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. 147 : Reassessment–Based on facts of later assessment year– Tangible material-Reassessment is held to be valid-Income derived from installation and maintenance of Atm Machines—Not entitled to deduction u/s. 80IA. [S. 80IA, 143(1), 143(3), 148]

Diebold Systems Private Limited v. ITO (OSD) (2019) 419 ITR 333 (Mad.)(HC)

S. 147 : Reassessment-Capital gains–Cash sales-Failure to disclose material facts – Notice of reassessment is held to be valid. [S. 45, 48 148, Art.226 ]

J.P. Iscon Ltd. v. Dy. CIT (2019) 267 Taxman 481 / 111 taxmann.com 260 (Guj.)(HC) Editorial: SLP is granted to the assessee, J.P. Iscon Ltd. v. Dy. CIT (2019) 267 Taxman 480 (SC)

S. 147 : Reassessment-Notice-Non disposal of assesses objections-Direction u/s 144A-Assessment without disposing the objection is held to be bad in law-AO is directed to pass the reasoned order after considering the objection. [ S. 144A, 148, Art. 226]

Swadesh Trading Co. v. DCIT (2019) 182 DTR 81 / 310 CTR 810 (Karn.)(HC) Swadesh Trading Co. v. D CIT (2019) 182 ITR 85 / 310 CTR 814 (Karn.)(HC)

S. 147 : Reassessment-After the expiry of four years-Amounts not deductible-Deduction at source–Objection by audit party– Reassessment at the instance of the Audit officer is held to be bad in law. [S. 40)(a)(ia), 148]

PCIT v. Lalit Bagai (2019) 267 Taxman 443 /(2020) 188 DTR 144 (Delhi)(HC)

S. 147 : Reassessment-After the expiry of four years-No duty to disclose investments-Notice for failure to disclose investments is held to be not valid.[S. 148, Art. 226]

Bhavik Bharatbhai Padia v. ITO (2019)419 ITR 149 (Guj.)(HC)

S. 147 : Reassessment-After the expiry of four years-Without there being any element of lack of true and full disclosure on the part of the assessee-Reassessment notice is held to be bad in law. [S. 115-O, 148]

Firstsource Solutions Ltd. v. Dy.CIT (2019) 176 DTR 151 (Bom.)(HC)

S. 145A : Method of accounting – Valuation – Excise duty though not paid is liable to be included in valuation of closing stock. [S. 145A(b)]

Kisan Sahkari Chini Mills Ltd. v. CIT (2019) 267 Taxman 384 / 111 taxmann.com 384 (All.)(HC) Editorial: SLP is granted to the assessee, Kisan Sahkari Chini Mills Ltd. v. CIT (2019) 267 Taxman 383 (SC)

S. 145 : Method of accounting–Suppression of sales-Revenue was not able to show any defect in assessee’s records or in books of account maintained by assessee-Rejection of books of account is held to be not justified-Deletion of addition on account of suppression of addition is held to be justified. [S. 43CA, 50C, 145(3)]

PCIT v. Swananda Properties (P.) Ltd. (2019) 267 Taxman 429 (Bom.)(HC)

S. 145 : Method of accounting–Real estate developer-Project completion method-Addition on the basis of percentage completion method is held to be not justified. [AS-7]

PCIT v. Panchsheel Colonizers (P.) Ltd. (2019) 267 Taxman 571/ 111 taxmann.com 459 (Raj) (HC) Editorial : SLP is granted to the revenue, PCIT v. Panchsheel Colonizers (P.) Ltd. (2019) 267 Taxman 570 (SC)

S. 143(3) : Assessment-Acquittal in Criminal proceedings would not justify deletion of additions to income based on facts-Matter remanded to the AO for fresh enquiry. [S. 254(1) ]

CIT v. R. N. Jayaprakash (2019)419 ITR 252 / (2020) 269 Taxman 527 (Mad.)(HC)