Category: Income-Tax Act

Archive for the ‘Income-Tax Act’ Category


Kaur Sain Spinning & Weaving Mills Ltd. v. ACIT (2021) 189 ITD 515 (Chd.) (Trib.)

S. 147 : Reassessment-Borrowed satisfaction-Cash credits-Accommodation entries-AO issued reopening notice merely on basis of information received from department and he had not pointed out as to how investment in question was unexplained income of assessee, order passed by AO was to be quashed. [S. 68, 132, 147, 148]

Dhananjay Marketing v. CIT (2021) 212 TTJ 877 (Pune)(Trib.)

S. 143(3) : Assessment-Search and Seizure-On money-Loose sheets-Purchase of land Addition on the basis of statement of third party-AO made addition based on the statement given by third party-No incriminating material found suggesting the payment of on-money consideration-Tribunal Deleted addition. [S. 132(4), 132(4A)]

ACIT v. Narula Educational Trust. (2021) 189 ITD 31 / 86 ITR 365 / 211 TTJ 39 / 205 DTR 95 (Kol.)(Trib.)

S. 142A : Estimate of value of assets by Valuation Officer-Search and seizure-DDIT (Inv)/ADIT (Inv) was empowered to make reference to Valuation Officer inserted by section 132(9D) only after 1-4-2017 by an amendment by Finance Act, 2017-Addition made on the basis of valuation report was held to be not valid-Valuation report cannot be considered as incriminating document. [S. 132(9D), 153A]

Ahmed Shareef v. Dy. CIT (2021) 189 ITD 522 (Bang.)(Trib.)

S. 132(4) : Search and seizure-Statement on oath-When the addition was made on account of seized material once again addition cannot be made on the basis of statement which will lead to double addition. [S. 132, 143(3), 153A]

ACIT v. Deepak Sehgal (2021) 189 ITD 78 (Lucknow)(Trib.)

S. 124 : Jurisdiction of Assessing Officer-Return filed in Kolkata-Proof of change of address in PAN database proved that assessee had changed his address properly and department was already in knowledge of address of assessee at Kolkata-Assessment initiated by Assessing Officer from Kanpur-Notice and assessment is held to be in valid. [S. 142(3), 143(3), 150]

Dy. CIT v. Total Oil India Pvt. Ltd. (2021) 190 ITD 312 / 212 TTJ 292 / 203 DTR 265 (Mum.)(Trib.)

S. 115-O : Domestic companies-Tax on distributed profits- Whether the protection granted by the tax treaties under section 90 of the Income-tax Act 1961, in respect of taxation of dividend in the source jurisdiction, can be extended, even in the absence of a specific treaty provision to that effect, to the dividend distribution tax under section 115 ‘0’ in the hands of a domestic company ? Registry is directed to place the matter before the Honourable President for his kind consideration for the appropriate orders. [S. 255(4)]

Jayant Packaging (P.) Ltd. v. DCIT (2021) 189 ITD 321/(2022) 96 ITRR 411 (Chen.)(Trib.)

S. 115JB : Book profit-When income is not reported in its P&L account, could not be said that its prepared in accordance with Part II and III of Schedule-VI to Companies Act. AO is justified to re-compute book profit u/s. 115JB-Disallowance u/s. 14A r.w. rule 8D is not to be applied while determining book profits. [S. 14A, R. 8D]

Greatship (India) Ltd. v. DCIT (2021) 212 TTJ 137 / 126 taxmann.com 47 (Mum.)(Trib.)

S. 92C : Transfer pricing-Arm’s length price-Corporate guarantee distinct from bank guarantee-Average of guarantee fee paid by assessee cannot be questioned.

Adient India (P) Ltd. v. Dy. CIT (2021) 212 TTJ 777 / 204 DTR 193 (Pune)(Trib.)

S. 92C : Transfer pricing-Arm’s length price-Bona fide expenditure should be incurred while availing services-Application of benefit test is not warranted-Matter remanded. [S. 254(1)]

Renishaw Metrology Systems Ltd. v. DCIT (2021) 189 ITD 236 (Pune)(Trib.)

S. 92C : Transfer pricing-Arm’s length price-Management fee-Documents filed to justify and availment of services have to accept value of management services as claimed by assessee-Functional similarity-Assessee involved in advertising agency, data not available in public domain for comparability of business support system segment of said company, it could not be compared to marketing support service provider-Income from exhibitions and events, should be excluded from comparable list to marketing support service provider.