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. 92C : Transfer pricing-Arm’s length price-Comparable-Companies Engaged In Providing High-End Integrated Services, Having Huge Brand Name And Significant Intangibles Cannot Be Compared-Gains or loss arising from Fluctuation of Foreign Currency to be considered as operating in nature-working capital adjustment to be allowed on actual basis without any restriction.-Directions of Dispute Resolution Panel cannot be construed as setting aside of issue to Transfer Pricing Officer. [S. 92CA, 144C(8)]

Akamai Technologies India P. Ltd. v Dy.CIT (2020) 83 ITR 393 (Bang.)(Trib.)

S. 92C : Transfer pricing-Arm’s length price-Transactional Net Margin Method (TNMM)-Held to be appropriate method-Remanded TPO to apply TNMM method. [S. 92]

Oriflame India Pvt. Ltd. v. Add.CIT (2020) 82 ITR 268 (Delhi)(Trib.)

S. 68 : Cash credits-Purchases-Credit balance outstanding-Deleted the addition.

IKEA Trading India Pvt. Ltd. v. Dy. CIT (2020) 83 ITR 415 / (2021) 186 ITD 473 / 210 TTJ 552 (Delhi)(Trib.)

S. 56 : Income from other sources-Allotment of shares-Valuation Discounted Cash Flow Method-Assessing Officer cannot change the method of valuation-Matter remanded. [S. 56 (2)(viib)]

Signure Technologies Pvt. Ltd. v. ACIT (2020) 83 ITR 521 / (2021) 187 ITD 368 (Bang.)(Trib.)

S. 44 : Insurance business-Income from shareholders’ accounts to be assessed as insurance business-Actuarial valuation-Norms regarding actuarial valuation not altered-Dividend exempt-Disallowance is not applicable. [S. 10(34), 14A, 37(1), 80G, Insurance Act 1938, 3(4)(f)]

Max New York Life Insurance Company Ltd. v. Dy.CIT (2020) 83 ITR 145 (Delhi)(Trib.)

S. 43B : Deductions on actual payment-Employees’ contributions to provident fund and employees’ State Insurance Contribution-Paid before due date of filing return-Entitle to deduction. [S. 139 (1)]

MANI Square Ltd. v. ACIT (2020) 83 ITR 241 (Kol.)(Trib.)

S. 43(6) : Written down value-Depreciation-Block of assets-Assessing Officer to reduce only sale proceeds from written down value of block of assets and allow depreciation on balance of written down value. [S. 2(11), 45, 50]

Shakti Hormann Pvt. Ltd. v. Dy.CIT (2020) 83 ITR 515 (Hyd.)(Trib.)

S. 40A(2) : Expenses or payments not deductible-Excessive or unreasonable-Salary paid to Directors-Failure of the Assessing Officer to substantiate-Deletion of addition is held to be valid.

IKEA Trading India Pvt. Ltd. v. Dy.CIT (2020) 83 ITR 415 / (2021) 186 ITD 473 (Delhi)(Trib.)

S. 40(a)(ia) : Amounts not deductible-Deduction at source-Payment Received as partner of joint venture-Amount paid to joint venture partner diverted by overriding title-Disallowance not sustainable.

Peartree Enterprises Pvt. Ltd. v. Dy.CIT (2020) 83 ITR 436 (Delhi)(Trib.)

S. 40(a)(ia) : Amounts not deductible-Deduction at source-Commission-Non-Resident-Matter remanded for verification. [S. 195]

Maharaja Shree Umaid Mills Ltd. v. Dy.CIT (2020) 83 ITR 498 (Jaipur)(Trib.)