BA, [Sec. 10(10C)] 61 Specified Undertakings 62 Prescribed Guidelines Rule 2BA 62 Keyman Insurance Policy 62 Provident Fund 63 Types of Provident Fund 63 A) Statutory Provident Fund (SPF) 63 B) Recognized Provident Fund (RPF) 63 C) Unrecognized Provident Fund (URPF) 63 D) Public Provident Fund (PPF) 64 Tax Treatment of Provident Funds Under [Sec. 10(11) and 10(12)] 64 Conversion of URPF to RPF Rule 11(4) of Part A of Fourth Schedule 65 Meaning of Salary for Tax Treatment of Provident Fund 65 Payment from Superannuation Fund [Sec. 10(13)] 65 Taxability Status 65 Sec. 10(5) Value of Leave Travel Concession 66 Profits in Lieu of Salary [Sec. 17(3)] 66 Tax on Perquisites Paid by the Employer [Sec. 10(10CC)] 67 Sec. 17(2)(i): Valuation in Respect of Unfurnished Rent Free Accommodation Rule 3(1) 67 Meaning of Salary for the Purpose of Rent Free Accommodation 68 Valuation in Respect of Hotel Accommodation Rule 3(1) 69 Rent Free Accommodation not Chargeable to Tax Rule 3(1) 69 Remote Area 69 Allotment of Shares under Employment Stock Option Scheme or Plan 70 Provision of Domestic Servants (Specified Employees Only) Sec.17(2)(iii) Rule 3(3) 70 Supply of Gas, Electric Energy, Water for Household Consumption Specified Employees only) [Sec. 17(2)(iii) Rule 3(4)] 70

5 Detailed Contents XVII XVII Provision of free or Concessional Educational Facilities for Employee or any Members of Household 70 Interest Free Loan & Loan at Concessional Rate of Interest 71 Perquisite in Case of use of Movable Assets 71 Perquisite in Case of Transfer of Movable Assets of Employer 72 Electronics Goods 72 Medical Facilities 72 Medical Facilities not Treated as Perquisite 72 Medical Treatment Outside India 73 Meaning of Family 73 Prescribed Diseases under Rule 3A 73 Perquisite for Motor Car (Earlier Taxable Under Fringe Benefit Tax now Tax in Hand of Employees) 73 Review Questions 77 Multiple Choice Questions 92 Chapter 5: Income from House Property 95 Income From House Property [Sec. 22 to 27] 96 Basis of Chargeability: [Sec. 22] 96 House Property Chargeable to Tax 96 House Property not Chargeable to Tax 96 Case Laws 96 Assessee Should be the Owner of the Property 97 Deemed Owner [Sec. 27] 97 Conditions 98 Property is Used for the Purpose of Business or Profession Carried on by the Assessee 98 1) Letting out to Employees for Smooth Running of the Business 98 2) Letting out to Government Agencies 98 3) Letting out to Ancillary Units 98 4) Property used in Partnership Firm 98 5) Letting out of Property for Promotion of Own Business vs. Business of Letting out the Property 99 Applicability of [Sec. 22] in Special Cases House Property in a Foreign Country Disputed Ownership Co-ownership [Sec. 26] Tax Treatment Composite Rent 100

6 XVIII Direct Taxation Treatment of Composite Rent Rent for Building and Different Services Rent for Building and Different Assets 100 Computation in Case of Let out House Property 100 How to find out Gross Annual Value of Let out Property [Sec. 23 (1)] 100 Unrealised Rent 101 Municipal Taxes 101 Deduction from Net Annual Value: [Sec. 24] 101 What is Pre-reconstruction Period? 102 Amount of Deduction 102 Maximum Permissible Deduction of Interest 103 Computation of Annual Value of Self Occupied Property (SOP) 103 Can Net Annual Value (NAV) be Negative? 104 Deemed Income 105 Unrealized Rent Claimed as Deduction upto A.Y [Sec. 25a] 105 Unrealized Rent from A.Y Onwards Collected Subsequently [Sec. 25 Aa] 105 Special Provision for Arrears of Rent Received [Sec. 25B] 105 Set off of Losses 106 Problems with Solutions 106 Review Questions 117 Multiple Choice Questions 120 Chapter 6: Profits and Gains of Business or Profession 123 Meaning of Business and Profession 124 Sec. 2(13) Business Includes 124 Profession [Sec. 2(36)] 124 General Principles 124 Incomes not Taxable under the Head Profits and Gains of Business or Profession 125 Incomes from Leasing out the Asset of the Business 125 Business Losses 126 Computation of Income From Business: [Sec. 29] 126 Specific Deductions [Sec. 30 to 37] Rent, Rates Taxes and Insurance for Building [Sec. 30] Repairs and Insurance off Machinery, Plant and Furniture [Sec. 31] Depreciation Allowance [Sec. 32] 127 Conditions for Claiming Depreciation Ownership of Asset Used for Business Purpose 127

