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. 145 : Method of accounting – Change in revenue recognisation method – Held to be justified .

CIT v. NCR Corporation (P.) Ltd. (2020) 274 Taxman 139 / 193 DTR 66 (Karn)(HC)

S. 144 : Best judgment assessment – Specific show cause notice was not issued in respect of proposed addition under section 69A of the Act and not other issues – Matter remanded to the Assessing Officer to redo the assessment [ S. 69A , 142 (1), Art , 226 ]

Kandan & KannanMedicalAgency v. ITO (2020) 194 DTR 172 / 269 Taxman 291 (Mad.)(HC)

S. 143(1A ) : Assessment – Intimation -Amendment made to section 143(1A) by Finance Act, 1993 with retrospective effect from 1-4-1989 is constitutionally valid .

Rajasthan State Electricity Board, Jaipur v. UOI (2020) 275 Taxman 501 / 187 DTR 466 / 313 CTR 754 (SC)

S. 115JB : Book profit – Disallowance u/s 14A were deleted – No adjustment could be made while computing book profit [ S.14A , R.8D ]

PCIT v. CIMS Hospital (P.) Ltd. (2020) 193 DTR 275 / (2021) 318 CTR 349 (Guj)(HC)

S.115JB: Book profit – Receipt in subsequent year – Rate of tax is same – Directed the Assessing Officer and pass the consequential order

PPN Power Generating Company (P.) Ltd. v. CIT (A) (2020) 275 Taxman 143 / 194 DTR 329 (Mad.)(HC)

S. 80IB(10) : Housing projects- Sale of flats to single or related persons – Amendment is prospective- Unaccounted income found in the course of search -Business income – Deduction cannot be denied [ S.80IB(10)(e), (f) ] S. 80IB(10) : Housing projects- Sale of flats to single or related persons – Amendment is prospective- Unaccounted income found in the course of search -Business income – Deduction cannot be denied [ S.80IB(10)(e), (f) ]

CIT v. Mandavi Builders, Mangalore (2020) 275 Taxman 519 / 317 CTR 709 / 195 DTR 273 (Karn.)(HC)/Editorial : SLP of revenue is dismissed ; CIT v. Mandavi Builders (2022) 284 Taxman 371 (SC

S. 80IA :Industrial undertakings – Lease rent income of industrial park is assessable as business income and eligible for deduction [ S. 22, 28 (i) ]

CIT v. Tidel Park Ltd. (2020) 430 ITR 214 / 317 CTR 440 / 195 DTR 191 (Mad.)(HC)

S. 8IA : Industrial undertakings – Manufacture – Process of converting raw urad into urad dhal is a manufacturing activity – Entitle to deduction .

CIT v. S. Mahalakshmi (Smt) (2020) 274 Taxman 179 / 189 DTR 256 / 315 CTR 919 (Mad.)(HC)

S. 72 : Carry forward and set off of business losses -Unabsorbed depreciation -Can be set off against sum chargeable to tax as income u/s 68 of the Act – Provision of S.115BBE which barred set off of losses against income determined u/s 68 was effective from 1-4 -2017 and not applicable for the Assessment year 2006 -07 [ S. 32 , 68 71 ,115BBE ]

Shree Karthik Papers Ltd. v. Dy. CIT (2020) 273 Taxman 546 / 196 DTR 248 (Mad.)(HC)

S. 69B : Amounts of investments not fully disclosed in books of account – Set off of gross unaccounted payments on certain transactions against unaccounted receipts for computing undisclosed investment – Non recovery of cash paid cannot be allowed as deduction . [ S 37 (1),69C ]

CIT v. Manojbhai Bhupatrai Vadodaria (2020) 273 Taxman 220 / 317 CTR 278 / 194 DTR 201 (Guj.)(HC)