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.194N:Payment of certain amounts in cash – Deduction of tax at source —Enquiry prior to commencement of relevant assessment year- No adequate opportunity to respond to notice — Violation of principle of natural justice – Alternative remedy is not an absolute bar – Notice and demand held to be not valid .[ S. 133A, 201 , Art ,226 ]
Tirunelveli District Central Co-Operative Bank Limited v. Jt. CIT (TDS) (2020) 428 ITR 249 / 275 Taxman 60/ 2021 ) 202 DTR 61/ 321 CTR 686 (Mad) (HC)
S. 190 : Collection and recovery – Deduction at source – Advance payment – Reimbursement of expenses – No income arises — Tax not deductible at source- When no composite bills are issued but separate bills are issued towards reimbursement of transportation charges, Circular No. 715 ([1995] 215 ITR (St.) 12) is not applicable [ .4 , 5 ]
Zephyr Biomedicals v. JCIT (2020) 428 ITR 398/ 194 DTR 337/ 317 CTR 129 (Bom) (HC) Orchid Biomedical Systems v. JCIT (2020) 428 ITR 398 / 194 DTR 337/ 317 CTR 129 (Bom) (HC)
S. 154 : Rectification of mistake – Recovery of tax – Prima facie case, financial stringency and balance of convenience- Rejection of application for stay of demand in a cryptic manner is held to be not justified .[ S.220(2), 221 ]
Ganapathy Haridaass v. ITO (2020) 428 ITR 505/ 272 Taxman 548 (Mad)(HC)
S. 153A : Assessment – Search- Deletion of addition after considering the evidence is held to be valid [ S.132, 260A ]
PCIT v. Shiv Sahai and Sons (I.) Ltd. (2020) 428 ITR 363 / (2021) 277 Taxman 50 (Mad) (HC)
S. 148 : Reassessment – Notice – Alternative remedy- Notice issued after proper sanction — No return submitted in response to notice — Notice cannot be quashed [ S. 147, 151 , Art. 226].
Naval Kishore Khaitan v. PCIT (2020) 428 ITR 62 (AP)(HC)
S. 147 : Reassessment – Notice – Appeal filed from order of reassessment – Writ is not maintainable at the stage of issue of notice – Writ dismissed [ S.148 , Art , 226 ]
Suresh Kumar Agarwal v ACIT. (2020) 428 ITR 101 (Chhattisgarh) (HC)
S. 147 : Reassessment –With in four years- Change of opinion -Speculative transaction — Business of manufacturing and trading of bullion and jewellery- Review of decision is impermissible – Business loss- Held to be not valid [ S.43(5), 148 ]
PCIT v. Shree Laxmi Jewellery Pvt. Ltd. (2020) 428 ITR 379 (Mad)(HC)
S. 147 : Reassessment –With in four years-Land – Agricultural land – Assessment of Co -owner is accepted u/s 143(3) of the Act – Reassessment is held to be not valid [ S .2 (14) ,54 , 54F , 143(3) ,148 ]
CIT v. Ramesh Shroff (2020) 428 ITR 499 (Mad) (HC)
S. 147 : Reassessment –With in four years- Capital gains – Advance received for transfer of capital asset – Reassessment is held to be not valid- Joint development agreement – The amount has not accrued – Addition could not be made even on merit . [ S. 2(47) (v), 45, 56 , 148 ]
CIT v .City Lubricants Pvt. Ltd. (2020) 428 ITR 109/ 195 DTR 457 (Mad) (HC)
S.147: Reassessment- After the expiry of four years- No failure to disclose material facts- Notice to withdrawal of exemption is held to be not valid . [ S.10(15) (iv), S.148 ,154,Art , 226 ]
State Bank of India v. Vineet Agrawal, ACIT (2020) 428 ITR 519 / 317 CTR 388/ 195 DTR 81 (Bom) )(HC)