7 Detailed Contents XIX XIX 3. Usage During the P.Y Eligible Asset 128 Computation of Depreciation (Block of Assets Method) 128 Additional Depreciation 129 Tea/Coffee/Rubber Development Account [Sec. 33AB] 130 Amount of Deduction 130 Scientific Research [Sec. 35] 130 A) Pre-commencement Scientific Research Expenditure [Sec. 35(1)(i)] 130 B) Post-commencement Scientific Research Expenditure (Capital Expenditure) 130 Weighted Investment Linked Deduction [Sec. 35AD] 131 Amortization of Preliminary Expenses [Sec. 35D] 132 Amount of Deduction 133 Amortization of Expenditure in Case of Amalgamation/Demerger [Sec. 35DD] 133 Amortization of Expenditure Under Voluntary Retirement Scheme [Sec. 35 DDA] 133 Deductions [u/s 36(1)] 133 Disallowance of Unpaid Statuary and other Liabilities: [Sec. 43 B] 134 General Deductions: [Sec. 37 (1)] 135 Amounts not Deductible [u/s 40] 136 Sec. 40(a)(i) 136 Interest to Partners of PFAS is Deductible [u/s 40(b)] 137 Interest Paid to Members of AOP (Including PFAOP) [Sec. 40 (ba)] 137 The Taxation of PFAS and PFAOP 137 Excessive or Unreasonable Payments to Relatives/Associates [Sec. 40 A(2)] 137 Important Amendment 137 Payment in Excess of Rs 20,000 [Sec. 40 A (3)] 138 Special Provisions for Small Businessmen 139 Maintenance of Accounts by Certain Persons Carrying on Profession or Business [Sec. 44AA] 140 Tax Audit [Sec. 44 AB] 141 Agricultural and Non-agricultural Activity (Rule 7A, 7B and 8) 141 Review Questions 142 Multiple Choice Questions 161 Chapter 7: Capital Gains 165 Basis of Chargeability [Sec. 45(1)] 166 1) Capital Asset u/s 2(14) 166 2) Transfer as Defined u/s 2(47) 167 3) Types of Capital Asset 169 4) Types of Capital Gains 169

8 XX Direct Taxation Long-term Capital Gain/Loss (LTCG/L) 169 Short-term Capital Gain/Loss (STCG/L) 169 5) Period of Holding 169 6) Full Value of Consideration 170 7) Cost of Acquisition 170 8) Cost of Improvement 171 9) Cost of Transfer ) Capital Gain on Transfer of Securities 172 Tax on Short-term Capital Gain in Certain Cases [Sec. 111A] ) Capital Gain on Transfer of Capital Assets (other than Securities) ) Indexation 173 Indexed Cost of Acquisition ) Cost of Inflation Index ) Steps used for Calculation of Capital Gains ) Exemptions Based on Certain Investments (u/s 54, 54B, 54D, 54EC, 54F, 54G, 54GA) ) Deemed Full Value Consideration (DFVC): (special cases) ) Special Exemption [u/s 10(37)] ) Sec. 50C: Valuation of Consideration in Case of Land and Building ) Section 50D (Finance Bill 2012): Fair Market Value to be Full Consideration ) Section 55A(a): Reference to Valuation Officer 183 Review Questions 183 Problems with Solutions 184 Multiple Choice Questions 196 Chapter 8: Income from Other Sources 197 Examples of Income from Other Sources 198 Computation of Income from Other Sources 198 Basis of Chargeability [Sec. 145] 199 Income from Machinery, Plant or Furniture on Hire [Sec. 56(2)(ii)] 200 Income from Machinery, Plant or Furniture on Hire along with Building [Sec. 56(2)(iii)] (Composite Rent) 200 Family Pension 200 Gifts under [Sec. 56(2)(vi)] of the Income Tax Act, Gifts under [Sec. 56(2)(vii)] of the Income Tax Act, Share Premium in Excess of Fair Market Value to be Deemed as Income. [Sec. 56(2)(viia)] 202 Payment of Dividend by Companies 203 Deemed in Case of Domestic Company [Sec. 2(22)] 203

