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-After the expiry of four years-Survey– Difference of labour charges-No failure to disclose material facts-Reassessment is held to be not permissible. [S. 133A, 148]

Reddipalli Srinivas v. ACIT (2020) 77 ITR 59 (SN) (Vishakha) (Trib.)

S. 147 : Reassessment-After the expiry of four years-No failure to disclose material facts–CIT granting two approvals of the same recorded reasons-Reassessment is held to be bad in law–Seized material not containing any incriminating materials–Addition is held to be not justified. [S. 69B, 148, 151]

Tarun Goel v. ITO (2020) 77 ITR 133 (SN) / 196 DTR 272/ 204 TTJ 464 (Jaipur)(Trib.)Arun Goel v ITO (2020)77 ITR 133/ 196 DTR 272/ 204 TTJ 464 ( Jaipur) (Trib) Pink City Reality (P) Ltd v .ITO (2020)77 ITR 133/ 196 DTR 272/ 204 TTJ 464 ( Jaipur) (Trib)

S. 147 : Reassessment-After the expiry of four years-No new tangible material-AO seeking to correct error in original assessment – Held to be not permissible. [S. 148]

Alcatel Lucent India Ltd. v. ACIT (2020) 77 ITR 694 (Delhi)(Trib.)

S. 143(3) : Assessment-Survey-Difference in stock-Statement recorded during survey not under oath-Retraction of statement with explanation-Addition is held to be not justified. [S. 133A]

MNP Turnmatics v. ITO (2020) 77 ITR 31 (SN) (Delhi)(Trib.)

S. 92C : Transfer pricing–Arm’s length price–Broad casting-Multi-system operator in distribution of television channels-Adjustment of 10 %-Ad hoc determination of Arm’s length price is unsustainable. [S. 40A (2)(b)]

Hathway Cable And Datacom Ltd. v. Dy.CIT (2020) 77 ITR 55 (SN) (Mum.)(Trib.)

S. 92C : Transfer pricing–Arm’s length price-Comparable-Information Technology enabled services-Companies which are providing knowledge process outsourcing services, medical transcription services, development of infrastructure, high brand value are held to be not comparable. [S. 92CA]

Evalueserve.Com Pvt. Ltd. v. Dy. CIT (2020) 77 ITR 97 (Delhi)(Trib.)

S. 80P : Co-operative societies-Provision for bad debt-Commission expenses-Deductible. [S.80P(2)]

Rishabh Sahkari Sakh Sanstha Mydt v. ITO (2020) 77 ITR 26 (SN) (Indore)(Trib.)

S. 80P : Co-operative societies-Interest from Nationalised Banks-Not entitled to deduction-Net interest from deposits with Scheduled Bank to be excluded from computation of deduction-Interest from Co-Operative Societies or Co-Operative Banks-Entitled to deduction-Net interest to be allowed as deduction. [S.80P(2)(a)(i), 80P(2)(d)]

Lunawada Taluka Primary School Teachers Co-Op. Credit Society Ltd. v. ITO (2020) 77 ITR 46 (SN) (Ahd.)(Trib.) Vir Transport Operator Co-Op. Credit and Services Society v. ITO (2020)77 ITR 46 (SN) (Ahd.)(Trib.)

S. 80P : Co-operative societies-Certificate issued by Registrar of Co-Operative Societies is not binding on AO–Interest on investments with Co-Operative Banks-AO is to follow law laid down by full bench of Kerala High Court in Mavilayi Service Co-Operative Bank Ltd. v. CIT (2019) 414 ITR 67 (FB) (Ker.)(HC) [S.80P(2)(4)]

Chirakara Service Co-Operative Bank Ltd. v. ITO (2020) 77 ITR 457 (Cochin)(Trib.) Pangode Service Co-Operative Bank Ltd. v. ITO (2020) 77 ITR 33 (SN) (Cochin)(Trib.) Andoorkonam Service Co-Operative Bank Ltd. v. ITO (2020) 77 ITR 33 (SN) (Cochin)(Trib.) Varkala Service Co-Operative Bank Ltd. v. ITO (2020) 77 ITR 33 (SN) (Cochin)(Trib.)

S. 80G : Donation-Approval-Approval granted to assessee is still continuing-Order rejecting approval is redundant in law. [S. 80G(5)(vi)]

Ashwini Sahakari Rugnalaya Ani Sanshidhan Kendra v. CIT(E) (2020) 77 ITR 61 (SN) (Pune)(Trib.)