ITR’S TRIBUNAL TAX REPORTS (ITR (TRIB)) -- PRINT AND ONLINE EDITION
Appeal to Commissioner (Appeals) --Recovery
of tax--Application for stay of recovery during pendency of
appeal--Case on merits--Assessee having already paid substantial portion
of total tax liability--Stay of recovery of outstanding
demand--Income-tax Act, 1961, s. 40(a)(ia)-- S. S. Warad v. Additional CIT (Bangalore) . . . 290
Business expenditure --Interest
on borrowed capital--Proportionate interest paid by assessee worked out
based on average cost of funds against interest income to be allowed-- Essar Power Ltd. v. Additional CIT (Mumbai) . . . 264
Business income or income from other sources --Infrastructure
undertaking--Special deduction--Eligible profits--Interest on employees
loan and advances, interest on margin money and interest income dues
towards income-tax refund adjustment from purchaser of power--Not
eligible for deduction--But to be assessed as business income for
limited purpose of determining head of income--Income-tax Act, 1961, s.
80-IA. -- Essar Power Ltd. v. Additional CIT(Mumbai) . . . 264
Capital or revenue receipt --Supply
of power by assessee to State Electricity Board--Under power purchase
agreement Board to reimburse income-tax payable by assessee--Provision
for tax recoverable--Income-tax calculated and paid by Board part of
tariff charged by assessee on sale of electricity and not reimbursement
of expenses--Amount is income in assessee’s hands--Income-tax Act,
1961, ss. 2(24), 40(a)(ii), 198-- Essar Power Ltd. v. Additional CIT(Mumbai) . . . 264
Company --Book profits--Computation--Amendmen t
with retrospective effect--Exclusion of provision for income-tax
recoverable--Matter remanded for reconsideration in light of
amendment--Income-tax Act, 1961, s. 115JB, Expln. --Essar Power Ltd. v. Additional CIT (Mumbai) . . . 264
----Book
profits--Computation--Change of law in 2009 with retrospective effect
from April 1, 2001--Provision for unascertained liability--Matter
remanded for reconsideration in light of amendment--Income-tax Act,
1961, s. 115JB,Expln. -- Essar Power Ltd. v. Additional CIT (Mumbai) . . . 264
Amalgamation of companies --Loss-- Depreciation--Set
off of brought forward loss and unabsorbed depreciation of amalgamating
company--Certificate of chartered accountant--Not admitted by Dispute
Resolution Panel observing that certificate appeared to be back
dated--Assessee claiming to have evidence to rebut
observation--Direction to Assessing Officer to readjudicate and decide
under law--Matter remanded--Income-tax Act, 1961-- Alstom Projects India Ltd. v. Additional CIT (Mumbai) . . . 322
Bad debts --Assessee debiting accounts with aggregate of amounts irrecoverable--No infirmity--Income-tax Act, 1961, s. 36(1)(vii)-- Development Credit Bank Ltd. v. Deputy CIT (Mumbai) . . . 209
Business expenditure --Conversion
of assessee, a co-operative bank to public limited company--Suits by
erstwhile shareholders--Expenditure by way of legal and professional
fees to protect title--Allowable-- Development Credit Bank Ltd. v. Deputy CIT (Mumbai) . . . 209
----Deduction
only on actual payment--Provident fund contribution made before due
date of filing return--Allowable--Matter remanded to verify that
payments made before due date of filing return--Income-tax Act, 1961, s.
43B--Alstom Projects India Ltd. v. Additional CIT (Mumbai) . . . 322
----Disallowance--Payments
in cash exceeding specified limit--Exception where payment made by
agent of assessee--Payment of lorry hire charges to lorry
drivers--Assessee neither owner of vehicle nor owner of goods
carried--Lorry drivers cannot be considered as agents of
assessee--Failure to show payments covered by any
exception--Disallowance proper--Income-tax Act, 1961, s.
