CASE NOS.

CONTENTS

Chapter-heads I-5

List of cases digested I-31-I-102

List of cases affirmed/reversed/overruled/approved/disapproved I-103-I-113

List of cases against which SLP Dismissed/Granted bySupreme Court I-115-I-119

List of Circulars & Notifications judicially analysed by Courts I-121-I-128

INCOME-TAX

SECTIONS 2 & 3

� Definitions

� Agricultural income [Section 2(1A)] 1-2

� Deemed dividend [Section 2(22)] 3-19

� Interest [Section 2(28A)] 20-22

� Manufacture [Section 2(29BA)] 23

SECTION 4

� Charge of tax

� Basic concepts 24-26

� Income, definition of [Section 2(24)] 27

� Income - Chargeable as 28-42

� Hindu undivided family, assessable as 43-44

� Firm, assessable as 45

� Application of income, or diversion of income by overridingtitle 46-47

I-7

PAGE NO.

CASE NOS.

VOLUME 1

CASE NOS.

� Association of persons, assessable as 48-49

� Mutual concern 50-53

SECTION 5

� Income, accrual of

� Concept of real income 54

� Surcharge 55

� Time of accrual of income 56-71

SECTION 6

� Residential status

� Individual 72

SECTION 9

� Income deemed to accrue or arise in India

� Person [Article 3 of OECD Model Convention] 73

� Permanent establishment [Article 5 of OECD ModelConvention] 74-82

� Business profits [Article 7 of OECD Model Convention] 83-90

� Royalty/fees for technical services [Article 12 of OECDModel Convention] 91-113

� Interest [Article 11 of OECD Model Convention] 114-119

� Capital gains [Article 13 of OECD Model Convention] 120

� Method of elimination of double taxation [Articles 23A and23B of OECD Model Convention] 121

� Non-discrimination [Article 24 of OECD Model Convention] 122

� Mutual agreement procedure [Article 25 of OECD ModelConvention] 123

SECTIONS 10 TO 10BA

� Exemptions

� Remuneration or fee received by non-resident consultant[Section 10(8A)] 124

� Voluntary retirement payments [Section 10(10C)] 125-126

� Special allowance [Section 10(14)] 127

� Interest income [Section 10(15)] 128

� Aircraft, payment for acquisition of [Section 10(15A)] 129

� Employees’ welfare funds [Section 10(23AAA)] 130

CONTENTS I-8

CASE NOS.

� Educational Institutions [Section 10(23C)] 131-137

� Hospitals [Section 10(23C)(via)] 138-141

� Scheduled Tribe [Section 10(26)] 142

� Marketing societies, income from letting of godowns[Section 10(29)] 143

� Capital gain on transfer of agricultural land [Section10(37)] 144

� Income arising from transfer of equity shares/units[Section 10(38)] 145

� Free Trade Zones, newly established undertakings[Section 10A] 146-161

� Export oriented undertakings [Section 10B] 162-172

SECTIONS 11 TO 13

� Charitable/religious trust

� Charitable purpose [Section 2(15)] 173-177

� Medical relief 178-179

� Objects of general public utility 180-186

� Section 10 vs. Section 11 187

� Res judicata 188-189

� Exemption of income from property held under charitable/religious trust [Section 11] 190-201

� Registration procedure [Section 12A/12AA] 202-222

� Denial of exemption [Section 13] 223-230

SECTION 14A

� Expenditure incurred in relation to income not includible intotal income

� General 231-234

� In respect of certain expenses 235-245

� In respect of certain income 246-247

� Rule 8D 248-250

� Others 251

SECTIONS 15 TO 17

� Salaries

� Salary, chargeable as 252

� Allowance 253

� Profits in lieu of salary 254-255

I-9 CONTENTS

CASE NOS.

SECTIONS 22 TO 27

� Income from house property

� Chargeable as [Section 22] 256-263

� Annual value [Section 23] 264-265

� Deductions [Section 24] 266

� Deemed owner [Section 27] 267

SECTION 28

� Profits and gains of business or profession

� Business income - Chargeable as [Section 28(i)] 268-306

� Business deduction/Loss - Allowable as [Section 28(i)] 307-323

� Compensation for termination of agency, etc. [Section 28(ii)] 324

� Value of benefit or perquisite arising from exercise ofbusiness or profession [Section 28(iv)] 325-328

� Non-compete fees [Section 28(va)] 329-331

SECTIONS 30 & 31

� Rent, taxes & repairs

� Building repairs 332-333

SECTION 32

� Depreciation

� General 334-337

� Owner 338-339

� User of asset 340-343

� Intangible assets 344-349

� Lease of assets 350-352

� Assets entitled to depreciation 353-356

� Rate of depreciation 357-364

� Higher rate of depreciation [Rule 5(1A)] 365-366

� Additional depreciation [Section 32(1)(iia)] 367-370

� Reassessment 371-375

� Unabsorbed depreciation, carry forward and set off of 376

� Charitable trust, in case of 377-382

� Claim for depreciation 383-384

CONTENTS I-10

CASE NOS.

� 100 per cent depreciation 385-388

� Others 389-392

SECTION 32A

� Investment allowance

� Purchase of asset 393

� Withdrawal of allowance 394-395

� Sub-section (8B) 396

SECTION 32AB

� Investment deposit account

� Computation of deduction 397

� Eligible business 398

� Audit report 399

� Sub-section (6) 400

SECTION 33

� Development rebate

� Reassessment 401

SECTION 33AC

� Shipping business, reserve for

� Reopening of assessment 402

SECTION 34A

� Depreciation, restriction on unabsorbed depreciation, etc., forlimited period in case of certain domestic companies

� Scope of provision 403

SECTION 35

� Scientific research expenditure

� Sub-section (1) 404-407

� Sub-section (2AB) 408-409

SECTION 35AB

� Technical know-how expenses

� Section 35AB v. Section 37(1) 410

I-11 CONTENTS

CASE NOS.

