Bharat’s Law of Income Tax (Volume 1 to 9) By Sampath Iyengar – 13th Edition 2024.

Bharat’s Law of Income Tax (Volume 1 to 9) By Sampath Iyengar – 13th Edition 2024.

About Law of Income Tax (Volume 1 to 9) By Sampath Iyengar

Sampath Iyengar’s Law of Income Tax has maintained its reputation as a commentary, exhaustive and encyclopedic in its sweep, and as a veritable warehouse of all the available information on the subject, besides carrying critical and in-depth comments. It is the most authentic referencer, which has stood the test of time during the last eight decades and has retained its pristine glory. This set provides not only the necessary access to all the relevant information, but also the expertise and the experience of the authors, present and past. Conflicting views are highlighted. Precedents are not merely listed, but their rationale analysed. This book has always been different in not being content with mere listing of cases, but by providing enough material to tackle any problem that may arise. No wonder it is being referred and cited as an authority at all levels of judicial interpretation – Income-tax Department, ITAT, High Courts, Supreme Court and even Authority for Advance Rulings.

While India celebrates its 75 years of Independence, Sampath Iyengar has helped the professionals, tax administrators and the judiciary for the last over 80 years in finding solutions to their tax issues. No effort is spared in the present edition to maintain the reputation, which this book has gained in the field of income-tax law for the past eight decades and more.

This locus classics has enjoyed the privilege of patronage from the profession of chartered accountants, tax practitioners, consultants, advisors, advocates, corporate executives, tax administrators and the judiciary.

Volume 1

INTRODUCTION
PRINCIPLES OF CONSTRUCTION
General Principles
Particular Principles-I
Particular Principles-II
(A) Mutuality Principle
(B) Diversion by Overriding Title
(C) Real Income Theory
(D) Concepts of Telescoping and Peak Credit
Chapter I
Preliminary
1. Short title, extent and commencement
2. Definitions
2(1)“Advance tax”
2(1A)“Agricultural income”
2(1B)“Amalgamation”
2(1C)“Additional Commissioner”
2(1D)“Additional Director”
2(2)“Annual value”
2(3)“Appellate Assistant Commissioner” (Omitted)
2(4)“Appellate Tribunal”
2(5)“Approved gratuity fund”
2(6)“Approved superannuation fund”
2(7)“Assessee”
2(7A)“Assessing Officer”
2(8)“Assessment”
2(9)“Assessment year”
2(9A)“Assistant Commissioner”
2(9B)“Assistant Director”
2(10)“Average rate of income-tax”
2(11)“Block of assets”
2(12)“Board”
2(12A)”Books or books of account”
2(13)“Business”
2(13A)“Business trust”
2(14)“Capital asset”
2(15)“Charitable purpose”
2(15A)“Chief Commissioner”
2(15B)“Child”
2(16)“Commissioner”
2(16A)“Commissioner (Appeals)”
2(17)“Company”
2(18)“Company in which the public are substantially interested”
2(19)“Co-operative society”
2(19A)“Deputy Commissioner”
2(19AA)”Demerger”
2(19AAA)”Demerged company”
2(19B)“Deputy Commissioner (Appeals)”
2(19C)”Deputy Director”
2(20)“Director”, “manager” and “managing agent”
2(21)“Director General or Director”
2(22)“Dividend”
2(22A)“Domestic company”
2(22AA)”Document”
2(22AAA)”Electoral Trust”
2(22B)“Fair market value”
2(23)“Firm”, “partner” and “partnership”
2(23A)“Foreign company”
2(23B)“Fringe benefits”
2(23C)“Hearing”
2(24)“Income”
2(25)“Income-tax Officer”
2(25A)“India”
2(26)“Indian company”
2(26A)“Infrastructure capital company”
2(26B)“Infrastructure capital fund”
2(27)“Inspecting Assistant Commissioner” (Omitted)
2(28)“Inspector of Income-tax”
2(28A)“Interest”
2(28B)“Interest on securities”
2(28BB)”Insurer”
2(28C)”Joint Commissioner”
2(28D)”Joint Director”
2(29)“Legal representative”
2(29A)“Liable to tax”
2(29AA)“Long-term capital asset”
2(29B)“Long-term capital gain”
2(29BA)“Manufacture”
2(29C)“Maximum marginal rate”
2(29D)“National Tax Tribunal”
2(30)“Non-resident”
2(31)“Person”
2(32)“Person who has a substantial interest in the company”
2(33)“Prescribed”
2(34)“Previous year”
2(34A)“Principal Chief Commissioner of Income-tax”
2(34B)“Principal Commissioner of Income-tax”
2(34C)“Principal Director of Income-tax”
2(34D)“Principal Director General of Income-tax”
2(35)“Principal officer”
2(36)“Profession”
2(36A)“Public sector company”
2(37)“Public servant”
2(37A)“Rate or rates in force” or “rates in force”
2(38)“Recognised provident fund”
2(39)“Registered firm” (Omitted)
2(40)“Regular assessment”
2(41)“Relative”
2(41A)”Resulting company”
2(42)“Resident”
2(42A)“Short-term capital asset”
2(42B)“Short-term capital gain”
2(42C)”Slump sale”
2(43)“Tax”
2(43A)“Tax credit certificate”
2(43B)“Tax Recovery Commissioner” (Omitted)
2(44)“Tax Recovery Officer”
2(45)“Total income”
2(46)“Total world income” (Omitted)
2(47)“Transfer”
2(47A)“Virtual digital asset”
2(48)“Zero Coupon Bond”
3. “Previous year” defined
SUBJECT INDEX

