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. 158BC : Block assessment – Document seized during search — Statutory presumption that document belongs to person from whose possession seized — Burden on person to rebut presumption — Document disclosing receipt of on-money-Addition is held to be justified [ S.132(4A) ]
H. M. Constructions v. ACIT (2021) 431 ITR 196 (Karn)(HC)
S. 153A : Assessment – Search- No incriminating material found during search — Mere recording of satisfaction regarding undisclosed income not sufficient — Addition is held to be not valid [ S.132 ]
PCIT v. Allied Perfumers Pvt. Ltd. (2021) 431 ITR 237 / 279 Taxman 185/ 198 DTR 59/ 323 CTR 365(Delhi) (HC)
S. 153 : Assessment – Reassessment – Limitation -Direction by Commissioner (Appeals) to assess income in hands of third person — Notice of reassessment issued to such third person- Held to be valid [ S.147, 148 , 150, 250 ]
PCIT v .Rajkumar C. (HUF) (2021) 431 ITR 320/ 199 DTR 217/ 431 ITR 320 (Karn)(HC)
S. 147 : Reassessment -Report of Investigation wing of Department- Notice issued after application of mind – Notice is valid [ S.148, Art , 226 ]
M. R. Organisation v. ITO (2021) 431 ITR 528/ 198 DTR 298/ 319 CTR 156 (Guj) (HC)
S. 147 : Reassessment – Interest or Remuneration- Reassessment on presumption of receipt is held to be not valid [ S.148 ]
Dipak Ratnabhai Patel v. ITO (2021) 431 ITR 548/ 278 Taxman 42 (Guj)(HC)
S. 147 : Reassessment – Bogus donation – Report of CBI – Reassessment is held to be valid – Failure to prove donations were genuine — Addition is held to be valid [ S.68, 148 ]
Brijbasi Education and Welfare Society v. PCIT (2021) 431 ITR 126/ 200 DTR 341/ 278 Taxman 246 / 321 CTR 478(Delhi) (HC)
S. 144 : Best judgment assessment – Violation of principles of natural justice— Writ against the order – Matter remanded [S.69A, 115BBE, Art . 226 ]
Nadimuthupathar Sundarapandian Elavarman v .ACIT (2021) 431 ITR 191/ 278 Taxman 171 (Mad) (HC)
S.143(3): Assessment -Income from undisclosed sources —Agricultural income-Land taken on lease – Amount Shown -No agricultural operations had been carried on in land -Addition is held to be justified [S.10(1)]
Jinesh (HUF) v. ITO (2021) 431 ITR 588 / 278 Taxman 369 (Karn)(HC )
S. 132B : Application of seized or requisitioned assets – Amount seized by Excise Department received by Income-Tax Department From Magistrate’s Court — Magistrate ordering release of cash to department with direction that it be produced when summoned — Crime thereafter closed and no proceedings before Magistrate’s Court -On Writ the Court held the proceedings pending before Income tax department – Refund not warranted [ S.153A, 153B ,Art , 226 ]
UOI v. Rajesh Kumar (2021) 431 ITR 155/ 201 DTR 6/ 320 CTR 670 (Ker)(HC)
S. 127 : Power to transfer cases Transfer for administrative convenience — Sufficient compliance with statutory provisions and principles of natural justice — Order of transfer valid.[ Art . 226 ]
Dev Wines Sales Corporation v. PCIT (2021) 431 ITR 619 / 199 DTR 281/ 320 CTR 318/ 279 Taxman 342(Delhi) (HC)