Category: Tax Laws

Archive for the ‘Tax Laws’ Category


PCIT v. Rishabhdev Technocable Ltd. (2020) 424 ITR 338 /187 DTR 473 (Bom)(HC)

S.144: Best judgment assessment – Bogus purchases -Hawala entries -Sales tax department – Income from undisclosed sources — Estimate of profits at 5% of bogus based is held to be justified [ S.142(1) ]

A. P. Shanmugaraj v Dy CIT (2020) 424 ITR 347/ 186 DTR 43 / 313 CTR 225 (Mad) (HC)

S.142(2A): Inquiry before assessment– Special audit– Limitation – Block assessment -Date of order on special audit to be taken and not date on which order was served on the assessee- Order is not barred by limitation . [ S.158BE ]

PCIT v .Sunshine Import and Export Pvt. Ltd. (2020) 424 ITR 195/ 273 Taxman 173 (Bom) (HC)

S. 133A :Power of survey -Rejection of books of account and estimation of income – Accommodation entries – Statement of director recorded two Thousand days after survey and not under oath – Merely on the basis of statement addition is held to be not valid [ S.144 ]

Cognizant Technology Solutions India Pvt. Ltd. v .Dy. CIT(Large Taxpayer Unit) (2020)424 ITR 302 187 DTR 369/ 313 CTR 510/ 274 Taxman 381 (SC)

S.115QA: Tax on distributed income to share holders- Buy back of shares – Remittances to non-residents- Appeal pending before Supreme Court -Department agreeing to treat communication as show-cause notice — Direction to assessee to file reply thereto and further directions as to continuance of interim orders. [ S. 2(22) (a) , 2(22(d) , 115O, 245Q ]

CIT v .Jsw Steel Ltd (2020) 424 ITR 227 /275 Taxman 587 (Karn)(HC)

S.115JB: Book profit – Interest – Retrospective amendment -Interest is leviable [ S.234B ]

CIT (LTU) v. Cholamandalam Ms General Insurance Co. Ltd. (2020) 424 ITR 272 (Mad)(HC)

S.115JB : Book profit – Insurance business — Accounts prepared in accordance with Insurance Act, 1938- Provision relating to books of account is not applicable [ Insurance Act , 1938 ]

PCIT v. Valvoline Cummins Pvt. Ltd. (2020) 424 ITR 162 (Delhi)(HC)

S.92C:Transfer pricing- Arm’s length price —Appellate Tribunal- Advertising, marketing and publicity expenses —Remand by the Tribunal for determination of arm’s length price is held to be not warranted. [ S.254(1) ]

PCIT v. Eight Roads Investment Advisors Pvt. Ltd. (2020) 424 ITR 563/ 189 DTR 123/ 313 CTR 365/ 274 Taxman 71 (Bom)(HC)

S. 92C : Transfer pricing – Arm’s length price – Comparable -Question of fact – No substantial question of law. [ S92CA 260A ]

PCIT v. Sona Vets Pvt. Ltd. (2020) 424 ITR 387/ 193 DTR 294/ 316 CTR 569/ 275 Taxman 578 (Cal)(HC)

S. 80IB: Industrial undertakings -Manufacture- Making of poultry feed amounts to manufacture — Commercially different and distinct as a commodity – Entitle to deduction [ S .2(29BA ]

Vodafone Essar Gujarat Ltd. v. ACIT (2020) 424 ITR 498/191 DTR 288 / 315 CTR 778/ 275 Taxman 432(Guj)(HC). Editorial: Affirmed , ACIT v. Vodafone Essar Gujarat Ltd. (2023)453 ITR 755 (SC)

S. 80IA :Industrial undertakings – Infrastructure development- Telecommunications Services —Change in shareholding- Losses which have lapsed cannot be taken into account for purposes of computation of deduction .[ S.72(b) , 79 80IA(4) ,80IA(5) (2) ]