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. 251 : Appeal – Commissioner (Appeals) – Powers – Doctrine of merger – CIT(A) dismissed appeal as being infructuous basis notice issued u/s 263 by CIT on grounds unrelated to that before CIT(A) – CIT(A) ought to have adjudicated appeal on merits hence matter remanded back to CIT(A).[ S.263 ]
Karnataka State Beverages Corporation Ltd .v. ACIT (2020) 121 taxmann.com 89 / (2021) 277 Taxman 58 (Karn) (HC)
S. 194H: : Deduction at source – Commission or brokerage –
Nationalized Bank – Service charges paid for routing transactions to National Financial Switch and Cash Tree- Not be liable to deduct tax at source .[S.40(a)(ia)]
CIT.v. Corporation Bank (2021) 123 taxmann.com 204/ 277 Taxmann.com 207 (Karn) (HC)
S. 194A : Deduction at source – Interest other than interest on securities – No liability to deduct tax based on the specific exclusion provided to the assessee under section 194A(3)(v) – Provisions would not apply [S. 40(a)(ia), 194A(3)(i)(b) , 194A(3)(v)]
PCIT v. Goa State Co-operative Bank Ltd (2021) 318 CTR 497 / 197 DTR 305 / 110 CCH 54 (Bom.)(HC)
S. 153C: Assessment – Income of any other person – Search
The materials seized did not indicate any inflation of purchase expenses- Assessment is held to be bad in law. [S.12AA, 132 ]
PCIT.v. S.R.Trust (2021) 123 taxmann.com 311 / 277 Taxman 133 (Mad)(HC)
S. 153A : Assessment – Search or requisition – Objections raised by the Assessee – Rejected with reasons – No violation of Principles of Natural Justice.[ Art . 226 ]
M. Vivek v. Dy.CIT (2021) 197 DTR 12/ 318 CTR 270 (Mad) (HC )
S. 147 : Reassessment – Within four years – High Court directed AO to re-look at the matter in light of the declaratory and curative amendment in 40(a)(ia) being retrospective from 1-4-2005 [S. 40(a)(ia), 148 , 194C, Art , 226 ]
Sima Agencies v. ITO (2021) 318 CTR 516 / 198 DTR 33 / 110 CCH 52/ 279 Taxman 171 (Mad.)(HC)
S. 147 : Reassessment – After the expiry of four years- No failure to disclose any tangible material – Reassessment is held to be bad in law .[S. 40(b)(ia) , 148]
Devebhai Mafatlal Patel v. ACIT (2021) 318 CTR 722 / 110 CCH 53 (Guj.)(HC)
S. 144C : Reference to dispute resolution panel – Where the matter was remanded by the ITAT for de novo assessment, the entire procedure under 144C had to be followed .[ S.254 (1) ]
PCIT v. Headstrong Services India Pvt. Ltd. (2021) 197 DTR 329 /318 CTR 369 (Delhi) (HC)
S. 132B : Application of seized or requisitioned assets – High court could not direct release of gold in favour of the alleged owner when appeal before the CIT(A) was pending.[S.250, Art .226 ]
New Lakshmi Jewellers v. PCIT (2021) 431 ITR 570/318 CTR 713 / 278 Taxman 403/200 DTR 264(Bom) (HC)