40A(3)--Income-tax Rules, 1962, r. 6DD(k)-- MRS Roadways v. Deputy CIT (Cochin) . . . 317
----Disallowance--Payments
in cash exceeding specified limit--Payments made to agents--Never
claimed as expenditure--Not liable to tax deduction at source--Payments
of reimbursement--Are purely for business expenses--Income-tax Act,
1961, ss. 40A(3), 194C-- Deputy CIT v. Maruti Freight Movers Ltd. (Kolkata) . . . 305
----Stamp duty paid on lease agreement--Added back in computation--Not to be disallowed-- Development Credit Bank Ltd. v. Deputy CIT (Mumbai) . . . 209
Capital or revenue expenditure --Corporate
membership of club--Meant for benefit of assessee and not for any
particular employee--Expenditure wholly and exclusively for purposes of
business--Allowable--Income-ta x Act, 1961, s. 37-- Development Credit Bank Ltd. v. Deputy CIT (Mumbai) . . . 209
----Payment for re-acquiring premises given on rent--For betterment of title to capital asset--Expenses capital in nature-- Development Credit Bank Ltd. v. Deputy CIT (Mumbai) . . . 209
----Payments
to banks association for participating in shared payment network
system--Facility of connectivity of automated teller machine of one bank
to another bank--Advantage of enduring nature--Expenditure
capital--Assessee entitled to depreciation-- Development Credit Bank Ltd. v. Deputy CIT (Mumbai) . . . 209
Charitable purposes --Exemption--Income
from property--Assessee paying advance for purchase of land from
Government grant--To be treated as application of income--No violation
of section 11(5)--Grant on capital account not income or corpus of
trust--Interest on fixed deposits from unutilised funds on which
Government had overriding title--At par with grant and not to be treated
as income--Income-tax Act, 1961, ss. 11(5), 13(1)(d)-- Additional Director of Income-tax (Exemption) v. Natrip Implementation Society (Delhi) . . . 333
----Registration
of trust--Factors to be considered--Commissioner and not any other
authority to dispose of application for registration--Powers cannot be
delegated unless permitted by statute--Communication or order signed by
Income-tax Officer cannot be treated as disposal of application--Failure
by Commissioner to pass such order within time limit specified in
section 12A--Application deemed to be allowed--Income-tax Act, 1961, ss.
12A, 12AA-- Pravat v. CIT(Kolkata) . . . 294
----Registration
of trusts--Director (Exemptions) entitled to enquire into activities of
trust before granting registration--Disqualification even where small
portion of income enures to benefit of person mentioned in section
13(3)--Assessee conducting eye operations with funds received under
licence from Canadian organisation to whom it was bound to pay licence
fee of $1.00 yearly--Assessee not independent entity--Not entitled to
registration--Income-tax Act, 1961, ss. 11, 12AA, 13(3)-- Operation Eyesight Universal v. Director of Income-tax (Exemptions) (Hyderabad) . . . 268
Deduction of tax at source --Commission--Mobile
telephone service--Discount given by assessee to distributors on sale
of SIM cards and recharge coupons--Constitutes commission--Assessee
liable to deduct tax at source on such commission--Income-tax Act, 1961,
s. 194H-- Bharati Airtel Ltd. v. Deputy CIT (TDS) (Cochin) . . . 263
----Failure
to deposit tax deducted at source with Central Government--Interim
order of High Court in writ petition challenging validity of rule 3
directing assessee to place tax deducted at source in separate account
till further orders--Assessee placing tax deducted at source amount in a
separate account--Commissioner (Appeals) justified in directing
Assessing Officer to wait till final order of High Court for recovery of
tax deducted at source--Income-tax Rules, 1962, r. 3.--Income-tax Act,
1961, s. 201(1), (1A)-- Deputy CIT (TDS) v. Power Grid Corporation of India Ltd. (Nagpur) . . . 203
----Professional
services--Third party administrator providing services to holders of
health insurance policies--Payments to hospitals or nursing homes--Are
payments for professional services--Tax deductible at source--Income-tax
Act, 1961, s. 194J-- Health India TPA Services P. Ltd. v. ITO (OSD) (TDS) (Mumbai) . . . 298
Depreciation --Ownership
of asset--Sale and lease back--Normal lease--Civil dispute between
lessor and lessee--Transaction genuine--Assessee entitled to
depreciation--Income-tax Act, 1961, s. 32-- Development Credit Bank Ltd.v. Deputy CIT (Mumbai) . . . 209
----Rate
of depreciation--Goodwill and furniture and fittings--To be
bifurcated--Depreciation allowable at 25 per cent. on goodwill and 10
per cent. on furniture and fittings--Income-tax Act, 1961, s.
