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. 199 : Deduction at source – Credit for tax deducted -Allowed in the year of deduction – Related revenue was booked in subsequent years .[ S.145, 199(3) ]

HCL Comet Ltd v DCIT ( 2020) BCAJ- October – P. 38 ( Delhi) (Trib)

S. 153A : Assessment – Search- No incriminating material found during search- Statement of third parties cannot be considered as incriminating material- Opportunity to cross- examination not provided [ S.132(1), 132(4) ]

Sanjay Singhal v. Dy.CIT (2020) 80 ITR 117 (Chd) (Trib) Aarti Singhal (Smt.) v. Dy. CIT (2020) 80 ITR 117 (Chd) (Trib)

S.148: Reassessment — Notice — Assessing Officer not signing notice or mentioning assessment year — Notice is illegal — Reassessment proceedings not valid .[ S.147]

Dy. CIT v. Taureg Properties and Security Services Ltd (2020)80 ITR 386 ( Delhi) (Trib)

S. 147 : Reassessment –With in four years-No scrutiny assessment — Non-compete Fee – Claiming a huge exemption of income by making incomplete, untrue and wrong claim — Primary facts not completely, correctly and truly disclosed in return — Reassessment is held to be valid [ S.143(1) 148 ]

K. Srikanth v .ACIT (2020) 80 ITR 272 / 195 DTR 17 /206 TTJ 273 ( Chennai ) (Trib)

S. 144 : Best judgment assessment – No new facts – Addition is held to be justified . [ S.69B ]

Ajay Baldevbhai Patel v. ITO (2020) 80 ITR 367 ( Ahd) (Trib)

S.115JB: Book profits —Additional revenue in its books — Assessing Officer cannot tinker with book profit.

Dy. CIT v .Yahoo Software Development P. Ltd. (2020) 80 ITR 528 ( Bang) (Trib)

S.92C: Transfer Pricing—Comparables- A company is engaged in BPO services cannot be rejected as a comparable merely by stating that it is in the health care segment and is functionally dissimilar -Matter remanded .

Bureau Veritas Consumer Products Services (India) P. Ltd. v ACIT ( 2020) 81 ITR 73 (SN) ( (Delhi) (Trib

S.92C: Transfer pricing -Arm’s length price — Exchange rate fluctuations —Taken part of operating margin [ S.92CA ]

Vitech Systems Asia Pvt. Ltd. v. ITO (2020) 81 ITR 58 (SN) (Hyd) (Trib)

S. 80IC : Special category States – Scrap – Sale of scrap is part of business income – Eligible for deduction .

Isolloyd Engineering Technologies Ltd v DCIT ( 2020) BCAJ- October -P. 37 ( Delhi ) (Trib)

S. 69C: Unexplained expenditure – Bogus purchases — source of purchase not outside books of account and corresponding sales not disputed — Books of account not rejected – Only profit element can be added – Reassessment is held to be valid [ S.37 , 143(3) 147 , 148 ]

Belmarks Metal Works v. ITO (2020) 80 ITR 699 ( Delhi) (Trib)