9 Detailed Contents XXI XXI Applicable Rate of Tax in Respect of Casual Income [Sec. 115BB] 204 Unexplained Cash Credit and Investment to be Taxed at the Rate of 30% [Sec. 115BBE] 205 Deductions not Allowable [Sec. 58] 206 Review Questions 207 Problems with Solutions 207 Multiple Choice Questions 215 Chapter 9: Clubbing of Income 217 Sec. 60: Transfer of Income without Transfer of Assets 218 Sec. 61: Revocable Transfer of Assets 218 Sec. 64(1)(II) Salary, Commission, Fees or Remuneration Paid to Spouse from a Concern in Which an Individual has a Substantial Interest. 218 Sec. 64 (1)(IV): Income from Assets transferred to Spouse 219 Sec. 64(1)(VI): Income from the Assets Transferred to Son s Wife 219 Sec. 64(1A): Income of a Minor Child 219 Sec. 64(2): Income of HUF from Property Converted by the Individual into HUF Property 220 Review Questions 221 Problems with Solutions 221 Multiple Choice Questions 226 Chapter 10: Set off, or Carry Forward and Set off of Losses 229 Inter Source Adjustment/Intra Head Adjustment [Sec. 70] 230 1) Capital Gains 230 2) House Property 230 3) Business Income 230 Inter Head Adjustment [Sec. 71] 230 Carry Forward and Set off of Losses in the Subsequent Years 231 Order of Set off of Losses [Sec. 72(2)] 232 Carry Forward and Set off of Losses in Case of Change in Constitution of Firm or Succession [Sec. 78] 232 Carry Forward and Set off of Losses in Case of Closely Held Companies [Sec. 79] 232 Review Questions 232 Problems with Solutions 233 Multiple Choice Questions 239 Chapter 11: Deductions under Chapter VIA and Relief 241 Important Points 242 Income Computed in Accordance with the Provisions of the Act 243

10 XXII Direct Taxation Deduction in Respect of Certain payments and investments u/s 80C to 80GGC 243 Deduction in Respect of Certain Income which are already included in Gross Total Income u/s 80-IA to 80U 243 Relief u/s 89(1) 253 Problems with Solutions 254 Review Questions 268 Multiple Choice Questions 269 Chapter 12: Tax Deducted and Collected at Source 271 Tax Deduction at Source [TDS] 272 Tax Collection at Source (TCS) [206(C)] 273 Who is Buyer and Seller under TCS? 274 Who is not a Seller? 274 Tax Deduction and Collection Account Number (TAN) [Sec. 203A] 275 TDS Rates for F.Y (A.Y ) 275 Form 24Q 275 TDS Chart for the Financial Year to Duties of Tax Deductor/Collector 279 Consequences of Default Failure to Deduct or Remit TDS /TCS (Full or Part) Failure to Apply for TAN in Time or Failure to Quote Allotted TAN or Wrong Quoting of TAN Failure to Issue TDS/TCS Certificate in Time or Failure to Submit form 15H/15G in Time or Failure to Furnish Statement of Perquisites in Time or Failure to File Quarterly Statements in Time 280 General Information 280 How to Calculate TCS? 280 How to Collect TCS? 280 TCS Payment to Government 280 TCS Certificate 281 Review Questions 281 Problems with Solutions 281 Multiple Choice Questions 285 Chapter 13: Returns of Income and PAN 287 Due Dates for Filing of Return 288 Forms Applicable for Induvidual and HUF 288 Forms Applicable for Firms, Associations of Persons (AOP), Body of Individuals (BOI), Local Authority, Companies, Trusts 289

