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. 143(3) : Assessment-Non-Existing entity-Merger-Succession to business otherwise than on death-Order passed in non-existing entity is held to be invalid. [S. 170, 292B]

BASF India Ltd. v. DCIT (2020) 185 ITD 919 (Mum.)(Trib.)

S. 115JB : Book profit-Disallowances made under section 14A could not be applied while computing book profit. [S. 14A, R. 8D]

K. B. Mehta Construction (P.) Ltd. v. DCIT (2020) 185 ITD 81 (Ahd.)(Trib.)

S. 115JB : Book profit-No addition will be made in respect of disallowance under section 14A, read with rule 8D-Benefit of clause (i) of Explanation 1 to section 115JB (2) will not be available to assessee if book profit was not increased by amount of provision made in year of making provision for whatever reason. [S. 14A, R.8D]

Karnataka State Industrial Infrastructure Development Corporation Ltd. v. DCIT (2020) 83 ITR 386 / 185 ITD 441/ ( 2021 ) 211 TTJ 362 (Bang.)(Trib.)

S. 115JB : Book profit-Exempt income-Credited to the profit and loss account-Reduced while computing book profit [S.10]

ITO v. Buniyad Developers (P.) Ltd. (2020) 185 ITD 854 (Delhi) (Trib.)

S. 115JB : Book profit-Amalgamation-Revaluation reserve-Up word adjustment made by the AO was deleted-Loss incurred on account of redemption of mutual fund could not be added in business profit. [S. 94]

Hespera Realty (P.) Ltd. v. DCIT (2020) 82 ITR 557 / 185 ITD 865 / (2021) 210 TTJ 214/ 206 DTR 225 (Delhi)(Trib.)

S. 115JB : Book profit-Net worth turned positive-Discharged by he Sick Industrial Companies (Special Provisions) Act, 1985-Liable to be assessed on book profit-Matter remanded to pass speaking order-COVID 19 pandemic lockdown period would be excluded in computing 90 days total time limit for pronouncing appellate order. [S. 255, SICAS. S. 17]

Windsor Machines Ltd. v. DCIT (2020) 81 ITR 41 / 185 ITD 576 / 206 TTJ 148 / (2021) 199 DTR 79 (Mum.)(Trib.)

S. 115JB : Book profit-Net worth turned positive-Discharged by he Sick Industrial Companies (Special Provisions) Act, 1985-Liable to be assessed on book profit-Matter remanded to pass speaking order-COVID 19 pandemic lockdown period would be excluded in computing 90 days total time limit for pronouncing appellate order. [S.255, SICAS S. 17]

Windsor Machines Ltd. v. DCIT (2020) 81 ITR 41 / 185 ITD 576 /206 TTJ 148/ (2021) 199 DTR 79 (Mum.)(Trib.)

S. 115JB : Book profit-Net worth turned positive-Discharged by he Sick Industrial Companies (Special Provisions) Act, 1985-Liable to be assessed on book profit-Matter remanded to pass speaking order-COVID 19 pandemic lockdown period would be excluded in computing 90 days total time limit for pronouncing appellate order. [S. 255, SICAS S. 17]

Windsor Machines Ltd. v. DCIT (2020) 81 ITR 41 / 185 ITD 576 /206 TTJ 148 /(2021) 199 DTR 79 (Mum.)(Trib.)

S. 92C : Transfer pricing-Arm’s length price-Working capital-Captive service provider-No negative working capital adjustment could be made.

Tivo Tech (P.) Ltd. v. DCIT (2020) 185 ITD 209 (Bang.)(Trib.)

S. 92C : Transfer pricing-Arm’s length price-Royalty-Bench mark analysis-Matter remanded.

Mahindra Heavy Engines Ltd. v. ACIT (2020) 185 ITD 291 (Mum.) (Trib.)