SECTION 35C

� Agricultural development allowance

� Scope of provision 411

SECTION 35D

� Preliminary expenses, amortisation of

� GDR issue expenses 412

� Share issue expenses 413-415

� Reassessment 416

SECTION 36(1)(ii)

� Bonus/commission

� Commission 417

SECTION 36(1)(iii)

� Interest on borrowed capital

� General 418

� Interest on interest 419

� For the purpose of business 420-427

� Interest free loans 428-439

� Interest on interest free advance to directors 440

� Acquisition of capital asset 441-443

� Year in which deductible 444-445

� Reassessment 446-447

SECTION 36(1)(iv)

� Recognised provident fund, contribution towards

� Approval 448

SECTION 36(1)(va)

� Employees’ contribution

� Due date 449-451

SECTION 36(1)(vii)/(viia)

� Bad debts

� General 452-453

� Writing off of debt 454-459

CONTENTS I-12

CASE NOS.

� Money lending business 460

� Banks, in case of 461-463

� Reassessment 464-465

SECTION 36(1)(viii)

� Financial corporations, special reserve created by

� Computation of deduction 466

SECTION 37(1)

� Business expenditure

� Allowability of 467-610

� Year in which deductible 611-614

SECTION 37(2)/(3A)/(3B)/(4)

� Advertisement expenses/Guest house expenses/Hotel expenses

� Entertainment expenses 615

� Advertisement expenses 616

� Travelling expenses 617

� Guest house expenses 618-620

SECTIONS 40, 40A & 43B

� Business disallowance

� Interest, etc., paid to resident without deduction of tax atsource [Section 40(a)(ia)] 621-633

� Security transaction tax [Section 40(a)(ib)] 634

� Interest, salary, etc., paid by firm to partners [Section 40(b)] 635

� Salary, etc., paid to directors in excess of prescribed limit[Section 40(c)] 636

� Excessive or unreasonable payment [Section 40A(2)] 637-646

� Cash payment exceeding prescribed limits [Section 40A(3)] 647-653

� Salary, etc., paid to directors [Section 40A(5)] 654

� Certain deductions to be allowed only on actual payment[Section 43B] 655-666

SECTION 41(1)

� Remission or cessation of trading liability

� Excise duty refund 667-668

I-13 CONTENTS

CASE NOS.

� Sales tax refunds 669-670

� Loan, waiver of 671-673

� Unclaimed credit balance 674

SECTION 41(2)

� Balancing charge

� Scope of provision 675

SECTION 42

� Mineral oil, business for prospecting, etc.

� Scope of provision 676

SECTION 43(1)

� Actual cost

� Slump sale, in case of 677

� Explanation 3 678-679

� Explanation 8 680

SECTION 43(3)

� Plant

� Cold storage 681

� Centering/shuttering material 682

� Prawn ponds 683

� Sanitary fitting and electrical installations 684

� Studio building 685

� Swimming pool 686

SECTION 43(5)

� Speculative transactions

� Hedging transaction 687

SECTION 43A

� Rate of exchange of foreign currency, effect of change in

� Scope of provision 688

CONTENTS I-14

CASE NOS.

SECTION 43D

� Public financial institutions/Public companies, special provi-sion in case of income of

� Scope of provision 689

SECTION 44

� Insurance business

� Reassessment 690

SECTION 44AD

� Presumptive taxation

� Computation of income 691-695

SECTION 44BB

� Mineral oils, special provisions for computing profits & gains inconnection with business of exploration, etc., of

� Scope of provision 696-699

SECTION 44D

� Foreign companies, royalties in case of

� Scope of provisions 700

SECTIONS 45 TO 55A

� Capital gains

� Capital assets [Section 2(14)] 701-711

� Short-term/long-term capital gains [Section 2(29A)/(29B)/(42A)/(42B)] 712-714

� Transfer [Section 2(47)] 715-725

� Capital gains - Chargeable as [Section 45] 726-743

� Transaction not regarded as transfer [Section 47] 744

� Computation of capital gains [Sections 48, 49, 50, 50B, 50C& 55] 745-764

� Exemption in case of profit from sale of property used forresidence [Section 54] 765-767

� Exemption in case of transfer of land used for agriculturalpurposes [Section 54B] 768-770

I-15 CONTENTS

CASE NOS.

� Exemption in case of investment in specified assets[Section 54E] 771-772

� Exemption in case of investment in specified bonds[Section 54EC] 773-775

� Exemption in case of investment in residential house[Section 54F] 776-782

� Exemption in case of transfer of assets in case of shiftingof Industrial undertakings from urban area [Section 54G] 783

� Reference to valuation officer [Section 55A] 784-786

SECTIONS 56 & 57

� Income from other sources

� Chargeable as [Section 56] 787-791

� Deductions [Section 57] 792-794

SECTION 64

� Clubbing of income

� Minors, in case of 795

SECTION 68

� Cash credits

� Burden of proof 796-802

� Year in which taxable 803

� Accommodation entry 804

� Bank account 805

� Bank deposits 806-807

� Bogus purchase 808

� Cash receipts 809

� Deposits 810

� Firm, in case of 811

� Gifts 812-822

� Jewellery 823

� Loan 824-834

� Petty amount 835

� Share application money 836-841

� Share dealings 842-844

� Surrendered amount 845

� Others 846

CONTENTS I-16

CASE NOS.

SECTION 69

� Unexplained investments

� Burden of proof 847-849

� Retraction from statements, effect of 850

� Bank account 851

� Construction expenses/immovable property 852-859

� Deposits/bank deposits 860-862

� Gifts 863-866

� Import licence 867

� Jewellery 868-869

� Loans 870

� Share dealings 871

� Unaccounted sales 872-873

SECTION 69A

� Unexplained moneys, etc.

� Burden of proof 874

� Accommodation entry 875

� Admission in sworn statement, in case of 876

� Bank account 877-878

� Cash 879-880

� Gift 881

� Jewellery 882

� Loan 883

� On money receipt 884

� Salary 885

� Share premium 886

� Stock 887

� Surrendered income 888-889

� Trade advances 890

� Unaccounted sale 891

SECTION 69B

� Undisclosed investments

� Retraction from statement, effect of 892

� Advance money 893

I-17 CONTENTS

CASE NOS.

