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. 153A : Assessment – Search- Abated assessment- It is open to both parties, i.e. the assessee and revenue, to make new claims for allowance or disallowance. [ S.132, 139(1) ]
PCIT v. JSW Steel Ltd (2020)422 ITR 71 / 313 CTR 129/ 187 DTR 1/ 270 Taxman 201 (Bom)(HC), www.itatonline.org
S. 68 : Cash credits – Share capital- Identity of the investors were not in doubt- Furnished PAN, copies of the income tax returns of the investors as well as copy of the bank accounts in which the share application money was deposited in order to prove genuineness of the transactions- Not required to prove source of the source- Deletion of addition by the Tribunal is held to be justified .
PCIT v. Ami Industries (India)P. Ltd. ( 2020) 424 ITR 219/116 taxmann.com 34 / 271 Taxman 75/188 DTR 133 / 315 CTR 753 (Bom)(HC), www.itatonline.org
S. 245D : Settlement Commission – Settlement of cases – Jurisdiction- Black Money Act — Undisclosed income of Non-Resident Indians – Change in the Black Money Act only from assessment year 206-17 – Pending reassessment proceedings order of Settlement Commission for assessment years 2004 -05 to 2015-16 is held to be valid – Writ petition of the revenue is dismissed . [S. 148, 153A,245A, 245C,245D(4) , Black Money (Undisclosed Foreign Income and Assets) and Imposition of tax Act, 2015, 2(9) ,3 , 4(3) , Art .226 ]
CIT v. ITSC (2020) 420 ITR 149/ 268 Taxman 234/ 187 DTR 49/ 313 CTR 283 (Guj) (HC),Editorial: Notice issued and accepted by respondents , in order to facilitate the Court in doing so, counsel shall file notes of their written submissions at least two weeks before the next date of listing , PCIT v. Income Tax Settlement Commission ( 2020) 275 Taxman 100 ( SC), Editorial: Notice issued and accepted by respondents , in order to facilitate the Court in doing so, counsel shall file notes of their written submissions at least two weeks before the next date of listing , PCIT v. Income Tax Settlement Commission ( 2020) 275 Taxman 100 ( SC)
S.54F : Capital gains- Investment in a residential house -A part of amount deposited in Capital Gains Account Scheme was utilized for construction or purchase of a new asset within specified time of three years- Remaining unutilized amount is chargeable to tax in previous year in which period of three years expired- Entitle to withdraw the amount deposited in the capital gains Account subject to deduction of tax applicable .[ S.45, 54F(4) , Art .226 ]
P.N. Shetty. v ITO (2020) 268 Taxman 226/ 186 DTR 165 / 314 CTR 892 (Karn) (HC)
S. 263 : Commissioner-Revision of orders prejudicial to revenue-Method of accounting–Forward contracts-In terms of AS-11, both gains or loss on account of exchange rate fluctuations on reporting date are to be accounted for while computing income chargeable to tax-Revision is held to be valid. [S.145, AS-11]
Tata Consultancy Services Ltd. v. CIT (2019) 178 ITD 51/178 ITD 151 /199 TTJ 716 (Mum.)(Trib.)
S. 263 : Commissioner-Revision of orders prejudicial to revenue- Depreciation-Block of assets–Scientific research–Capital expenditure–User of asset is not relevant–Once expenditure is incurred–Deduction is allowable.
Method of accounting–Valuation–Consistency method–Revision is held to be not justified–MAT credit–Revision is held to be valid. [S. 2(11), S.35(1)(iv), 35(2), 50, 145A]
Navin Fluorine International Ltd. v. CIT (2019) 178 ITD 201 (Mum.)(Trib.)
S. 251 : Appeal-Commissioner (Appeals)–Powers–Direction issued by the CIT(A) to initiate reassessment proceedings for assessment year 2011-12 is held to be non-est direction hence invalid.[S. 50C, 147, 148, 149(1)(b), 150(2)]
Anshuman Ghosh v. ITO ( 2019) 178 ITD 311 (Luck.)(Trib.)
S. 200A : Processing of statements of tax deducted at source- Clause (c) inserted in section 200A with effect from 1-6-2015, is prospective in nature- Appeal of the assessee is allowed. [S. 234E]
Station Headquarters (Army) v. ACIT (2019) 178 ITD 211 (Jodhpur)(Trib.)
S. 201 : Deduction at source-Failure to deduct or pay–Limitation- Increased limitation of seven years with effect from 1-04 -2014 shall not apply retrospectively–Order is barred by limitation. [S 201(1), 201(IA)].
Sodexo SVC India (P.) Ltd. v. DCIT (2019) 72 ITR 132 / 178 ITD 39 /202 TTJ 504/ ( 2020) 189 DTR 84 (Mum.)(Trib.)
S. 194IA : Deduction at source-Immoveable property–Purchase through power of attorney holder for Consideration of Rs. 60.12 lakhs-Each co-owners share is less than 50 lakhs–Not liable to deduct tax at source–Addition confirmed by the CIT (A) is deleted. [S. 201(1), 201(IA)]
Oxcia Enterprises (P.) Ltd. v. DCIT (2019) 178 ITD 520 (Jodhpur) (Trib.)