Year: 2020

Archive for 2020


Bhura Ram (Late) v. ITO (2019) 76 ITR 681 (2020) 206 TTJ 29 (UO ) (Jaipur)(Trib.)

S. 147 : Reassessment–Legal representatives-Notice issued in name of deceased assessee-No subsequent notice issued on legal heirs of deceased assessee-Reassessment is not valid. [S. 148, 159]

Kishore Vithaldas v. JCIT (2019) 76 ITR 623 (Mum.)(Trib.)

S. 147 : Reassessment-Jurisdiction of authorities-No specific order passed by principal CIT under section 120(4)(B) authorising Joint Commissioner to act as an AO-Reassessment Order passed by Joint Commissioner liable to be quashed. [S. 2(7A), 120(4)(b), 148]

Vinod Commodities v. ACIT (2019) 182 DTR 49 / 200 TTJ 273 (Jodhpur)(Trib.)

S. 147 : Reassessment-After the expiry of four years-AO should record ‘reason to believe’ that certain income chargeable to tax has escaped assessment–This belief should be based on independent enquires/application of mind and not on borrowed satisfaction ie basis information from Investigation Wing- Sanction-Sanction granted by the CIT under S. 151 by simply writing “Yes, I am satisfied” is also invalid. [S. 147, 148]

Magan Behari Lal v. DCIT (2019) 75 ITR 322 (Delhi)(Trib.)

S. 147 : Reassessment-After the expiry of four years–No scrutiny assessment–Reopening solely based on information from Investigation Wing–No independent application of mind– Reassessment is held to be invalid. [S. 148]

Kellogg India (P) Ltd. v. DCIT (2019) 182 DTR 280 / 201 TTJ 393 (Mum.)(Trib.)

S. 145 : Method of accounting-Adjustment on account of MODVAT credit has to be made in respect of closing stock, opening stock, purchases and sales.

Agson Global Pvt. Ltd. v. ACIT (2019) 76 ITR 504 (Delhi)(Trib.)

S. 145 : Method of accounting-Rejection of books of account-No allegation from department that books of account of assessee either incorrect or incomplete-Gross profit ratio of one year not be applied to another year for determining profit of some of transactions of another year-Rejection of books is not justified. [S. 144]

Fedex Express transportation & Supply Chain Services (India) (P) Ltd. v. DCIT (2019) 108 taxmann.com 542 / 181 DTR 282 / 200 TTJ 962 (Mum.)(Trib.)

S. 144C : Reference to dispute resolution panel–Draft assessment order passed in the name of amalgamating company, a non-existent entity on the date of passing such order–entire assessment proceedings based on such invalid draft assessment order are void ab initio and deserve to be quashed. [S. 292B]

Rajeev Goel v. ACIT (2019) 76 ITR 107 (Delhi)(Trib.)

S. 143(2) : Assessment–Notice-Notice issued by officer who was neither AO of assessee on the basis of address in PAN application nor AO of assessee as per address mentioned in return-Notice issued illegal. [S. 127, 143(3)]

DCIT v. TCS E-Serve International Ltd. (2019) 182 DTR 273 / 201 TTJ 997 (Mum.)(Trib.)

S. 115JAA : Book profit-Deemed income-Tax credit–Demerger of SEZ units–Tribunal Order-MAT credit needs to be allowed to the assessee-not to the demerged company (SEZ units) even though the same arose on account of SEZ units. [Companies Act, S.391]

Uttara Foods & Feeds (P) Ltd. v. ACIT (2019) 182 DTR 333 / 202 TTJ 540 / (2020) 185 ITD 382 (Pune)(Trib.)

S. 92C : Transfer pricing-Arm’s length price-Interest on loans to AEs-Arm’s length rate of interest is the rate prevalent in the country where the loan is received/consumed and not the country in which the assessee advances loans to its AEs-Order of settlement commission is conclusive as regards the matter there in and not on other years. [S. 245D(4), 245I]