11 Detailed Contents XXIII XXIII Filing of Return in a Computer Media [Sec. 139(1B)] 289 Using Digital Signature 290 Without using Digital Signature 290 Sec. 139(3): Necessity to File the Loss Return before the Due Date Bar on Carry Forward of Losses Exception 290 Sec. 139(4): Belated Return 290 Time Limit 290 Sec. 139(5): Revised Return Conditions Time Limit Significance of Revised Return 291 Sec. 139(6): Details to be Furnished by an Assessee in the Return of Income 291 Sec. 139(6A): Details to be Furnished by Person Engaged in Business or Profession 291 Sec. 139(9): Defective or Incomplete Return 292 Sec. 139C: Power of Board to Dispense with Furnishing Documents, etc, with the Return 293 Sec. 139D: Filing of Return in Electronic Form 293 Consequences of Non-filing of Return Consequences for not Filing within Due Date U/s 139(1) Consequences when Return is not Filed 294 Sec. 139A PAN 294 Persons required to make application for allotment of PAN 294 Relevance of PAN 295 It is Essential to Quote PAN in the Following Transactions 295 Consequences of Non-application of PAN 295 Sec. 139B: Tax Return Preparers 295 Sec. 140: Signing and Verification of Return of Income 296 Sec. 140A: Self-assessment 296 Notification 297 Review Questions 298 Problems with Solutions 298 Multiple Choice Questions 299 Chapter 14: Advance Tax and Interest 301 Dates of Payment of Advance Tax 302 Interest Payable by the Assessee 303 Interest Payable to the Assessee 303

12 XXIV Direct Taxation Sec. 234A: Interest for Default in Furnishing Return of Income 304 Interest has to be Calculated on the following Amount 304 Sec. 234B: Interest for Default in Paying Advance Tax 305 Sec. 234C: Interest for Deferment of Advance Tax 305 In Case of Assessees other than Companies 305 In Case of Companies 306 Sec. 234D: Interest on Excess Refund Granted at the Time of Summary Assessment 306 Sec. 244A: Interest Payable to Assessee on Refund of Income Tax 306 Important Points 307 Review Questions 307 Problems with Solutions 307 Multiple Choice Questions 315 Chapter 15: Taxation of Individuals, HUF and Firms 317 Introduction 318 Individuals 318 Hindu Undivided Family 319 Firm 320 Partnership firm definition [Sec. 2(23)] 320 Conditions for assessment as a firm 320 Interest to Partners [Sec. 40(B)] 321 Remuneration to Partners [Sec. 40(B)] 321 Allowability of Remuneration and Interest vis-à-vis Presumptive Income 322 Losses of the Firm [Sec. 78] 322 Problems with Solutions 322 Review Questions 339 Multiple Choice Questions 339 Chapter 16: Introduction to Wealth Tax 341 Individual 342 HUF 342 Company 342 Chargeable Tax Rate [Sec. 3(2)] 343 Assets Taxable under the Wealth Tax Act 343 Guest House, Residential House or Commercial Building [Sec. 2(ea)(i)] 343 Motor Cars [Sec. 2(ea)(ii)] 344 Jewellery, Bullion, Utensils of Gold, Silver, etc. [Sec. 2(ea)(iii)] 344 Yachts, Boats and Aircrafts [Sec. 2(ea)(iv)] 344

13 Detailed Contents XXV XXV Urban Land [Sec. 2(ea)(v)] 344 Cash in Hand [Sec. 2(ea)(vi)] 344 Deemed Assets [Sec. 4] 344 Assets Transferred by one Spouse to Another [Sec. 4(1)(a)(i)] 345 Assets Held by Minor Child [Sec. 4(1)(a)(ii)] 345 Assets Transferred to a Person or an Association of Persons [Sec. 4(1)(a)(iii)] 345 Assets Transferred under Revocable Transfers [Sec. 4(1)(a)(iv)] 345 Assets Transferred to Son s Wife [Sec. 4(1)(a)(v)] 346 Assets Transferred for the Benefit of Son s Wife [Sec. 4(1)(a)(vi)] 346 Interest of an Assessee in a Firm or an AOP [Sec. 4(1)(b)] 346 Conversion by an Individual of his Self-acquired Property into Joint Family Property [Sec. 4(1A)] 346 Gifts by Book Entries [Sec. 4(5A)] 346 Exempted Assets under Wealth Tax [Sec. 5] 347 Property held under a Trust [Sec. 5(i)] 347 Coparcenary Interest in a HUF [Sec. 5(ii)] 347 Residential Building of a Former Ruler [Sec. 5(iii)] 347 Former Ruler s Jewellery [Sec. 5(iv)] 347 Assets Belonging to the Indian Repatriates [Sec. 5(v)] 347 One House or Part of a House [Sec. 5(vi)] 347 Debts [Sec. 2(m)] 348 Review Questions 348 Problems with Solutions 348 Multiple Choice Questions 352 Chapter 17: Tax Planning 355 Meaning of Tax Planning 356 Meaning of Tax Evasion 357 Tax Planning for Salaried Individuals 357 Following are some of the important points which should be considered for tax savings for A.Y ) Section 10(13A): House Rent Allowance 358 2) Section 10 (14) Rule 2BB(10): Transport Allowance 358 3) Section 17(2): Medical Reimbursement 358 4) Section 80C: Deductions 358 5) Section 80D: Health Insurance Premium 359 6) Section 80E: Interest paid on Educational Loans 359 7) Section 80G: Donations to Charitable institutions 359 8) Section 80CCF: Investment in Infrastructure Bonds 359 9) Section 24: Interest paid on Housing Loan 359

