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. 263 : Commissioner-Revision of orders prejudicial to revenue-Business expenditure-Disallowance-Payments liable to deduction of tax at source-Amount offered to tax by payee and tax thereon paid-AO taking one plausible view-Order not erroneous or prejudicial to Revenue-Principal Commissioner cannot invoke revisional power-Not in default. [S. 40(a)(ia), 201(1), 260A]

PCIT v. Airlink Communications Pvt. Ltd. (2025) 475 ITR 658 (Guj)(HC)

S. 263 : Commissioner-Revision of orders prejudicial to revenue-Explanation called for and offered by assessee during scrutiny assessment-Order of Assessing Officer neither erroneous nor prejudicial to Revenue and need not be revised. [S.45, 54, 54EC, 143(3), 260A]

CIT v. Y. Jagan Mohan [2024] 168 taxmann.com 332 / (2025) 475 ITR 432 (Mad)(HC)

S. 263 : Commissioner-Revision of orders prejudicial to revenue-Depreciation-No reference in the assessment order-Revision order was quashed and set aside. [S. 32, 260A]

V.G. Panneerdas & Co. v. ACIT (2025) 475 ITR 128 (Mad)(HC)

S. 263 : Commissioner-Revision of orders prejudicial to revenue-Audit objection-Commercial expediency-Pre closure premium paid to bank-Allowable as revenue expenditure-Tribunal was not justified in affirming the revision order. [S. 37(1), 260A]

EIH Associated Hotels Ltd. v. CIT [2024] 168 taxmann.com 592 / (2025) 475 ITR 3 (Mad)(HC)

S. 250 : Appeal-Commissioner (Appeals)-Procedure-Recovery of tax-Stay of recovery pending appeals-Department’s inaction on stay application for over six years deprecated-Delay in disposal of stay application-Adjusting refund-Direction to refund excess adjustment and expedite adjudication of pending appeal. [S.143(3), 156, 226, 237, 250(6A); CBDT Instruction No. 1914 dated 21-03-1996; Art. 226]

Mahesh Mathuradas Ganatra v. CPC (2025) 475 ITR 489 (Bom)(HC)

S. 245D : Settlement Commission-Interim Board for Settlement-Settlement pronounced but order not passed-Cessation of Settlement Commission and formation of Interim Board for Settlement-On oath, Vice-President and member of Settlement Commission confirmed conclusion of hearing and pronouncement of settlement-Interim Board directed to pass order under s. 245D(4) accepting settlement as pronounced. [S. 245C(1), 245D(4), Art. 226]

Gagjibhai Bhurabhai Koshiya & Ors. v. Interim Board of Settlement & Anr. [2024] 161 taxmann.com 48 / (2025) 475 ITR 249 (Guj)(HC)

S. 245D : Settlement Commission-Settlement of cases-Cash credits-Share application-Order of Settlement Commission accepting claim for deduction need not be interfered with-Order of Settlement Commission holding that addition of unsubstantiated share capital under s. 68 would not qualify for deduction under s. 80-IC set aside-Section 115BBE (introduced later) not applicable; assessee entitled to special deduction. [S. 68, 80-IC, 115BBE, 245D(3), 245D(4), Art. 226]

Valley Iron and Steel Co. Ltd. v. PCIT [2024] 161 taxmann.com 72 / (2025) 475 ITR 231 (Delhi)(HC)

S.37(1): Business expenditure-Construction business-Order of Tribunal deleting the disallowance was affirmed.[S. 260A]

PCIT v. Keti Construction Ltd [2024] 162 taxmann.com 278 / (2025) 475 ITR 182 (MP) (HC)

S. 32 : Depreciation-Pipeline installation-Contingent liability
Disallowance justified where liability towards port authorities was contingent and not crystallized-No substantial question of law. [S. 260A]

Petronet V. K. Ltd. v. Asst. CIT (2025) 475 ITR 494 (Guj)(HC)

S.14A : Disallowance of expenditure-Exempt income-No exempt income-No disallowance can be made-Amendment in law will be applicable prospectively from 1-4-2022. [S. 260A, R.8D]

PCIT v. Keti Construction Ltd [2024] 162 taxmann.com 278 / (2025) 475 ITR 182 (MP) (HC)