Kachwala Gems Vs JCIT (SC) 288 ITR 10

In a best judgement assessment there is always a certain degree of guess work. AO having estimated the GO on the basis of comparable cases ther3e is no arbitrariness on the part of the IT authorities.

S.A. Builders Ltd. Vs CIT (SC) 288 ITR 1
Munjal sales Corporation Vs CIT (SC) 298 ITR 298

Interest on borrowed capital – Interest free loan to sister concerns – commercial expediency to be criteria to allow deduction of interest on such loans. Purpose for which money was advanced and how the sister concern utilized such funds, is important.

S.A. Builders Ltd. Vs CIT (SC) 288 ITR 1 (contd.)
CIT Vs Ralson Industries Ltd (SC) 288 ITR 322

Sc ope and ambit of proceedings u/s 154 and 263 are distinct and different .

CIT Vs Nawanshahar Central Co-operative Bank (SC) 289 ITR 6
Co-operative bank carrying on the business of banking is statutorily required to place a part of its funds in approved securities – Income from such investments is attributable to the business of banking and is deductible u/s 80 P(2)(a)(i)

Manish Maheshwari Vs ACIT (SC) 289 ITR 341
Before initiating proceedings u/s 158BD AO must record his satisfaction that some undisclosed income belongs to a person other than the person with respect to whom search was made u/s 132. Relevant books of accounts, other document sand assets to be handed over to the AO having jurisdiction over such other person.

CIT Vs Distillers Co. Ltd (SC) 290 ITR 419
Penalty for bottling arrack without maturing for 15 days – It was not a levy of excise duty / additional duty / a tax on manufacture – It is not a penalty for non-compliance of statutory provision as such period of 15 days was specified under executive order of Commissioner of Excise. Deduction allowed.

CIT Vs Baby Marine Exports (SC) 290 ITR 323
Export house premium formed an integral part of the sale price realized by the assessee from the export house – Requirement of realizing sale proceeds in convertible foreign exchange, is not applicable to supporting manufacturer – Eligible for 80 HHC(1A).

CIT Vs Mukundray K. Shah (SC) 290 ITR 433
Detection of deemed dividend during the course of search – falls under undisclosed income.

CIT Vs Lakshmi Machine Works (SC) 290 ITR 667
CIT Vs Catapharma (India) P. Ltd. (SC) 292 ITR 641
Computation of deduction u/s 80 HHC – Sales tax and excise duty not part of “total turnover”

CIT Vs Shirke Construction Equipment Ltd. (SC) 291 ITR 380
Computation of deduction u/s 80 HHC – Unabsorbed losses of earlier years to be set off from profits of the business before computing the deduction – sec. 80 AB applicable

CIT Vs Oriental Fire & General Insurance Co. Ltd. (SC) 291 ITR 370
Insurance business – income to be computed u/s 44 r.r.R.5of the first Schedule – General provisions for computing business income not applicable

CIT Vs P. Mohannakala (SC)  291 ITR 278
NRI gifts – AO after considering the surrounding circumstances held it to be not genuine transactions – Transactions through banking channels by itself is of no consequence – Addition upheld

CIT Vs Hindustan Zinc Ltd. (SC) 291 ITR 391
Change in method of valuation of closing stock resulting in declaration of lower profits – no reason for the change – Rejected

ACIT Vs Rajesh Jhaveri Stock Brokers (P) Ltd. (SC) 291 ITR 500
Issue of 148 after 143(1) – Intimation u/s 143(1) is not an order and there being no assessment , no question of change of opinion – Failure to take steps u/s 143(3) will not render the AO powerless to initiate reassessment proceedings.

CIT Vs K. Chinnathamban (SC) 292 ITR 682
Unexplained deposits in the name of the assessee as per bank records – Addition u/s 69A upheld.

Enterprising Enterprises Vs CIT (SC) 293 ITR 437
Payment for acquiring leasehold right for extracting minerals – Whether it is paid in lump sum or in installments, it is capital expenditure.

CIT Vs Saravana Spinning Mills (P) Ltd. (SC) 293 ITR 201
Current repairs in sec. 31(1) denotes repairs which are attended to when the need for them arises. Object of expenditure must not be to bring a new asset into existence or to obtain a new advantage – Expenditure must have been incurred to preserve and maintain an already existing asset.

CIT Vs Century Building Industries (P) Ltd. (SC) 293 ITR 194
Borrowing and repayments by company allegedly on behalf of directors – Lender had advanced loan to the assessee company – Debit was made by the company to the “interest account” for a specific amount calculated with reference to its liability to the creditor – Assessee under obligation to deduct tax at source u/s 194A on interest paid by it to the creditors on the said loans.

Hindustan Coca Cola Beverages (P) Ltd. Vs CIT (SC) 293 ITR 226
Tax already paid by recipient of income – Tax need not be recovered once again from the deductor – But interest u/s 201(1A0 leviable.