This Digest of case laws is prepared by KSA Legal and AIFTP from judgements reported in BCAJ, CTR, DTR, ITD, ITR, ITR (Trib), Chamber's Journal, SOT, Taxman, TTJ, BCAJ, ACAJ, www.itatonline.org and other journals
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S. 154 : Rectification of mistake-Depreciation-Contractor-Income estimated at 12.5 % of contractual receipts-Debatable-Rectification was held to be not justified. [S. 32(1)(ii)]

PCIT v. Engineers Works (2021) 323 CTR 485 (AP)(HC)

S. 153C : Assessment-Income of any other person-Search-Undisclosed investment-Statement recorded of third party-Opportunity of cross examination was not provided-Deletion of addition is held to be justified. [S. 69C]

PCIT v. Janson Investments (P) Ltd. (2021) 208 DTR 105/(2022)441 ITR 162 / 324 CTR 203 (Karn.)(HC)

S. 153C : Assessment-Income of any other person-Search-Notice was issued after considering the objections-Alternative remedy is available-Writ is not maintainable. [Art. 226]

Raju Bhupendra Desai v. ITO (2021) 323 CTR 446 / 207 DTR 129 (Guj.)(HC).Editorial: SLP of assessee dismissed, Raju Bhupendra Desai v. ITO( 2022) 443 ITR 6 (St)(SC)

S. 153 : Assessment-Reassessment-Limitation-Issue of two notices-First notice dated 22nd march 2011 on business premises-Second notice on 6th April 2011 on residential premises-First notice was not withdrawn-Order passed on 28th March 2013-Barred by limitation on 31st December, 2011. [S. 147, 148, 153(2)]

H.C. Byregowda v. ACIT (2021) 323 CTR 500 / 207 DTR 324 (Karn.) (HC)

S. 149 : Reassessment-Time limit for notice-Issue of notice-Notice dated 31-3 2018-Despatched on same day-1-4-2018 being Sunday Franking was done by postal authorities on 2-4 2018-Notice is not time barred. [S. 147, 148, Art. 226]

Dr. Bharani R. Paluvai v. ITO (2021) 283 Taxman 159 (Mad.)(HC)

S. 147 : Reassessment-Search and seizure-Information from third party-Satisfaction-Validity of issue was notice u/s. 148 was left open to be decided in appeal-Order of single judge was set aside. [S. 132, 148, 153C, 158BD, Art. 226]

Navkar Electronics v. ITO (2021) 323 CTR 1037 / 208 DTR 315 (Mad.)(HC) Editorial : Finding of single judge is set aside, Navkar Electronics v. ITO (2021) 323 CTR 1041 / 208 DTR 320 (Mad.)(HC)

S. 147 : Reassessment-With in four years-Value of any benefit or perquisites-On the basis of observation by the CIT (A)-Repayment of loan-Disputed facts cannot be adjudicated in writ proceedings-Reassessment notice is held to be valid. [S. 28(iv), 148, 151, Art. 226]

K. Rajesh v. ACIT (2021) 283 Taxman 153 (Mad.)(HC)

S. 147: Reassessment-Within four years-Issue of share expenses-Reassessment notice was held to be valid. [S. 148, Art. 226]

Financial Software & Systems (P) Ltd. v. Dy.CIT (2021) 283 Taxman 165 /(2022) 218 DTR 497/ 329 CTR 44/ 447 ITR 352 (Mad.)(HC)

S. 147 : Reassessment-Cash credit-Purchases-Non genuine payment-Reassessment notice was held to be valid. [S. 68, 148, Art. 226]

Chennai Network Infrastructure Ltd. v. ACIT (2021) 283 Taxman 126 / (2022) 441 ITR 535 (Mad.)(HC)

S. 147 : Reassessment-With in four years-Failure to deduct tax at source-Reassessment notice was held to be justified [S. 40(a)(i), Art. 226]

BASF Catalysts India (P) Ltd. v. Dy. CIT (2021) 283 Taxman 591 (Mad.) (HC)