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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Hindu Succession Act, 1956
S. 6: Equal right of a daughter in HUF – Devolution of interest in coparcenary property – Confers status of coparcener on daughters, even if born prior to the amendment, with effect from 9.9. 2005 – Amendment is retrospective. [ Hindu Succession (Amendment) Act, 2005 ]

Vineeta Sharma v. Rakesh Sharma & Ors ( 2020) 9 SCC 1(SC) www.itatonline.org / MANU/SC/0582/2020

Central Excise Act, 1944

S.4: Excisable valuation of goods for charging of duty of excise – Assessment – Relief – Rights of an assessee – Wrong mention of section would not be ground to refuse relief to an assessee if he is otherwise entile thereto .[Central Excise tariff Act , 1985 , Rule 57A ]

Shree Hari Chemicals Export Ltd. v. UOI & Anr. (2006) 1 SCC 396 / AIR 2006 SC 693 / (2005) 193 ELT 257 (SC)

S. 147 : Reassessment – After the expiry of four years- Share capital – At the stage of re-opening, only a reason to believe should exist with regard to escapement of income. Definite conclusion would be drawn after raising queries upon the assessee in the light of S. 68 of the Act- Reopening is held to be justified -Sanction -Not required to provide elaborate reasons while approving the sanction -Succession – No requirement to issue two separate notices in name of amalgamated company as successor-in-interest of amalgamating company and to amalgamating company in its individual capacity, [ S.68, 148 ,151 170, Art , 226 ]

Experion Developers Pvt Ltd v ACIT v ACIT ( 2020) 422 ITR 355 / 115 taxmann.com 338 /187 DTR 129/ 313 CTR 384 ( Delhi) (HC) www.itatonline .org Experion hospitality pvt ltd v ACIT v ACIT ( 2020) 422 ITR 355 / 115 taxmann.com 338 /187 DTR 129/ 313 DTR 384( Delhi) (HC) www.itatonline .org

Indian Registration Act, 1908

S.17 : Documents which registration is compulsory – Family arrangement -A memorandum of settlement does not require registration- Order of High Court is set aside .

Ravinder Kaur Grewal & Ors v. Manjit Kaur & Ors (SC) www.itatonline.org

S. 56: Income from other sources -Consideration for issue of shares- Excess of the face value of shares- Market value – Method of valuation- The Assessee has the choice to choose a prescribed method for ascertaining the market value of the shares transferred- If the assessee has chosen one method of valuation provided under Rule 11UA (i.e. DCF method), the AO has no power or jurisdiction to change that method to another method- Addition is deleted . [ S.56(2) (viib) , R.11UA ]

Karmic Labs Pvt. Ltd v. ITO (2020) 81 ITR 78 (SN)( Mum) (Trib) www.itatonline .org

S. 147 : Reassessment –With in four years-Change of opinion – No new tangible material – “freebies” to doctors – sales promotion expenses -The code of conduct prescribed by the Medical Council is applicable only to medical practitioners/ doctors registered with the MCI and does not apply to pharmaceutical companies & the healthcare sector in any manner- Reassessment is held to be not valid . [ S.37(1), 148 ]

Medley Pharmaceuticals Ltd v ITO (2020) 118 taxmann.com 44.(Mum) (Trib) www.itatonline.org

S. 40(a)(ia): Amounts not deductible – Deduction at source – Failure to deduct tax at source – Payment exceeding Rs 20,000 to each truck owners – Contract with a cement factory to transport cement with truck owners is a sub-contractor- – Disallowance is not limited only to amount outstanding and this provision equally applies in relation to expenses that had already been incurred and paid by assessee- S. 40(a)(ia) as introduced by Finance (No.2) Act, 2004 with effect from 1-4-2005 is applicable to and from assessment year 2005-06- Disallowance is held to be justified . [ S. 40A(3) , 194C ]

Shree Choudhary Transport Company v . ITO ( 2020) ( 2020) 426 ITR 289 / 192 DTR 161/ 315 CTR 849/ 272 Taxman 272 (SC) www.itatonline.org Editorial; Affirmed the order in Shree Choudhary Transport Company v . ITO [2009] 225 CTR 125 (Raj ) (HC) ( ITA No 117 /JU / 2008 dt 29-08 -2008 ) followed , Palam Gas Service v. CIT (2017) 394 ITR 300( SC) Distinguished CIT v. Hardarshan Singh [2013] 350 ITR 427/ 216 Taxman 283 / 263 CTR 466 (Delhi) (HC) PIU Ghosh v. DY CIT. [2016] 386 ITR 322/ 73 taxmann.com 226 /(2017) 295 CTR 340 ( Cal) (HC) , CIT v. Calcutta Export Company [2018] 404 ITR 654/ 255 Taxman 293 /302 CTR 201 ( SC )

S. 37(1) : Business expenditure –”freebies” to doctors – sales promotion expenses -The code of conduct prescribed by the Medical Council is applicable only to medical practitioners/ doctors registered with the MCI and does not apply to pharmaceutical companies & the healthcare sector in any manner-Expenditure is held to be allowable -Re assessment with in four years – Change of opinion – Held to be not valid [ S 371(1) , Explanation, .147 , 148 ]

Medley Pharmaceuticals Ltd v ITO. (2020) 118 taxmann.com 44(Mum) (Trib) www.itatonline.org

Notaries Act,1952 , S. 14

S.14:Reciprocal arrangements for recognition of notaries Acts done by foreign notaries – Presumption as to power of attorney- Document executed and authenticated before Notary Public of Singapore – Document cannot be judicially recognized. Winding up petition based on the power of Attorney executed before the Notary of Singapore is held to be not valid as per Indian law. [ Indian Evidence Act 1872, S.85 ]

Rei Agro Ltd & Ors. AIR 2015 Calcutta 54 (HC)

S. 260A : Appeal – High Court – High court shall formulate question and may then pronounce judgment either by answering question in affirmative or negative – If High Court wishes to hear appeal on any other substantial question of law not formulated by it, it may, for reasons to be recorded, formulate and hear such questions if it is satisfied that case involves such question. [ S. 4, , 28(ii)(a), Code of Civil Procedure 1908, S.100 ]

Shivraj Gupta v .CIT ( 2020) 425 ITR 420/ 272 Taxman 391/ 315 CTR 601/ 192 DTR 20 ( SC) www.itatonline .org Editorial : CIT v Shiv Raj Gupta (2014) 52 taxmann.com 425 / [2015] 372 ITR 337 / 273 CTR 353 (Delhi) (HC) (Delhi) (HC) reversed. Followed Guffic Chem (P.) Ltd. v. CIT (2011) (2011) 332 ITR 602 / 239 CTR 225 / 52 DTR 289 / 198 Taxman 78 / 225 Taxation 383 (SC) / 4 SCC 254.