� Bank deposit 894

� Construction expenses/immovable property 895-901

� Stocks 902-904

SECTION 69C

� Unexplained expenditure

� Burden of proof 905

� Bank accounts 906

� Bogus purchases 907-909

� Immovable property 910

� Interest 911

� Seized documents, relevance of 912

� Statements made before other authorities, relevance of 913

� Sundry credits 914

� Revision 915

SECTIONS 70 TO 80

� Losses

� Intra source set off [Section 70] 916

� Intra head set off [Section 71] 917-918

� Carry forward and set off of business losses [Section 72] 919

� Speculation losses [Section 73] 920-924

� Carry forward and set off of losses in case of certaincompanies [Section 79] 925-926

� Loss return [Section 80] 927

SECTIONS 80AB TO 80RR

� Deductions

� Deductions to be made with reference to income includedin gross total income [Section 80AB] 928

� Donation to certain funds, charitable institutions, etc.[Section 80G] 929-933

� Profits and gains from hotels or industrial undertakings,etc., in backward area [Section 80HH] 934-942

� Projects outside India [Section 80HHB] 943

� Exporters [Section 80HHC] 944-986

� Computer software, export of [Section 80HHE] 987-990

CONTENTS I-18

CASE NOS.

� Profits and gains from Industrial/infrastructure undertakings[Section 80-I/80-IA] 991-1025

� Profits and gains from industrial undertakings other thaninfrastructure development undertakings [Section 80-IB] 1026-1058

� Profits and gains of undertakings in certain special categoryStates [Section 80-IC] 1059-1066

� Profits and gains from newly established industrialundertakings or ships or hotels [Section 80J] 1067

� Poultry farming, income from [Section 80JJ] 1068

� Inter-corporate dividend [Section 80M] 1069-1072

� Royalty, etc., from certain foreign enterprises [Section 80-O] 1073-1075

� Income of co-operative societies [Section 80P] 1076-1084

� Remuneration received for services rendered outside India[Section 80RRA] 1085

SECTION 88E

� Securities Transaction Tax, rebate in respect of

� Computation of deduction 1086

SECTION 90

� Double taxation relief

� Scope of provision 1087

SECTIONS 92 TO 92F

� Transfer pricing

� Associated enterprise [Section 92A] 1088

� International transaction [Section 92B] 1089-1098

� Computation of arm’s length price [Section 92C] 1099-1117

� Reference to TPO [Section 92CA] 1118

� Maintenance and keeping of information and documents[Section 92D read with sections 271AA & 271G] 1119

� Dispute Resolution Panel [Section 144C] 1120-1122

SECTION 94

� Avoidance of tax by certain transactions in securities

� Sub-section (7) 1123-1124

I-19 CONTENTS

CASE NOS.

SECTION 94A

� Transactions with persons located in notified jurisdictionalarea

� Cyprus 1125

SECTION 115BB

� Winnings from lotteries, tax on

� Set off of loss 1126

SECTION 115BBC

� Anonymous donations

� Scope of provision 1127

SECTIONS 115C TO 115-I

� Non-residents, special provisions relating to

� Tax on investment income and long-term capital gains[Section 115E] 1128-1129

SECTIONS 115J TO 115JB

� Minimum alternate tax

� FIIs 1130

� Advance tax 1131

� Tax credit [Section 115JAA] 1132

� Computation of book profit [Section 115JB] 1133-1152

SECTIONS 115VA TO 115VJ

� Shipping companies

� Computation of tonnage income [Section 115VG] 1153

SECTIONS 115WA AND 115WB

� Fringe benefits tax

� General 1154-1155

� Employee-employer relationship 1156

� Uniform allowance 1157

� Value of perquisites 1158

CONTENTS I-20

CASE NOS.

SECTIONS 119, 120, 127 & 131

� Income-tax Authorities

� Instructions to subordinate authorities [Section 119] 1159-1161

� Income tax authorities - Jurisdiction of [Section 120] 1162

� Transfer of cases [Section 127] 1163-1173

� Discovery, production of evidence, etc., powers regarding[Section 131] 1174

SECTIONS 132, 132B, 133 & 133A

� Search, seizure & survey

� Search and seizure [Section 132] 1175

� Reasons to believe 1176-1182

� Seized or requisitioned assets, application of [Section 132B] 1183-1184

� Power to call for information [Section 133] 1185

� Survey [Section 133A] 1186-1187

SECTION 138

� Disclosure of information respecting assessees

� Scope of provision 1188-1191

SECTION 139

� Return of income

� Revised return 1192

� Condonation of delay in filing return 1193

� Extension of time for filing return 1194-1197

� Interest for late filing of return [Sub-section (8)] 1198

SECTION 139A

� Permanent account number

� Scope of provision 1199

SECTION 142

� Inquiry before assessment

� Notice under section 142(1) 1200-1201

� Special audit [Sub-section (2A)] 1202-1205

I-21 CONTENTS

CASE NOS.

SECTION 142A

� Estimate by Valuation Officer in certain cases

� Condition precedent 1206-1209

� Reassessment 1210

SECTIONS 143 AND 144

� Assessment

� Amalgamation, in case of 1211-1213

� Material and evidence 1214

� Benami transactions 1215

� Notice under section 143(2) 1216-1222

� Assessment barred by limitation 1223

� Revision 1224

� Best judgment assessment [Section 144] 1225-1228

� Prima facie adjustment [Section 143(1)(a)] 1229

� Additional tax [Section 143(1A)] 1230-1232

SECTIONS 145 AND 145A

� Method of accounting

� Mercantile/cash system of accounting 1233

� Completed contract method 1234

� Project completion method 1235-1236

� LIFO method 1237

� EMI method 1238

� Rejection of books of account 1239-1241

� Estimation of profit 1242-1270

� Valuation of stock 1271-1276

SECTIONS 147 TO 153

� Income escaping assessment

� Section 147 v. Section 143 1277-1279

� Scope of reassessment 1280

� Non-disclosure of primary facts 1281

� Notice for reassessment [Section 148] 1282-1291

� Time limit for issuing notice [Section 149] 1292-1293

� Provision for cases where assessment is in pursuance of anorder on appeal, etc. [Section 150] 1294-1295

CONTENTS I-22

CASE NOS.

