Category: Tax Laws

Archive for the ‘Tax Laws’ Category


Deepak Garg v. ITO (2020) 78 ITR 40 (SN.) (Delhi) (Trib)

S. 28(i) Business Income — Benefit or amenity arising from business — Remission or cessation of trading liability — Assessee introducing gold left behind by his father into his business and showing trade liability in his name and in name of other family as a whole or individual legal heir — AO accepting purchase of gold and approving trading results — Not a case of Assessee introducing unaccounted or unexplained money into capital or of a trade liability ceasing to exist. [S.41(1) ]

DCIT v. Villoo Zareer Morawala Patel (Smt.) (2020) 78 ITR 17 (SN.) (Bang) (Trib)

S. 15 : Salaries — Director Of Company — Assessable on accrual basis and not on receipt basis — Even if higher salary proposed by employer Not approved By Central Government — AO to examine factually if what is claimed by employer as deduction has been offered to tax by Director.

ACIT v. Amartara P. Ltd. (2020) 78 ITR 46 (SN) (Mum)(Trib)

S. 14A : Disallowance of expenditure – Exempt income – Investments Not generating any exempt income – Disallowance of interest on borrowed funds utilized for making investments cannot be made [R.8D ]

PCIT v. Gulbrandsen Chemicals Pvt .Ltd ( 2020 ) 119 taxmann.com 52 ( Guj) (HC) www.itatonline.org

S. 92C : Transfer pricing – Arm’s length price – The OECD guidelines recognise that barring exceptional cases, the tax administration should not disregard the actual transaction or substitute other transactions for them- The examination of a controlled transaction should ordinarily be based on the transaction as it has been actually undertaken and structured by the associated enterprises- adoption of TNMM as the Most Appropriate Method of arriving at ALP cannot be termed as perverse or contrary to the evidence on record.- Difference of opinion as to the appropriateness of one or the other method cannot be gone into in an appeal [ S.92CA ,260A ]

ACIT v. V. K. Gupta (2020) 424 ITR 602/ 187 DTR 30/ 313 CTR 249 ( Delhi ) (HC)

S. 276CC : Offences and prosecutions – Failure to furnish return of income – Finding that delay was not willful – Conviction is held to be not valid . [ S.132 , 153A ]

Mehta Laboratories v. P CIT (2020) 424 ITR 405/ 271 Taxman 135 (Guj) (HC)

S. 276C : Offences and prosecutions – Wilful attempt to evade tax –
Compounding of offences —Compounding fees to be computed on basis of tax evaded and not income sought to be evaded [ S. 132 , 271 , 276(1) 278 278B ]

Srinidhi Karti Chidambaram v. Dy .DCIT (2020) 424 ITR 30/ 193 DTR 217/ 316 CTR 502 (Mad) (HC) Karti P. Chidambaram v. Dy. DCIT(Inv) (2020)424 ITR 30/193 DTR 217/ 316 CTR 502 (Mad) (HC)

S.276C: Offences and prosecutions – Wilful attempt to evade tax False statement in verification — Abetment of false return — Limitation —Limitation inapplicable to prosecution for certain Economic Offences — Prosecution of Members of Parliament and Legislative Assemblies – — Transfer of case for Trial to Designated Court — No prejudice caused to assesses- Prosecution based on materials recovered in search and not launched based only on statements of third parties — Prosecution valid – Prosecution not barred by limitation [S. 132, 148, 277, 278, 280A 280B Economic Offences (Inapplicability Of Limitation) Act, 1974 , Code Of Criminal Procedure, 1973, S.6(1), 26 ,200 397 ]

Peroorkkada Service Co-Operative Bank Ltd. v ITO (2020)424 ITR 422 / 270 Taxman 55(Ker) (HC)

S. 271B :Penalty- Failure to get accounts audited – Audit conducted under provisions of Co-Operative Societies Act — No Report by Accountant — Levy of penalty justified . [ S.44AB, 273B ]

PCIT v. Yamunaji Corporation (2020) 424 ITR 369 (Guj) (HC)

S. 271(1)(c) : Penalty – Concealment- Survey – Before due date of filing of return- Amount disclosed in the return- Return accepted without additions- Levy of penalty is held to be not valid [ S.132, 133A ,139(1) ]

PCIT v. CLP Power India Pvt. Ltd. (2020) 424 ITR 98 (Guj)(HC) )

S. 271(1)(c) : Penalty – Concealment -Capital or revenue- Claim for deduction disallowed – Penalty cannot be levied .