Volume 2

Chapter II
Basis of Charge
4. Charge of income-tax
5. Scope of total income
5A. Apportionment of income between spouses governed by Portuguese Civil Code
6. Residence in India
7. Income deemed to be received
8. Dividend income
9. Income deemed to accrue or arise in India
9A. Certain activities not to constitute business connection in India
9B. Income on receipt of capital asset or stock in trade by specified person from specified entity
Chapter III
Incomes which do not form part of total income
10. Incomes not included in total income
10(1)Agricultural income
10(2)Sum received by a member of HUF
10(2A)Share income of partner
10(3)Casual and non-recurring receipts (Omitted)
10(4)Interest income of a non-resident from specified securities, bonds and NRE account
10(4A)Interest income of a non-resident from NRE account in any bank in India (Substituted)
10(4B)Interest income of NRIs on specified savings certificates
10(4C)Interest payable to a non-resident by any Indian company on rupee denominated bond
10(4D)Income accrued or arisen to a specified fund by transfer of capital asset u/s 47(viiab) on a stock exchange in any IFSC
10(4E)Income accrued or arisen by a non-resident from transfer of specified instruments entered into with an offshore banking unit of an IFSC
10(4DF)Income of a non-resident by way of royalty or interest on account of lease of an aircraft or a ship in a previous year, paid by a unit of an IFSC
10(4G)Income received by a non-resident from portfolio of securities, etc in an account maintained with an Offshore Banking Unit in any IFSC
10(5)Value of any travel concession or assistance
10(5A)Remuneration received for rendering services in connection with shooting of cinematograph films by foreign film producers (Omitted)
10(5B)Tax on salaries to technicians (Omitted)
10(6)Specified exemptions to foreign citizens employed in India
10(6A)Tax paid on behalf of a foreign company in respect of royalty or fees for technical services
10(6B)Tax paid by Government or an Indian concern not to form part of the income of non-residents
10(6BB)Tax paid by an Indian company under an approved agreement with foreign Government/enterprise engaged in aircraft business
10(6C)Income by way of fees arising to a specified foreign company for services connected with security of India
10(6D)Income arising to a non-resident by way of royalty from, or fees for technical services rendered to National Technical Research Organisation
10(7)Allowances or perquisites to Indian citizens for services outside India
10(8)Remuneration for duties in India in connection with any co-operative technical assistance programmes and projects
10(8A)Remuneration or fees received by non-resident consultants
10(8B)Remuneration or fees received from non-resident consultants by their foreign employees
10(9)Income of member of family assigned to duties in India under clause (8) or (8A) or (8B)
10(10)Gratuity payment(s)
10(10A)Commutation of pension
10(10AA)Encashment of unutilised earned leave by retiring employees
10(10B)Retrenchment compensation received by a workman
10(10BB)Payments under the Bhopal Gas Leak Disaster Act
10(10BC)Amount received by an individual or his legal hair by way of disaster compensation
10(10C)Compensation received/receivable on voluntary retirement by specified employees
10(10CC)Tax on income in the nature of perquisite paid by employer
10(10D)Sum received under a life insurance policy including bonus
10(11)Payment from a provident fund
10(11A)Payment under an account, Sukanya Samriddhi Account Rules
10(12)Accumulated balance in a recognised provident fund
10(12A)Payment from the National Pension System Trust
10(12B)Payment to an employee from the NPS Trust under pension scheme of section 80CCD
10(13)Payment from an approved superannuation fund
10(13A)Residential accommodation allowance granted by the employer
10(14)Special allowances specifically granted to meet expenses
10(14A)Income received by public financial institution as exchange risk premium (Omitted)
10(15)Interest income on various specified bonds, savings certificates, etc.
10(15A)Payment to acquire an aircraft on lease under an approved agreement
10(16)Educational scholarships
10(17)Specified allowances of MPs, MLAs, etc.
10(17A)Awards and rewards in cash or in kind
10(18)Pension income of award winners
10(18A)Ex gratia payments on abolition of privy purse (Omitted)
10(19)Family pension of a member of armed forces
10(19A)Annual value of a palace in occupation of a Ruler
10(20)Income of a local authority from housing, etc.
10(20A)Income of State Housing Boards, etc (Omitted)
10(21)Income of a scientific research association
10(22)Income of a university or other educational institution (Omitted)
10(22A)Income of a hospital for specified purposes (Omitted)
10(22B)Income of specified news agencies
10(23)Income of specified sports association (Omitted)
10(23A)Income of specified professional association
10(23AA)Income received from regimental or non-public fund
10(23AAA)Income received by any person on behalf of notified fund
10(23AAB)Income of pension fund set up by LIC or any other insurer