� Sanction for issue of notice [Section 151] 1296-1299

� Time limit for completion of assessment [Section 153] 1300-1302

SECTIONS 153A TO 153C

� Search & seizure, assessment in case of

� Assessment in case of search and seizure [Section 153A] 1303-1308

� Assessment of income in case of any other person [Section153C] 1309-1312

SECTIONS 154 AND 155

� Rectification of mistakes

� Judicial rulings 1313-1314

SECTIONS 158B TO 158BG

� Block assessment in search cases

� Rate of tax [Section 113] 1315-1319

� Computation of undisclosed income [Section 158BB] 1320-1331

� Procedure for block assessment [Section 158BC] 1332-1347

� Undisclosed income of any other person [Section 158BD] 1348-1363

� Penalty/penal interest [Section 158BFA] 1364-1367

SECTIONS 159 TO 179

� Liability in special cases

� Trust [Section 164] 1368-1370

� Hindu undivided family, assessment after partition [Section171] 1371

� Shipping business of non-resident [Section 172] 1372

� Private company in liquidation, liability of directors of[Section 179] 1373-1375

SECTIONS 184 AND 185

� Firm

� Genuineness of firm 1376

� Remuneration to partner 1377

SECTIONS 192 TO 206C

� Deduction/Collection of tax at source

� Salary [Section 192] 1378

I-23 CONTENTS

CASE NOS.

� Interest other than interest on securities [Section 194A] 1379-1384

� Contractors/sub-contractor, payments to [Section 194C] 1385-1403

� Commission or brokerage [Section 194H] 1404-1407

� Rent [Section 194-I] 1408-1413

� Fees for technical/professional services [Section 194J] 1414-1419

� Compensation on acquisition of capital asset [Section 194L] 1420

� Non-resident, payments to [Section 195] 1421-1422

� Certificate for deduction of tax at lower rate [Section 197] 1423

� Tax deducted is income received [Section 198] 1424

� Credit for tax deducted at source [Section 199] 1425

� Consequence of failure to deduct or pay [Section 201] 1426-1434

� Collection of tax at source [Section 206C] 1435-1436

SECTION 214

� Advance tax

� Interest payable by Government [Section 214] 1437

SECTIONS 209 TO 217

� Advance tax

� Advance tax - Computation of [Section 209] 1438

� Interest payable by assessee when no estimate made[Section 217] 1439

SECTIONS 220 TO 226

� Collection and Recovery of tax

� When tax payable and when assessee deemed in default[Section 220] 1440-1461

� Penalty payable when tax in default [Section 221] 1462-1465

� Certificate proceedings [Section 222] 1466-1473

� Other modes of recovery [Section 226] 1474-1478

SECTIONS 234A TO 234D

� Interest, chargeable as

� Scope of provision 1479-1482� Computation of interest 1483-1484

� Deletion of quantum addition, effect of 1485

� MAT companies, in case of 1486-1488� Foreign assessee 1489

CONTENTS I-24

CASE NOS.

� Waiver of interest 1490-1491

� Rectification of mistakes 1492

� Interest on excess refund [Section 234D] 1493-1495

SECTION 234E

� Fee for default in furnishing statement

� Constitutional validity 1496-1499

SECTIONS 237 TO 245

� Refunds

� Refunds [Section 237] 1500-1503

� Refund on appeal, etc. [Section 240] 1504-1505

� Interest on refunds [Section 244A] 1506-1518

� Set off of refund [Section 245] 1519-1525

SECTIONS 245BA TO 245-I

� Settlement Commission

� Jurisdiction and power of Settlement Commission [Section245BA] 1526

� Application for settlement of cases [Section 245C] 1527-1528

� Procedure on receipt of application [Section 245D] 1529-1535

� Power of Settlement Commission to grant immunity fromprosecution and penalty [Section 245H] 1536

� Abatement of proceedings [Section 245HA] 1537

� Order of Settlement Commission to be conclusive [Section245-I] 1538

SECTIONS 245N TO 245V

� Advance rulings

� Authority for advance ruling [Section 245N] 1539

� Application for advance ruling [Section 245Q] 1540-1541

� Procedure on receipt of application [Section 245R] 1542

SECTIONS 246A TO 251

� Commissioner (Appeals)

� Appealable order [Section 246A] 1543

� Form of appeal and limitation [Section 249] 1544

� Power of Commissioner (Appeals) [Sections 250 & 251] 1545-1556

I-25 CONTENTS

CASE NOS.

SECTIONS 252 TO 255

� Appellate Tribunal

� Subject matter of assessment 1557

� Power to admit additional evidence/additional ground 1558-1560

� Power to grant stay 1561-1563

� Power to remand 1564

� Power to condone delay 1565-1568

� Power to interfere with prosecution 1569

� Restoration of appeal 1570-1571

� Adverse remarks 1572

� Ex parte orders 1573-1578

� Power to enhance assessment 1579

� Power to rectify mistake 1580-1584

� Power to recall/review 1585-1586

� Procedure of Tribunal 1587

SECTION 256

� High Court, reference to

� Tax effect 1588

SECTION 260A

� High Courts, appeal to

� Who to file appeal 1589

� Appealable orders 1590

� Abeyance of coercive proceedings 1591

� Code of Civil Procedure, application of 1592

� Condonation of delay 1593-1598

� Referral judge 1599

� Tax effect 1600

� Question of law 1601

� Court fees 1602

� Territorial jurisdictions 1603

SECTIONS 263 & 264

� Revision by Commissioner

� Scope of power 1604-1605

CONTENTS I-26

CASE NOS.

