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
Click here to download the pdf versions of the Digest of case laws
S. 158BC : Block assessment-Undisclosed income-Incriminating material was found-Explanation was not satisfactory-Addition was held to be justified-Limitation-Panchnama-Limitation starts only from date of third panchnama-Not barred by limitation. [S. 158BE]
Abhishek Verma v. Dy. CIT (2021) 86 ITR 460 (Delhi)(Trib.)
S. 153D : Assessment-Search-Approval-Charitable Trust-Siphoning off of funds by founder-Approval given on same day by Additional Commissioner Stationed 250 Kms. away from Assessing Officer’s Office-No record regarding movement of files-Approval given without application of mind-Assessment null and void. [S. 10(23C) 12AA, 153A]
Uttarakhand Uthan Samiti v. ITO (2021) 86 ITR 695 (Delhi)(Trib.)
S. 153A : Assessment-Search or requisition-No incriminating material-Addition not sustainable-Share application money-Share premium-Identity of share holder established-Addition was held to be not valid. [S. 68]
Sensitive Vanijya P. Ltd. v. ACIT (2021) 86 ITR 99 (Kol.)(Trib.)
S. 153A : Assessment-Search-Unproved expenditure-No incriminating material was found-Ad-hoc expenditure of fifty percent of expenditure is held to be not sustainable. [S.132]
ACIT v. Arvind Srinivasan (2021) 86 ITR 84 (Chennai)(Trib.)
S. 147 : Reassessment-Recorded reasons-No addition was made on the basis of recorded reasons-Addition was made on long term capital gains-Reassessment was not valid. [S. 148]
Vijeta Shukla (Smt.) v. Dy. CIT (2021) 86 ITR 169 (Lucknow)(Trib.)
S. 147 : Reassessment-Information from investigation Wing-Client code modification-Recording of incorrect and wrong facts-Mechanical approval-Reassessment was not valid. [S. 148, 151]
R.S. Shares and Securities Ltd. v. ITO (2021) 86 ITR 269 (SMC) (Delhi)(Trib.)
S. 147 : Reassessment-Mentioning of wrong section 147(b)-Not curable defects-Reassessment was quashed as bad in law [S. 148, 292B]
Madhu Apartment Private Limited v. ITO (2021)86 ITR 317 (Delhi) (Trib.)
S. 147 : Reassessment-Search and seizure-Failure by revenue to establish that the seized documents belong to assessee-Opportunity cross examination not provided-Reassessment was held to be not valid. [S. 132]
Green Valley Tower Pvt. Ltd. v. ACIT (2021) 86 ITR 1 (Delhi)(Trib.)
S. 92C : Transfer pricing-Arm’s length price-Net Margin Method or Cost-Plus Method-Directed to adopt cost plus method. [S.92CA]
A.O. Smith India Water Products Pvt. Ltd. v. Dy.CIT (2021) 86 ITR 38 (SN.) (Bang.)(Trib.)
S. 80P : Co-operative societies-Providing banking facilities to members-Interest earned from short-term deposit-Deduction allowable. [S. 80P(2)(a)]
Thota Uthpannagala Marata Sahakara Sangha Niyamitha v. Dy. CIT (2021) 86 ITR 134 (Bang.)(Trib.)