Month: November 2019

Archive for November, 2019


PCIT v. Jayant K. Furnishers. (2018) 98 taxmann.com 394 ( Bom) (HC) Editorial : SLP of revenue is dismissed , PCIT v. Jayant K. Furnishers. (2019) 266 Taxman 91 (SC)

S. 153C : Assessment – Income of any other person – Search- Cash receipts- No payments were made in relevant assessment year- , impugned addition made in assessment year- Deletion of addition is held to be justified . [ S.69A ]

Kapadia Money Changers (P.) Ltd. v. ACIT (2019) 266 Taxman 160/(2020)423 ITR 633 (Guj) (HC)

S. 147 :Reassessment -Salaries paid to employees – Reconciliation statement was filed – Reassessment proceedings was quashed .[ S.37(1), 148 ]

Devendrasinh Chhatrasinh Vaghela v JT.CIT ( 2018) 97 taxmann.com 173 (Guj)( HC) Editorial: SLP of revenue is dismissed due to low tax effect , JT.CIT (OSD) v. Devendrasinh Chhatrasinh Vaghela. (2019) 266 Taxman 90 (SC)

S.147: Reassessment-After the expiry of four years- Capital gains- No failure on the part of assessee to disclose truly and fairly material facts – Reassessment is held to be bad in law . [ S.50C 54B , 148 ]

PCIT v. Torrent (P.) Ltd. (2019) 266 Taxman 151 /( 2020) 423 ITR 455 (Guj) (HC)

S. 115JB : Book profit – Provision for diminution in value of investment- Written off in the books – Addition cannot be made to book profit . [ S. 115JB(2)(i), Accounting Standard (AS) 13 ]

PCIT v. Sun Pharmaceutical Industries Ltd. (2019)109 taxmann.com 54 / 266 Taxman 95 ( Guj) (HC) Editorial: SLP of revenue is dismissed , PCIT v. Sun Pharmaceutical Industries Ltd. (2019) 266 Taxman 94 (SC)

S. 92C:Transfer pricing – Arm’s length price – Commission – commission paid to Associated Enterprise at rate of 7.84 per cent as against 11 per cent paid to unrelated party was at ALP- Deletion of addition is held to be valid .

KTC Automobiles. v. DCIT (2019) 266 Taxman 117/ 311 CTR 905 (Ker) (HC)

S.45: Capital gains- Revaluation of capital asset and crediting to partners current account and treating it as loan from partners – Amounted to violation of clauses (a) and (c) of proviso to S. 47(xiii)Transaction amounted to transfer of a capital asset – liability to pay tax on such capital gain would fall not on assessee-firm but on successor company. [ S. 47 (xiii) (a) , 47 (xiii) (b) , 47A ]

CIT v. V.O. Chidambaranar Port Trust (2019) 266 Taxman 141 / 311 CTR 227(Mad) (HC)

S. 37(1):Business expenditure -Contribution to recognized provident fund -Payment of pension to retired employees which had been duly approved and notified by Central Government under ‘Tuticorin’ Port Trust Employees Regulations, 1979, said payment being in terms pf statutory regulation, would fall within general deductions under S. 37(i) and, same could not be brought under S. 36(1)(iv) and (v) of the Act .[ S 36(1)(iv) 36(1) (v) ]

Sachin Narayan. v. Income-Tax Department (2019)417 ITR 641 (Karn)(HC)

The Prevention of Money Laundering Act, 2002

S. 50(2): Summons- Summons cannot be quashed in Writ proceedings — [ S. 3, 50(3) , Art . 20 ,226 ]

Ramgopal Ochhavlal Maheshwari. v. DCIT (2019) 417 ITR 710/ (2020) 187 DTR 417/ 315 CTR 458 (Guj)(HC)

S. 271AAA : Penalty – Search initiated on or after 1st June, 2007 – Notice issued u/s 271AAA and subsequent corrigendum issued stating that notice was u/s 271AAB – Notice and subsequent levy of penalty is held to be valid .[ S. 132 ,271AAB ]

R. Revathy. v. DCIT (2019) 417 ITR 704/ (2020) 196 DTR 395 (Mad) (HC)

S. 271(1)(c) : Penalty – Concealment – Quantum became final – Jewellery disclosed in the course of search – Matter remanded to the Tribunal to give an opportunity of reconciling quantum of jewellery [ S.132 , 254(1) ]