� Erroneous order, connotation of 1606

� Record, meaning of 1607

� Period of limitation 1608

� Recording of satisfactions 1609

� Revision of other orders [Section 264] 1610

SECTION 268A

� Filing appeal or application for reference by Income-taxauthorities

� Instruction No. 3, dated 9-2-2011 1611-1614

� Instruction No. 1979 of 2000 1615

� Others 1616

SECTIONS 269SS & 269T

� Loans or deposits, mode of accepting/repayment

� Loans or deposits, mode of acceptance [Section 269SS] 1617-1626

� Payment of deposit [Section 269T] 1627-1629

SECTIONS 271 TO 275

� Penalty

� Penalty for failure to comply with notice under section142(1) [Section 271(1)(b)] 1630

� Penalty for concealment of income [Section 271(1)(c)] 1631-1682

� Penalty for failure to comply with provisions of section269SS [Section 271D] 1683

� Penalty for failure to answer question, sign statement, etc.[Section 272A] 1684

� Penalty for false estimate of or failure to pay advance tax[Section 273] 1685

� Procedure for imposition of penalty [Section 274] 1686

SECTIONS 276C TO 279

� Offences & prosecution

� Wilful attempt to evade tax, etc. [Section 276C] 1687-1688

� Failure to furnish return of income [Section 276CC] 1689

� Falsification of books of account or document, etc.[Section 277A] 1690

� Offence by companies [Section 278B] 1691

I-27 CONTENTS

CASE NOS.

SECTION 281

� Certain transfers to be void

� Scope of provision 1692

SECTION 281B

� Provisional attachment

� Scope of provision 1693-1694

SECTION 292B

� Return of income, etc., not to be invalid on certain grounds

� Scope of provision 1695-1696

SECTION 292BB

� Notice deemed to valid in certain circumstances

� Scope of provision 1697

SECTION 293

� Bar of suits in civil courts

� Scope of provision 1698

SERVICE MATTERS

� Suspension 1699

� Restructuring of tax department 1700

WEALTH-TAX ACT

� Assets [Section 2(ea)] 1701-1702

� Charge of [Section 3] 1703-1705

� Valuation of asset [Section 7] 1706-1708

� Assessment when assets are held by courts of wards, etc.[Section 21] 1709-1710

� High Court, appeal to [Section 27A] 1711

� Refunds [Section 34A] 1712

� Rectification of mistakes [Section 35] 1713

CONTENTS I-28

CASE NOS.

OTHER ACTS

� Kar Vivad Samadhan Scheme, 1998 1714-1716

� Interest Tax Act, 1974 1717-1726

� Gift-tax Act 1727-1729

� Karnataka Agricultural Income-tax Act 1730

� Companies (Profits) Surtax Act, 1964 1731

� Prevention of Corruption Act, 1988 1732-1733

� Contempt 1734

WORDS & PHRASES

� Words and phrases 1735-1755

PAGE NO.

SUBJECT INDEX 1.847-1.883

I-29 CONTENTS

CASE NOS.

CONTENTS

Chapter-heads I-5

List of cases digested I-25-I-102

List of Circulars & Notifications judicially analysed by courts I-103-I-111

INCOME-TAX

SECTIONS 2 & 3

� Definitions

� Agricultural Income [Section 2(1A)] 1-4

� Deemed dividend [Section 2(22)] 5-18

� Interest [Section 2(28A)] 19

SECTION 4

� Charge of tax

� Income - Chargeable as 20-36

� Income - Diversion of, by overriding title, or application ofincome 37-38

� Hindu undivided family - Assessable as 39-40

� Mutual concern 41-43

SECTION 5

� Income, accrual of

� Concept of real income 44-45

� Time of accrual of income 46-51

� Development charges 52-58

I-7

PAGE NO.

CASE NOS.

VOLUME 2@

CASE NOS.

SECTION 6

� Residential Status

� Individual 59

SECTION 9

� Income - Deemed to accrue or arise in India

� Permanent Establishment [Article 5 of OECD ModelConvention] 60-77

� Business Profit [Article 7 of OECD Model Convention] 78-103

� Shipping, inland waterways transport and air transport[Article 8 of the OECD Model Convention] 104-108

� Interest [Article 11 of the OECD Model Convention] 109-117

� Royalty/Fees for Technical Services [Article 12 of OECDModel Convention] 118-187

� Capital gain [Article 13 of OECD Model Convention] 188-189

� Independent personal services [Article 14 of OECD ModelConvention] 190-191

� Income from employment [Article 15 of OECD ModelConvention] 192-193

� Elimination of Double Taxation [Article 23 of OECD ModelConvention] 194-195

� Non-Discrimination [Article 24 of OECD Model Convention] 196-198

SECTIONS 10 TO 10BA

� Exemptions

� Leave salary [Section 10(10AA)] 199

� Keyman Insurance Policy [Section 10(10D)] 200

� Special allowance [Section 10(14)] 201

� Research association [Section 10(21)] 202

� Charitable institutions [Section 10(23C)(iv)] 203

� Educational institution [Section 10(23C)(iiiab)/(iiiad)/(vi)] 204-211

� Hospital [Section 10(23C)(iiiac)/(iiiae)/(via)] 212

� Infrastructure undertaking [Section 10(23G)] 213-214

� Scheduled castes or tribes, co-operative society formed forpromoting interest of members of [Section 10(27)] 215

� Rubber, coffee, cardamom, etc., business of growing andmanufacturing [Section 10(31)] 216

� Free Trade Zone [Section 10A] 217-240

CONTENTS I-8

CASE NOS.

� Special Economic Zone [Section 10AA] 241-242

� Export Oriented Unit [Section 10B] 243-278

SECTIONS 11 TO 13

� Charitable/religious trust

� Charitable purpose - Education [Section 2(15)] 279-288

� Charitable purpose - Medical relief [Section 2(15)] 289-294

� Charitable purpose - Object of general public utility[Section 2(15)] 295-322

� Exemption of income from property held under charitabletrust [Section 11] 323-353

� Registration of trust [Section 12A/12AA] 354-381

� Denial of exemptions [Section 13] 382-391

SECTION 14A

� Expenditure incurred in relation to income not includible intotal income

� General 392-398

� In respect of certain income 399-412

� In respect of certain expenses 413-429

� Rule 8D 430-444

� Revision 445-446

SECTIONS 15 TO 17

� Salaries

� Salaries, chargeable as [Section 15] 447

� Perquisites [Section 17(2)] 448

SECTIONS 22 TO 27

� Income from house property

� Chargeable as [Section 22] 449-456

� Annual value [Section 23] 457-461

� Deductions [Section 24] 462-469

SECTION 28

� Profits and gains of business or profession

� Business income - Chargeable as [Section 28(i)] 470-492

I-9 CONTENTS

CASE NOS.

