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. 147 : Reassessment-Sales promotion expenses-No new information-Reassessment is held to be bad in law. [S. 37(1), 148]

Medley Pharmaceuticals Ltd. v. DCIT (2020) 184 ITD 8 / 207 TTJ 143 (Mum.)(Trib.)

S. 147 : Reassessment-Under invoicing-Cash credits-Report of commission- Reassessment proceedings initiated merely on basis of report of a Commission appointed by Central Government that there was under invoicing of exports-Held to be bad in law-Pronouncement of order-Period during which lockdown was in force in country due to COVID 19 pandemic was to be excluded. [S. 68, 148, 255, ITAT R. 35]

Ashapura Minichem Ltd. v. DCIT (2020) 81 ITR 111 / 184 ITD 278 (Mum.)(Trib.)

S. 147 : Reassessment-Internal audit objection-Reimbursement of expenses-Failure to deduct tax at source-Reassessment is held to be not valid-90 days time period permitted under Rule 34(5) for pronouncing order was to be computed by deducting Covid-19 pandemic lockdown period. [S. 40(a)(ia), 148, 195, 255, ITATR. 34(5)]

Lionbridge Technologies (P.) Ltd. v. ACIT (2020) 184 ITD 61 (Mum.)(Trib.)

S. 145 : Method of accounting-Rehabilitation and implementation of water supply-Percentage of contract method adopted by the assessee is held to be justified.

Veolia India (P.) Ltd. v. DCIT (2020) 184 ITD 528 (Delhi)(Trib.)

S. 145 : Method of accounting-Rejection of books of account without providing an opportunity is held to be not valid-Cash credits-Rejection of documents without any reason is held to be not justified-Matter remanded. [S. 68]

Ramanlal K. Darji v. ITO (2020) 184 ITD 408 (Mum.)(Trib.)

S. 143(3) : Assessment-Amalgamation-Succession to business otherwise than on death-Amalgamating company was not in existence at time of conduct of assessment proceedings as well as on date of passing Assessment Order-Assessment Order passed in name of amalgamating company being void ab initio was to be set aside. [S. 170, 292B]

Genpact India (P.) Ltd. v. DCIT (2020) 184 ITD 1 (Delhi)(Trib.)

S. 115JB : Book profit-Computation for purpose of clause (f) of Explanation 1 to section 115JB(2) is to be made without restoring to computation as contemplated under section 14A, read with rule 8D. [S. 14A, R. 8D]

Zaveri & Co. (P.) Ltd. v. DCIT (2020) 184 ITD 777 (Ahd.)(Trib.)

S. 115JB : Book profit-Additional revenue on account of subsequent realization of export-Addition cannot be made while computing book profit. [S. 10A]

Dy.CIT v. Yahoo Software Development (P.) Ltd. (2020) 80 ITR 528 / 184 ITD 305/ 196 DTR 241/208 TTJ 1072 (Bang.) (Trib.)

S. 92CA : Reference to transfer pricing officer-There was no transfer pricing adjustment of more than 10 crores in earlier year-Assessing Officers reference to TPO was in contravention to Instruction No. 3 of 2016 and such reference was to be declared as invalid. [S. 92C]

Sava Healthcare Ltd. v. DCIT (2020) 184 ITD 312 / 189 DTR 1 / 78 ITR 65 (SN) / 204 TTJ 513 (Pune)(Trib.)

S. 92C : Transfer pricing-Arm’s length price-Comparable-company engaged in the business of investment banking, merchant banking, merger and acquisition, private equity, syndication, etc. cannot be compared to non-binding investment advisory service provider.

Khazanah India Advisors Pvt. Ltd. v. Dy. CIT (2020) 184 ITD 890 (Mum.)(Trib.)