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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Chartered Accountants Act, 1949

S. 21: Misconduct -Disciplinary Directorate-Multinational Accounting Firms ( MAFs)- Union of India was to be directed to constitute a Committee of Experts in order to look in to function of Multinational Accounting Firms ( MAFs) [ S. 25, 29 ]

S. Sukumar v Secretary , Institute of Chartered Accountants of India ( 2018) 254 Taxman 37 ( SC)

Advocates Act ( 25 of 1961)

S. 29: Practice of law – Foreign law firms and foreign lawyers cannot set up offices and practice in India , however they can give advice to Indian clients on ‘fly in and fly out’ mode on temporary basis . [ S. 24(1)(a), 47 (2) ]

Bar Council of India v. A.K.Balaji and others , AIR 2018 SC 1382

S. 271(1)(c) : Penalty – Concealment -Donation-Withdrawal of claim on alleged bogus donation and filing the revised return disclosing the alleged bogus donation- Deletion of penalty was held to be valid .[ S. 35(1)143(3) , 148 ]

CIT v. Man Industries Ltd ( 2018) 164 DTR 165 ( Bom) ( HC)

S. 260A : Appeal – High Court -Formulation of additional substantial question of law – Court has the power to frame an additional substantial question of law even at the time of hearing of appeal [ S.32, 80HH, 260A(4 )]

CIT v. Auto Mobile Corporation of Goa Ltd ( 2018) 405 ITR 310/ 164 DTR 168 ( Bom) (HC)

S. 239 : Refunds – Limitation -CBDT-Tax deduction at source -Delay in filing of return ,matter was remanded to CIT to consider the genuine hardship being the charitable institution [ S.12A, 119(2)(b) , 139 ]

Yash Society v.CIT ( 2018) 301 CTR 729 ( Bom) (HC)

S. 92C : Transfer pricing – Arm’s length price -Interest on loan to Associated enterprise- Rate of interest being charged in the country where the loan is received or consumed .

CIT v. The Great Eastern Shipping Co Ltd ( 2018) 301 CTR 662 / 163 DTR 510 ( Bom)(HC)

S. 80P : Co-operative societies -Interest on fixed deposits-Interest was held to be deductible [ S.80P(2)(a)(i)]

ACIT v. Central Bank of India Employees Co-Operative Society Ltd ( 2018) 63 ITR ( Trib) 283 ( Kol) ( Trib)

S.68: Cash credits- Share application money-Existing share holders- Confirmation and other details were filed -Addition as undisclosed was held to be not justified .

ITO v. Dhanalaxmi Equipment P. Ltd ( 2018) 63 ITR ( Trib) ( S.N.)33 / 165 DTR 177 (Jaipur) ( Trib)

S. 68: Cash credits- Sale of shares – Offline transactions- Merely on the ground that six companies failed to reply to notices issued to them, addition was held to be not justified . [ S. 133(6)]

Kesha Appliances Pvt. Ltd v. ITO ( 2018) 63 ITR ( Trib) 294 ( Delhi) (Trib)

S. 68: Cash credits- Share application- The assesse explained the source of money received and was not answerable for source of the money in the hands of investors .

Prachan Fashion House P. Ltd v. ITO ( 2018) 63 ITR ( Trib) (S.N.) 54 (SMC)(Delhi) ( Trib)