ITAT cases pending with Special Benches
You want to know what the important issues that are waiting for decision by the Special Benches of the Income Tax Appellate Tribunal. Here they are.
DHL Operations B. V. Netherlands: Whether or not, on the facts and in the circumstances of the case and on a proper interpretation of Art . 5.5 and Art . 5.6 of DTA (with Netherlands) and having regard to its activities, it can be said that Airfreight Ltd. was the agent of the assessee so that it can be held that the assessee had a PE in India? And if the answer is in the affirmative, whether or not the income from inbound shipments can be treated as attributable to the PE?” The whole of the case is referred to the Special Bench for disposal.
Tivoli Investment & Trading Co. Ltd.: Whether the CIT (A) was justified in holding that the notional interest of Rs.23,10,000 /-calculated at the rate of 15% on interest free deposit of Rs. 1,54,00,000/- placed with the assessee by the Citibank N.A. be taken into account in determining annual value under section 23 (1)(b) more so when the deposit of Rs.1,54,00,000 /- was invested in income earning assets, which income was separately assessed? As per order dt . 17.10.2006 of President, the Members of Special Bench to hear the whole appeal and also consider above referred question. The Bench may also modify the question if deemed necessary.
Daga Capital Management Ltd: Whether in the facts and circumstances of the case, and in law, the provisions of section 14A of the Income Tax Act, 1961, are applicable with respect to the dividend income earned by an assessee, engaged in the business of dealing in shares and securities, on the shares held as stock-in-trade and earning of such dividend is incidental to trading in shares? The President vide his order dt . 04.07.2007 has observed as: "In view of reference of the Bench Shri . G.E. Veerabhadrappa , Vice President, Mumbai, K.C. Singhal , JM , G.C. Gupta , JM would hear the entire appeal as a Special Bench."
M/s Bank of Bahrain & Kuwait BSC : Whether on the facts and circumstances of the case, can it be said that where a forward contract is entered into by the assessee to sell the foreign currency at an agreed price at a future date falling beyond the last date accounting period, the loss is incurred to the assessee on account of evaluation of the contract on the last date the accounting period i.e. before the date of maturity of the forward contract" As per order dt. 21.09.2007 of the President entire Appeal is referred for disposal.
M/s Bhaumik Colour Pvt. Ltd.:
a. Whether deemed dividend u/s 2(22 )( e) of the Income tax Act, 1961 can be assessed in the hands of a person other than shareholder of the lender?
b. Whether the words “such shareholder” occurring in section 2(22 )( e) refer to a shareholder who is both the “registered” shareholder and the “beneficial shareholder”? As per order dt 21.09.2007 of the President, entire Appeal is referred for disposal.
M/s Mahindra & Mahindra: Whether on the facts and circumstances and in law, an order u/s 195 r.w.s . 201 of the Income tax Act, 1961 is barred by limitation within 4 years from the end of the relevant Financial year in the absence of any express provision in the Act? As per order dt . 21.09.2007 of the President, entire appeal is to be disposed of by the Special Bench.
M/s Ekta Promotors (P) Ltd., New Delhi . Whether in the facts and in the circumstances of the case, interest under Section 234 D should be charged from assessment year 2004-2005 or with reference to regular assessment framed after 01.06.2003 irrespective of the assessment years involved or irrespective of the date when refund was granted?"
As per order of the President, the Special Bench, while disposing of the entire appeal would consider the question, referred to by the Bench. They are also authorized to modify, change, delete or add question (s), for purpose of reference.
M/s Li Chong Tannery, Sri. Shyamal Kumar Dey , M/s Chang Hing Tannery, M/s Kenaram Saha & Subhash Saha : To consider the validity of the disallowance under section 40A (3) of I.T.Act , 1961.
M/s Star Paper Mills Ltd.: Whether, the provision for deferred tax can be added while determining the book profit u/s 115JB as per clauses (a) to (c) of the Explanation below Sec. 115JB ( 2)?
M/s IVRCL Infrastructure & Projects Ltd., Hyderabad: Whether on the facts and in the circumstances of the case, the ld. CIT (A) was justified in holding that the assessee is a ' C ivil Contractor ' and not a ' developer of an infrastructure facility in as much as the assessee has filed to show even a Single instance where it operates any of ' infrastructural facility ' , therefore, the assessee is not entitled to deduction us 80-I A of the IT Act, 1961."
As per order dt . 26.03.2007 of the President, Members of Special Bench to dispose of entire appeal. Can modify, change, add in question referred.