10(23B)Income of a public charitable trust for development of khadi or village industries
10(23BB)Income of an authority established for development of khadi or village industries
10(23BBA)Income of statutory bodies or authorities for the administration of public religious or charitable trusts or endowments
10(23BBB)Income of European Economic Community
10(23BBC)Income of SAARC Fund for Regional Projects
10(23BBD)Income of ASOSAI-SECRETARIAT
10(23BBE)Income of Insurance Regulatory and Development Authority
10(23BBF)Income of North-Eastern Development Finance Corporation Limited
10(23BBG)Income of Central Electric Regulatory Commission
10(23BBH)Income of Prasar Bharati
10(23C)Income of specified fund, institution, etc. for charitable purposes, etc.
10(23D)Income of Mutual Funds
10(23DA)Income of a securitization trust
10(23E)Income of specified Exchange Risk Administration Fund (Omitted)
10(23EA)Income of Investor Protection Fund
10(23EB)Income of Credit Guarantee Fund Trust for Small Industries
10(23EC)Income by way of contributions of Investor Protection Fund set up by commodity exchanges
10(23ED)Income by way of contributions received from a depository of Investor Protection Fund
10(23EE)Income of Core Settlement Guarantee Fund
10(23F)Dividend income or long-term capital gains of a venture capital fund/company
10(23FA)Dividend income or long-term capital gains of a venture capital fund/company
10(23FB)Income of venture capital company/fund
10(23FBA)Income of an investment fund
10(23FBB)Income accruing or arising or received by a unit holder
10(23FBC)Income accruing or arising from a specified fund
10(23FC)Income of a business trust
10(23FCA)Income of a business trust, being a real investment trust
10(23FD)Any distributed income received by a unit holder from the business trust
10(23FE)Income of a specified person from specified investments
10(23F)Income by way of dividends or long-term capital gains of a venture capital fund/company
10(23G)Specified income of infrastructure capital fund/company/co-operative bank (Omitted)
10(24)Income of a registered trade union
10(25)Interest on securities and income of certain savings funds
10(25A)Income of ESI Fund
10(26)Income of Scheduled Tribe in specified areas
10(26A)Income of any person in Ladakh
10(26AA)Income of winnings from Sikkim lottery for Sikkim residents (Omitted)
10(26AAA)Income of Sikkemese individuals
10(26AAB)Income of agricultural produce market committee/board
10(26B)Income of any corporation established for promoting Scheduled Castes/Tribes
10(26BB)Income of corporation for promoting the interests of members of minority community
10(26BBB)Income of corporation for welfare and economic upliftment of ex-servicemen
10(27)Income of a co-operative society formed for promoting the interests of members of Scheduled Castes/Tribes
10(28)Amount adjusted or paid in respect of tax credit certificates (Omitted)
10(29)Income of marketing authorities (Omitted)
10(29A)Income of specified Boards
10(30)Subsidy granted to the tea industry
10(31)Subsidies received by planters in respect of specified commodities
10(32)Specified income of minors includible under section 64(1A)
10(33)Income from transfer of units of Unit Scheme, 1964
10(34)Dividend income under section 115-O
10(34A)Income arising to an assessee on account of buy back of shares
10(35)Income from units of Mutual Funds
10(35A)Distributed income of an investor from securitisation trust
10(36)Long-term capital gains from equity shares
10(37)Capital gains from transfer of agricultural land
10(37A)Capital gains of transfer of a specified capital asset under Land Pooling Scheme
10(38)Long-term capital gains from transfer of equity shares or units of an equity oriented fund
10(39)Income of notified persons from any international sporting event held in India
10(40)Income of subsidiary company by way of grant from holding company engaged in power business
10(41)Income arising from transfer of a capital asset of an undertaking engaged in power business
10(42)Income of body/authority established under a bilateral treaty
10(43)Amount received by an individual as a loan in a reverse mortgage transaction
10(44)Income received by any person from New Pension System Trust
10(45)Allowance or perqusiite paid to Chairman/retired Chairman or member/retired member of UPSC [Omitted] 10(46)Specified income of statutory body or authority or Board or Trust
10(47)Income of an infrastructure debt fund
10(48)Income in Indian currency by a foreign company for sale of crude oil
10(48A)Income of Foreign company from storage and sale of crude oil stored as part of strategic reserves
10(48B)Income of Foreign Company from sale of leftover stock of crude oil from strategic reserves at the expiry of agreement or arrangement
10(48C)Income to the India Strategic Industry Development Board under an arrangement for replenishment of
10(48D)Income to an institution established for financing the infrastructure and development
10(48E)Income to a developmental financing institution, licensed by the RBI
10(49)Income of National Financial Holdings Company Limited
10(50)Income from specified service chargeable to equalisation levy

