Month: March 2020

Archive for March, 2020


CIT v. RBS Financial Services (India) Pvt. Ltd. (2020) 421 ITR 1 (Bom.)(HC )

S. 92C : Transfer pricing-Arm’s length price-Loan syndication fee received from associated enterprise-Tribunal remitting matter to AO-Not erroneous.[S. 254(1), 260A]

Surat Vankar Sahakari Sangh Ltd. v. ACIT (2020) 421 ITR 134 (Guj.)(HC)

S. 80P : Co-operative societies-Interest received from another Co-operative bank-Deduction allowed on gross interest in earlier years-Department has not challenged the decision of the Tribunal in another assesee-Department is not entitled to challenge its correctness in case of another assessee without good reason. [S. 80P(2)(d)]

Seven Stars v. DCIT (2020) 421 ITR 16 (Bom.)(HC)

S. 80HHC : Export business-Business profits-Receipts by way of reassortment charges and labour commission-Cannot be excluded from business profits for purpose of computation of business profits- Prior to amendment with effect from April 1, 1992.

CIT (E) v. Seth Vinod Kumar Somani Charitable Trust. (2020) 113 taxmann.com 142 / 269 Taxman 60 (P & H) (HC) Editorial : SLP of the revenue is dismissed; CIT (E) v. Seth Vinod Kumar Somani Charitable Trust. (2020) 269 Taxman 59 (SC)

S. 80G : Donation-In absence of any evidence on record showing that funds of assessee trust were being utilised for private purposes-AO is, not justified in refusing to grant approval under S.80G(5)(vi) of the Act. [S. 12AA]

CIT v. Zila Sahkari Bank (P.) Ltd (2019) 112 taxmann.com 403/ 269 Taxman 56 (All.)(HC). Editorial : SLP of revenue is dismissed; CIT v. Zila Sahkari Bank (P.) Ltd. (2020) 269 Taxman 55 (SC)

S. 80 : Return for losses-Claim for carry forward of loss- Return filed in old form-Filed revised form after due date-Entitle to carry forward the loss. [S. 139(1), 139 (3)]

Shashi Garg v. PCIT (2020) 423 ITR 150 / 113 taxmann.com 92 / 269 Taxman 27 (Delhi)(HC) Editorial : SLP of assessee is dismissed; Shashi Garg v. P CIT (2020) 269 Taxman 26 (SC)

S. 69A : Unexplained money-Failure to explain the source of cash deposit in the bank account-Addition is held to be justified.

S. Sundaramurthy v. PCIT (2020) 269 Taxman 107 (Mad.)(HC)

S. 54B : Capital gains-Land used for agricultural purposes- Sale of land to builder- Order of the AO is set aside. [S. 45, 264, Art. 226]

Seshasayee Steels P. Ltd. v. ACIT (2020) 421 ITR 46 / 313 CTR 375/ 187 DTR 241/ 275 Taxman 187(SC) Editorial : Decision in Seshasayee Steels P. Ltd. v Asst. CIT ( 2020) 421 ITR 46 (Mad) (HC) affirmed. Tax Case (Al) No. 461 of 2011 dt 25 -1 2012)

S. 45 : Capital gains-Transfer-Permission to builder to start advertising, selling, construction on land-Licence to builder not amounting to possession of asset-Memorandum of compromise in 2003 under which agreement confirmed, and receipt by assessee of part of agreed sale consideration confirmed-Gains arose in previous year in which memorandum of compromise entered into, and taxable in that assessment year. [S. 2(47)(v), 2(47)(vi), Transfer of Property Act, 1882, S.53A]

CIT v. Metropolitan Transport Corporation (Chennai) Ltd. (2020) 421 ITR 307/ 196 DTR 455/ 317 CTR 968 (Mad.)(HC)

S. 41(1) : Profits chargeable to tax-Remission or cessation of trading liability-Interest liability of State Government undertaking on Government Loans converted by order of State Government into equity share capital-No cessation of liability-Addition cannot be made.

PCIT v. Shivaai Industries (P.) Ltd. (2020) 269 Taxman 54 (Delhi) (HC) Editorial : SLP is granted to the revenue; PCIT v. Shivaai Industries (P.) Ltd. (2020) 269 Taxman 53 (SC)

S. 40(a)(ia) : Amounts not deductible-Deduction at source-Payee reflected the said amount as it tax liability-No disallowance can be made.