M/ s.Rajalakshmi Mills Coimbatore Ltd. ,: Contribution to Approved Gratuity Fund if more than actuarial valuation is the excess over the actuarial valuation not allowable as expenditure.
M/s Bharat Overseas Bank Ltd., Chennai: Whether the amount collected from the borrowers to meet the interest tax liability could be taxed as interest under the Interest-Tax Act, 1974?
Special Bench is constituted to hear and dispose of the entire appeal and would also consider the question referred in accordance with law.
Shri . Kamrej Vibhag Sahakari Khand Udyog Mandli Ltd., Surat , Shri . Sayan Vibhag Sahakari Khand Udyog Mandli Ltd., Surat .
(A) Whether, on the facts and in the circumstances of the case the applicants are liable to deduct the tax at source under section 194 C of the Income Tax Act from the payment made to Mukamdams and Transporters by Zone samiti ?
(B) Whether the applicants are liable for deduction of tax under section 194 C of the Income Tax Act, 1961 from the payments made as advances to its member farmers for purchase of sugarcane when no expenditure towards cutting, harvesting and transportation is debited in the books of the applicants?
(C) Whether on the facts and in the circumstances of the case the ingredients of section 194 of the Income tax Act, 1961 are attracted to make the applicants liable to deduct the tax at source form the payments made to Mukadams and Transporters who are member farmers of the Zone Samiti and who have no contact with the applicant?
As per order dt . 27.08.2007 of the President, Special Bench with Zonal Vice- President & S/ Shri . R.P.Tolani & N.S.Saini would hear and dispose of the entire appeals including the questions referred to the Special Bench. Usual notices be issued for wide publicity.
M/s Goldmine Shares & Finance Pvt. Ltd.: Whether in view of the provisions of Section 80 IA ( 5) of the income-tax Act, 1961 the profit from the eligible business for the purposes of deduction u/ s.80IA of the Act has to be computed after deduction of the national brought forward losses and depreciation of eligible business even though they have been allowed set off against other income in earlier years?
As per order dt . 21.09.2007 of the President: Entire appeal is to be heard by the Bench. Question referred may also be changed if necessary.
Gujarat Credit Corpn.Ltd ., Ahmedabad : CIT - Ahmedabad -II, Ahmadabad requested for constitution of Special Bench vide Letter dt.16.04.2007 . As per order dt.18.12.2007 of the President "A Special Bench comprising of S/ Shri . R.P.Garg , R.P. Tolani , & I.S.Verma would hear and dispose of the appeal at Ahmedabad . Give notice to all concerned."
Mr. Tejinder Singh HUF , Prop. M/s Raunaq Industries, Amritsar :
1. whether , the benefit of Jewellery disclosed under V.D.I.S. 1997 is Limited to the first stage i.e. the source of investment or it extends further to the sale of Jewellery also?
2. Whether, having accepted the disclosure of Jewellery under V. D.I.S. , the Department is debarred from making further enquiry into the genuineness of sale of such jewellery?
3. If answer to the above questions are against the assessee, whether the assessee is required to prove the genuineness of sale of jewellery disclosed under V.D.I.S. 1997 in the same manner as required under section 68 or 69 of the Act?
The Special Bench, while disposing of the appeal would consider the questions referred to by the Bench. They are also authorized to modify, change, delete or add question(s), for purpose of reference
Sh. Sonu Verma , Prop. M/s Shiva Jewellers , Jaitu : Whether, the jurisdiction to complete Block Assessment u/s 158 BC is conferred on the AO by service of a warrant of authorization u/s 132A by a competent authority or on physical handing over the books of account/ documents/ assets etc. requisitioned, to Income Tax Authority concerned?
M/s Shree Ram Lime Products Ltd., Jodhpur: Whether on the facts and in the circumstances of the case the period of limitation for completion of the block assessment as per sec. 158BE read with Explanation 2 is to be reckoned from the end of the month in which last Panchanama on the conclusion of search is drawn on the assessee ' or ' last Panchnama of the last authorization even when it is not last Panchanama drawn on the assessee and one or more valid panchanamas are drawn on the assessee thereafter in execution of any former authorization ' .
As per order dt . 14.11.2007 of the President "Special Bench comprising of S/ Shri . R.P.Garg , Vice-President, I.C.Sudhir , J.M. Hari Om Maratha, J.M . would hear the entire appeal. Can also modify the question referred to Special Bench.
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