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. 271B : Penalty-Failure to get accounts audited–Civil contractor– Failure to keep and maintain books of account-No prescribed format for maintenance of books of account-Levy of penalty is not justified either u/s 271A or u/s 271B of the Act. [S. 44AB, 271A]

Harshvardhan v. Dy. CIT (2020)77 ITR 81 (SN) / 195 DTR 145/ 206 TTJ 894 (Bang.)(Trib.)

S. 271AAB : Penalty-Search initiated on or after Ist day of July 2012-In statement admits undisclosed income and specifies manner in which such income derived-No undisclosed income-Penalty not leviable. [S. 132(4)]

Harshvardhan v. Dy. CIT (2020) 77 ITR 81 (SN)/ 195 DTR 145/ 206 TTJ 894 (Bang.)(Trib.)

S. 271AAB : Penalty-Search initiated on or after Ist day of July 2012-Concealment–Search and seizure–Undisclosed income-Disallowances cannot automatically lead to penalty–levy of 10% penalty is held to be not valid. [S. 132, 271(1)(c)]

Ajanta Pharma Ltd. v. Dy. CIT (2020) 77 ITR 555 / 187 DTR 159/ 204 TTJ 341 (Mum.)(Trib.)

S. 271(1)(c) : Penalty–Concealment-Receipt of additional income not disclosed prior to search-Levy of penalty is justified–AO not sure on which count he intends to levy penalty-Two situations contradictory to each other-Returned and assessed income the Same and revised income accepted-Levy of penalty is not justified. [S. 132, 153A]

Dr. Subash Chandra Jena v. ACIT (2020)77 ITR 44 (SN) (Cuttack) (Trib.)

S. 271(1)(c) : Penalty–Concealment–Long term capital gains-Search-Addition on account of difference between the rate adopted by assessee and department-levy of penalty is held to be not justified. [S. 132, 139, 153A, 271(1)(c), Expl. 5A, 274].

Lopa Pankaj Dave (Smt.) v. Dy.CIT (2020) 77 ITR 29 (SN) (Ahd.)(Trib.) Manubhai Bhailal Patel (Late) v. Dy. CIT (2020) 77 ITR 29 (SN) (Ahd.)(Trib.) Ramanbhai Bhailal Patel (Late) v. Dy. CIT (2020) 77 ITR 29 (SN) (Ahd.)(Trib.) Prabhaben M. Patel (Smt.) v. Dy. CIT (2020) 77 ITR 29 (SN) (Ahd.) (Trib.)

S. 271(1)(c) : Penalty–Concealment–Vague allegation-Not specifying specific charge-0levy of penalty is not valid. [S. 274]

Harshvardhan v. Dy. CIT (2020)77 ITR 81 (SN) / 195 DTR 145/ 206 TTJ 894(Bang.)(Trib.)

S. 271(1)(c) : Penalty–Concealment-Inapplicable words in notice not struck off-Penalty order not specifying exactly under which limb penalty is levied-Penalty is held to be unjustified. [S. 274]

Dibyajyoti Chemicals P. Ltd. v. Dy.CIT (2020) 77 ITR 40 (SN) (Cuttack) (Trib.)

S. 271(1)(c) : Penalty–Concealment–Survey–Surrender of income– No difference between returned income and assessed income– Penalty is not leviable–As regards non disclosure of rental income-Penalty is leviable. [S. 22, 133A]

Rajendra Shringi v. Dy. CIT (2020) 77 ITR 85 (SN) (Jaipur)(Trib.)

S. 271(1)(c) : Penalty-Concealment-Sale of fixed asset-Slump sale-Amount not offered as income-Levy of penalty is justified-Not striking off relevant limb of notice–Reply filed in response to notice –Presumption is that the assessee has understood the notice. [S. 50B, 50C, 274]

Muthukumaran Rangarajan v. ITO (2020) 77 ITR 421/ 185 ITR 365 / 192 DTR 263/ 206 TTJ 746 (Chennai) (Trib.)

S. 263 : Commissioner-Revision of orders prejudicial to revenue-Limitation-Doctrine of merger-Revision on issues not subject matter of reassessment but pertaining to original assessment-Limitation would run from date of order of original assessment and not from date of order of reassessment-Revision barred by limitation. [S. 143(3), 147, 263(2)]

Shyam Steel Manufacturing Ltd. v. Dy. CIT (2020)77 ITR 37 (SN) (Kok.)(Trib.)