32(1)(ii)-- Tirumala Music Centre P. Ltd. v. Assistant CIT (Hyderabad) . . . 309
----Rate
of depreciation--Payment towards leasehold rights--Goodwill--Matter
remanded to allow depreciation on intangible asset--Income-tax Act,
1961, s. 32(1)(ii)-- Tirumala Music Centre P. Ltd. v. Assistant CIT (Hyderabad) . . . 309
Export --Exemption--Export
oriented unit--Telecommunication and internet charges--Incurred for
export business--To be excluded from export turnover as well as total
turnover--Belated payment of employees’ provident fund
contributions--Payment made before date of filing of
returns--Allowable--Income-tax Act, 1961, s. 10B-- Assistant CITv. SCM Microsystems (India) P. Ltd. (Chennai) . . . 178
Income --Expenditure relating to income not includible in total income--Disallowance--Commissi oner
(Appeals) can disallow in first instance--Disallowance at 10 per cent.
of exempt income would suffice--Assessing Officer cannot simply brush
aside disallowance calculated suo motu by assessee--Must give cogent
reasons for not being satisfied with correctness of claim--No reasoned
finding against disallowance computed and shown by
assessee--Disallowance to be computed after affording reasonable
opportunity to assessee--Income-tax Act, 1961, s. 14A--Income-tax Rules,
1962, r. 8D-- Development Credit Bank Ltd. v. Deputy CIT (Mumbai) . . . 209
Industrial undertaking --Special
deduction--Unit manufacturing perfumery compound--Licence from
Directorate of Industries, registration for value added tax purposes,
order of Commercial Tax Department establishing that factory was in
existence and assessee was engaged in manufacturing of perfumery
oils--Certificate from chartered engineers in respect of production of
finished goods in short period--Factory closed in 2010--Inspection in
2012 by Income-tax Inspector not sufficient to dislodge
evidence--Assessee enjoying benefit of special deduction in immediate
preceding year--Rule of consistency--Not to be denied
benefit--Income-tax Act, 1961, s. 80-IC-- Shree Veer Aromatics Herbs Products v. ITO (Delhi) . . . 282
Interest-tax --Issue
of interest itself deleted--No question of levy of
interest-tax--Interest-tax not be leviable on interest collected by the
assessee--Interest-tax Act, 1974-- Development Credit Bank Ltd. v. Deputy CIT (Mumbai) . . . 209
International transaction --Determination
of arm’s length price--Agreement between parties not to exclude other
approved method of determining arm’s length price--Assessee can adopt
any method specified in section 92C if able to show it to be most
appropriate method--Failure by Transfer Pricing Officer to conduct
pricing study and independently determine arm’s length price by taking
candid transactions of unrelated parties--Matter remanded--Income-tax
Act, 1961, s. 92C-- Assistant CIT v. SCM Microsystems (India) P. Ltd. (Chennai) . . . 178
----Transfer
pricing--Determination of arm’s length price--Transfer pricing
adjustment can be made only on transactions with associated
enterprises--Proportionate adjustment falling within plus or minus 5 per
cent.--No transfer pricing adjustment required--Income-tax Act, 1961-- Alstom Projects India Ltd. v. Additional CIT (Mumbai) . . . 322
Loss --Revaluation of outstanding contracts on net basis--Allowable-- Development Credit Bank Ltd. v. Deputy CIT(Mumbai) . . . 209
----Revaluation of securities at market rate--Resulting loss allowable-- Development Credit Bank Ltd. v. Deputy CIT(Mumbai) . . . 209
Return of income --Delay
in filing--Interest--Return filed in time but signed by general manager
and chief manager and not by managing director--Merely defective not
invalid--Interest not leviable--Income-tax Act, 1961, s. 234A--Development Credit Bank Ltd. v. Deputy CIT (Mumbai) . . . 209
Revision --Commissioner--Bad
debts--Provision for--Working out of deduction--Change of
opinion--Revision not permissible--Income-tax Act, 1961, ss. 36(1)(vii),
263-- Development Credit Bank Ltd. v. Deputy CIT (Mumbai) . . . 209
----Commissioner--Housing
project--Special deduction--Return filed after expiry of time specified
in section 139(4)--Deduction allowed in assessment made under section
143(3)--Not erroneous and prejudicial to interests of Revenue--Revision
to withdraw deduction not permissible--Income-tax Act, 1961, ss.