� Business deduction/loss - Allowable as [Section 28(i)] 493-503

� Trade/Professional Association [Section 28(iii)] 504

� Value of benefits or amenities arising from exercise ofbusiness or profession [Section 28(iv)] 505-506

SECTIONS 30 & 31

� Rent, taxes & repairs

� Current repairs 507-509

� Rent 510

SECTION 32

� Depreciation

� Owner 511-515

� User of assets 516-525

� Block of assets 526-530

� Used for purpose of business 531

� Intangible assets 532-541

� Assets entitled to depreciation 542-546

� Rate of depreciation 547-562

� Explanation 1 563

� Rule 5(1A) 564

� Additional Depreciation 565-571

� Unabsorbed depreciation, carry forward and set off of 572-574

� Charitable trust, in case of - Position prior to 1-2-2015 575-586

� Revision 587

� 100% Depreciation 588

SECTION 35

� Scientific Research Expenditure

� Sub-section (1) 589-590

� Sub-section (2AB) 591-593

� Sub-section (3) 594-595

SECTION 35D

� Preliminary expenses, amortisation of

� Scope of provision 596-597

� Share issue expenses 598-601

CONTENTS I-10

CASE NOS.

SECTION 35DDA

� Voluntary Retirement Scheme, expenditure incurred for

� Scope of provision 602

SECTION 35E

� Minerals, expenditure on prospecting, etc.

� Scope of provision 603-604

SECTION 36(1)(ii)

� Commission/Bonus

� Commission 605

SECTION 36(1)(iii)

� Interest on borrowed capital

� Burden of proof 606

� For purpose of business 607-612

� Interest free loans 613-628

� Netting off with interest income 629

� Same business 630

� Others 631-632

SECTION 36(1)(iv)

� Provident fund, contribution to

� Scope of provisions 633

SECTION 36(1)(vii)/(viia)

� Bad debts

� General 634-641

� Writing off of debt 642-645

� Revision 646

� Bad debts, in case of banks [Section 36(1)(viia)] 647-650

SECTION 36(1)(viii)

� Financial corporation, special reserve created by

� Scope of provision 651

I-11 CONTENTS

CASE NOS.

SECTION 37(1)

� Business expenditure

� Allowability of 652-825

� Year in which deductible 826-842

SECTIONS 40, 40A & 43B

� Business disallowance

� Interest, etc., paid to non-resident without deduction of taxat source [Section 40(a)(i)] 843-846

� Interest, etc., paid to resident without deduction of tax atsource [Section 40(a)(ia)] 847-890

� Interest, salary, etc. paid by firm to partner [Section 40(b)] 891-892

� Excessive or unreasonable payments [Section 40A(2)] 893-906

� Cash payment exceeding prescribed limit [Section 40A(3)] 907-912

� Gratuity [Section 40A(7)] 913

� Contribution to employees welfare trust, etc. [Section40A(9)] 914

� Certain payment to be allowed only on actual payment[Section 43B] 915-936

SECTION 41(1)

� Remission or cessation of trading liability

� Claim for deduction 937

� Burden of proof 938

� Cessation of liability 939-945

� Reassessment 946

SECTION 43(1)

� Actual cost

� Subsidy 947-948

� Explanation 3 949-950

� Explanation 10 951

SECTION 43(4)

� Scientific research

� Scope of provisions 952

CONTENTS I-12

CASE NOS.

SECTION 43(5)

� Speculative transactions

� Derivative trading 953-957

� Hedge transactions 958-959

� Others 960

SECTION 43(6)

� Written down value

� Scope of provision 961-962

SECTION 43A

� Foreign currency, changes in rate of exchange

� Scope of provision 963-965

SECTION 43D

� Public financial institutions/public companies, special provi-sions in case of

� Interest on NPAs 966-969

SECTION 44AB

� Tax audit

� Gross receipts 970

� Penalty under section 271B 971-971A

SECTION 44AD

� Presumptive taxation

� Estimation of income 972-973

� Reassessment 974

SECTION 44AF

� Retail business

� Scope of provisions 975

SECTION 44B

� Non-resident, shipping business of

� Scope of provision 976

� Computation of income 977

I-13 CONTENTS

CASE NOS.

SECTION 44BB

� Mineral oils, special provisions for computing profits & gains inconnection with business of exploration, etc., of

� Scope of provision 978-979

� Section 44BB v. Section 44DA 980

� Seismic survey 981-982

� Computation of income 983-988

SECTION 44C

� Head office expenditure, non-resident in case of

� Scope of provision 989-990

SECTION 44D

� Royalties, special provisions for computing income by way of,in case of foreign companies

� Scope of provision 991

SECTION 44DA

� Royalties, in case of non-residents

� Scope of provision 992-993

SECTIONS 45 TO 55A

� Capital gains

� Capital assets [Section 2(14)] 994-998

� Long-term/short-term capital gains [Section 2(29A)/(29B)/(42A)/(42B)] 999-1000

� Transfer [Section 2(47)] 1001-1014

� Capital gains, chargeable as [Section 45] 1015-1042

� Transactions not regarded as transfer [Section 47] 1043

� Computation of capital gains [Sections 48 & 55] 1044-1063

� Cost with reference to certain modes of acquisition[Section 49] 1064-1066

� Depreciable assets [Section 50] 1067

� Slump sale [Section 50B] 1068-1069

� Special provision for computing full value of considerationin certain cases [Section 50C] 1070-1084

� Exemption : Profit on sale of property used for residence[Section 54] 1085-1090

CONTENTS I-14

CASE NOS.

