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. 10(17A) : Awards and rewards in cash or kind – Award for meritorious service in Public Interest —Approval of State Government or Central Government is not mandatory – Approval is implied .

K. Vijaya Kumar v. PCIT (2020) 422 ITR 304/ 271 Taxman 188/107 CCH 0467/ 191 DTR 179 / 315 CTR 572 (Mad)(HC)

S. 10(15) :Interest payable- Interest on Foreign currency loan Specified securities – Loan utilised for repayment of domestic loan taken towards working capital- Exemption cannot be denied . S.10(15)(iv)(f)

CIT v. Seven Seas Distillery (Pvt.) Ltd. (2020)422 ITR 229 / 185 DTR 105/ 312 CTR 272 / 271 Taxman 229(Mad) (HC)

S. 4 : Charge of income-tax – Interest- Surplus of Government grant- Interest earned -Not assessable as income .[ S.2(24) (i) ]

PCIT v. Punjab Police Housing Corporation Ltd. (2020)422 ITR 244 / 107 CCH 0457 / 195 DTR 150/ 317 CTR 838(P&H) (HC)

S. 4 : Charge of income-tax – Interest- Surplus of Government grant- Interest earned -Not assessable as income .[ S.2(24) (i) ]

PCIT v. Punjab Police Housing Corporation Ltd. (2020)422 ITR 244 / 107 CCH 0457/195 DTR 150 / 317 CTR 838(P&H) (HC)

Benami Transactions (Prohibition) Amendment Act, 2016.

S.2(9) (a): Benami – No Procedure For Declaring Property Benami under Act of 1988 — Amendment Act not made retrospective — Prosecution in respect of Transaction In 2011 is held to be not valid [ Benami Transactions (Prohibition) Act, 1988, 3 , 5 , 8, General Clauses Act, 1897 S.6 (c ) ]

Ganpati Dealcom Pvt. Ltd. v. UOI (2019) 106 CCH 0420 /(2020) 421 ITR 483/ 269 Taxman 489 (Cal)(HC)

S. 276C : Offences and prosecutions – Wilful attempt to evade tax – The pendency of assessment proceedings cannot act as a bar to institution of prosecution – Framing the charge is held to be valid [ S .(2(16) 116 , 277 , 279 Constitution of India , Art , 13 Code of Criminal Procedure, 1973, S.245(2), Indian Penal Code , 1860 , S 120B , 193, 199 ]
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D. K. Shivakumar v. Income-Tax Department (2019) 106 CCH 0177 /(2020) 421 ITR 529 /191 DTR 240/ 316 CTR 302(Karn) (HC) Rajendra N. v. Income-Tax Department (2020)421 ITR 529/ 191 DTR 240 / 316 CTR 302(Karn) (HC) Anjaneya Hanumanthaiah v. Income-Tax Department (2020)421 ITR 529/191 DTR 240 / 316 CTR 302(Karn) (HC)

S. 271(1)(c) : Penalty – Concealment – Inadvertent error- Failure to disallow the unpaid interest – Levy of penalty is held to be not justified .[ S.43B( e ) ]

CIT v. Celebrity Fashions Ltd. (2019) 105 CCH 0499 / (2020)421 ITR 458 (Mad)(HC)

S. 263 : Commissioner – Revision of orders prejudicial to revenue -Export business- No proper bifurcation of direct and indirect cost -Revision is held to be valid [ S.80HHC , 260A ]

Narasus Coffee Company v. JCIT (2019) 104 CCH 0728 / (2020)421 ITR 445 (Mad)(HC)

S. 147 : Reassessment -Audit objection – Depreciation- -Business or commercial rights of similar nature – Notice of reassessment based solely on audit objection is held to be not valid. [ S. 32 , 148 ]

Mobis India Ltd v. Dy. CIT, LTU-II (2018) 101 CCH 0475 /(2020)421 ITR 463 (Mad)(HC)

S.147 : Reassessment –With in four years- Cash credits – Share premium – Accommodation entries- Subsequent discovery that the transaction was with a name Lender — Notice of reassessment is held to be valid. [ S.68 148 ]

RDS Project Ltd. v .ACIT (2020) 421 ITR 624 / 185 DTR 180/ 312 CTR 345 / 269 Taxman 327 (Delhi)(HC)