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 – 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)

S. 147 : Reassessment –With in four years-Change of opinion- Oversight ,inadvertence or mistake of Assessing Officer discovered on reconsideration of same material – Reassessment is not permissible . [ S.148, Art , 226 ]

Dell India Ltd v. JCIT ( 2021) ( 2021) 432 ITR 212/ 278 Taxman 9/198 DTR 73/ 319 CTR 1 (FB) ( Karn) (HC)

S. 45: Capital gains- Advance received -Sale not materialised for gains – Matter remanded to the Assessing Officer for look in to genuineness of the Transaction . [ S.2(47) (v), Transfer of property Act , 1882 , S.53 ]

Shri Tobby Simon v DCIT ( 2021) The Chamber’s Journal – March -P. 186 ( Mum) (Trib)

S. 45 : Capital gains – Valuation of shares – Sale consideration disclosed in the share purchase agreement ought to be adopted for calculating long term capital gains . [ S.48 , 50CA ]

ACIT v. Manoj Arjun Menda ( 2021) BCAJ- March .P. 38 ( Bang) (Trib)

S.45: Capital gains- Penny stock- Jump of share price of 1849.2 % The Assessing Officer has neither conducted any enquiry nor brought any clinching piece of evidence to disprove the evidence produced – Addition cannot be made as cash credits [ S.10(38) , 68 , 131, 133(6)]

PCIT v. Krishna Devi ( Smt) ( 2021) 431 ITR 361 / 279 Taxman 148 (Delhi) (HC)

S. 36(1)(vii) :Bad debt –Commodity trading – Purchase and sale on the platform of National Spot Exchange Ltd ( NSEL ) -Scam 2013- Profits offered as business income – Write off of 25% of the outstanding amount – Amounts written off in the books of account- Allowable as bad debt [ S.36(2) ]

Remi Securities Ltd v. ACIT ( 2021) The Chamber’s Journal -March -P. 185 ( Mum) (Trib)

S. 28(i): Business income – AIR information- Addition cannot be made solely on the basis of AIR information . [ S.145, From No .26AS ]

BRR ( India ) Pvt Ltd v. ITO ( 2021) The Chamber’s Journal -March -P.188 (Bang ) (Trib)

S. 14A : Disallowance of expenditure – Exempt income -Even suo motu disallowance made need to be restricted to the extent of exempt income [ R.8D ]

Chalet Hotels Ltd v.DCIT ( 2021) BACJ-March – P. 40 ( Mum) (Trib)

Customs Act , 1962.

S. 124 : Show cause notice before confiscation of goods etc – Reasonable opportunity of being heard – Natural justice – It is a settled proposition that when a law requires a thing to be done in a particular manner, it has to be done in the prescribed manner and proceeding in any other manner is necessarily forbidden- Order is set aside . [ Art, 226 ]

SYSKA LED Lights Pvt. Ltd. v. UOI (2021)377) ELT33 / MANU/MH/0932/2021 ( Bom) (HC) www.itatonline.org

The Direct Tax Vivad se Vishwas Act, 2020

S. 9(a)) (ii)) : Act not to apply in certain cases – Tax arrear – Prosecution has been instituted on or before the date of filing of declaration- Wilful attempt to evade tax -Tax deduction at source – Prosecution – Q. 73 of CBDT Circular 21 of 2020 dated 4/12/2020 ( 2020) 429 ITR 1 (St ) would stand set aside and quashed. [ Art , 14, 226 ]

Macrotech Developers Limited v. PCIT ( 2021 ) 434 ITR 131 / 200 DTR 121/ 320 CTR 79 / 280 Taxman 37 ( Bom) (HC) www.itatonline.org/Editorisl: SLP of Revenue dismissed, PCIT (Central) v. Macrotech Developers Ltd. (2023) 295 Taxman 218 (SC)