1. Commissioner of Income Tax, Ahmedabad and Ors. ...Appellant(s) Vs. Ahmedabad Stamp Vendors Association ...Respondent(s), Civil Appeal No. 10270 OF 2003, September 06, 2012, Supreme Court of India

Issue : Whether TDS is deductible u/s 194H on discounts received by stamp venders while purchasing stamp paper from state govt?

Held that 0.50% to 4% discount given to the Stamp Vendors is for purchasing the stamps in bulk quantity and the said discount is in the nature of cash discount. In the circumstances, we concur with the impugned judgment that the impugned transaction is a sale. Consequently, Section 194H of the Income-tax Act, 1961, has no application.

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2.  Assistant Commissioner of Income Tax, Udaipur Vs. M/s. Gebilal Kanhaialal HUF, Through Karta, Udaipur, Civil Appeal No. 636 OF 2005, September 04, 2012,  Supreme Court of India

Issue : Whether immunity of penalty u/s 271(1)(c) is available, even if tax and interest on undisclosed income surrendered during course of search, is paid beyond the time limit prescribed under the Act for payment of the tax & interest ?

Sub-clause (2) of section 271(1)(c) confers an immunity from penalty if three conditions are fulfilled, namely, (i) the assessee must make a statement u/s 132(4) in the course of search stating that the unaccounted assets and incriminating documents found from his possession during the search have been acquired out of his income, which has not been disclosed in the return of income to be furnished before expiry of time specified in s. 139(1), (ii) the assessee should specify in the s. 132(4) statement the manner in which such income stood derived and (iii) the tax together with the interest has to be paid. There is no time limit prescribed in the third condition for the payment of the tax & interest. As the assessee had fulfilled the first two conditions and paid the tax & interest (before the completion of the assessment), it was entitled to immunity under Explanation 5 to s. 271(1)(c).

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