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. 143(3) :Assessment – Capital -Revenue – Share premium- -Reassessment –Addition is made on account of share premium , without issuing show cause notice and without following the principle of natural justice -Income from other sources- Alternative remedy is available – Directed to file an appeal with in four weeks . [ S. 4, 56(1) , 148 ,246A, Art .226 ]

Deepak Kochhar v UOI ( Bom) (HC) (UR)

S. 147 : Reassessment – After the expiry of four years- No failure to disclose material facts which are necessary for assessment – Order of Tribunal is affirmed .[ S.14A, 40(a)(ia),115JB ,148,194J ]

CIT v. IDBI Ltd ( Bom) (HC) (UR)

S. 115WA: Fringe benefit tax – Relationship of employer and employee – Free medical samples distributed to doctors is in the nature of sales promotion – Not liable to pay fringe benefit tax .[ S.115WG ]

PCIT v . Aristo Pharmaceuticals P.Ltd (2020)423 ITR 295/ 187 DTR 388 ( Bom) (HC)

S. 115JB : Book profit – Provisions as it stood prior to its amendment by virtue of Finance Act, 2012, would not be applicable to a banking company governed by provisions of Banking Regulation Act, 1949- Companies which are not required to prepare its profit and loss account in accordance with part II & III of Schedule VI of the Companies Act , 1956 – Adjustment cannot be made . [ S.115JB(2) ,Companies Act , 1956 , S 211(2) , Banking Regulation Act, 1949 ]

PCIT v. Bank of India ( Bom) (HC) (UR)

S. 80IB(10) : Housing projects- Completion of project- Partial construction of project – Eligible for exemption .

PCIT v Sadhana Builders Pvt. Ltd. ( Bom) (HC) (UR)

S. 69A : Unexplained money -Un explained jewellery – Deletion of addition by the CIT(A) is held to be justified . [ S.132(4) ]

DCIT v Manekchand Kothari (Mum) (Trib) (UR)

S. 68 : Cash credits -Identity of creditor established – Need not explain the source of the source – Addition confirmed by the Tribunal is deleted .

Gaurav Triyugi Singh v ITO (2020) 423 ITR 531/ 188 DTR 128/ 315 CTR 748( Bom) (HC)www.itatonline.org

S. 41(1) : Profits chargeable to tax – Remission or cessation of trading liability – Remission of loan by Government of Maharashtra cannot be assessed u/s 28(iv) or 41(1) of the Act – Order of Tribunal is affirmed [ S.28(iv ) ]

PCIT v SICOM Ltd (2020) 274 Taxman 58 ( Bom) (HC)

S. 37(1) : Business expenditure – Business loss- Write off of losses towards stock obsolescence in respect of Laptops and motherboards -Held to be allowable as revenue expenditure [ S.28(i), 145A ]

CIT v Gigabyte Technology (India) Ltd (2020) 421 ITR 21/ 195 DTR 334/ 273 Taxman 184 ( Bom ) (HC)

S. 37(1) : Business expenditure – Capital or revenue – Payment to for the purpose of having continuous supply of limestone as a raw material – Held to be capital expenditure – Order of Tribunal directing for the payment to be amortised for a period of 8 years is held to be not valid – Question is answered in favour of the revenue . [ S.145 ]

CIT v . Zuari Industries Ltd ( 2020) 420 ITR 323/ 185 DTR 281/ 312 CTR 416 ( Bom) (HC)