Category: Income-Tax Act

Archive for the ‘Income-Tax Act’ Category


Azim Premji Trustee Co. Pvt. Ltd. v. PCIT (2022) 448 ITR 356 /( 2023) 331 CTR 113/ 222 DTR 75(Karn.)(HC)

S. 147 : Reassessment-After the expiry of four years-No failure to disclose material facts-Shares received as gift and their value disclosed in original assessment-Reassessment notice is not valid. [S. 52(vii)(b), 148, Art. 226]

PCIT v. Smart Value Products and Services Ltd. (2022) 448 ITR 145 (HP)(HC)

S. 145 : Method of accounting-Rejection of accounts-Estimate should be fair-Local knowledge and circumstances of assessee should be taken into consideration-Order of Tribunal affirmed. [S. 145(3), 260A]

CIT v. Bhageeratha Engineering Ltd. (No. 1) (2022) 448 ITR 81/288 Taxman 737 (Ker.)(HC) CIT v. Bhageeratha Engineering Ltd. (No. 2) (2022) 448 ITR 93/142 Taxmann.com 155 (Ker.)(HC)Editorial: SLP of revenue dismissed , CIT v .Bhageeratha Engineering Ltd. (No. 2)( 2022) 289 Taxman 10(SC)

S. 145 : Method of accounting-Change of method-Mercantile System of accounting to completed contract accounting-Change is bonafide-Income-Accrual-Bills certified as relating to work completed in relevant assessment year cannot be recognised as receipts and brought to tax. [S. 4, 5]

Pesco Beam Environmental Solutions Pvt. Ltd. v. NAFC (2022) 448 ITR 122 (Mad.)(HC)

S. 144B : Faceless Assessment-Orders passed without affording reasonable time to respond to final show-cause notice-Order set aside and matter remanded to Assessing Officer. [S. 147, 148, Art. 226]

Huawei Telecommunications (India) Co. Pvt. Ltd. v. Dy. DIT (Inv.) (No. 2) (2022) 448 ITR 115 (Delhi)(HC) Editorial: Refer Huawei Telecommunications (India) Co. Pvt. Ltd. v. Dy. CIT (Inv.) (No. 1) (2022) 448 ITR 111 (Delhi)(HC)

S. 132(9B) : Search and seizure-Provisional attachment-Repatriation of royalty or dividend-Interim order-Modification-Provisional attachment and barring repatriation of moneys abroad-Conditions modified subject to creating additional lien by way of fixed deposit in bank. [S. 132, Art. 226]

PCIT v. Sreeleathers (2022) 448 ITR 332/ 143 taxmann.com 435 (Cal.)(HC)

S. 68 : Cash credits-Burden of proof on Revenue to establish that credits represented undisclosed income-No evidence that explanation of assessee was false-Allegation of money laundering is a very serious allegation and the effect of a case of money laundering under the relevant Act is markedly different-The order passed by the Assessing Officer was utterly perverse and had been rightly set aside by the appellate authorities-Deletion of addition is justified.

CIT v. Ing Vysya Bank Ltd. (2022) 448 ITR 94 (Karn.)(HC)

S. 48 : Capital gains-Computation-Sale of shares-Expenditure incurred in connection with transfer of capital asset-Sale Of Shares-Amount paid in terms of agreement-Allowable as deduction. [S. 45]

Checkmate Services P. Ltd. v. CIT (2022) 448 ITR 518 / 218 DTR 218 / 329 CTR 1 /( 2023) 290 Taxman 19 (SC) Gujarat State Road Transport Corporation v. CIT (2022) 448 ITR 518 (SC) Merchem Ltd. v. CIT (2022) 448 ITR 518 (SC) JMC Projects (I) Ltd v. CIT (2022)448 ITR 518 (SC) Berger Paints India Ltd v. CIT (2022)448 ITR 518 (SC) Popular Vehicles and services Pvt. Ltd. v. CIT (2022) 448 ITR 518 (SC) Kerala State Ware housing Corporation v. CIT (2022) 448 ITR 518 (SC) Harrisons Malayalam Ltd v. CIT (2022)448 ITR 518 /(2023) 291 Taxman 196(SC) Kerala State Civil Supplies Corporation Ltd. v. ITO (2022) 448 ITR 518 (SC) Max Vigil Securities Pvt. Ltd. v. ACIT (2022)448 ITR 518 (SC) Ask me Lab Con Services Pvt. Ltd. v. ITO (2022) 448 ITR 518 (SC) Suzlion Energy Ltd. v. PCIT (2022) 448 ITR 518 (SC) Dhrivi Pharma Pvt. Ltd. v. JCIT (2022)448 ITR 518 (SC) Editorial : CIT v. Alom Extrusions Ltd (2009) 319 ITR 306 (SC) explained and distinguished. Decisions affirmed, CIT v. Gujarat State Road Transport Corporation (2014) 366 ITR 170 (Guj.)(HC), CIT v. Merchem Ltd. (2015) 378 ITR 443 (Ker.)(HC), Popular Vehicles and Services P. Ltd v. CIT (2018) 406 ITR 150 (Ker.)(HC). Decisions overruled, Esale Teraoka Pvt. Ltd. v. Dy.CIT (2014) 366 ITR 408 (Karn)(HC), Sagun Foundry Pvt. Ltd. v. CIT (ITA No. 87 of 2006 dt. 21-12-2016 (All.)(HC), CIT v. State Bank of Bikaner and Jaipur (2014) 363 ITR 70 (Raj.)(HC), CIT v. Udaipur Dugdh Utpadak Sahakari Sangh Ltd. (2014) 366 ITR 163 (Raj.)(HC), CIT v. AIML Ltd. (2010) 321 ITR 508 (Delhi)(HC), CIT v. Nipso Polyfabriks Ltd. (2013) 350 ITR 327 (HP)(HC)

S. 43B : Deductions on actual payment-Contributions to Employees’ Welfare Funds such as Provident Fund and Employees’ State Insurance-Employer in Trust-Income of assessee unless paid into fund by due date-Prescribed by enactment governing fund-Interpretation Of Taxing Statutes-Exemption or deduction,Non Obstante Clause-Deduction is available if paid before due date prescribed under respective Acts. [S. 2(24)(x), 36(1)(iv), 36(v), 139(1), Sch. IV, R. 2(C), Employees’ Provident Funds and Miscellaneous Provisions Act, 1952, S. 30, Employees’ State Insurance Act, 1948, Employees’ Provident Funds Scheme, 1952, Cl. 30, Employees’ State Insurance (Central) Regulations, 1950, Regulation, 31]

PCIT v. Linde India Ltd. (2022) 448 ITR 682 / 218 DTR 250 / 329 CTR 249/(2023) 291 Taxman 157 (Cal.)(HC)

S. 40(a)(ia) : Amounts not deductible-Deduction at source-Paid to Non-Resident for technical services-Amount neither debited to profit and loss account nor claimed as deduction-No disallowance can be made. [S. 37(1), 145]

PCIT v. Vedanta Ltd. (2022) 448 ITR 732 / 219 DTR 154 / 329 CTR 265 (2023) 291 Taxman 205 (SC) PCIT v. Matrix Clothing Pvt. Ltd. (2022) 448 ITR 732 / 219 DTR 154 / 329 CTR 265 (SC)

S. 40(a)(ia) : Amounts not deductible-Deduction at source-Non-Residents-Payments were made outside India-Not liable to deduct tax at source.