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    [0] =>  .....  in this connection reference may be made to circular no.45, dt. 2nd september, 1970, which contains the explanatory notes on the provisions of the taxation laws (amendment) act, 1970, which clarifies the position that hospitals and other institutions which exist solely for philanthropic purposes and not for purposes of profit will be totally exempt from tax,  .....  to the community at large, there is no reason to reject the claim of exemption under s. 10(22a)/11 of the it act. the learned assessee's counsel very vehemently argued that the information regarding the activities of the trust is given in pp. 48 to 62 of the paper-book, wherein it was pointed out ..... has been registered as a charitable trust under the societies registration act, and orders were passed granting exemption from time to time, which is on record from pp. 34 to 47. the learned assessee's counsel also pointed out that the asstt. director of it (exemption) was informed vide letters dt. 29th september, 1994, and 14th november, ..... 
    [1] =>  .....  to judge as to whether there has been proper sanction for issue of notice we have looked into the relevant provisions as contained in s. 151 of the it act inserted by direct tax (laws) amendment act, 1987, w.e.f. 1st april, 1989, laying down a procedural law and plainly the provisions of sub-s. (2) of s. 150 are  .....  the partnership, which had undergone sea changes in its constitution, the original partnership as prevailed in asst. yr. 1972-73 having been dissolved and constitution changed many time more, informed the ao that there was no such person, as was addressed to in the notice at the address, i.e., 52, janpath, new delhi and, therefore, the said  ..... kashmir chand and nageen chand godah were carrying on business and in reply the partnership informed that there was no such aop and the present partnership was not answerable for the acts of the aop allegedly done about 20 years back. the ao was also informed that there being no books of accounts, the queries raised by him could not  ..... 
    [2] =>  .....  submitted that the object behind insertion of proviso to section 143(2) has been given in para 5.13 of the explanatory notes on the provisions of direct tax laws (amendment) act, 1987 in cbdt circular no. 549, dt. 31st oct., 1989 which reads as under; "a proviso to sub-section (2) provides that a -notice under the sub-section  ..... the purpose of invoking provisions of ss. 68 to 69c for the purpose of block assessment. it is important to note that there is no corresponding amendment in ss. 68 to 69c of the act. therefore, the objection raised by the learned ao and the learned departmental representative that in absence of any mention of section 158bc in section 143(2 ..... rs. 8,33,325 2.1. thereafter, the ao issued notices under section 143(2) of the act on 15th dec., 1998, for the first time requiring the assessees to attend the hearing on 18th dec., 1998, and on the basis of information gathered in the course of assessment proceedings for the block period, the ao determined the total income of ..... 
    [3] =>  ..... not qualify for exemption under section 10b. as regards circular no. 684 dt. 10th june, 1994 this is merely an explanatory note to the amendment to section 10b-by the finance act, 1994, by which conditionality was introduced to the effect that if at least 75 per cent of the turnover is exported, the assessee will  ..... the bank for obtaining bank guarantee deserves to be treated as having been 'derived from' the export-oriented unit, within the meaning of section 10b of the it act.11. before parting with the matter, i may also mention that the other decisions relied on by the learned departmental representative are distinguishable. in the case of  .....  which derived income from agriculture, and held that the dividend received by the shareholder was not agricultural income, but income assessable under section 12 of the indian it act, 1922. it was held that the dividend received did not have any association with land, but arose from the contractual relation between the company and the shareholder. ..... 
    [4] =>  .....  for the purpose and within the meaning of section 2(f) of the central excises and salt act, 1944, even prior to the amendment of the section by section (2) of the central excises and salt and additional duties of excise (amendment) act, 1980. the view expressed in empire industries ltd. v. union of india (1986) 162 itr .....  manufacture and, therefore, the assessee, which carried on the business of rearing chicks to broilers by applying scientific process and technology, was not entitled to the special deduction under section 80hh of the it act, 1961, the assessee preferred an appeal to the supreme court. the supreme court dismissed the appeal." the hon'ble supreme ..... the aforesaid case laid down the ratio that by applying scientific process and technology was not entitled to the special deduction under section 80hh and 80-1 of the it act, 1961.in the present case also, the assessee applied scientific process and technology but by applying those processes, the nature of the lense did not change ..... 
