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. 127 : Power to transfer cases – Transfer Of Assessments for purpose of Co-ordinated investigation — Reasons not disclosed in orders of transfer — Orders set aside.[ S.132 ,133A]

H. M. Steels Ltd v. PCIT (2019) 103 CCH 0492 /(2020) 422 ITR 160 (P&H)(HC)

S.115WC: Fringe benefits tax — Constitutional validity- Parliament had power to enact Chapter Xii-H under entry 97 of Seventh Schedule to Constitution of India —Not violate of Article 14 of Constitution of India . [ Art , 14 ]

T. T. K. Prestige Ltd. v. UOI (2020)422 ITR 13/ 192 DTR 305/ 316 CTR 33/ 275 Taxman 455 (Karn)(HC)/Karnataka Drugs & Pharmaceuticals Manufacturers Assocition v.UOI (2020)422 ITR 13/ 192 DTR 305 / 316 CTR 33/ 275 Taxman 455 (Karn)(HC)/N.Rnagarao &Sons v .CIT (2020)422 ITR 13/ 192 DTR 305 / 316 CTR 33/ 275 Taxman 455 (Karn)(HC)

S. 80JJA : Bio-degradable waste – Collecting and processing – Deduction allowed for four consecutive years —Deduction cannot be denied for fifth year.

CIT v. Maps Enzymes Ltd. (2020)422 ITR 554/ 193 DTR 318/ 317 CTR 230 (Guj)(HC)

S. 80IA :Industrial undertakings – Production of power —Energy – Power would Include steam – Steam produced can be termed as power and would qualify for the benefits . [ S.80IA(4) ]

PCIT v. Jay Chemical Industries Ltd. (2020)422 ITR 449 / 107 CCH 0459/ 275 Taxman 78 (Guj) (HC)

S.68: Cash credits — Unexplained money — Estimation of gross profit – Day to day stock register is maintained – Deletion of addition is held to be justified . [ S.153A ]

PCIT v. Omprakash Dhanwani (2018) 103 CCH 0493 /(2020) 422 ITR 315 (MP)(HC)

S. 68 : Cash credits – Affidavit filed by the asesssee was not rebutted -Arbitrary rejection of explanation is not proper – Duty Assessing Officer to conduct proper enquiry-Matter remanded

Adhithiya Gears P. Ltd. v .ACIT (2019) 106 CCH 0435 /(2020)422 ITR 218/ 275 Taxman 350 (Mad)(HC)

S. 40(a)(ia): Amounts not deductible – Deduction at source – Payment to truck owners towards freight charges – Commission agent – Form 15I was collected within time -Deletion of disallowance is held to be justified .[ S.194C ]

PCIT v. Dilipkumar Bapusaheb Patole (2020)422 ITR 426 / 107 CCH 0456 / 275 Taxman 449 Guj)(HC)

S. 40(a)(ia): Amounts not deductible – Deduction at source -Recipient has declared the income – No loss to revenue – No disallowances can be made – Amendment with effect from 1-4-2013 is declarative and curative in nature . [ S.271C ]

CIT v. S. M. Anand (2019) 105 CCH 0508/(2020)422 ITR 209 (Karn)(HC)

S. 40(a)(i) : Amounts not deductible – Deduction at source -Non-resident -Interest on foreign currency Loan —Specific exemption from Ministry of Finance for interest —Not liable to deduct tax at source – No disallowances can be made .[ S.10(15)(iv)(f),37(1), 195 ]

CIT v. Seven Seas Distillery (Pvt.) Ltd. (2020)422 ITR 229 / 185 DTR 105/ 312 CTR 272/ 271 Taxman 188 (Mad) (HC)

S.37(1) : Business expenditure — Wholly and exclusively for the purposes of business – Donations made under Corporate Social Responsibility — Held to be deductible — Res Judicata — Not strictly applicable in Income-Tax proceedings — Consistency essential.

PCIT v. Gujarat Narmada Valley Fertilizer and Chemicals Ltd. (2019) 105 CCH 0504 / (2020) 422 ITR 164/ 192 DTR 233/ 316 CTR 722 (Guj) (HC)/Editorial : SLP is granted to the Revenue , PCIT v. Gujarat Narmada Valley Fertilizers & Chemicals Ltd. (2024) 297 Taxman 400 (SC)