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. 245D : Settlement Commission-Jurisdiction-Power-Search and seizure-Order of penalty consequential to search-Assessment and penalty are part of same proceedings-Levy of penalty by the Assessing Officer is held to be not valid-Order levying the penalty was quashed. [S. 132, 133A, 153A, 245A(b), 245C, 269ST, 271DA Art. 226]

Tahiliani Design Pvt. Ltd. v. JCIT (2021) 432 ITR 134 / 201 DTR 409 / 320 CTR 846 / 280 Taxman 11 (Delhi) (HC)

S. 226 : Collection and recovery-Modes of recovery-Attachment of property-Sale proclamation-Appeals pending before appellate authorities-Stay was granted by paying 15 Per Cent. of demand and expenses incurred by Department for newspaper notifications-Proceedings was kept abeyance for a period of five months. [Art, 226]

K. S. Santhosh Kumar v. ITO (2021) 432 ITR 209 (Mad.)(HC)

S. 221 : Collection and recovery-Penalty-Tax in default-Mistake in specifying Assessment year for which penalty was levied-Not curable defects-Levy of penalty s held to be bad in law. [S. 292B]

SSS Projects Ltd. v. Dy.CIT (2021) 432 ITR 201 (Karn.)(HC)

S. 194C : Deduction at source-Contractors-Payment made to agency as per direction of Karnataka Government-Deletion of addition is held to be justified.

CIT v. Director of Technical Education (2021) 432 ITR 110/ 280 Taxman 26 (Karn.)(HC)

S. 153A : Assessment-Search-Participating in assessment proceedings-New plea stating that there was no search only survey was rejected-Assessment based on the statement in the course of search proceedings-Loose sheet fall within the definition of document-Rejection of request for cross examination will not amount to violation of principles of natural justice-Assessment order passed cannot be held to be without authority of law-Request for copies of statements made will have to be made by the person from whose custody any books of account or other documents were seized. [S. 132, 132(4), 132A, 133A, Art. 226]

M. Vivek v. Dy CIT (2021) 432 ITR 53/ 197 DTR 12/ 318 CTR 270/ 278 Taxman 52 (Mad.)(HC)

S. 153A : Assessment-Search-Block assessment-Statement of third person recorded u/s.132(4) does not constitute incriminating material-Opportunity of cross examination was not provided-Absence of any incriminating documents found in the course of search action-Deletion of addition is held to be justified. [S. 132, 132(4), 153C]

PCIT v. Anand Kumar Jain (2021) 432 ITR 384 / 201 CTR 200 / 320 CTR 656 (Delhi)(HC) PCIT v. Anand Kumar Jain (HUF) (2021) 432 ITR 384 / 201 CTR 200 / 320 CTR 656 (Delhi)(HC) PCIT v. Satish Dev Jain (2021) 432 ITR 384 / 201 CTR 200 / 320 CTR 656 (Delhi)(HC) PCIT v. Sajan Kumar Jain (2021) 432 ITR 384 / 201 CTR 200 / 320 CTR 656 (Delhi)(HC)

S. 147 : Reassessment-After the expiry of four years-Expenditure for earning exempt income-No failure to disclose material facts-Notice is not valid. [S. 14A, 148, Art. 226]

Saurabh Natvarlal Soparkar v. ACIT (2021) 432 ITR 68 (Guj.)(HC)

S. 147 : Reassessment-After the expiry of four years-No new material-Notice to increase quantum of disallowance is held to be not valid. [S. 14A, 148, Art. 226]

Sandesh Procon LlP v. ACIT (2021) 432 ITR 414 / 202 DTR 305 (Guj.) (HC)

S. 147 : Reassessment-After the expiry of four years-Assessment without scrutiny-Report of investigation wing-Reassessment was held to be valid. [S. 133, 143(1), 148, Art. 226]

Hiteshkumar Babulal Ramani v. ACIT (2021) 432 ITR 403 / 279 Taxman 449 (Guj.)(HC)

S. 144C : Reference to dispute resolution panel-Selection for scrutiny-Draft assessment order-Participating in assessment proceedings-Notice by TPO and draft assessment order is held to be valid. [Art. 226]

Transsys Solutions Pvt. Ltd. v. ACIT (2021) 432 ITR 375 / 202 DTR 94 / 321 CTR 68/280 Taxman 150/126 taxmann.com 164 (Mad.)(HC) Editorial : Decision of single judge is affirmed, Transsys Solutions Private Limited v. ACIT (2021) 17 ITR-OL 418/ 202 DTR 103/ 321 CTR 77 (Mad.)(HC)