Year: 2019

Archive for 2019


Flex Engineering Ltd v. DCIT (2019) 70 ITR 417 (Delhi) (Trib.)

S. 153A : Assessment–Search-Assessment completed on date of search–Additional ground raised before Tribunal -No incriminating material found-No jurisdiction to frame the assessment. [S. 69C, 254(1)]

KEY Components P. Ltd. v. ITO (2019) 70 ITR 211 (Delhi)(Trib.)

S. 147 : Reassessment–With in four years-Non application of mind- Recording of incorrect figures-Merely repeating investigation report–Reassessment is held to be invalid. [S. 148]

Health and Glow Retailing P. Ltd. v. ACIT (2019) 70 ITR 163 (Chennai) (Trib.)

S. 147 : Reassessment–With in four years-Provision for doubtful debt–Unabsorbed depreciation- Reassessment is held to be valid [S. 32(2), 148 ]

Naiyer Sultan v. ITO (2019) 177 ITD 201 (Kol) (Trib.)

S. 147 : Reassessment–Capital asset -Agricultural land-Location of land from local limits of Chennai Municipal Corporation was relevant to decide as to whether said land was an agricultural land within meaning of S. 2(14)(iii) and distance of land from Chennai Metropolitan area was not relevant- Reassessment is held to be bad in law.[S. 2(14)(iii), 148]

ITO v. Wasan Exports (P.) Ltd. (2019) 177 ITD 115 (Delhi) (Trib.)

S. 145 : Method of accounting–Valuation of closing stock at nil- Consistent method of accounting–Deletion of addition by CIT(A) is held to be justified.

Gee City Builders (P.) Ltd. v. DCIT (2019) 177 ITD 70 (Chd.) (Trib.)

S. 115JB : Book profit–Housing project-Development of housing project units which were neither units in SEZ nor developer of SEZ- Not entitle to exempt from MAT.[S. 80IB(10)]

Standard Chartered Bank. v. JCIT (2019) 177 ITD 139/ 200 TTJ 774/ 178 DTR 201 (Mum.) (Trib.)

S. 115JA : Book profit–Foreign Banking company-Maintaining its accounts under Banking Regulation Act, 1949-Provision is not applicable -DTAA- India -UK. [Art. 7, Banking Regulation Act, 1949, Companies Act, 1956]

ACIT v. Shree Shiv Vankeshawar Educational & Social Welfare Trust. (2019) 177 ITD 184 / 181 DTR 314(Delhi)(Trib.)

S. 115BBC : Anonymous donations–Names and address along with other particulars of donors who have given donation was furnished- Donation cannot be assessed as anonymous donation.

CIT v. Jaipur Rugs Company Pvt. Ltd. (2019) 70 ITR 1 / 179 DTR 177(Jaipur) (Trib.)

S. 92C : Transfer pricing–Arm’s length price-Weighted average– Exporting carpets to foreign associated enterprise as well as unrelated parties-Variation of rates–AO is directed to apply weighted average of all transactions -Sale proceeds to be realised from the associated enterprises were in foreign currency, instead of applying the prime lending rate as the arm’s length price, interest at the LIBOR shall be considered as the arm’s length interest – The effect of the exchange gain or loss had to be given in computing of arm’s length price being the part of sale proceeds as well as comparable price. [S. 92CA]

ITO v. Rudra Woodpack P. Ltd. (2019) 70 ITR 169 (Delhi) (Trib.)

S. 80IC : Special category States–Manufacture-Wooden Sleepers and planks made into planks-Amounts to manufacture-Entitled to deduction. [S. 2(29BA)]