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
S. 153A : Assessment – Search-Undisclosed income- Without any incriminating material found in the course of search additions cannot be made –Deduction of claim u/s 80IB(10) which was allowed in the regular assessment proceedings cannot be disallowed .[ S.80IB(10) ]
Engineers Syndicate India pvt Ltd v. Dy CIT ( 2018) 65 ITR 572 ( Hyd) (Trib)
S. 145 : Method of accounting – Works contract -Genuineness of expenditure was not in doubt – First year of business – Rejection of books of account is held to be not valid – Income declared of 7.44% is held to be justified .
ITO v. Dreamax Infrastructure Developers. (2018) 65 ITR 500 / 194 TTJ 57 (UO) (Jaipur) (Trib)
S.145: Method of accounting –Without pointing out any specific defects in the books of account , rejection of books of account and estimating higher income is not justified .
ACIT v. Future Distributors. (2018) 65 ITR 59(SN) (Kol) (Trib)
S. 143(3) : Assessment – Amalgamation- Assessment in name of Company not in existence having amalgamated with another is liable to be cancelled as nullity being bad in law . [ S.263 ]
Basundhara Goods P. Ltd. ITO (2018) 65 ITR 62 (SN) (Kol) ( Trib)
S.142(2A): Inquiry before assessment– Special audit– Complexity of accounts not shown —Special audit made only to overcome limitation — Order for special audit is held to be not justified .
Unitech Limited v. DCIT (2018) 65 ITR 434 (Delhi) (Trib)
S.92B: Transfer pricing- International transactions — Investment in share capital of subsidiaries outside India — Advancing towards investment and for expansion of business out of interest free funds — No interest can be charged — Not in nature of international transaction-Transfer pricing provisions is not applicable — Adjustment is not required .[ S.92C ]
Bartronics India Ltd. v. DCIT (2018) 65 ITR 540/ 195 TTJ 314 (Hyd) (Trib)
S. 72 : Carry forward and set off of business losses -Assessment Order for earlier year pending in appeal — Assessing officer to pass consequential order with regard to set off of brought forward losses keeping in mind outcome of appeal .
Manipal Health Systems P. Ltd. v. ACIT (2018) 65 ITR 51( SN)) (Bang) (Trib)
S.68: Cash credits —Presumptive taxation- Retail business-Not maintain books of account – Return filed under presumptive taxation- Cash deposits in bank accounts of assessee — Returned income not matching presumptive rate of tax on gross turnover – Department to treat return as invalid — Addition cannot be made as cash credits [ S.44AF ]
Babbal Bhatia (Smt ) v. ITO (2018) 65 ITR 532 (Delhi) (Trib)
S. 50B : Capital gains – Slump sale – Transfer of Hospital business — No Transfer of Land and building of Hospital — Not slump sale — Receipt on account of transfer of Hospital business taxable . [ S.2(42C) ]
Manipal Health Systems P. Ltd. v. ACIT (2018) 65 ITR 51 (SN)) (Bang) (Trib)
S. 43A : Rate of exchange – Foreign currency – Capital advance made to subsidiary- Notional Loss — Restatement of foreign currency loan is capital in nature and not allowable as deduction. [Accounting Standard, Para 11.]
Manipal Health Systems P. Ltd. v. ACIT (2018) 65 ITR 51 (SN) (Bang) (Trib)