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
Click here to download the pdf versions of the Digest of case laws
S. 147 : Reassessment – Legal represenntaive – Liability – Not inherited anything from his father- Huge deposits prior to death – Reassessment is held to be bad in law . [ S..144, 148 159, Art .226 ]
C. Naveen Kumar v .ITO ( 2019 ) 266 Taxman 74 ( Mad) (HC)
S.54F : Capital gains- Investment in a residential house – The assessee is entitled to the withdrawal of the amount deposited under Sub-Section (4) of Section 54F of the Act under the capital gain account subject to deduction of tax applicable to the case on hand. [ S.45, 54F(4) ]
P.N.Shetty v ITO ( 2019) 181 DTR 97/ 310 CTR 359/ 266 Taxman 15 ( Karn) (HC) Editorial: Affirmed in P.N. Shetty. v ITO (2020) 268 Taxman 226 (Karn) (HC)
S. 92C : Transfer pricing – Arm’s length price – Selection of comparables -Comparision with high brand value and higher scale of operations and profit margin to be excluded – Comparables have to be functionally similar but they should have similar business environment and risks as the tested party- Tribunal order is set aside .[ S.144C ]
;Avaya India P. Ltd v ACIT ( 2019) 416 ITR 638/ 310 CTR 633/ 182 DTR 89 / 267 Taxman 351 (Delhi) (HC).Editorial: SLP of revenue was dismissed due to low tax effect,ACIT v. Avaya India (P) Ltd. (2021) 277 Taxman 402 (SC)
S.147: Reassessment-After the expiry of four years- Asset written off and factory land development charges – No allegation of failure to disclose material facts- No new facts- Notice of reassessment is held to be invalid .[ S. 148 ]
S. P. Mani and Mohan Dairy v. ACIT (2019)418 ITR 703 / 183 DTR 321 / 267 Taxman 450/ 311 CTR 631 (Mad) (HC)
S. 263 : Commissioner – Revision of orders prejudicial to revenue – Record – Pendency of appeal before CIT (A) -Order passed after considering all Details-Revision is held to be not valid .[ S. 40A(3), 250, 263 , Expln.1(c)]
CIT v. Vam Resorts and Hotels P. Ltd. (2019)418 ITR 723/( 2020) 186 DTR 205/ 314 CTR 555 (All (HC)
S. 220 : Collection and recovery – Assessee deemed in default – Stay – Pendency of appeal before CIT(A) – Application for stay of recovery can be made before the CIT(A) to stay the demand still disposal of appeal by the CIT (A) [ S. 115Q, 220 (6) , 246A, 264 , Art .226 ]
Grasim Industries Ltd v Dy.CIT ( 2019) 267 Taxman 524/ 184 DTR 42 ( Bom) (HC)
S. 154 : Rectification of mistake – Pendency of appeal or revision is no bar on the AO on power of amendment or rectification -Matter did not assume character of a sub-judice matter . [ S.154(IA) , Art .226 ]
Piramal Investment Opportinites Fund v ACIT ( 2019) 267 Taxman 297/ 182 DTR 305/ 311 CTR 4 ( Bom) (HC)
S. 220 : Collection and recovery – Assessee deemed in default – Stay – Relevant consideration – Conflicting decisions of Tribunal- Complete stay of demand may be granted -Decision of Jurisdictional High Court is binding on the CIT(A) – Stay was granted [ S. 220(6) , Art .226 ]
General Insurance Corporation of India v .ACIT ( 2019) 311 CTR 851/ 267 Taxman 596 / 184 DTR 249/ (2020)422 ITR 248 ( Bom) (HC) .
S.147: Reassessment – Change of opinion- Amortisation of barnd value – Query raised and responded – Issue examined in the original assessment proceedings – Reassessement is held to be bad in law [ S.115JB 148 , Art .226 ]
Marico Ltd v ACIT ( 2019) 311 CTR 865 / 183 DTR 190 /(2020) 425 ITR 177 ( Bom) (HC)
S. 244A : Refund – Interest on refunds – Tax deducted at source – Quatitifucation of interest – Interest would be pyable from the respective assessment years – Starting point for computing the interest payble must be to the assessment year in which the tax was deducted at source .[ S. 195(2) , 199 244A(1)(a) ]
PCIT v Kumagai Sknska HCCITOCHU Group ( 2019) 311 CTR 838 ( Bom) (HC)