Constitution of India .
Art. 226 : Cyber-Fraud Claim – Customer Liability under RBI Circular (RBI Circular dated 06-07-2017 – Customer Protection – Limiting Liability of Customers in Unauthorised Electronic Banking Transactions) – RBI Circular protects customers only in cases of third-party breach or where no negligence is attributable to the account holder; it cannot be used as a “sword” to recast personal transactions as cyber fraud- Writ petition was dismissed . [ Art. 227 ]
Indian Registration Act, 1908
S:17: Documents of which registration is compulsory – Assignment of decree for specific performance –Decree for specific performance does not create or transfer any right, title or interest in immovable property – Assignment of such decree is not an instrument falling under Section 17(1)(e)- Assignment deed was valid even without registration and execution could not be denied on that ground . [S. 17(1)( c) , Code of Civil Procedure, 1908 , Order 21,Rule 16 ]
Tribunals Reforms Act, 2021 .
Constitution of India – Tribunals – Independence of Judiciary – Constitutional validity of the Tribunals Reforms Act, 2021 – Legislative override of judicial directions – Doctrine of separation of powers- Validity of the Act is struck down -Tribunals being substitutes for High Courts in many fields, must meet the same constitutional standards of independence and cannot be exposed to executive control in matters of appointments, tenure, remuneration, or administration – Court directed the Union of India a period of four months from the date of this judgment to establish a National Tribunals Commission- The commission so constituted must adhere to the principles articulated by this Court, particularly concerning independence from executive control, professional expertise, transparent processes, and oversight mechanisms that reinforce public confidence in the system- Court also clarified and directed that the service conditions of all such Members of ITAT who were appointed by order dated 11th September 2021 shall be governed by the old Act and the old Rules. [ Art. 14, 21, 50 ,141, 323-A, 323-B ]
S. 119 : Central Board of Direct Taxes- Circular – Condonation of delay – Filing of return of loss – Genuine hardship – Delay of 5 months in filing return due to bona fide professional advice by Chartered Accountant – Assessee should not suffer grave hardship for a professional’s mistake – Circular No. 9 of 2015 – Delay was condoned – CBDT’s rejection order set aside- Directed that the return filed on 30th March 2019 be treated as filed in time, and permitted assessment to be completed under section 153(1B) of the Act . [S. 72, 80, 119(2)(b), 139(1), 139(3), 153(1B), Art. 226 ]
Bharatiya Sakshya Adhiniyam, 2023
S. 132 : Professional communications – Advocate–Client Privilege – Summoning of Advocates – Investigating Officer cannot directly summon a lawyer appearing for a party to elicit facts of the case – Privileged communication protected under S. 132 of the Bharatiya Sakshya Adhiniyam, 2023 – Summons valid only if it falls within statutory exceptions and approved by a superior officer – No need for Vishaka-type guidelines as statutory safeguards under BNSS and BSA are adequate [, Bharatiya Nagarik Suraksha Sanhita, 2023, S. 132, 133,134 , 175, 179, 528 , Indian Evidence Act , 1872 , S. 126, Indian Penal Code, 1860 (IPC), S.34, 304-A , Art.14, 15, 19(1)(g), 20(3), 21,142, Advocates Act , 1961 , Bar Council of India Rules 1975 Rule 11 of Section 200 of Part VI of the Bar Council of India Rules, 1975, titled ‘Standards of Professional Conduct and Etiquette’]
]
S. 147 : Reassessment – Information from third-party search – Accommodation entries – Cash credits -Section 153C not triggered, reopening u/s 147 is valid-On merits, addition based mainly on untested third-party statement without cross-examination requires fresh adjudication by CIT(A). [S. 68, 132(4), 133(6), 148, 151, 153C, ITAT Rule, 1963 ,R. 27]
S.115BAA : Tax on income of certain domestic companies – Determination of tax in certain cases – Option exercised under section 115BAA – Rate of tax applicable – Long term capital gains – Company opting for taxation under section 115BAA is liable to pay tax at 22% on total income including long-term capital gains and not at 20% as per section 112. [S. 45 , 112, 143(1), Form 10IC ]
S. 275 : Penalty – Bar of limitation – Recording of satisfaction-Cross objection- CBDT Circular binding on department -Period of limitation is to be reckoned from the date of recording of satisfaction by the AO in the assessment order and not from the date of notice issued by the Joint/Additional CIT. [ S.119, 269SS , 271D, 271E ,271AAA, 275(1)( c) ]
S. 263 : Commissioner – Revision of orders prejudicial to revenue -Limited Scrutiny – Deemed rental income -Order passed after due enquiry cannot be treated as erroneous and prejudicial to the interests of revenue – PCIT cannot revise assessment to include issues beyond the scope of limited scrutiny (S.143(3), IND AS-115 )
S. 276 : Offences and prosecutions – Removal – Concealment – Transfer –Delivery – Property – Thwart recovery – Offences by companies – Prosecution of directors without impleading company – Not maintainable – Arraignment of company is a condition precedent for prosecuting its directors – Company being the principal offender must first be made an accused – Proceedings against directors alone quashed [S. 278B , 281, CrPC, 1973, S. 482 BNSS, Act , 2023, S. 528 , Negotiable Instruments Act , 1881 , S. 141 ]