� Exemption : Capital gains on transfer of land used foragricultural purpose [Section 54B] 1091-1093

� Exemption : Investment in certain bonds [Section 54EC] 1094-1095

� Exemption : Investment in residential house [Section 54F] 1096-1114

� Exemption : Capital gain on shifting of industrialundertaking from urban areas [Section 54G] 1115

� Reference to valuation officer [Section 55A] 1116-1118

� Long-term capital gains, rate of tax [Section 112] 1119

SECTIONS 56 & 57

� Income from other sources

� Chargeable as [Section 56] 1120-1126

� Deductions [Section 57] 1127-1128

SECTION 64

� Clubbing of income

� Minors, in case of 1129

� Relatives, in case of 1130

� Spouse, in case of 1131

� Daughter in law, in case of 1132

SECTION 68

� Cash Credits

� Scope of provision 1133

� Burden of proof 1134

� Bogus purchases 1135

� Cash deficit 1136

� Deposits 1137-1146

� Donation 1147-1149

� Gifts 1150-1155

� Loans and advances 1156-1166

� Remuneration 1167

� Share dealings 1168-1169

� Share application money 1170-1176

� Sundry creditors 1177-1179

� Surrender by assessee 1180

I-15 CONTENTS

CASE NOS.

SECTION 69

� Unexplained investments

� Burden of proof 1181

� Agricultural income 1182

� Credit card expenses 1183

� Deposits 1184-1188

� Firm, in case of 1189

� Foreign currency 1190

� Gift 1191-1193

� Immovable property 1194-1201

� Interest 1202

� Jewellery 1203-1204

� Loans 1205

� Purchases, Bogus/Unexplained 1206-1207

� Sales, suppression of 1208

� Share transactions 1209-1210

� Stock 1211

� Violation of Forward Contract (Regulation) Act, effect of 1212

� Others 1213-1215

SECTION 69A

� Unexplained moneys, etc.

� Cash 1216-1217

� Cash embezzlement 1218

� Commission 1219

� Jewellery 1220

� Peak addition theory 1221

� Loan 1222

� Stock 1223

� TDS certificate, relevance of 1224

SECTION 69B

� Undisclosed investments

� Land 1225

� Reassessment 1226

CONTENTS I-16

CASE NOS.

SECTION 69C

� Unexplained expenditure

� Business receipts 1227

� Bogus purchases 1228-1229

� Cenvat credit 1230

� Commission 1231

� Household expenses 1232

� Salary 1233

SECTIONS 70 TO 80

� Losses

� Intra source set off [Section 70] 1234-1235

� Carry forward & set off of business loss [Section 72] 1236-1238

� Carry forward and set off of losses, in case of amalgama-tion [Section 72A] 1239

� Speculation losses [Section 73] 1240-1242

� Losses under head capital gains [Section 74] 1243-1244

� Set off in case of certain companies [Section 79] 1245

� Loss return [Section 80] 1246

SECTIONS 80C TO 80QQB

� Deductions

� Life insurance premia, contribution to provident fund, etc.[Section 80C] 1247

� Interests on loan taken for higher education [Section 80E] 1248

� Donation to certain charitable institutions [Section 80G] 1249-1254

� Exporters [Section 80HHC] 1255-1259

� Hotels/tour operators [Section 80HHD] 1260

� Profits and gains from infrastructure undertakings [Section80-I/80-IA] 1261-1284

� Profits and gains from industrial undertakings other thaninfrastructure undertaking [Section 80-IB] 1285-1316

� Special provisions in respect of certain undertakings inspecial category States [Section 80-IC] 1317-1332

� Bio-degradable waste, collecting and processing of[Section 80JJA] 1333

� Income of co-operative societies [Section 80P] 1334-1348

� Royalty income of authors [Section 80QQB] 1349

I-17 CONTENTS

CASE NOS.

SECTION 86

� Association of persons/body of individuals - Share of membersof

� Scope of provision 1350

SECTIONS 90 & 91

� Double taxation relief

� Scope of provision 1351

� Tax credit 1352-1353

SECTIONS 92 TO 92F

� Transfer Pricing

� Associated enterprise [Section 92A] 1354

� International transaction [Section 92B] 1355-1370

� Computation of arm’s length price - General principles 1371-1373

� Computation of arm’s length price - Methods fordetermining 1374-1419

� Rule 10B 1420

� Comparables 1421-1653

� Adjustments 1654-1865

� Plus/minus 5 per cent adjustments 1866-1872

� Sub-section (4) of section 92C 1873

� Reference to TPO [Section 92CA] 1874-1882

� Maintenance and keeping of information and documents[Section 92D read with sections 271AA & 271G] 1883-1884

� Dispute resolution panel [Section 144C] 1885-1899

SECTION 115A

� Foreign companies, tax on dividends, royalty & technicalservices

� Scope of provision 1900-1903

SECTION 115AD

� Foreign Institutional Investors

� Scope of provision 1904

CONTENTS I-18

CASE NOS.

SECTION 115BBC

� Anonymous donations� Scope of provision 1905-1908

SECTION 115E

� Non-resident, tax on investment income, etc.� Scope of provisions 1909

SECTIONS 115J TO 115JB

� Minimum Alternate Tax� Computation of book profit 1910-1938

SECTION 115-O

� Tax on distributed profits of domestic company� Dividend declared 1939

SECTIONS 115WB & 115WE

� Fringe benefit tax� Employer-Employee relationship 1940

� Medical expenses, reimbursement of 1941

� Sales promotion expenses 1942� Scholarship 1943

SECTIONS 120 & 127

� Income-tax Authorities� Assessing Officer [Section 120] 1944� Transfer of cases [Section 127] 1945-1946

SECTIONS 132, 132B & 133A

� Search, Seizure & Survey� Search & seizure [Section 132] 1947� Application of seized or requisitioned assets [Section 132B] 1948

� Survey [Section 133A] 1949

SECTION 139

� Return of income

� E-return 1950

� Claim in return 1951

I-19 CONTENTS

CASE NOS.