Volume 3

10A. Special provision in respect of newly established undertakings in free trade zone, etc.
10AA. Special provisions in respect of newly established units in Special Economic Zones
10B. Special provisions in respect of newly established hundred per cent export-oriented undertakings
10BA. Special provisions in respect of export of certain articles or things
10BB. Meaning of Computer programmes in certain cases
10C. Special provision in respect of certain industrial undertakings in North-Eastern Region
11. Income from property held for charitable or religious purposes
12. Income of trusts or institutions from contributions
12A. Conditions for applicability of sections 11 and 12
12AA. Procedure for registration
12AB. Procedure for fresh registration
13. Section 11 not to apply in certain cases
13A. Special provision relating to incomes of political parties
13B. Special provisions relating to voluntary contributions received by electoral trust
CHAPTER IV
Computation of Total Income
Heads of income
14. Heads of income
14A. Expenditure incurred in relation to income not includible in total income
A.—Salaries
15. Salaries
16. Deductions from salaries
17. “Salary”, “perquisite” and “profits in lieu of salary” defined
B.—Omitted by the Finance Act, 1988, w.e.f. 1-4-1989
[18 to 21. Omitted by the Finance Act, 1988, w.e.f. 1-4-1989] C.—Income from house property
22. Income from house property
23. Annual value how determined
24. Deductions from income from house property
25. Amounts not deductible from income from house property
25A. Special provision for arrears of rent and unrealised rent received subsequently
25AA. Unrealised rent received subsequently to be charged to income-tax
25B. Special provision for arrears of rent received
26. Property owned by co-owners
27. “Owner of house property”, “annual charge”, etc., defined
D.—Profits and gains of business or profession
28. Profits and gains of business or profession
29. Income from profits and gains of business or profession, how computed
30. Rent, rates, taxes, repairs and insurance for buildings
31. Repairs and insurance of machinery, plant and furniture
32. Depreciation
32A. Investment allowance
32AB. Investment deposit account
32AC. Investment in new plant or machinery
32AD. Investment in new plant or machinery in notified backward areas in certain States
SUBJECT INDEX

Volume 4

D.—Profits & gains of business or profession
33. Development rebate
33A. Development allowance
33AB. Tea Development Account, Coffee Development Account and Rubber Development Account
33ABA. Site Restoration Fund
33AC. Reserves for shipping business
33B. Rehabilitation allowance
34. Conditions for depreciation allowance and development rebate
34A. Restriction on unabsorbed depreciation and unabsorbed investment allowance for limited period in case of certain domestic companies
35. Expenditure on scientific research
35A. Expenditure on acquisition of patent rights or copyrights
35AB. Expenditure on know-how
35ABA. Expenditure for obtaining right to use spectrum for telecommunication services
35ABB. Expenditure for obtaining licence to operate telecommunication services
35AC. Expenditure on eligible projects or schemes
35AD. Deduction in respect of expenditure on specified business
[35B. Omitted by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1989] [35C. Omitted by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1989] [35CC. Omitted by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1989] 35CCA. Expenditure by way of payment to associations and institutions for carrying out rural development programmes
35CCB. Expenditure by way of payment to associations and institutions for carrying out programmes of conservation of natural resources
35CCC. Expenditure on agricultural extension project
35CCD. Expenditure on skill development project
35D. Amortisation of certain preliminary expenses
35DD. Amortisation of expenditure in case of amalgamation or demerger
35DDA. Amortisation of expenditure incurred under voluntary retirement scheme
35E. Deduction for expenditure on prospecting, etc., for certain minerals
36. Other deductions
37. General
38. Building, etc., partly used for business, etc., or not exclusively so used
[39. Omitted by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1989] 40. Amounts not deductible
40A. Expenses or payments not deductible in certain circumstances
SUBJECT INDEX

Volume 5

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
43AA. Taxation of foreign exchange fluctuation
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
43CB. Computation of income from construction and service contracts
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
50CA. Special provision for full value of consideration for transfer of share other than quoted share
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
54EC. Capital gain not to be charged on investment in certain bonds
54ED. Capital gain on transfer of certain listed securities or unit, not to be charged in certain cases
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
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
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
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

Details :