80-IB(10), 139(4), 143(3), 147, 263--Vanshree Builders and Developers P. Ltd. v. CIT (Bangalore) . . . 188
Wealth-tax --Valuation of asset--Motor cars--80 per cent. of insurance value to be taken--Not written down value--Wealth-tax Act, 1957-- Zee Entertainment Enterprises Ltd. v. Assistant CWT (Mumbai) . . . 314
S. 10B --Export--Exemption-- Export
oriented unit--Telecommunication and internet charges--Incurred for
export business--To be excluded from export turnover as well as total
turnover--Belated payment of employees’ provident fund
contributions--Payment made before date of filing of
returns--Allowable-- Assistant CIT v. SCM Microsystems (India) P. Ltd. (Chennai) . . . 178
S. 11 --Charitable
purpose--Registration of trusts--Director (Exemptions) entitled to
enquire into activities of trust before granting
registration--Disqualification even where small portion of income enures
to benefit of person mentioned in section 13(3)--Assessee conducting
eye operations with funds received under licence from Canadian
organisation to whom it was bound to pay licence fee of $1.00
yearly--Assessee not independent entity--Not entitled to registration-- Operation Eyesight Universal v. Director of Income-tax (Exemptions) (Hyderabad) . . . 268
S. 11(5) --Charitable
purposes--Exemption--Income from property--Assessee paying advance for
purchase of land from Government grant--To be treated as application of
income--No violation of section 11(5)--Grant on capital account not
income or corpus of trust--Interest on fixed deposits from unutilised
funds on which Government had overriding title--At par with grant and
not to be treated as income-- Additional Director of Income-tax (Exemption) v.Natrip Implementation Society (Delhi) . . . 333
S. 12A --Charitable
purpose--Registration of trust--Factors to be considered--Commissioner
and not any other authority to dispose of application for
registration--Powers cannot be delegated unless permitted by
statute--Communication or order signed by Income-tax Officer cannot be
treated as disposal of application--Failure by Commissioner to pass such
order within time limit specified in section 12A--Application deemed to
be allowed-- Pravatv. CIT ( Kolkata) . . . 294
S. 12AA --Charitable
purpose--Registration of trusts--Director (Exemptions) entitled to
enquire into activities of trust before granting
registration--Disqualification even where small portion of income enures
to benefit of person mentioned in section 13(3)--Assessee conducting
eye operations with funds received under licence from Canadian
organisation to whom it was bound to pay licence fee of $1.00
yearly--Assessee not independent entity--Not entitled to registration-- Operation Eyesight Universal v. Director of Income-tax (Exemptions) (Hyderabad) . . . 268
----Charitable
purpose--Registration of trust--Factors to be considered--Commissioner
and not any other authority to dispose of application for
registration--Powers cannot be delegated unless permitted by
statute--Communication or order signed by Income-tax Officer cannot be
treated as disposal of application--Failure by Commissioner to pass such
order within time limit specified in section 12A--Application deemed to
be allowed-- Pravat v. CIT ( Kolkata) . . . 294
S. 13(1)(d) --Charitable
purposes--Exemption--Income from property--Assessee paying advance for
purchase of land from Government grant--To be treated as application of
income--No violation of section 11(5)--Grant on capital account not
income or corpus of trust--Interest on fixed deposits from unutilised
funds on which Government had overriding title--At par with grant and
not to be treated as income-- Additional Director of Income-tax (Exemption) v.Natrip Implementation Society (Delhi) . . . 333
S. 13(3) --Charitable
purpose--Registration of trusts--Director (Exemptions) entitled to
enquire into activities of trust before granting
registration--Disqualification even where small portion of income enures
to benefit of person mentioned in section 13(3)--Assessee conducting
eye operations with funds received under licence from Canadian
organisation to whom it was bound to pay licence fee of $1.00
yearly--Assessee not independent entity--Not entitled to registration-- Operation Eyesight Universal v. Director of Income-tax (Exemptions) (Hyderabad) . . . 268
S. 14A --Income--Expenditure relating to income not includible in total income--Disallowance--Commissi oner
(Appeals) can disallow in first instance--Disallowance at 10 per cent.
