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. 69C : Unexplained expenditure – Bogus purchases – Sales accepted – The AO is directed to restrict the addition to the extent of lower GP declared by the assessee in respect of bogus purchases as compared to G.P. on normal purchases. [S.68 ]
Hemant M. Mehta HUF v. ACIT (SMC) (Mum)(Trib), www.itatonline.org
S. 148 : Reassessment – Notice – Notice sent at address available in PAN database returned – Communication had to be delivered at address of assessee available with banking company – No service of reopening notice – Order making additions unjustified. [S. 147, 282 , R, 127 , Art .226 ]
Harjeet Surajprakash Girotra v. UOI (2019) 180 DTR 257 266 Taxman 29 (Bom.)(HC)
S. 80HHC : Export business – Interest income assessed as business income is to be included from the profits and gains of business for the purpose of section 80HHC. [S. 80HHC]
JVS Exports v. ACIT (2019) 181 DTR 145 / 419 ITR 123 /(2020) 314 CTR 696 (Mad.)(HC)
S. 9(1)(vii):Income deemed to accrue or arise in India – Fees for technical services – Charges for flight simulator usage and other flight training to cockpit crew and pilots- Not liable to deduct tax at source – DTAA- India-UAE [ S. 9(1)(vi) 195 , Art .12 ]
Kingfisher Airlines Ltd. v. Dy. DIT (IT) (2019) 179 ITD 367 (Bang.)(Trib.)
S. 9(1)(vii):Income deemed to accrue or arise in India – Fees for technical services – Training of pilots and cabin crew – Can not be assessed as fees for technical services or royalties – Not liable to deduct tax at source – OECD Model Convention , Art, 12 [ S.9(1)(vi) , 195 ]
Kingfisher Airlines Ltd. v. Dy. DIT (IT) (2019) 179 ITD 367 (Bang.)(Trib.)
S. 9(1)(vii):Income deemed to accrue or arise in India – Fees for technical services – Inspection charges – Not liable to deduct tax at source -DTAA-India – Indonesia [S.195 , Art. 12 ]
Hind Energy & Coal Benefication (India) Ltd. v. ITO (IT & TP) (2019) 179 ITD 388 (Indore) (Trib.)
S. 9(1)(i): Income deemed to accrue or arise in India – Business connection – Non-resident – Import of coal- No business connection- Income cannot be deemed to have accrued or arose in India in transaction of export of coal to assessee in India- Not liable to deduct tax at source-OECD Model convention , Art 7 . [ S.195, 201 (1) 201(IA) ]
Hind Energy & Coal Benefication (India) Ltd. v. ITO (IT & TP) (2019) 179 ITD 388 (Indore) (Trib.)
S. 268A : Appeal-Monetary limits-CBDT Circular No. 17/2019, dated 8-8-2019 revising/enhancing minimum threshold limit to tax effect of Rs. 50 lakhs would also be applicable to pending appeals before Tribunal. [S. 253]
ACIT v. Samsung Data Systems India (P.) Ltd. (2019) 179 ITD 229 (Delhi)(Trib.)
S. 251 : Appeal-Commissioner (Appeals)-Power of enhancement Not competent to enhance assessment by taking an income which income was not considered expressly or by necessary implication by AO. [S. 45, 54F, 68, 147]
Hari Mohan Sharma v. ACIT (2019) 179 ITD 310 (Delhi)(Trib.)