SECTION 139A

� Permanent Account Number

� Penalty under section 272B 1952-1953

SECTION 140A

� Self-Assessment

� Penalty 1954

SECTIONS 143 AND 144

� Assessment

� Assessment in case of amalgamating company 1955

� Notice under section 143(2) 1956-1962

� Scrutiny assessment 1963

� Best judgment assessment [Section 144] 1964

SECTIONS 145 & 145A

� Method of accounting

� Cash system of accounting 1965-1966

� Project completion method 1967

� Change of method of accounting 1968-1970

� Rejection of books of account 1971-1984

� Valuation of closing stock 1985-1991

� Estimation of income 1992-2008

� Method of accounting in certain cases [Section 145A] 2009

SECTIONS 147 TO 153

� Income escaping assessment

� Section 143(1) v. Section 147 2010

� Section 143(3) v. Section 147 2011

� Non-disclosure of primary facts 2012-2020

� Notice for reassessment [Section 148] 2021-2025

� Sanction for issue of notice [Section 151] 2026-2027

� Time-limit for completion of assessment [Section 153] 2028-2030

CONTENTS I-20

CASE NOS.

SECTIONS 153A TO 153C

� Search & seizure, assessment in case of

� Assessment in case of search or requisition [Section 153A] 2031-2041

� Assessment of income in case of any other person [Section153C] 2042-2057

SECTIONS 158B TO 158BG

� Block assessment in search cases� Assessment of undisclosed income [Section 158BA] 2058� Computation of undisclosed income [Section 158BB] 2059-2060

� Undisclosed income of any other person [Section 158BD] 2061

� Time-limit for completion of block assessment [Section158BE] 2062

� Penalty/penal interest [Section 158BFA] 2063-2066

SECTIONS 159 TO 179

� Liability in special cases� Legal representatives [Section 159] 2067� Non-resident, agent of [Section 163] 2068

� Trust [Section 164] 2069-2071

� Association of persons [Section 167B] 2072� Hindu undivided family, assessment after partition of

[Section 171] 2073

� Shipping business of non-resident [Section 172] 2074-2077

SECTION 184

� Firm� Scope of provision 2078-2079

SECTIONS 190 TO 206C

� Deduction/Collection of tax at source� Deduction of tax at source and advance payment [Section

190] 2080-2081� Salary [Section 192] 2082-2084

� Interest other than interest on securities [Section 194A] 2085-2088

� Contractors/sub-contractor, payments to [Section 194C] 2089-2119� Non-resident sportsmen/sports association, payment to

[Section 194E] 2120

I-21 CONTENTS

CASE NOS.

� Commission or brokerage [Section 194H] 2121-2132

� Rent [Section 194-I] 2133-2137

� Fees for technical/professional services [Section 194J] 2138-2160

� Compensation on acquisition of capital asset [Section 194L] 2161

� Compensation on acquisition of certain immovable property[Section 194LA] 2162-2164

� Non-residents, payments to [Section 195] 2165-2168

� No deduction to be made in certain cases [Section 197A] 2169

� Credit for tax deducted at source [Section 199] 2170-2171

� Duty of person deducting tax [Section 200] 2172

� Processing of statement of tax deducted [Section 200A] 2173

� Consequence of failure to deduct or pay [Section 201] 2174-2185

� Requirement to furnish PAN [Section 206AA] 2186

� Collection of tax at source [Section 206C] 2187-2188

� Fee for default in furnishing statements [Section 234E] 2189-2190

SECTIONS 220 TO 226

� Collection and recovery of tax

� When tax payable and when assessee deemed in default[Section 220] 2191-2193

� Penalty payable when tax in default [Section 221] 2194

SECTIONS 234A TO 234D

� Interest, chargeable as

� Scope of provision 2195

� MAT companies, in case of 2196

� Non-resident, in case of 2197-2198

� Computation of interest liability 2199-2203

SECTIONS 237 TO 245

� Refunds

� Interest on refund [Section 244A] 2204-2208

SECTIONS 246 TO 251

� Commissioner (Appeals)

� Form of appeal and limitation [Section 249] 2209-2211

� Power of [Section 251] 2212-2218

CONTENTS I-22

CASE NOS.

SECTIONS 252 TO 255

� Appellate Tribunal

� General 2219

� Appealable orders 2220

� Who can file appeal 2221

� Cross objection 2222

� Cost, imposition of 2223-2224

� Power to admit additional evidence 2225-2229

� Power to condone delay 2230-2233

� Power to grant stay 2234-2235

� Power to rectify mistake 2236-2239

� Remarks by ITAT 2240

� Powers vis-à-vis Commissioner’s order of revision 2241

� Procedure of Tribunal 2242-2244

SECTIONS 263 & 264

� Revision by Commissioner

� Scope of power 2245-2247

� Erroneous order, connotation of 2248-2250

� Doctrine of merger 2251

� Opportunity of hearing 2252

� Service of notice 2253

SECTION 268A

� Filing appeal or application for reference by income-taxauthorities

� Instruction No. 5/2014, dated 10-7-2014 2254-2266

SECTIONS 269SS & 269T

� Loans or deposits, mode of accepting/repayment

� Acceptance of deposits [Section 269SS] 2267-2270

� Penalty for failure to comply with section 269SS/269T[Section 271D/271E] 2271-2272

SECTIONS 271 TO 275

� Penalty

� Penalty for failure to comply with notice under section142(1)/143(2) [Section 271(1)(b)] 2273

I-23 CONTENTS

CASE NOS.

� Penalty for concealment of income [Section 271(1)(c)] 2274-2325

� Penalty where search has been initiated [Section 271AAA] 2326-2331

� Penalty for failure to deduct tax at source [Section 271C] 2332-2334

� Penalty for failure to furnish Annual Information Return[Section 271FA] 2335-2336

� Penalty for failure to answer question, sign statement, etc.[Section 272A] 2337-2341

� Procedure for levy of penalty [Section 274] 2342

� Bar of limitation [Section 275] 2343

SECTION 282

� Service of notice

� Scope of 2344

SECTION 292BB

� Notice deemed to be valid in certain circumstances

� Conditions precedent 2345

� Retrospective operation 2346

WEALTH-TAX ACT

� Assets [Section 2(ea)] 2347-2348

� Net wealth [Section 2(m)] 2349-2350

� Penalty [Section 18] 2351

WORDS AND PHRASES

� Words and Phrases 2352-2369

OTHER ACT

� Interest-tax Act, 1974 2370

PAGE NO.

SUBJECT INDEX i-xxxvi

CONTENTS I-24