Category: Income-Tax Act

Archive for the ‘Income-Tax Act’ Category


Dy.CIT v. Peerless General Finance and Investment Co. Ltd. (No. 2) (2021) 85 ITR 252 (Kol.)(Trib.)

S. 147 : Reassessment-After the expiry of four years-No failure to truly and fully disclose all material facts Necessary For Assessment-Notice not valid. [S. 143(2), 148]

Vedanta Ltd. v. ACIT (2021) 85 ITR 565 / 200 DTR 153 / 210 TTJ 993 (Delhi)(Trib.)

S. 144C : Reference to dispute resolution panel-Assessment-Limitation-Amalgamation of companies-Draft assessment order passed in name of amalgamated company-Not a curable defect-Order void ab initio. [S. 143(3), 144C(15)(b), 153, 292B]

ITO v. Abhishek Agarwal (2021) 85 ITR 494 (Delhi)(Trib.)

S. 143(3) : Assessment-Bogus purchases-Addition based on the report of Inspector-Remand report no adverse comment-Deletion of addition is held to be justified-No defects in the books of account-Addition cannot be made.

Dy.CIT v. Peerless General Finance And Investment Co. Ltd. (2021) 85 ITR 1 (Kol.)(Trib.)

S. 115JB : Book profit-Provision for diminution in value of investment and provision for non-performing assets-Actual write-Off of sums-Sums not provisions-To be excluded from book profits.

Motherson Sumi Infotech and Designs Ltd. v. Dy.CIT (2021) 85 ITR 360 (Delhi)(Trib.)

S. 92C : Transfer pricing-Arm’s length price-Selection of comparables-Software Development Service-Companies having huge brand value and engaging in sale of software products, developing mobile enterprise applications and solutions not functionally comparable to be excluded from list of comparables-Interest due on receivable outstanding-Not charging others-Addition cannot be made. [S. 92CA]

Johnson Controls (India) Pvt. Ltd. v. Dy.CIT (2021) 85 ITR 120 (Mum.)(Trib.)

S. 92C : Transfer pricing-Arm’s length price-Direct Sales Compensation-Direction to Assessing Officer to adopt average commission rate of 3.93 Per Cent. as appropriate rate for benchmarking-Bad debts written off-Adjustment made towards bad debts written off to be deleted-Royalty-Matter remanded.-Order pronounced much after the expiry of 90 days. [S. 254(1)]

Advik Hi-Tech Pvt. Ltd. v. Dy.CIT (2021) 85 ITR 535 (Pune)(Trib.)

S. 80IA : Industrial undertakings-Wind mills-Initial assessment year-Option to choose year within block of 15 years from commencement of business.

Manju Sharma v. ITO (2021) 85 ITR 388 (Delhi)(Trib.)

S. 68 : Cash credits-Bogus purchases-Addition of entire amount payable to six sundry creditors is held to be not justified-GP estimate of 16% on unsubstantiated purchases from six creditors was up held. Adoption of Gross Profit Rate Of 16 Per Cent.

Khetan Twist Net Pvt. Ltd. v. ITO (2021) 85 ITR 47 (Mum.)(Trib.)

S. 68 : Cash credits-Unsecured Loan-Identity, capacity and genuineness established-Addition is held to be not valid-Ad-hoc disallowance without rejecting the books of account is held to be not proper-Reassessment is held to be valid. [S. 133(6), 147, 148]

ACIT v. Nirnidhi Marketing Pvt. Ltd. (2021) 85 ITR 297 (Kol.)(Trib.)

S. 68 : Cash credits-Share application moneys-Shares issued at premium-Share applicant had enough funds to subscribe to shares-Addition cannot be made merely on the ground share applicant did not appear in response to summons. [S.131]