Year: 2019

Archive for 2019


Bansilal B. Raisoni & Sons v. ACIT (2019) 306 CTR 166 / 173 DTR 68/ 260 Taxman 281 (Bom.)(HC)

S. 153A : Assessment–Search-No search in the premises of the firm –Writ to quash the notice is held to be not maintainable-Assesee has alternative remedy to purse the remedy available under the Act. [S. 124, 132(1), Art. 226]

Amarjeet Thapar v. ITO (2019) 173 DTR 305 /261 Taxman 23 / 306 CTR 325/ 411 ITR 626(Bom.)(HC)

S. 147 : Reassessment-Non-existent reason-Indexation cost was raised in the recorded reason–Court cannot allow the AO to improve upon the reasons in order to support the notice of reassessment- Execution of sale deed by virtue of the judgement of the High Court would relate back to the original agreement to sale, and the assessee is entitle to claim the benefit of cost of indexation from the said date. [S. 2(47), 45, 48, 148]

Shri Saibaba Sansthan Trust (Shirdi) v. UOI (2019) 173 DTR 257 / 306 CTR 620(Bom.)(HC)

S. 147 : Reassessment-Identical issue is pending before CIT (A) for the AY. 2015 -16- Writ is held to be not maintainable. [S. 80G,115BBC, 148 Art. 226]

Avirat Star Homes Venture (P) Ltd. v. ITO (2019) 411 ITR 321 / 173 DTR 207 / 261 Taxman 184/(2020) 313 CTR 728(Bom.)(HC)

S. 147 : Reassessment-Report of investigation Wing- Accommodation entries–Assessment u/s.143(1)-Notice for reassessment is valid. [S. 143(1), 148]

PCIT v. Royal Western India Turf Club Ltd. ( 2019) 175 DTR 285 / 308 CTR 38/ 103 taxmann.com 13 (Bom) (HC) Editorial: SLP of revenue is dismissed on account of low tax effect ,PCIT v. Royal Western India Turf Club Ltd ( 2020) 268 Taxman 389 (SC)

S. 143(3) : Assessment-Jurisdiction-When the Commissioner requires the Assessing Officer to carry out inquiries with respect to specific issues, the jurisdiction of the Assessing Officer to pass fresh order must be confined to such issues only. [S. 263]

Multi Commodity Exchange of India Ltd v. Dy. CIT( 2018) 171 DTR 289/ ( 2019) 306 CTR 245 (Bom.)(HC)/Editorial:SLP of Revenue , dismissed . Dy. CIT v. Multi Commodity Exchange of India Ltd. (2023) 456 ITR 772 / 295 Taxman 318 (SC)

S. 142(2A) : Inquiry before assessment–Special audit–Audit report was provided to the assessee-AO shall allow the assessee to raise the objections to the said report and decide according to law – All issues are kept open. [S. 143(3)]

PCIT v. KSS Ltd( 2018) 172 DTR 441/. (2019) 306 CTR 172 (Bom.) (HC)

S. 92C : Transfer pricing–Release of money in favour of Associated Enterprise with a specific purpose of acquisition of distributorship of the films from Citi Gate Trade FZE is not a case of either financing or lending or advancing of any moneys- Not International Transaction did not result in to diversion of income of the assessee to the Associated Enterprise. [S. 92, 92B, 92D, 92E]

PCIT v. Jindal Drugs Ltd. (2019) 306 CTR 241/ 173 DTR 345 (Bom.)(HC)

S. 80IB : Industrial undertaking-Business of manufacturing Menthol-Profit from hedging–Hedging activity of Mentha Oil has direct nexus with the manufacturing activity and profit derived from hedging is eligible for deduction.

Ravi Agarwal v. UOI (2019) 410 ITR 399/173 DTR 194 / 306 CTR 177/ 260 Taxman 352( SC)

S. 80DD : Medical treatment of dependent–Disability–Observations-Jeevan Aadhar-Amount of annuity under the policy is to be released only after the death of the person assured -Purpose is to secure the future of the person suffering from disability , after the death of the parent / guardian–Provision is valid in law -Considering the several difficult situations where the handicapped person may need the payment on annuity or lumpsum basis even during the life time of their parents / guardians, it is for the legislature to take care of theses aspects and to provide suitable provision by making necessary amendments in S.80DD. [Art. 14]

PCIT v. Solapur District Central Co -Op. Bank Ltd.( 2019) 261 Taxman 476 (2020) 428 ITR 306 (Bom.)(HC)/PCIT v. Laxmi Co-Operative Bank Ltd. ( 2019) 261 Taxman 476 / (2020) 428 ITR 306 (Bom)(HC)

S. 43D : Public financial institutions-Co-Operative Bank–Non performing assets (NPA)-Accrual of interest income- Provision is applicable to Co -Operative Societies–Amount transferred to overdue interest Reserve (OIR) by debiting the interest received in profit and loss account, cannot be assessed on accrual basis. [S. 145]