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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Transfer of property Act ,1882

S.106: Duration ofn certain lease – Servicing of Notice –Notce sent by registered poat recived back wth report not present -No presumption can be drawn unless something more is proved by cogenet evidence that it was refised. [ Code of Civil procedure ,1908 , Order v , General Clauses Act , 1897 , S 27, Indian Evidence Act ,1872 S.114(f) ]

Rama Nand v. Mulakh Raj & Anr. AIR 2010 (NOC) 921 (P & H)

Land Acquisition Act, 1894

S.5A:Hearing of objections- Natural justice – Objective Application of mind to the objections raised – Officer hearing objection should himself decide objections and give report- Successor decides the case without giving a fresh hearing, the order would stand vitiated having been passed in violation of the principles of natural justice. [ S.5C ]

UOI v. Shiv Raj; AIR 2014 SC 2242

Limitation Act ,1963

S.5: Extension of prescribed period in certain cases – Sufficient cause – Condonation of Delay – Delay of 3671 days – No reason to decline benefit merely due to delay in filing of appeal when in similar cases benefit was derived by similar concerns [ Land Acquisition Act, 1894 ,S. 18, 54]

K. Subbarayudu and Ors. v. The Special Deputy Collector (Land Acquisition) (2017) 12 Supreme Court Cases 840

S. 254(2A): Appellate Tribunal –Stay- Special Bench – Amendment in first proviso to s. 254(2A) by the Finance Act 2020,- whether directory or mandatory – Reference to special Bench .[ S.253 ]

Tata Education and Development Trust v .ACIT (2020) 117 taxmann.com 500 (Mum) (Trib) www.itatonline .org .

S.147: Reassessment – Non -Resident- information from investigation wing of the income tax department- Return the asseeee has shown as resident –Foreign Bank deposits- Reassessment is held to be valid [ S.6(1) ,9(1), 148 ]

Renu T Tharani (Ms) v .Dy.CIT (IT) ( 2020) 184 ITD 565/ 192 DTR 9/ 206 TTJ 521 (Mum) (Trib) www.itatonline.org

S. 69 :Unexplained investments- Cash credits – Sole beneficiary of trust – Foreign Bank depositsThe sum of Rs 196 crore held by HSBC Pvt Bank, Switzerland, in the name of Tharani Family Trust, of which the assessee was a beneficiary, is assessable as the undisclosed income of the assessee. [ S.68 , 147 , 148 ]

Renu T Tharani (Ms) v .Dy.CIT (IT) ( 2020) 184 ITD 565/ 192 DTR 9/ 206 TTJ 521 (Mum) (Trib) www.itatonline.org

S. 10(38) : Long term capital gains from equities -Penny stocks – Produced contract notes, demat statements etc & discharged the onus of proving that the shares were bought and sold -Merely relying upon the statement of investigation wing , the transaction cannot be treated as bogus- Denial of exemption is held to be not valid – Reassessment is held to be valid . [ S.45 , 68 147 ,148 ]

Suresh Kumar Agarwal v. ACIT (2020) 117 taxmann.com 678( Delhi) (Trib) www.itatonline.org

S. 2(22)(e):Deemed dividend- Deeming provision should be construed strictly- Advances given for purely temporary financial accommodation for business purposes does not attract the deeming fiction.

Exotica Housing & Infrastructure Company Pvt. Ltd v . ITO (2020) 82 ITR 46 / 207 TTJ 992 (Delhi) (Trib) www.itatonline.org

S.147: Reassessment- After the expiry of four years- Bogus capital gains- Penny stocks- Information was received from the Investigation Wing of the Income Tax Department- The assessee disclosed the primary facts to the AO & also explained the queries put by the AO- It cannot be said that the assessee did not disclose fully and truly all material facts necessary for the assessment- Reassessment is held to be not valid [ S. 45 , 148 ]

Gateway Leasing Pvt. Ltd v. ACIT ( 2020) 426 ITR 228 / 272 Taxman 255 / 194 DTR 57/ 317 CTR 9/ 272 Taxman 255(Bom) (HC) www.itatonline.org

S. 147 : Reassessment –With in four years- Change of opinion -Book profit- The reasons in support of the notice is the very issue in respect of which the AO had raised a query during the assessment proceedings-The non-rejection of the explanation in the Assessment Order amounts to the AO accepting the view of the assessee, thus taking a view/forming an opinion- Reassessment on a mere change of opinion and would be completely without jurisdiction [ S.115JB , 148, Companies Act , 1956 , S.211(6) ]

ACIT v. Marico Ltd ( 2020) 272 Taxman 179 / 192 DTR 109/ 315 CTR 159 (SC) www.itatonline .org.Editorial : Marico Ltd v ACIT 2019) 311 CTR 865 / 183 DTR 353/ 111 taxmann.com 253 (Bom.) (HC) (Bom(HC ) is affirmed ( WP No 1917 of 2019 21-08 -2019 )