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. 263 : Commissioner-Revision of orders prejudicial to revenue-Cash credit-Assessing the deposits as undisclosed turnover and estimating income at 4% of turnover-Only probability and likelihood to find error in assessment order is not permitted-Revision is held to be not valid-When undisclosed amount of assessee in his bank account as undisclosed business receipts/turnover provision of 115BBE would not attract. [S. 68, 115BBE]
Abdul Hamid. v. ITO (2020) 183 ITD 711/195 DTR 321/207 TTJ 1109 (Gauhati)(Trib.)/Abdul Hannan v .ITO (2020) 183 ITD 711/195 DTR 321/207 TTJ 1109 (Gauhati) (Trib.)
S. 263 : Commissioner-Revision of orders prejudicial to revenue-Capital gains-Allotment letter-Holding period-From date of allotment of flat and not date of possession of flat-Revision is held to be not valid. [S .2(29A), 45, 54]
Yogesh Mavjibhai Gala. v. PCIT (2020) 183 ITD 665/ 196 DTR 27/ 208 TTJ 872 (Mum.)(Trib.)
S. 263 : Commissioner-Revision of orders prejudicial to revenue-Commission-Without show cause notice cannot presume that incentive had not been paid-Share capital-Source of introduction of capital fully explained-Revision is held to be not valid. [S. 37(1), 68]
Shailesh Kumar Gandhi v. PCIT (2020) 183 ITD 567/195 DTR 259/207 TTJ 899 (Cuttack)(Trib.)
S. 263 : Commissioner-Revision of orders prejudicial to revenue-Branch to head office-Interest paid by Indian branch of assessee non-resident bank to its Head Office and overseas branches being a payment to self would be governed by principle of mutuality and, therefore, same could not be brought to tax as per provision of section 9(1)(v)(c)-Revision is held to be not valid-DTAA-India-USA. [S. 9(1)(v)(c), Art. 11]
JP Morgan Chase Bank N.A. v. DCIT (IT) (2020) 183 ITD 190/185 DTR 305/203 TTJ 443 (Mum.)(Trib.)
S. 254(2A) : Appellate Tribunal –Stay-Power of Tribunal to stay-Matter referred to larger Bench. [S. 254(1)]
Tata Education and Development Trust v. ACIT (2020) 183 ITD 883 (Mum.)(Trib.)
S. 254(2) : Appellate Tribunal-Rectification of mistake apparent from the record-Income deemed to accrue or arise in India-Business connection-Stay of employees in India-Issue referred to AO for verification-No mistake Apparent on record-DTAA-India-UK. [S. 9(1)(i), Art. 5(2)(k)(i)]
Link Laters LLP. v. DCIT(IT) (2020) 183 ITD 156/195 DTR 140/208 TTJ 20 (Mum.)(Trib.)
S. 254(1) : Appellate Tribunal-Duties-Passing order-Rules for pronouncement-Period of lockdown to prevent spread of Covid-19 epidemic, has to be exclude. [ITAT R. 34(5)]
Bhavesh Valjibhai Maraviya v. ITO (2020) 183 ITD 563 (Rajkot)(Trib.)
S. 250 : Appeal-Commissioner (Appeals)-Ex parte dismissal of appeal-Matter remanded to CIT(A) to re adjudicate the appeal on merit. [S. 80P(2)(a)(i)]
Children Aid Society Employees Co-operative Credit Society Ltd. v. ITO (2020) 183 ITD 616 (Mum.)(Trib.)
S. 234E : Fee-Default in furnishing the statements-Delay in submitting the return-Levy of late fee is mandatory. [S. 200(3)]
Block Development Officer v. ACIT (2020) 183 ITD 334/193 DTR 249/206 TTJ 862 (Jaipur)(Trib.)