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
Click here to download the pdf versions of the Digest of case laws

S. 264 : Commissioner-Revision of other orders-Expenses or payments not deductible-Cash payments exceeding prescribed limits-Use of electronic clearing system through bank account-Deposit of cash directly in beneficiary’s bank account beyond prescribed limit-Transaction not through clearing house of electronic mode-Business expediency is not established-Disallowance is held to be justified. [S. 40A(3), R.6DD, Art. 226]

Ajai Kumar Singh Khaldelial v. CIT (2020) 421 ITR 6/186 DTR 57 / 312 CTR 473/(2021) 277 Taxman 91 (All.)(HC)

S. 254(2A) : Appellate Tribunal-Stay-Order of Tribunal granted the stay is affirmed-Appeal is held to be misconceived. [S.253, 260A]

CIT v. MSD Pharmaceuticals (P.) Ltd. (2020) 113 taxmann.com 136 / 269 Taxman 49 (Delhi) (HC) Editorial : SLP of revenue is dismissed; CIT v. MSD Pharmaceuticals (P.) Ltd. (2020) 269 Taxman 48 (SC)

S. 234B : Interest-Advance tax-Non-resident-Deduction of tax at source-It was obligation of payer to deduct entire tax at source and, assessee was not liable to pay any advance tax-Interest cannot be charged.

CIT(IT) v. Andritz AG. (2020)113 taxmann.com 407 / 269 Taxman 206 (Delhi)(HC) Editorial : SLP is granted to the revenue; CIT (IT) v. Andritz AG. (2020) 269 taxman 205 (SC)

S. 220 : Collection and recovery-Assessee deemed in default- Stay-Existence of prima facie case, financial stringency and balance of convenience-Duty of PCIT and responsibility of assesse-Status quo to be maintained till disposal of stay petitions by PCIT. [S. 220(3), 220(6), Art.226]

Jayanthi Seeman v. CIT (2020) 421 ITR 320 (Mad.)(HC)

S. 220 : Collection and recovery-Assessee deemed in default- Stay-Stay was granted subject to depositing 15% of outstanding demand.

Karmvir Builders v. PCIT (2020) 113 taxmann.com 138 / 269 Taxman 46 (Guj.)(HC) Editorial : SLP of assessee is dismissed Karmvir Builders v. PCIT (2020) 269 Taxman 45 (SC)

S. 199 : Deduction at source-Credit for tax deducted-Salary-Rectification application is not disposed off-AO is directed to consider the application and pass orders on merits and in accordance with law. [S. 143(3) 154, 192]

Sankaranarayanan Rajshekar v. DCIT (2020) 269 Taxman 105 (Mad.)(HC)

S. 197 : Deduction at source-Certificate for lower rate-Payment to non-resident-Assessee proposing certificate for deduction at lower rate and department issuing certificate in those terms- Assessee cannot challenge certificate and seek deduction at nil rate. [S. 195, Art.226]

National Petroleum Construction Co. v. DCIT (2020) 421 ITR 24/ 312 CTR 217 / 185 DTR 57/ 271 Taxman 150 (Delhi) (HC).Editorial : National Petroleum Construction Co. v. Dy. CIT (2022)446 ITR 382 (SC) matter referred to larger Bench .

S. 194C : Deduction at source-Contractors-Contract for sale of goods-Agreement for bulk sale of advertising space — Provision is not applicable.

Times VPL Ltd. v. CIT (2020) 421 ITR 170/312 CTR 284/185 DTR 139/ 275 Taxman 176 (Karn.)(HC)

S. 194C : Deduction at source-Contractors-Channel placement fee- Payment to cable operators for channel placement fee was subject to deduction of tax at source u/s. 194C and not under S. 194J of the Act. [S. 194J]

PCIT v. Star Entertainment Media (P.) Ltd. (2020) 269 Taxman 66 (Bom.)(HC)

S. 194C : Deduction at source-Contractors-Failure to file TDS related documents at the time of filing of return of TDS- Procedural law-Fine can be imposed- Expenses cannot be disallowed-Matter remanded to the AO for readjudication. [S. 40(a)(ia), 194C(6), 194C(7), 254(2), 260A]

Dilip Kumar v. ACIT (2020) 269 Taxman 93/196 DTR 199 / 317 CTR 901 (Mad.)(HC)