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. 206C : Collection at source-Scrap-Purchase of scrap material from railways which was subjected to TCS, resale of same material by assessee would not partake a different character and he would be held-in default for non collection of tax at time of resale. [S. 206C(6A) 206C(7)]

Pramod Kumar Jain v. ITO (2020) 183 ITD 442/206 TTJ 25 (UO) (Jaipur)(Trib.)

S. 194I : Deduction at source-Rent-State Government-Krishi Upaj Mandi Samiti-Income exempt-Not liable to tax at source. [S.10(26AAB)]

M.P. Warehousing & Logistics Corporation v. ACIT (2020) 183 ITD 485 /195 DTR 89/ 84 ITR 75 / 207 TTJ 743 (Indore) (Trib.)

S. 194A : Deduction at source-Interest other than interest on securities-Interest payable to any of individual account holder did not exceed Rs. 2,500 in a Financial year-Not liable to deduct tax at source. [S. 201]

DCIT v. Sahara India Financial Corporation Ltd. (2020) 183 ITD 266 /194 DTR 153/207 TTJ 555 (Delhi)(Trib.)

S. 167B : Charge of tax-Shares of members unknown-Association of person (AOP)-Income of its Members exceeded basic exemption limit-Liable to be taxed at maximum marginal rate. [Societies Registration Act, 1860]

Air Force Navy Farm Owners Welfare Association v. ITO (2020) 183 ITD 611 (Delhi)(Trib.)

S. 154 : Rectification of mistake-Transfer of land used for agricultural purposes-Whether HUF is entitle to exemption-Debatable-Rectification order is held to be not valid. [S. 54B]

Sandeep Bhargava (‘HUF’) v. CIT (2020) 83 ITR 217 / 183 ITD 437 (Chd.)(Trib.)

S. 148 : Reassessment-Notice-Recorded reasons-Failure to provide complete details of reasons recorded and not merely few extracts of said reasons-Reassessment is held to be bad in law. [S. 147]

Wimco Seedlings Ltd. v. JCIT (2020) 82 ITR 235 / 183 ITD 211 (Delhi)(Trib.)

S. 147 : Reassessment-With in four years-Information from Local Authority stating that building competition certificate was not issued-Reassessment is held to be valid. [S. 80IB(10) 148]

Harshvardhan Constructions. v. ITO (2020) 81 ITR 299 / 183 ITD 497 / 207 TTJ 663 (Mum.)(Trib.)

S. 145 : Method of accounting-Dealing in a large number of small items-Non-maintenance of stock register could not be basis for rejection of books of account-Applying Gross Profit Rate of year is not correct method of valuation of stock which ideally should be valued at cost or market price.

Paramount Impex v. ACIT (2020) 183 ITD 556/207 TTJ 41 (UO) (Chd.)(Trib.)

S. 144C : Reference to dispute resolution panel-In respect of period prior to 1-4-2020 cases in which no variations in returned income or loss were proposed, draft assessment orders were not required to be issued. [S. 92C]

IPF India Property Cyprus (No. 1) Ltd. v. DCIT (2020) 183 ITD 46/ 193 DTR 337 / 207 TTJ 449 (Mum.)(Trib.)

S. 143(3) : Assessment-Survey-Undisclosed income-Accommodation entries-Commission income-Amount not recovered allowable as deduction from the undisclosed income estimated. [S. 28(i) 68, 133A]

Uday Shankar Mahawar v. ACIT (2020) 183 ITD 305 (Kol.)(Trib.)