    [5] =>  .....  bank ltd. (supra) the provisions of section 45(2) were not there, which were introduced w.e.f. 1st april, 1985, by taxation laws (amendment) act, 1984. the income was assessable under capital gains and provisions of section 71 specifically prohibits set off of income from capital gains against the business income. this ground ..... 1st april, 1994, and the encumbrances imposed upon those rights were only removed by various amendments brought out by various orders. these developmental rights constituted valuable capital asset within the meaning of section 2(14) of the it act. it is pertinent to mention that in the whole development agreement the assessee described itself  .....  and the price at which it would have been acquired under the said act.13. on 4th may, 1993, the government passed an order and amended the industrial location policy of the government of maharashtra. this industrial location policy was amended in the wake of liberalised industrial policy announced by government of india, the ..... 
    [6] =>  .....  year. in order to eliminate the disputes in the matter of determining the year in which a bad debt can be allowed and also to rationalise the provisions, the amending act, 1987, has amended clause (vii) of sub-section (1) and clause (i) of sub-section (2) of the section to provide that the claim for bad debt will be allowed in the .....  to the contrary. (3) that the ao is empowered to demand evidence in support of the claim of deduction. section 36(1)(vii) r/w section 36(2) as amended by the amendment act of 1987 has taken away the power of the ao to question the year of allowability of a deduction relating to a bad debt. the deduction permissible under section .....  year. in order to eliminate the disputes in the matter of determining the year in which a bad debt can be allowed and also to rationalise the provisions, the amending act, 1987, has amended clause (vii) of sub-section (1) and clause (i) of sub-section (2) of the section to provide that the claim for bad debt will be allowed in the ..... 
    [7] =>  ..... 1987-88 is bad in law. the cit(a) ought to have found that as per the law as it stood before amendment w.e.f. 1st june, 2001, reassessment proceedings could have been validly initiated upto a period of ten years from the end .....  substance. as far as section 147 is concerned, there are certain mandatory conditions for reopening of assessment and no amendment has been brought in section 147 as far as period of limitation is concerned. when the assessments of the assessee are completed .....  representative is not helpful to the revenue, because notices under section 147 were issued beyond the mandatory time-limit prescribed under the act. hence, in our opinion, considering the facts and materials on record, the cit(a) is right in declaring all the assessment .....  it act. we have also considered circular no. 5 dt. 22nd may, 2003 issued by the cbdt. it is pertinent to note that the said circular is issued by the cbdt after introduction of rule 7a which is relevant to us in these appeals. the it (second amendment ..... 
    [8] =>  .....  speculation business to the extent to which the business consists of the purchase and sale of such shares.the abovementioned explanation has been inserted by the taxation laws (amendment) act, 1975 w.e.f. 1st april, 1977. the explanation provides that where any part of the business of a company (other than certain specified companies as  .....  ors. v. cit (supra), before ao. rejects such evidence it must (show) commensurate weakness in the explanation or rebut it by putting to the assessee some information or evidence which it has in its possession. the ao cannot be merely rejecting unreasonably a good explanation, convert good proof into no proof.thus, the contention of ..... a), learned counsel pleaded that these observations of cit(a) are factually wrong: but the fact remains that it is only a general statement without any factual information giving the necessary transactions which were purported to have been caused due to bad delivery or due to mistake of the employees etc. in fact, before me  ..... 
    [9] =>  ..... that funds have either been drawn by bearer cheque in the name of contractor or in the names of the directors and the employees of the society. the ao collected information from encashed cheques and vouchers on sample basis and found that 97 cheques of dates from 28th dec, 1986 to 4th jan., 1995 have been encashed by (i)  ..... in the case of ito v. d. manoharlal kothari observed at p. 374: from what is expressed by the apex court, the explanation cannot be treated as an amendment because the purpose of the explanation is to explain or, in the words of the apex court, to clear any mental cobwebs surrounding the meaning of a statutory provision  ..... 2 of that circular it was mentioned: to settle the controversy regarding meaning of the word 'execution' while calculating the period of limitation in section 158be of the it act, the act has inserted a new clarificatory explanation. an authorization is deemed to have been executed in the case of search on the conclusion of search as recorded in the  ..... 
