Month: March 2020

Archive for March, 2020


CIT v. Fomento Finance & Investment (P) Ltd. (2019) 183 DTR 340 / (2020) 312 CTR 88 / 421 ITR 146 / 272 Taxman 171(Bom.)(HC)

S. 143(2) : Assessment-Notice-Notice under S.143(2) of the Income Tax Act was never issued to the Assessee before initiating of proceedings under Section 158 BC of the Income Tax Act- Order is held to be bad in law. [S. 158BB, 158BC, 260A]

Samir Narain Bhojwani v. Dy.CIT (2019) 184 DTR 386 / (2020) 312 CTR 95 (Bom.)(HC)

S. 139D : Return in electronic form–No provision for filing manual return- Setoff of carried forward loss-Directed to make representation to CBDT-The issue raised by the petitioner does not appear to be an issue only in an individual case, but may affect the whole body of the assessees’ (whose claim may not fit in the prescribed proforma). Thus, a clarification on this issue by the CBDT may be beneficial to the entire body of assessee, in fact, who seek to make a claim which according to them, the prescribed proforma does not provide for. [S. 50, 71, 72, 119, 139(1), 139(9), Art.226]

Naresh Manakchand Jain v. PCIT (2019) 183 DTR 347 (Bom.)(HC)

S. 127 : Power to transfer cases–Mumbai to Pune-Violation of natural justice–Various statements referred by the PCIT was neither provided to the petitioner nor referred in the show cause notice-As the principle of natural justice is violated–Transfer order is quashed.

Brahma Center Development Pvt. Ltd. v. PCIT (2020) 185 DTR 353 / 77 ITR 156 / 203 TTJ 560 (Delhi)(Trib.)

S. 263 : Commissioner-Revision of orders prejudicial to revenue– Interest adjusted against project expenditure-AO putting specific question and accepting the explanation-Revision is held to be not valid. [S. 145]

ACIT v. Saviour Builders Pvt. Ltd. (2020) 77 ITR 305 (Delhi)(Trib.)

S. 254(2) : Appellate Tribunal-Rectification of mistake apparent from the record–High court admitting department appeal on same issue-Review of order is impermissible. [S. 260A, 271AA, 271(1)(c)]

Tourism India Management Enterprises (P.) Ltd. v. Dy. CIT (2020) 77 ITR 311/185 DTR 361 / 203 TTJ 509 (Delhi)(Trib.)

S. 143(2) : Assessment–Notice-Notice issued to wrong address- Department acknowledging mistake and serving notice by affixture at correct address-Service by affixture not permissible and could not be taken into account-Notice invalid and assessment is void ab initio. [S.143(3), 282, 292BB]

Clearview Healthcare P. Ltd. v. ITO (2020) 77 ITR 39 (SN) /185 TTJ 369 / 203 TTJ 349 (SMC) (Delhi)(Trib.)

S. 56 : Income from other sources–Valuation of shares-Share premium-Addition on account of excess share premium unjustified. [S.56(2)(viib), R.11UA]

Utsav Cold Storage Pvt. Ltd. v. ITO (2020)77 ITR 69 (Jaipur) (Trib.)

S. 49 : Capital gains-Previous owner-Cost of acquisition– Acquisition of immovable asset by succession of partnership- Subsequent amendment with retrospective effect providing for cost to be taken as cost to previous owner-Law prevailing at the time of filing of return applicable and not provision amended with retrospective effect. [S. 45, 49(iii)(e)]

Hiralal Jain v. ITO (2020) 77 ITR 333 (Indore)(Trib.)

S. 40(a)(ia) : Amounts not deductible-Deduction at source-Failure to deduct tax at source-Filing Forms 15G and form no 15H before CIT (A) -Addition is unsustainable-CIT (A) ought to have verified from the banks- AO is directed to delete the addition. [S. 251]

ACIT v. Vishnu Pouch Packaging P. Ltd. (2020) 77 ITR 10 (SN) (Ahd.)(Trib)

S. 37(1) : Business expenditure-Capital or revenue-Trade mark licence utilisation fees based on turnover-Held to be revenue expenditure.