This Digest of case laws is prepared by KSA Legal and AIFTP from judgements reported in BCAJ, CTR, DTR, ITD, ITR, ITR (Trib), Chamber's Journal, SOT, Taxman, TTJ, BCAJ, ACAJ, www.itatonline.org and other journals
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S. 147: Reassessment – After the expiry of four years – Verification tax residency certificate issued by other jurisdiction – For determining residential status, treaty eligibility and legal ownership – bad in law – Reassessment Notice quashed- DTAA-India – Singapore .[S. 143(1), 148, Art, 13(4), Art , 226 ]

Blackstone Capital Partners (Singapore) VI FDI Three Pte. Ltd. v. ACIT (Delhi)(HC) www.itatonline .org

S. 147: Reassessment – After expiry of four years – Income from other sources – Income from house property -Query had been raised regarding loan taken and utilisation thereof during assessment proceeding and answered – Reopening of assessment to disallow interest on such loan -Change of opinion reassessment notice and objection disposing the objection was quashed [ S. 24(3), 56 , 148 , Art , 226 ]

Nishith Madanlal Desai v.CIT ( 2022) 218 DTR 268 / 139 Taxman 52 ( Bom)( HC)

S. 245 : Refund-Set off of refunds against tax remaining payable-Adjustment made without prior intimation is held to be bad in law. [Art. 226]

Greatship (India) Ltd. v. ACIT (2022) 289 Taxman 334 (Bom.)(HC). www.itatonline.org

S. 276B : Offences and prosecutions-Failure to pay to the credit tax deducted at source-Company-Principal officer-Discharge affirmed by High Court-On submission by assessees order of discharge set aside and direction for trial to proceed keeping all defences available to accused open. [S. 2(35), 278B]

ITD v. Jenious Clothing Pvt. Ltd. (2022) 449 ITR 575 / (2023) 146 taxmann.com 52 (SC)

S. 271C : Penalty-Failure to deduct at source-Reasonable cause-Supplementary commission-Airline-Different views High Courts-Levy of penalty is quashed. [S. 194H, 273B, Contract Act, 1872, S. 182, 215, 216]

Singapore Airlines Ltd. v. CIT (2022) 449 ITR 203 / 329 CTR 553 / 220 DTR 1 (SC) KLM Royal Dutch Airlines v. CIT (2022) 449 ITR 203 / 329 CTR 553 / 220 DTR 1 (SC) British Airways PLC v. CIT (TDS) (2022) 449 ITR 203 / 329 CTR 553 / 220 DTR 1 (SC)

S. 263 : Commissioner-Revision of orders prejudicial to revenue-Valuation of shares-Conducting enquiry and not recording satisfaction for accepting the claim-Satisfaction of an administrative or a quasi-authority should be manifest and vivid on the face of the order or proceedings. There can be no inference as regards satisfaction, nor can the provision of law be read in to connote deemed satisfaction-Order of revision is valid. [S. 56(2)(viib), R. 11UA]

PCIT v. Trimex Fiscal Services Pvt. Ltd. (2022) 449 ITR 407 (Cal.)(HC) Editorial : SLP of the assessee dismissed Trimex Fiscal Services Pvt. Ltd v. PCIT (2022) 449 ITR 4 (SC)(St)

S. 263 : Commissioner-Revision of orders prejudicial to revenue-High Court remanded the matter to Assessing Officer for consideration of claim-On SLP court held that the Assessing Officer to consider all pleas of assessee including consequences of retrospective amendment irrespective of observations of High Court or Tribunal. [S. 11, 12AA, 13(8), 80IB(10), 254(1)]

India Heritage Foundation v. DIT (E) (2022)449 ITR 154 / 219 DTR 1/ 329 CTR 225 (SC) Editorial: DIT(E) v. India Heritage Foundation (2020) 428 ITR 299 (Karn)(HC)

S. 237 : Refunds-Intimation-Right of assessee-Failure by Department to process return within prescribed time-Direction issued to Department to grant refund with interest. [S. 139, 140. 140A, 143(1), 244A, Art. 226]

M. J. Engineering Consultants P. Ltd. v. ITO (2022) 449 ITR 322 / 217 DTR 273 (Delhi)(HC)

S. 201 : Deduction at source-Failure to deduct or pay-Leave travel concession-Estimate of income-Assessee in default Public sector Bank-Employees travelling not only to domestic destination but to foreign countries-Not taking shortest possible route-Employees not entitled to exemption-Leave travel concession reimbursed without deduction of tax at source-Assessee could not claim ignorance about travel plans of employees-Complete facts available-Not a bona fide mistake-Liable to pay interest. [S. 10(5), 192(1), 201(1), ITR. 2B]

State Bank of India v. CIT (2022) 449 ITR 192 / 329 CTR 449 / 219 DTR 369 / 144 taxmann.com 131/(2023) 290 Taxman 129 (SC) Editorial : State Bank of India v. CIT (ITA No. 5 of 2020 dt. 13-1-2020(Delhi)(HC), affirmed.

S. 201 : Deduction at source-Failure to deduct or pay-Interest-Non-convertible debentures and fixed deposit-Value less than Rs. 5,000-Not liable to deduct tax at source-Not liable to pay interest. [S. 201(1), 201(IA), Art. 136]

CIT(TDS) v. Jai Prakash Associates Ltd. (2022) 449 ITR 183 / 290 Taxman 124 (SC) Editorial : Order of High Court is affirmed, CIT(TDS) v. Jai Prakash Associates Ltd (ITA No. 114 of 2015 dt. 22-8-2017)(All)((HC)