    [10] =>  ..... the present case since the law with regard to reassessment of escaped income has undergone substantial change w.e.f. asst. yr. 1989-90 by direct tax laws (amendment) act, 1987. he further submitted that in the above case, assessment year involved was 1962-63. he further submitted that as per expln 2(b) to section 147. .....  are not valid." 17. in our considered view, there is merit in this contention of learned counsel for the assessee that even after the amendment made by direct tax laws(amendment) act, 1987, it is still a condition precedent that before reassessment proceedings can be resorted to the original proceedings commencing with the filing of return must .....  also supported by the circular no. 549 dt. 31st oct., 1989 [(1990) 82 ctr (st) 1] issued by the cbdt clarifying the amendments by the direct tax laws (amendment) act, 1987 relating to new procedure for assessment and the amendment made in section 147 . in view of above, learned counsel for the assessee submitted that even after the ..... 
    [11] =>  ..... ao should have finally ascertained the facts by legal evidence. they only mean that he forms a belief from the examination he makes and if he likes from any information that he receives. if he discovers or finds or satisfies himself that the taxable income has escaped assessment, it would amount to saying that he had reason to .....  assess or reassess the income, if he has "reason to believe" that such income chargeable to tax has escaped assessment for that assessment year. the amended provisions of section 147 of the act are liberal and confer more power on the ao for initiating the reassessment proceedings. in the case of asstt. cit v. rajesh javeri stock brokers (p .....  the submissions of the ao and have gone through the "copy of reasons recorded by ao which led to initiation of proceedings under section 148 of the it act in the case of appellant. i have also gone through the information available on case records. it is gathered from record that before resorting to action under section 148 of ..... 
    [12] =>  ..... . the ld. counsel for the assessee, sh. ajay vohra submitted that the assessee is a computer engineer and has been actively associated with computer software and information technology through his association with a variety of companies and industry associations. the assessee was having a considerable expertise, skills and experience in the knowledge of the business  ..... fees under an agreement has been specifically made taxable under clause (va) of section 28 inserted by the finance act, 2002 w.e.f. 1.4.2003.the legislature, in their wisdom, has thought of making such amendment applicable from assessment year 2002-2003. therefore, the same is not applicable to the assessment year under consideration.17 ..... , the non-compete fee cannot be brought to tax under the amended section also.12. now the next issue that requires to be decided by this bench is whether the non- compete fees can be brought to tax under section 28(ii) of the act. in the present case, the assessee was himself not carrying on ..... 
    [13] =>  ..... made by the hon'ble court: the scope and effect of section 147 as substituted w.e.f. 1st april, 1989; by the direct tax laws (amendment) act, 1987, and subsequently amended by the direct tax laws (amendment) act, 1989, w.e.f. 1st april, 1989, as also of sections 148 to 152 have been elaborated in circular no. 549, dt. 31st oct.,  .....  to escapement of the income of the assessee from assessment. the fact that the words 'definite information' which were there in section 34 of the act of 1922, at one time before its amendment in 1948, are not there in section 147 of the act of 1961, would not lead to the conclusion that action can now be taken for reopening assessment .....  even if the information is wholly vague, indefinite, far-fetched and remote. the reason for the formation of ..... 
    [14] =>  ..... officer's office or to produce, or cause to be there produced, any evidence on which the assessee may rely in support of the return.8. it was amended by taxation laws (amendment) act, 1970 with effect from 1-4-1971 to the following: (b) ... the ao considers it necessary or expedient to verify the correctness and completeness of the  .....  in respect of transfer of these shares. i may also bring to your kind notice that the matter was investigated by deputy cit investigation unit 1(4), ahmedabad. information in respect of transaction of shares can be had from his office.36. the assessee also requested for copies of documents as mentioned above and cross examination of the  ..... to be under section 142 but the details required were those which are required under section 143(2) to which the assessee replied and had furnished the details and information also written a letter, on 15.3.2002, which reads as under: my submission in respect of your queries regarding taxation of capital gains for a.y. 98 ..... 
