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. 32 : Depreciation-Assets leased to three companies-Search- Assets were not found-Transaction genuine or not is a question of fact-Order of Tribunal allowing the depreciation is affirmed. [S. 132]

CIT LTU v. Canara Bank (2021) 431 ITR 303 / 276 Taxman 392 (Karn.) HC)

S. 28(i) : Business Loss-Foreign exchange fluctuation loss-Mark to Market basis -SLP of revenue is dismissed. [S. 37(1)]

PCIT v. Suzlon Energy Ltd. (2021) 276 Taxman 85 (SC) Editorial: Followed, PCIT v. Suzlon Energy Ltd. (SLP No. 1422 of 2019 dt 17-1-2020 (SC)

S. 14A : Disallowance of expenditure-Exempt income-Disallowance is held to be justified even though the assessee has not earned any exempt income. [R. 8D]

CIT v. Kingfisher Finvest India Ltd. (2021) 434 ITR 150/276 Taxman 128 / 202 DTR 361/ 321 CTR 448(Karn.)(HC)

S. 10(23C) : Educational institution-Educational college for intermediate, degree and post-graduation courses for women-Erroneous reading of assessment year by prescribed authority in form 56D – Rejection application was set aside . [S. 10(23C)(vi), Art. 226]

Rajamahendri Educational Society v. UOI (2021) 431 ITR 217 / 276 Taxman 18 / 204 DTR 90/ 321 CTR 616(AP)(HC)

S. 5 : Scope of total income-Wheeling charges-Uncertainty of receiving-Method of accounting-Not assessable as income for the relevant year. [S.4, 145]

CIT v. Karnataka Power Transmission Corporation Ltd. (2021) 276 Taxman 439 (Karn.)(HC)

S. 2(22)(e) : Dividend-Deemed dividend-Loan-Not share holder of the Company-Not assessable as deemed dividend.

CIT v. Checkpoint Apparel Labelling Solutions (India) Ltd. (2021) 276 Taxman 312 (Mad.)(HC)

S. 2(14)(iii) : Capital asset-Agricultural land- land was situated 40 k.m. away from municipality – Agricultural activities were carried out in land, there were standing banana crops as well as coconut trees, etc.-Approval from Joint Director, Directorate of Town and Country Planning [‘DTCP’] for conversion of land for non-agricultural purpose prior to execution of sale deed-Not liable to capital gain tax. [S. 45]

CIT v. P. Mahalakshmi (2021) 276 Taxman 224 (Mad.)(HC)

S. 263 : Commissioner – Revision of orders prejudicial to revenue – Stamp valuation – Date of agreement – Date of registration- Possible view – Revision is held to be not valid [ S.43CA ]

Ranjana Construction Pvt Ltd v. PCIT ( 2021) BCAJ-March -P. 39 )( Bang) (Trib)

S. 153 : Assessment –Limitation – Transfer pricing -Reference to dispute resolution panel -Time limit for pass Transfer pricing order- Before 60 days prior to the date on which the period of limitation referred to section 153 expires – Order passed on 1 -11-2019 – Barred by limitation by one day – Alternative remedy is not an absolute bar to entertain the writ petition . [ S.92CA(3) ,144C Art , 226 ]

Pfzer Heath Care India Pvt Ltd v JCIT ( 2021) The Chamber’s Journal- March – P. 178 ( Mad) (HC)

S. 147 : Reassessment – No addition was made on reasons recorded – Additions made on any other income which does not form part of reasons recorded cannot be sustained [S.2(22)(e ), 148 ]

Shri Tyrone Patrick Lemos v .ITO ( 2021) The Chamber’s Journal – March -P. 184 ( Ahd) (Trib)