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. 132 : Search and seizure-Warrant of authorisation-Reason to believe-Accommodation entry-Warrant of authorisation to investigate trail of money paid-Detailed reasons recorded in satisfaction note-Bona fide opinion that assessee would not respond to summons in West Bengal-Warrant of authorisation valid. [Art. 226]

PDIT (Inv) v. Laljibhai Kanjibhai Mandalia (2022) 446 ITR 18 / 215 DTR 417 / 327 CTR 353 / 288 Taxman 361 (SC) Editorial : Laljibhai Kanjibhai Mandalia v. PDIT (Inv.) (2019) 416 ITR 365 (Guj.)(HC) order of High Court set aside.

S. 119 : Central Board of Direct Taxes-Condonation of delay-Pending application-Circular dated 9-6-2015 (2015) 374 ITR 25 (St) prescribing limitation period of six years-Cannot have retrospective effect-Order Rejecting application on basis of circular set aside-Matter Remanded to Board. [S. 54EC, 119(2)(b), 154, 264, Art. 226]

R. Ramakrishnan v. CBDT (2022) 446 ITR 308/ 219 DTR 143 / 329 CTR 533 (Karn.)(HC)

S. 92CA : Reference to Transfer Pricing Officer-Arm’s Length price-Limitation-Reference and approval-Question of limitation is legal plea and can be raised at any stage-Existence of alternate remedy not bar-Writ is maintainable Participation of assessee in proceedings not a bar to challenging jurisdiction-The reference to the Transfer Pricing Officer had been made after the permissible period, the timeline had been missed by the Department at every stage. Therefore, as a sequitur, all further proceedings, in furtherance thereof were also bad in law-Decision of single judge set aside. [S. 144C, 153(1) Art. 226]

Virtusa Consulting Services Pvt. Ltd. v. DRP (No. 2) (2022) 446 ITR 454 (Mad.)(HC) Editorial : Order of single judge set aside, Virtusa Consulting Services Pvt. Ltd. v. DRP (No. 1) (2022) 446 ITR 439/ 212 DTR 292 / 326 CTR 59 (Mad.)(HC)

S. 80HHC : Export business-Turnover-Burden is on assessee to prove that royalty received from subsidiary company related to Export business-Royalty not to be included in turnover for computation deduction. [S. 80HHC(4)]

Fenner (India) Limited v. ACIT (2022) 446 ITR 241 (Mad.)(HC)

S. 68 : Cash credits-Sale consideration-Burden not discharged-Addition is justified. [Indian Evidence Act, 1872, S. 106]

Joseph Thannikottu Korah v. PCIT (2022) 446 ITR 723 / 213 DTR 185 / 326 CTR 621 (Ker.)(HC)

S. 50B : Capital gains-Slump sale-Assets Transfer of undertaking-Not slump sale. [S. 45]

PCIT v. XPRO India Ltd. (2022) 446 ITR 668 / 217 DTR 265/ 328 CTR 593 / 289 Taxman 283 (Cal.)(HC)

S. 41(1) : Profits chargeable to tax-Remission or cessation of trading liability-Debts barred by limitation do not cease to be debts-Not to be treated as income. [S. 28(i), Limitation Act, 1963]

PCIT v. Batliboi Environmental Engineering Ltd. (2022) 446 ITR 238 (Bom.)(HC)

S. 37(1) : Business expenditure-Electricity charges-Allowable as deduction.

CIT v. Tube Investments of India Ltd. (2022) 446 ITR 676/ 288 Taxman 524 / 220 DTR 383 / 329 CTR 986 (Mad.)(HC)/Editorial : SLP of Revenue dismissed , CIT v. Tube Investments of India Ltd. (2023) 292 Taxman 465 (SC)/ CIT v. Tube Investments of India (P.) Ltd. (2023) 292 Taxman 546 (SC)

S. 37(1) : Business expenditure-Capital or revenue-Laying pipelines for treatment of effluents of different industries-Amount spent in getting ISO certification-Revenue expenditure.

CIT(E) v. Narmada Clean Tech Ltd. (2022) 446 ITR 366 (Guj.)(HC)

S. 36(1)(vii) : Bad debt-Amounts written off in the books of account-Order of Tribunal is affirmed-Allowable as deduction.

PCIT v. XPRO India Ltd. (2022) 446 ITR 668 / 217 DTR 265/ 328 CTR 593/ 289 Taxman 283 (Cal.)(HC)