of exempt income would suffice--Assessing Officer cannot simply brush
aside disallowance calculated suo motu by assessee--Must give cogent
reasons for not being satisfied with correctness of claim--No reasoned
finding against disallowance computed and shown by
assessee--Disallowance to be computed after affording reasonable
opportunity to assessee-- Development Credit Bank Ltd. v. Deputy CIT(Mumbai) . . . 209
S. 32 --Depreciation--Ownership
of asset--Sale and lease back--Normal lease--Civil dispute between
lessor and lessee--Transaction genuine--Assessee entitled to
depreciation-- Development Credit Bank Ltd. v. Deputy CIT(Mumbai) . . . 209
S. 32(1)(ii) --Depreciation--Rate
of depreciation--Goodwill and furniture and fittings--To be
bifurcated--Depreciation allowable at 25 per cent. on goodwill and 10
per cent. on furniture and fittings-- Tirumala Music Centre P. Ltd. v.Assistant CIT (Hyderabad) . . . 309
----Depreciation--Rate
of depreciation--Payment towards leasehold rights--Goodwill--Matter
remanded to allow depreciation on intangible asset-- Tirumala Music Centre P. Ltd. v. Assistant CIT (Hyderabad) . . . 309
S. 36(1)(vii) --Bad debts--Assessee debiting accounts with aggregate of amounts irrecoverable--No infirmity--Development Credit Bank Ltd. v. Deputy CIT (Mumbai) . . . 209
----Revision--Commissioner--Ba d debts--Provision for--Working out of deduction--Change of opinion--Revision not permissible-- Development Credit Bank Ltd. v. Deputy CIT (Mumbai) . . . 209
S. 37 --Capital
or revenue expenditure--Corporate membership of club--Meant for benefit
of assessee and not for any particular employee--Expenditure wholly and
exclusively for purposes of business--Allowable-- Development Credit Bank Ltd. v. Deputy CIT (Mumbai) . . . 209
S. 40A(3) --Business expenditure--Disallowance--Pay ments
in cash exceeding specified limit--Exception where payment made by
agent of assessee--Payment of lorry hire charges to lorry
drivers--Assessee neither owner of vehicle nor owner of goods
carried--Lorry drivers cannot be considered as agents of
assessee--Failure to show payments covered by any
exception--Disallowance proper-- MRS Roadways v. Deputy CIT (Cochin) . . . 317
----Business expenditure--Disallowance--Pay ments
in cash exceeding specified limit--Payments made to agents--Never
claimed as expenditure--Not liable to tax deduction at source--Payments
of reimbursement--Are purely for business expenses-- Deputy CIT v. Maruti Freight Movers Ltd. (Kolkata) . . . 305
S. 43B --Business
expenditure--Deduction only on actual payment--Provident fund
contribution made before due date of filing return--Allowable--Matter
remanded to verify that payments made before due date of filing return-- Alstom Projects India Ltd. v. Additional CIT (Mumbai) . . . 322
S. 80-IB(10) --Revision-- Commissioner--Housing
project--Special deduction--Return filed after expiry of time specified
in section 139(4)--Deduction allowed in assessment made under section
143(3)--Not erroneous and prejudicial to interests of Revenue--Revision
to withdraw deduction not permissible-- Vanshree Builders and Developers P. Ltd. v.CIT (Bangalore) . . . 188
S. 80-IC --Industrial
undertaking--Special deduction--Unit manufacturing perfumery
compound--Licence from Directorate of Industries, registration for value
added tax purposes, order of Commercial Tax Department establishing
that factory was in existence and assessee was engaged in manufacturing
of perfumery oils--Certificate from chartered engineers in respect of
production of finished goods in short period--Factory closed in
2010--Inspection in 2012 by Income-tax Inspector not sufficient to
dislodge evidence--Assessee enjoying benefit of special deduction in
immediate preceding year--Rule of consistency--Not to be denied
benefit-- Shree Veer Aromatics Herbs Products v.ITO (Delhi) . . . 282
S. 92C --International
transaction--Determination of arm’s length price--Agreement between
parties not to exclude other approved method of determining arm’s
length price--Assessee can adopt any method specified in section 92C if
able to show it to be most appropriate method--Failure by Transfer
Pricing Officer to conduct pricing study and independently determine
arm’s length price by taking candid transactions of unrelated
parties--Matter remanded-- Assistant CIT v. SCM Microsystems (India) P. Ltd. (Chennai) . . . 178
S. 139(4) --Revision-- Commissioner--Housing
project--Special deduction--Return filed after expiry of time specified
in section 139(4)--Deduction allowed in assessment made under section
143(3)--Not erroneous and prejudicial to interests of Revenue--Revision
to withdraw deduction not permissible-- Vanshree Builders and Developers P. Ltd. v.CIT (Bangalore) . . . 188
