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. 144C : Reference to dispute resolution panel-Assessment-Limitation-Draft assessment order-Objections a day late-And Dispute Resolution Panel dismissing objections as filed late-Assessing Officer is bound to complete assessment within a month from last date for filing objections-Order passed beyond that date ultra vires.[S.143(3)]
Dilipkumar Jashbai Patel v. Asst. CIT (IT) (2023)107 ITR 79 (SN) (Ahd)(Trib)
S. 143(3) : Assessment-Amalgamation-Intimation to Department with the copy of order approving merger-Order passed in name of non-existent entity void and set aside.
Rahil Marketing P. Ltd. v Dy. CIT (2023)107 ITR 48 (SN) (Ahd)(Trib)
S. 143(3) : Assessment-Entries in the books of account-Sale of land-Entries in books is not conclusive-Right income should be taxed in right hands, under right head of income in right year of assessment-Addition as undisclosed income is deleted. [S. 4, 69, 133(6), 145]
Economical Credit and Construction Co. P. Ltd. v. ITO (2023)107 ITR 51 (SN) (Delhi)(Trib)
S. 143(3) : Assessment-Unaccounted expenditure and receipts-Only profit element in unaccounted business receipts and net result of unaccounted receipts and expenditure could be brought to tax-Assessment made substantively in hands of company-Protective addition in hands of director is deleted-Certificate from Gram Panchayat secondary evidence-Primary Evidence of crops, income and expenses unavailable-Fifty Per Cent. treated as agricultural income-Balance treated as income from other sources-Cash available in hands of group-Set off to be permitted-If sufficient cash available after set off and adjustments-No addition is permissible-Depreciation-Value of addition to block-Addition of differential depreciation is deleted. [S. 5, 10(1), 32 56, 69]
Pravinchandra R. Patel v. Dy. CIT (2023)107 ITR 34 (SN)(Ahd) (Trib) Ansuben P.Patel (Smt) v. Dy. CIT (2023)107 ITR 34 (SN)(Ahd) (Trib)
S. 143(3) : Assessment-Search-Income from undisclosed sources-Jewellery discovered in search-Assessing Officer cannot make separate addition over and above excess identified in search-Rate of tax-Penalties-Levy of tax under section 115BBE not in accordance with law. [S. 5, 69, 115BBE, 132, 132(4), 271AABB, 271AAC]
Sandeep Sethi v. Dy. CIT (2023)107 ITR 311 /223 TTJ 294 / 226 DTR 148 (Jaipur) (Trib) Rajiv Nigotiya v. Dy. CIT (2023)107 ITR 311 /223 TTJ 294 / 226 DTR 148 (Jaipur) (Trib)
S. 143(3) : Assessment-Powers-Tribunal remanding matter to Assessing Officer to consider whether certain receipts constitute fees for technical services-Assessing Officer treating receipts as royalty-Beyond scope of remand-Reimbursement of expenses for use of software-Not fees for technical service-DTAA-India-USA [S. S. 9(1)(vi), 9(1)(vii), art. 13(4)]
Foseco International Ltd. v. CIT (Appeals) (2023)107 ITR 222 (Mum) (Trib)
S. 143(1) : Assessment-Intimation-Employees contribution to Provident fund and Employees’ State Insurance-Matter restored to Assessing Officer for verification-If Employees contribution had been remitted within due date from end of month in which salary disbursed entitled to relief. [S.143(1)(iv)]
P. P. Telecell Marketing P. Ltd. v. Dy. CIT (2023)107 ITR 401 (Delhi) (Trib)
S. 139 : Return of income-Foreign tax credit-Assessment-Benefit of tax paid in Kazakhstan is directed to be allowed.[S.139(4) 143993) Rule, 128(9), Form No 67]
Milind Moreshwar Pimpalkhare v. Dy. DIT (2023)107 ITR 73 (SN)(Pune) (Trib)
S. 133A : Power of survey-Surrender of income-Unexplained money-Unexplained expenditure-Excess stocks-Excess stock chargeable to tax as business Income-Deduction of partners’ remuneration allowable against income surrendered.[S. 40(b), 69A,69C.]
ITO v. Riddhi Siddhi Jewellers (2023)107 ITR 662 (Rajkot)(Trib)
S. 92C : Transfer pricing-Arm’s length price-Avoidance of tax-International transaction-Employees’ Stock Option Plan Expenses-Purpose of granting employees restricted stock units to retain and motivate them to continue employment with assessee-Arm’s length price of employees stock option plan expenses could not be taken as nil-Arm’s length price and transfer pricing adjustment, if any, to be recomputed following method adopted by assessee.
Booking.Com India Support and Marketing Services P. Ltd. v. Dy. CIT (2023)107 ITR 17 (SN)(Mum) (Trib)