Year: 2019

Archive for 2019


PCIT v. Pat Commodity Service Pvt. Ltd. (Bom)(HC), www.itatonline.org

S.28(i): Business income- Client code modification-(CCM )- Shifting of profits- Addition as income on the basis of alleged doubtful transaction is held to be not valid – Deletion of addition b the Tribunal is affirmed . [ S.69, 143(3) ]

CST v. Crescendo Associates ( Bom) (HC) www.itatonline.org CST v. Shri Krishna Chaitanya Enterprises ( Bom)(HC) www.itatonline.org CST v. Green Valley Developers( Bom) (HC) www.itatonline.org , CST v Kumar Rathi ( Bom) (HC) www.itatonline.org

Goods and service tax. Finance Act 1994

S. 65: Builder- Collection of non refundable deposits – Not liable to collect service tax .

Oracle Financial Services Software Ltd. v. DCIT (Bom)(HC), www.itatonline.org

S. 220 : Collection and recovery – Assessee deemed in default –Pendency of appeal before CIT(A)- Stay of demand – The power of the AO to review the situation every six months, would not authorize him to lift the stay previously granted after full consideration and insist on full payment of tax without the assessee being responsible for delay in disposal of the appeal or any other such similar material change in circumstances.[ S.220(6) , 254(2A) ]

Narag Access Pvt. Ltd. v. DCIT (Mum)(Trib), www.itatonline.org

S. 56 : Income from other sources – The assessee has the option to determine the fair market value of shares either under the Discounted cash Flow ( DCF) method or the Net Asset Valuation ( NAV) method. [56(2)(viib ), R. 11UA ]

Perfect Thread Mills Ltd. v. DCIT ( 2019) 183 DTR 25 / 202 TTJ 1/ (2020) 77 ITR 603/ 181 ITD 1( TM )(Mum)(Trib) www.itatonline.org

S. 48: Capital gains- Loan liability of mortgaged property – Doctrine of over-riding title- Not deductible from sale consideration while computing the capital gains .[ S. 4,45, 47(xii), 48(1), SAFAESI ACT ,2002 , S.13 ]

Rajesh Tiwari , Advocate v Alok Pandey , Chief Judicial Magistrate ( 2019) 6 SCC 465

Contempt of Courts Act , 1971.

S.2(a):Contempt of court – Advocate -Held to be proper -Judicial independence and courage to be shown while delivering the justice . [S. 12]

State of Orissa v Dhirendra Sundar Das (2019) 6 SCC 270/( 2019) AIR SC 2331

Interpretation of taxing statutes – Dismissal of SLP in limine- Dismissal of SLP at threshold without indicating any reasons , does not constitute any declaration of law or binding precedent under Art. 141 of the Constitution of India [ Art. 141]

Directorate of Elementary Education v. Pramod Kumar Sahoo. (SC), www.itatonline.org

Interpretation – Allied law

No estoppel against law- Concession in law which is contrary to the statutory rules is not binding on the litigant.

Vijay Kumar v. ITO (SMC) (Chd)(Trib), www.itatonline.org

S. 143(3): Assessment- If the case is selected for limited scrutiny of a specific issue, the AO has no jurisdiction to make additions or disallowances on other issues.

Suman Poddar v. ITO ( 2019) 112 taxmann.com 329/ (2020) 268 Taxman 321 / 423 ITR 480 / 191 DTR 116 / 315 CTR 563 (Delhi)(HC), www. Itatonline.org Editorial: SLP of the assessee is dismissed , Suman Poddar v. ITO (SLP No. 26864/2019 dt 22-11-2019 ( 2020) 268 Taxman 320 (SC)

S.69: Income from undisclosed sources- Penny stock –Return of 491 % – Bogus long term capital gains- Stock Exchange has identified Cresssanda Solutions Ltd as penny stock being used for obtaining bogus long term capital gains- No evidence of actual sale except contract notes issued by share Broker were produced – Denial of exemption is held to be justified .[S.10(38), 45 ]