    [15] =>  .....  account. the assessee made this claim before the ao by way of a letter. the ao disallowed this claim since there was no provision under the it act to make amendments in the return of income by modifying it by an application at the assessment stage without filing the revised return of income. the same was confirmed by .....  box contains 250 bottles of 90 capsules or 400 bottles of 30 capsules. after each carton box is filled it will be sealed and pasted with the production information slip. after the quality control personnel examined and satisfied themselves with various testing, the approved seal is affixed and subsequently released to warehouse. (ix) all the above .....  assessee has not manufactured any product to enable it to claim deduction under section 80-03 of the act.4. before us, the contention of the assessee is that the ao relied on the sworn statement and other information collected from its production in-charge, and the copy of the sworn statement obtained from the production in ..... 
    [16] =>  ..... circular no. 549, dt. 31st oct., 1989 [(1990) 82 ctr (st) 1 : (1990) 182 itr (st) 1], which explains the provisions of the direct tax laws (amendment) act.in para 11 thereof it is stated that "these provisions, apart from being complicated, left certain gaps for which interest was not paid by the department to the assessee for .....  money remaining with the government.to remove this inequity as also to simplify the provisions in this regard, the amending act, 1987 has inserted new section 244a of the it act, 1961, applicable from the asst. yr. 1989-90 onwards which contains all the provisions for payment of interest by the department and delay .....  1998 i.e. the date on which self-assessment tax was paid. section 244a of the act was inserted by the direct tax laws (amendment) act, 1989, which provides that where refund of any amount becomes due to an assessee under the act, the assessee shall be entitled to receive in addition to the said amount, simple interest at  ..... 
    [17] =>  ..... v. cit through which the controversy in this regard has been set at rest. the hon'ble punjab and haryana high court have held that the amendment by the finance act, 1987 was thus held to remedial in nature. the question of law raised before the hon'ble punjab and haryana high court is with regard  .....  pay contribution towards provident fund, superannuation fund, gratuity fund, etc. before the due date under the respective enactments, whereas the amended provision, due to the omission of second proviso to section 43b of the act, enables the assessee to pay contribution to provident fund, superannuation fund, gratuity fund, etc. before the filing of the return. .....  fund, gratuity fund, etc. before the due date under the relevant act is not entitled to the deduction without the aid of subsequent amendment, because only by way of subsequent amendment, due to the omission of the second proviso to section 43b of the act, the assessee is able to get deduction of payments made towards provident  ..... 
    [18] =>  ..... skill developed by the assessee company. however, this is not a permanent transfer. the perusal of the clause 8 of the said mou reveals that all improvements in technology, designs and innovations made during the period the promoter are in employment of iisl shall be the property of iisl. the clause 5 reveals that the promoter will ..... of the hon'ble delhi high court in the case of rakesh aggarwal v. acit reported in 87 taxman 306 (del), it was submitted that under the amended provision the power of reopening is much wider and can be exercised even if an assesses has disclosed fully and truly all material facts necessary for the assessment.7 ..... act. in response to the above, assessee filed the return on 01.03.2004 disclosing the same income.5. assessee objected the reopening before the cit(a). it was contended that the ao did not provide the assessee the reasons for reopening the assessment, in spite of request made by the assessee. further, it was contended, there was absolutely no information ..... 
    [19] =>  .....  could not be allowed as deduction. the special bench has decided the issue in favour of revenue. therefore, in view of the decision of the special bench and amendment brought into statute, there is no debate about the allowability of provision for bad and doubtful debts. he also submitted that learned cit(a) has misinterpreted the law  ..... mistakes which are apparent from the record. the mistakes should be apparent and should not be arrived at by a long drawn process of reasoning and investigation. the ao can amend the order but he cannot pass a new order. he placed reliance on the following decisions:hotz hotels (p) ltd. v. cit (3) cit v. honda sell .....  the decisions of tribunal relied upon by the assessee deleted the addition of rs. 32,43,895.3. before us learned departmental representative has submitted that after amendment to section 145 of the act, hybrid system of accounting cannot be followed by the assessees. the rbi guidelines do not stop accrual of interest under section 5 of the ..... 
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