S. 263 : Commissioner – Revision of orders prejudicial to revenue -Capital gains -Cost of improvement -Paid to shareholders under Family Settlement – Discharge encumbrances-Cost of improvement -Relinquishment of rights – Assessing Officer accepting claim -Order erroneous and prejudicial to Revenue -Revision is justified- Order of High Court reversed. [S. 45, 48, 55(1)(b)]
S. 263 : Commissioner – Revision of orders prejudicial to revenue -Total income -Eligible profit -Export profit -Deduction under Section 80HHC to be computed on eligible profits only after reducing profits on which deduction availed of under Section 80IB of the Act -Revision was affirmed -Special Leave to appeal of the assessee was dismissed. [S.80HHC, 800IA(9), 80IB(13)]
S. 234A : Interest – Default in furnishing return of income – Levy of interest is mandatory. [S. 2(35), 5, 6(3)(ii), 131, 142(1), 143(2), 148, 282]
S. 197 : Deduction at source – Certificate for lower rate -Non -Resident – Payments under distributor agreement —Certificate for withholding tax at rate of 9.99 Per Cent- Order set aside- Precedent -Supreme Court -Binding on Authorities. [S. 195, Rule 28AA, Art. 226]
S. 195 : Deduction at source – Non-resident -Observations of High Court that if in assessment proceedings of Netherlands company, that company held liable to be taxed in India and assessee would also be treated as in default -Observation was quashed. [S.40(a)(i)), Art. 136]
S. 158BE : Block assessment – Time limit – Search and seizure – Limitation -From date of last Panchnama and not date of last warrant of authorisation [S. 132, 158C]
S. 156 : Notice of demand -Bogus accommodation entries – lacked bona fides- Refund of money transferred to bank account in which Department had Lien for tax dues of company- Question of facts -The assessee was directed to approach appropriate Forum or Civil Court for recovery of its claim. [Art. 226]
S. 156 : Notice of demand -Bogus accommodation entries – lacked bona fides- Refund of money transferred to bank account in which Department had Lien for tax dues of company- Question of facts –Single judge held that the assessee should approach appropriate Forum or Civil Court [Art. 226]
S. 153C : Assessment – Income of any other person – Search – Provision applicable to searches conducted prior to date of amendment – (Prior to and after amendment by Finance Act, 2015, with Effect From 1-6-2015)-Search conducted prior to amendment with effect from 1-6-2015 – Books received by Assessing Officer of assessee after that date -Belongs or belong to – Deeming fiction that date of initiation of search would be date when Assessing Officer of third person receives seized material -Amended provision applicable -Interpretation of taxing statutes -Interpretation which effectuates object and purpose of statute preferred.-Amendment by substitution —Rule against retrospectivity. [S. 132]
S. 153C : Assessment – Income of any other person-Search-Prior to and after amendment by Finance Act, 2015, with effect from 1-6-2015 -Order of High Court set aside. [S. 132, Art. 136]