Law of Income Tax - Volume 5

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Description
A statute is an edict of legislature. To decipher its construct and content; unearth the legislative intent and unravel the legal import is the function of interpretation. Interpretation is a vexed topic. Recourse to different aids to interpreting the statute therefore becomes invariable. Tax commentaries have been accepted and referred as an aid [if not an aid, atleast a source] of interpretation. A Commentary gives the interpretation, analysis, insight, opinion, explication, reaction and evaluation of the statute. It is therefore aptly
acknowledged as an external (nay eternal) aid of interpretation to various stake holders (viz Revenue authorities, judiciary, taxpayer). Sri A.C. Sampath Iyengar penned his commentary on the 'Law of Income-tax' in the pre-independence era. The first version was published in 1941. Since then, this commentary has been a treatise which has enriched its readers for more than eight decades. The commentary, its apt content and the appropriate detailing, with a reader-friendly style of cataloguing have made it indispensable for any tax professional. To be continuously indispensable, the commentary should assimilate as well as reflect the trends and changes in the tax law. Over the years, with innumerable changes in the Income-tax statute, twelve editions have been released. With every edition, the commentary has become more comprehensive giving deeper insights into the Act. The lustre of this commentary through this journey has remained unparalleled and unmatched. The original author and the various editors thereafter have maintained the glory of this commentary.
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Contents
CHAPTER IV - Computation of Total Income (Contd.)
D.-Profit & gains of business or Profession
41.         Profits chargeable to tax
42.         Special provision for deductions in the case of business for prospecting, etc.,
               for mineral oil
43.         Definitions of certain terms relevant to income from profits and gains of
               business or profession
43A.      Special provisions consequential to changes in rate of exchange of currency
43B.      Certain deductions to be only on actual payment
43C.      Special provision for computation of cost of acquisition of certain assets
43CA.   Special provision for full value of consideration for transfer of assets other
               than capital assets in certain cases
43D.      Special provision in case of income of public financial institutions, public
               companies, etc.
44.          Insurance business
44A.       Special provision for deduction in the case of trade, professional or similar
                association
44AA.     Maintenance of accounts by certain persons carrying on profession or
                business
44AB.     Audit of accounts of certain persons carrying on business or profession
[44AC.   Omitted by the Finance Act, 1992, w.e.f. 1-4-1993}
44AD.     Special provision for computing profits and gains of business on
                 presumptive basis
44ADA.   Special provision for computing profits and gains of profession on presumptive
                 basis
44AE.      Special provision for computing profits and gains of business of plying, hiring
                or leasing goods carriages
44AF.      Special provisions for computing profits and gains of retail business
44B.        Special provision for computing profits and gains of shipping business
                 in the case of non-residents
44BB.      Special provision for computing profits and gains in connection with the
                 business of exploration, etc., of mineral oils
44BBA.    Special provision for computing profits and gains of the business of
                  operation of aircraft in the case of non-residents
44BBB.    Special provision for computing profits and gains of foreign companies
                  engaged in the business of civil construction, etc., in certain turnkey
                  power projects
44C.         Deduction of head office expenditure in the case of non-residents
44D.        Special provisions for computing income by way of royalties, etc., in the
                 case of foreign companies
44DA.     Special provision for computing income by way of royalties, etc., in case of
                 non-residents
44DB.     Special provision for computing deductions in the case of business
                 reorganisation of co-operative banks
E.—Capital gains
45.           Capital gains
46.           Capital gains on distribution of assets by companies in liquidation
46A.         Capital gains on purchase by company of its own shares or other
                  specified securities
47/           Transactions not regarded as transfer
47A.         Withdrawal of exemption in certain cases
48.            Mode of computation
49.            Cost with reference to certain modes of acquisition
50.            Special provision for computation of capital gains in case of
                  depreciable assets
50A.         Special provision for cost of acquisition in case of depreciable asset
50B.         Special provision for computation of capital gains in case of slump sale
50C.         Special provision for full value of consideration in certain cases
50D.         Fair market value deemed to be full value of consideration in certain cases
51.            Advance money received
[52.          Omitted by the Finance Act, 1987, w.e.f. 1 -4-1988]
[53.          Omitted by the Finance Act, 1992, w.e.f. 1-4-1993]
54.            Profit on sale of property used for residence
[54A.        Omitted by the Finance (No. 2) Act, 1971, w.e.f. 1-4-1972]
54B.          Capital gain on transfer of land used for agricultural purposes not
                  to be charged in certain cases
[54C.        Omitted by the Finance Act, 1976, w.e.f. 1-4-1976}
54D.         Capital gain on compulsory acquisition of lands and buildings not
                  to be charged in certain cases
54E.          Capital gain on transfer of capital assets not to be charged in
                 certain cases
54EA.       Capital gain on transfer of long-term capital assets not to be|
                  charged in the case of investment in specified securities   
54EB.        Capital gain on transfer of long-term capital assets not to be
                  charged in certain cases    6122
54EC.        Capital gain not to be charged on investment in certain bonds 613C
54ED.        Capital gain on transfer of certain listed securities or unit, not to be
                   charged in certain cases    613S
54EE.         Capital gain not to be charged on investment in units of a specified
                   fund
54F.           Capital gain on transfer of certain capital assets not to be charged
                   in case of investment in residential house
54G.          Exemption of capital gains on transfer of assets in cases of shifting
                  of industrial undertaking from urban area   
54GA.        Exemption of capital gains on transfer of assets in cases of shifting
                  of industrial undertaking from urban area to any Special
                  Economic Zone    6K
54GB.      Capital gain on transfer of residential property not to be charged
                 in certain cases   
54H.        Extension of time for acquiring new asset or depositing or investing
                 amount of capital gain
55.           Meaning of "adjusted", "cost of improvement" and "cost of acquisition"
55A.         Reference to Valuation Officer
F.—Income from other sources
56.           Income from other sources
57.           Deductions
58.           Amounts not deductible
59.           Profits chargeable to tax 6:
CHAPTER V - Income of Other Persons, included in Assessee's Total Income
60.          Transfer of income where there is no transfer of assets
61.           Revocable transfer of assets
62.           Transfer irrevocable for a specified period
63.           "Transfer" and "revocable transfer" defined
64.            Income of individual to include income of spouse, minor child, etc.
65.            Liability of person in respect of income included in the income of another person
CHAPTER VI-Aggregation of Income and Set Off or Carry Forward of Loss
Aggregation of income
CHAPTER VI - Aggregation of Income and Set Off or Carry Forward of Loss
66.            Total income
[67.           Omitted by the Finance Act, 1992, w.e.f. 1-4-1993}
67A.          Method of computing a member's share in income of association of
                  persons or body of individuals
68.            Cash credits
69.            Unexplained investments
69A.          Unexplained money, etc.
69B.          Amount of investments, etc., not fully disclosed in books of account
69C.          Unexplained expenditure, etc.
69D.         Amount borrowed or repaid on hundi
SUBJECT INDEX
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Author Details
Sampath Iyengar
Foreword by,
Justice (Dr.) D.Y. Chandrachud, Judge, Supreme Court of India, Former Chief Justice, Allahabad High
Court Former Judge, Bombay High Former Addl. Solicitor General of India.
Revised by
H.Padamchand Khincha, Chartered Accountant
K.K. Chythanya, Senior Advocate