14 XXVI Direct Taxation 10) Section 80GG: Assessee claim deduction of the rent paid even if assessee doesn t get HRA ) Section 80DDB: Pay Lower Tax if Dependent is Ill 360 Tax Planning for Business and Professional Assessees 361 Special Provisions for Small Businessmen 361 Review Questions 362 PART II: CASE LAWS 363 Appendix I 365 1) CIT vs. Leena Ramachandran (Kerala High Court) 366 2) CIT vs. Hero Cycles (P & H High Court) 366 3) ITO vs. Radha Birju Patel (ITAT Mumbai) May, ) Mohan Meakin Limited vs. CIT (Delhi High Court) May, ) DCIT vs. Edelweiss Capital Ltd (ITAT Mumbai) 368 6) JCIT vs. Rolta India Ltd (Supreme Court) January, ) Renu Hingorani vs. ACIT (ITAT Mumbai) April, ) Raj Ratan Palace Co-op Hsg Soc vs. DCIT (ITAT Mumbai) April, ) Atul G. Puranik vs. ITO (ITAT Mumbai) May, ) Vijaya Bank vs. CIT (Supreme Court) ) Sugamchand C. Shah vs. ACIT (2010) 37 DTR (Ahd.) (Trib) ) Meera Somasekaran vs. ITO (2010) 4 ITR 271 (Chennai)(Trib.) ) M. Venkata Subbaiah vs. ITO (2010) 47 DTR 403 (Visakha)(Trib.) ) Dy. CIT vs. Mayawati (Ms.) (2010) 48 DTR 233 (Trib.)(Delhi) ) CIT vs. Deepak Verma (2010) 47 DTR 87 / 236 CTR 213 (Delhi) ) Subhash Chand Kapoor vs. ITO (2010) 46 DTR 314 (Agra)(Trib.) ) Vimaladevi S. Garg (Smt) vs. ITO (2010) 46 DTR 294 (Mum.)(Trib.) 374 Appendix II 375 1) IRC vs. Duke of West-minister (1936) All ER 259 (H.L.) 378 2) McDowell & Co. Ltd. vs. CTO (1985) 154 ITR (SC) (Judgement -Chinnappa Reddy J) 380 3) CIT vs. Bharat Aluminium ( Delhi High Court): Under block of assets, user of individual assets is not required 380 4) S.A. Builders Ltd. vs. CIT, 288 ITR 1 (SC)(2006) 381 5) Tuticorin Alakali Chemicals & Fertilizers Ltd. vs. CIT (SC) Interest received on deposits in pre-construction period of business is taxable.(1997) 382 6) CIT vs. Bokaro Steel Ltd. (SC) Income received and having direct nexus in pre-construction period of business is not taxable but is a capital receipt.(1999) 383

