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. 92C : Transfer pricing-Arm’s length price-Comparable-Tested party-Cost Plus Method (CPM)-Audit of segmental accounts-Cannot be rejected on the ground that the Accounts of overseas entities were not audited.

ACIT v. ITC Infotech India Ltd. (2020) 182 ITD 101/(2021) 209 TTJ 735 (Kol.)(Trib.)

S. 92C : Transfer pricing-Arm’s length price-Comparable-Matter remanded to the TPO-Turnover cap-Goodwill-Loss making companies-Size and Economies of Sale/High Risk Companies.

Aithent Technologies (P.) Ltd. v. ITO (2020) 182 ITD 169 (Delhi) (Trib.)

S. 92C : Transfer pricing-Arm’s length price-ITES services did not form a single composite transaction-Transactions cannot be aggregated-Extended credit period-Addition of notional interest is held to be not justified.

ACIT v. WNS Global Services (P.) Ltd. (2020) 182 ITD 59 (Mum.)(Trib.)

S. 92C : Transfer pricing-Arm’s length price-Loan and advance-Interest-CUP method-Reimbursement of expenses-No adjustment can be made-Corporate guarantee was extended by assessee as a shareholder activity-No adjustment can be made. [S. 92B]

AT & S Austria Technologie & Systemtechnik Aktiongesell Schaft v. DCIT (2020) 182 ITD 143 (Kol.)(Trib.)

S. 80P : Co-operative societies-Deposit from members-Assessing Officer passing the order, without verifying the licence to carryon banking business-Matter remanded to the Assessing Officer. [S. 80P(2)(a)(i)]

Co-Operative House Building Society Ltd. v. DCIT (2020) 182 ITD 415 (Chd.)(Trib.)

S. 69A : Unexplained investment-Jewellery-Weight of jewellery allowed as per instruction No 1916, dt. 11-5-1994 need not be explained-Addition cannot be made-Over and above the quantity of the jewellery has been explained, no addition can be made.

Ram Prakash Mahawar v. DCIT (2020) 182 ITD 55 (Jaipur) (Trib.)

S. 68 : Cash credits-Share capital-Mere submission of name and address of creditor, income tax returns, balance sheet/statement of affairs of creditor and bank statement of creditor is not sufficient.

Shantananda Steels (P.) Ltd. v. ITO (2020) 182 ITD 434 / 195 DTR 417 / 208 TTJ 672 (Chennai)(Trib.)

S. 68 : Cash credits-Cash deposited-Bank-Sale of Agricultural land-Gift-Failed to show the creditworthiness-Addition is held to be justified-Enhancement without giving an opportunity of hearing is held to be bad in law. [S. 251]

Jagdish Prasad Sharma v. ITO (2020)182 ITD 246 (Delhi) (Trib.)

S. 64 : Clubbing of income-Spouse-Wife invested gifted amount in business of Futures and Options (F&O)-Loss incurred by wife is Liable to be clubbed in hands of assessee for the purpose of set off. [S. 64 (1)(iv)]

Uday Gopal Bhaskarwar v. ACIT (2020) 182 ITD 216/ 186 DTR 65/ 203 TTJ 776 (Pune)(Trib.)

S. 56 : Income from other sources-Compensation from Tenant for not letting out two units without the consent-Assessable as income from other sources and not as income from house property. [S. 22, 23]

Redwood IT Services (P.) Ltd. v. ITO (2020) 182 ITD 1 (Mum.) (Trib.)