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. 271E : Penalty – Repayment of loan or deposit -Loans from directors – Reasonable cause – Repayment by demand draft – levy of penalty is not justified .

Sudha Agro Oil and Chemical Industries Ltd. v. Add. CIT (2020) 79 ITR 520 ( Vishakha) (Trib)

S. 263 : Commissioner – Revision of orders prejudicial to revenue – Share application money – Share premium- Merely because assessment order silent, order could not be considered as erroneous and prejudicial to Interests of revenue – Revision order was quashed . [ 56(2)(vii)(b), 68, 143(3] ]

Sunray Cotspin (P.) Ltd. v. PCIT (2020) 79 ITR 193 ( Delhi ) (Trib)

S. 263 : Commissioner – Revision of orders prejudicial to revenue – Merger – Amalgamated Company filing return after merger in its name —Revision upon non-existent entity — Not valid [ S.143(3) ]

Snowhill Agencies P. Ltd. v. PCIT (2020) 79 ITR 176/193 DTR 73/ 206 TTJ 998 ( Ahd) (Trib)

S. 195 :Deduction at source – Non-resident – Taxability in India — Payment to international celebrity appearance at Dubai – Target audience in India, potential customers in India, intended benefits in India — Business connection – Liable to deduct tax at source-DTAA -India -USA [ S. 5(2), 9(1) (i), 115BBA,201 Art.12, 23(3) ]

Volkswagen Finance P. Ltd. v ITO (2020) 79 ITR 447/ 184 ITD 872/ 190 DTR 1/205 TTJ 648 ( Mum) (Trib)

S. 153A : Assessment – Search-Assessment of third person — Sale Of Property — Commission —Addition made without examining the buyer of property is held to be bad in law . [ S.292C ]

Summit Mittal and Madhur Mittal v Dy. CIT (2020) 79 ITR 607 ( Delhi) (Trib)

S. 144 : Best judgment assessment – Low gross profit rate –Ad-hoc addition – No defects in stock statement – Rejection of books of account is held to be not valid [ S.145(3) ]

Panchshil Exim P. Ltd. v. Dy. CIT (2020) 79 ITR 472 ( Rajkot ) (Trib)

S. 143(3) : Assessment -Estimation of income —Milk Supplier earning Commission —Real income theory – Profit is directed to be estimated at seven Per Cent.[ S.144, 145 ]

Vithal Baban Bangar v. ITO (2020) 79 ITR 55 ( Mum) (Trib)

S. 143(3) : Assessment – Bogus purchases – Purchase and sales matching figures certified by sales tax department and value added tax Return – No addition could be made on basis of earlier tentative figure shown as per sales tax department – Contribution to provident fund – Matter remanded . [ S. 37(1) ]

Pabitra Banerjee v. ITO (2020) 79 ITR 480 (Cuttack ) (Trib)

S. 143(2) : Assessment – Notice issued beyond period of limitation is held to be not valid .[ S.292BB ]

Manoj Kumar v. ACIT (2020)79 ITR 158 / 195 DTR 105/207 TTJ 48 ( Delhi )(Trib)

S. 92C : Transfer pricing – Arm’s length price — Outstanding sum of invoices akin to loan advanced- Credit of tax deduction at source – Matter remanded .[ S.92B(2) ]

Lotus Labs P. Ltd. v. Dy. CIT (2020)79 ITR 295 (Bang) (Trib)