15 Detailed Contents XXVII XXVII 7) Goetze (I) Ltd. vs. CIT (SC) assessee can claim new deductions during the course of assessment only by filing of revised return(2006) 384 8) CIT vs. Kelvinator of India (SC) AO deemed to have applied his mind if facts are on record and reopening u/s 147 on change of opinion is not permissible even within 4 years 385 9) ACIT vs. Elecon Engineering (SC) Roll over charges for foreign currency contracts have to be capitalised u/s 43A ) TRF Limited vs. CIT (SC) bad debts need not be proven to be irrecoverable u/s 36(1)(vii). It is sufficient if they are written off ) CIT vs. Oracle Software India (SC) Copying software onto the blank discs is manufacture for section 80-IA ) Rallies India vs. ACIT ( Bombay High Court) Validity of sec. 147 reopening has to be determined on the basis of law prevailing on date of issue of sec. 148 notice and not on retrospectively amended law ) CIT vs. Lokmat Newspapers (Bombay High Court) Speculation loss can be set off against delivery based profits ) CIT vs. AIMIL Limited (Delhi HC) Employees contribution to PF paid before due date of filing ROI is allowable u/s 43B ) Techno Shares & Stocks vs. CIT (SC) BSE card is an intangible asset and eligible for depreciation u/s 32(1)(ii) ) GE India Technology Centre vs. CIT (SC) TDS obligation u/s 195(1) arises only if the payment is chargeable to tax in the hands of non-resident recipient ) CIT vs. Reliance Petroproducts (SC) Penalty cannot be imposed even for making unsustainable claims S.271 (1)(c) ) CIT vs. Glaxo Smithkline (Asia) (SC) Transfer Pricing Provisions ) Vodafone International Holdings B.V. vs. UOI (SC) (2012) ) Shree Balaji Alloys vs. CIT (2011) 333 ITR 335 (J&K) ) Joseph George and Co. vs. ITO (2010) 328 ITR 161 (Kerala) ) CIT vs. Yamaha Motor India Pvt. Ltd. (2010) 328 ITR 297 (Delhi) ) B. Raveendran Pillai vs. CIT (2011) 332 ITR 531 (Kerala) ) Federal Bank Ltd. vs. ACIT (2011) 332 ITR 319 (Kerala) ) CIT vs. Priya Village Roadshows Ltd. (2011) 332 ITR 594 (Delhi) ) Echjay Forgings Ltd. vs. ACIT (2010) 328 ITR 286 (Bom.) ) Iskraemeco Regent Ltd. vs. CIT (2011) 331 ITR 317 (Mad.) ) CIT vs. Smt. K. G. Rukminiamma (2011) 331 ITR 211 (Kar.) ) Madras Gymkhana Club vs. DCIT (2010) 328 ITR 348 (Mad.) ) CIT vs. Bharti Cellular Ltd. & Hutchison Essar Telecom Ltd. (2011) 330 ITR 239 (SC) ) CIT vs. Qatar Airways (2011) 332 ITR 253 (Bom.) ) Vodafone Essar Cellular Ltd. vs. ACIT (TDS) (2011) 332 ITR 255 (Kerala) 403

16 XXVIII Direct Taxation 33) CIT vs. Dynamic Vertical Software India P. Ltd. (2011) 332 ITR 0222 (Delhi) ) CIT vs. Indersons Leather P. Ltd. (2010) 328 ITR 167 (P&H) ) CIT vs. Smt. Neena Jain (2011) 330 ITR 157 (P & H) ) CIT vs. Cable Corporation of India Ltd. (2011) 336 ITR 56 (Bom.) ) CIT vs. Subhash Kumar Jain [2011] 335 ITR 364 (P&H) ) CIT vs. Manjoo and Co. (2011) 335 ITR 527 (Kerala) ) Indcom vs. Commissioner of Income-tax (TDS) (2011) 335 ITR 485 (Calcutta)406 40) Suresh Kumar D.Shah vs. Dy. CIT (2012) 49 SOT 341 (Hyd.)(Trib.) ) CIT vs. Saurashtra Cement Ltd. (2010) 325 ITR 422 (SC) ) CIT vs. Ambassador Travels (P) Ltd. (2009) 318 ITR 376 (Del.) ) CIT vs. Asian Hotels Ltd. (2010) 323 ITR 0490 (Del.) ) CIT vs. Smt. A. Sivakami and Another (2010) 322 ITR ) CIT vs. VTM Limited (2009) 319 ITR 336 (Mad.) ) CIT vs. Hindustan Zinc Ltd. (2010) 322 ITR 478 (Raj.) ) CIT vs. Neelavathi & Others (2010) 322 ITR 643 (Karn) ) Lalitaben Hariprasad vs. CIT (2010) 320 ITR 698 (Guj) ) Hindustan Unilever Ltd. vs. DCIT (2010) 325 ITR 102 (Bom.) ) CIT vs. Gurnam Singh (2010) 327 ITR 278 (P&H) ) M/s. Kenton Leisure Services, P. Ltd. vs. DCIT (ITAT Cochin) ) Commissioner of Income Tax vs. Punjab State Electricity Board TMI Punjab and Haryana High Court 413 Index 415