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 —Amalgamation – Notice issued against transferor-Amalgamating entity ceases to have existence- Notice and subsequent proceedings unsustainable [ S.148 , Art , 226 ]

Gayatri Microns Ltd. v. ACIT (2020) 424 ITR 288 / 114 taxmann.com 318 (Guj)(HC)Editorial: SLP of revenue dismissed , due to low tax effect , ACIT v. Gayatri Microns Ltd. (2021) 278 Taxman 274 (SC)

S.147: Reassessment —Notice issued in name of dead person — Notice and proceedings invalid [ S.131(IA) 148 ,159 , 292A Art . 226 ]

Durlabhai Kanubhai Rajpara v .ITO (2020) 424 ITR 428 (Guj)(HC)

S.147: Reassessment-After the expiry of four years- There was no failure to disclose material facts — Mere change of opinion — Notice s held to be not valid [ S.148 ]

R. Kantilal and Co. v ITO (2020) 424 ITR 92 (Guj)(HC)

S.147: Reassessment — -After the expiry of four years- Deemed dividend — No obligation to disclose when the assessee was not benefitted .[ S.2(22) ( e ) , 148, Art , 226 ]

Jayesh T. Kotak v. Dy CIT (2020) 424 ITR 435 / 273 Taxman 525 / 116 taxmann.com 426 / 195 DTR 277/ 317 CTR 406(Guj)(HC) Editorial : SLP of revenue dismissed , Dy.CIT v. Jayesh T. Kotak ( 2021 ) 282 Taxman 298 ( SC)

S.147: Reassessment-After the expiry of four years- Purchasing non-performing asset from Bank and receiving payment -Alleged bogus entry provider – Reasons neither supported by an affidavit or oral submission — Notice is held go be invalid . [ S. 148 ]

Asset Reconstruction Company India Pvt. Ltd. v Dy.CIT (2020) 424 ITR 715 (Bom) ( HC)

S.144: Best judgment assessment – Bogus purchases -Hawala entries -Sales tax department – Income from undisclosed sources — Estimate of profits at 5% of bogus based is held to be justified [ S.142(1) ]

PCIT v. Rishabhdev Technocable Ltd. (2020) 424 ITR 338 /187 DTR 473 (Bom)(HC)

S.142(2A): Inquiry before assessment– Special audit– Limitation – Block assessment -Date of order on special audit to be taken and not date on which order was served on the assessee- Order is not barred by limitation . [ S.158BE ]

A. P. Shanmugaraj v Dy CIT (2020) 424 ITR 347/ 186 DTR 43 / 313 CTR 225 (Mad) (HC)

S. 133A :Power of survey -Rejection of books of account and estimation of income – Accommodation entries – Statement of director recorded two Thousand days after survey and not under oath – Merely on the basis of statement addition is held to be not valid [ S.144 ]

PCIT v .Sunshine Import and Export Pvt. Ltd. (2020) 424 ITR 195/ 273 Taxman 173 (Bom) (HC)

S.115QA: Tax on distributed income to share holders- Buy back of shares – Remittances to non-residents- Appeal pending before Supreme Court -Department agreeing to treat communication as show-cause notice — Direction to assessee to file reply thereto and further directions as to continuance of interim orders. [ S. 2(22) (a) , 2(22(d) , 115O, 245Q ]

Cognizant Technology Solutions India Pvt. Ltd. v .Dy. CIT(Large Taxpayer Unit) (2020)424 ITR 302 187 DTR 369/ 313 CTR 510/ 274 Taxman 381 (SC)

S.115JB: Book profit – Interest – Retrospective amendment -Interest is leviable [ S.234B ]

CIT v .Jsw Steel Ltd (2020) 424 ITR 227 /275 Taxman 587 (Karn)(HC)