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
Click here to download the pdf versions of the Digest of case laws

S.147:Reassessment — Accommodation entries- Share application and share premium- No failure to disclose any material facts – Assessing Officer not mentioning names of parties from whom receipt of accommodation entry in reasons — Reassessment held to be not valid.[ S.68 , 148 ]

Bull Riders Financial Services (P.) Ltd. v. ITO (2020)78 ITR 688 / 195 DTR 404 /207 TTJ 573 (Delhi) (Trib)

S.143(3):Assessment — Conversion of limited scrutiny into complete scrutiny — Assessing Officer is bound to follow the instructions -Prior approval from competent authority mandatory —In the absence of communication in writing to Assessing Officer about approval, assumption of jurisdiction by Assessing Officer invalid .[ S.54B ]

Manju Kaushik (Smt.) v. Dy. CIT (2020)78 ITR 564/192 DTR 227 /206 TTJ 435 ( Jaipur) (Trib)

S.115JB: Book Profits — Subsidy received in form of Excise Duty refund for establishment of new industrial undertaking — Capital subsidy not liable to tax — Excludible from computation of book profits.

Ultimate Flexipack Ltd. v Dy. CIT (2020)78 ITR 410( Delhi) (Trib)

S. 115JB : Book profit – Retention money – Not to be considered for computing book profits – Exemption under section 80IA is not allowable while computing book profit- Secondary and higher education cess- Deduction can be claimed in appellate proceedings [ S. 40(a)(i), 80IA 254(1) ]

Dy. CIT v. MBL Infrastructure Ltd. (2020)78 ITR 156 (Kol) (Trib)

S.115BBE: Tax on income- Unexplained money —Part of unrecorded sales Addition Cannot be made- Surrendered income – Business income -Eligible deduction under section 80JJA . [ S.69A, 80JJA ]

Kanpur Organics Pvt. Ltd. v. Dy. CIT (2020)78 ITR 120 (Luck) (Trib)

S. 92CA :Reference to transfer pricing officer -Arm’s length price —Computing Arm’s Length Price without referring matter to Transfer Pricing Officer — Transfer adjustment vitiated – Draft assessment order does not become final assessment order simply by issuing corrigendum — Draft assessment order not valid. [ S.92CA(3) 144C ]

North Shore Technologies Pvt. Ltd. v. ITO (2020)78 ITR 204 /192 DTR 105/ 266 TTJ 344 (Delhi ) (Trib)

S. 92C : Transfer pricing – Arm’s length price – Comparable Benchmarking of Transaction — Marketing support services same functions – Can be treated as comparable —Deriving its income from manufacturing or trading and indenting services — Not good Comparable for company rendering market support services.

Avaya India Pvt. Ltd. v. Dy. CIT (2020)78 ITR 84 ( Delhi ) (Trib)

S. 92C : Transfer pricing – Arm’s length price – Debt-free company —Adjustment in relation to notional interest on overdue receivables is held to be not justified- Comparable – Company having controlled transactions — High brand value and high turnover of company —Held not comparables.

Avaya India Pvt. Ltd. v. Add. CIT (2020)78 ITR 305 ( Delhi) (Trib)

S. 80IB: Industrial undertakings – Sub-Licensing income — Royalty — Not related to manufacturing activity – Income excludible on net basis after adjusting loyalty paid against sub-licensing income [ S.80IC ]

Ultimate Flexipack Ltd. v Dy. CIT (2020)78 ITR 410( Delhi) (Trib)

S. 74 : Losses – Long-term capital loss — Reduction of share capital — Amounts to transfer —Loss arising due to cancellation of shares allowable as long-term capital loss eligible to be carried forward to subsequent years [ S.2(47) ]

Carestream Health Inc. v. Dy. CIT (2020)78 ITR 599/ 193 DTR 41/206 TTJ 835 (Mum)(Trib)