S. 143(3) --Revision-- Commissioner--Housing
project--Special deduction--Return filed after expiry of time specified
in section 139(4)--Deduction allowed in assessment made under section
143(3)--Not erroneous and prejudicial to interests of Revenue--Revision
to withdraw deduction not permissible-- Vanshree Builders and Developers P. Ltd. v.CIT (Bangalore) . . . 188
S. 147 --Revision--Commissioner-- Housing
project--Special deduction--Return filed after expiry of time specified
in section 139(4)--Deduction allowed in assessment made under section
143(3)--Not erroneous and prejudicial to interests of Revenue--Revision
to withdraw deduction not permissible-- Vanshree Builders and Developers P. Ltd. v.CIT (Bangalore) . . . 188
S. 194C --Business expenditure--Disallowance--Pay ments
in cash exceeding specified limit--Payments made to agents--Never
claimed as expenditure--Not liable to tax deduction at source--Payments
of reimbursement--Are purely for business expenses-- Deputy CIT v. Maruti Freight Movers Ltd. (Kolkata) . . . 305
S. 194H --Deduction
of tax at source--Commission--Mobile telephone service--Discount given
by assessee to distributors on sale of SIM cards and recharge
coupons--Constitutes commission--Assessee liable to deduct tax at source
on such commission-- Bharati Airtel Ltd. v. Deputy CIT (TDS) (Cochin) . . . 263
S. 194J --Deduction
of tax at source--Professional services--Third party administrator
providing services to holders of health insurance policies--Payments to
hospitals or nursing homes--Are payments for professional services--Tax
deductible at source-- Health India TPA Services P. Ltd. v. ITO (OSD) (TDS) (Mumbai) . . . 298
S. 201(1), (1A) --Deduction
of tax at source--Failure to deposit tax deducted at source with
Central Government--Interim order of High Court in writ petition
challenging validity of rule 3 directing assessee to place tax deducted
at source in separate account till further orders--Assessee placing tax
deducted at source amount in a separate account--Commissioner (Appeals)
justified in directing Assessing Officer to wait till final order of
High Court for recovery of tax deducted at source-- Deputy CIT (TDS) v. Power Grid Corporation of India Ltd. (Nagpur) . . . 203
S. 234A --Return
of income--Delay in filing--Interest--Return filed in time but signed
by general manager and chief manager and not by managing
director--Merely defective not invalid--Interest not leviable-- Development Credit Bank Ltd. v. Deputy CIT (Mumbai) . . . 209
S. 263 --Revision--Commissioner-- Bad debts--Provision for--Working out of deduction--Change of opinion--Revision not permissible-- Development Credit Bank Ltd. v. Deputy CIT (Mumbai) . . . 209
----Revision--Commissioner--Ho using
project--Special deduction--Return filed after expiry of time specified
in section 139(4)--Deduction allowed in assessment made under section
143(3)--Not erroneous and prejudicial to interests of Revenue--Revision
to withdraw deduction not permissible-- Vanshree Builders and Developers P. Ltd. v. CIT(Bangalore) . . . 188
R. 3 --Deduction
of tax at source--Failure to deposit tax deducted at source with
Central Government--Interim order of High Court in writ petition
challenging validity of rule 3 directing assessee to place tax deducted
at source in separate account till further orders--Assessee placing tax
deducted at source amount in a separate account--Commissioner (Appeals)
justified in directing Assessing Officer to wait till final order of
High Court for recovery of tax deducted at source-- Deputy CIT (TDS) v. Power Grid Corporation of India Ltd. (Nagpur) . . . 203
R. 6DD(k) --Business expenditure--Disallowance--Pay ments
in cash exceeding specified limit--Exception where payment made by
agent of assessee--Payment of lorry hire charges to lorry
drivers--Assessee neither owner of vehicle nor owner of goods
carried--Lorry drivers cannot be considered as agents of
assessee--Failure to show payments covered by any
exception--Disallowance proper-- MRS Roadways v. Deputy CIT (Cochin) . . . 317
R. 8D --Income--Expenditure relating to income not includible in total income--Disallowance--Commissi oner
(Appeals) can disallow in first instance--Disallowance at 10 per cent.
of exempt income would suffice--Assessing Officer cannot simply brush
aside disallowance calculated suo motu by assessee--Must give cogent
reasons for not being satisfied with correctness of claim--No reasoned
finding against disallowance computed and shown by
assessee--Disallowance to be computed after affording reasonable
opportunity to assessee-- Development Credit Bank Ltd. v. Deputy CIT(Mumbai) . . . 209
No comments:
Post a Comment