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. 250 : Appeal-Commissioner (Appeals)-Procedure-Recovery of tax-Stay of recovery pending appeals-Department’s inaction on stay application for over six years deprecated-Delay in disposal of stay application-Adjusting refund-Direction to refund excess adjustment and expedite adjudication of pending appeal. [S.143(3), 156, 226, 237, 250(6A); CBDT Instruction No. 1914 dated 21-03-1996; Art. 226]

Mahesh Mathuradas Ganatra v. CPC (2025) 475 ITR 489 (Bom)(HC)

S. 245D : Settlement Commission-Interim Board for Settlement-Settlement pronounced but order not passed-Cessation of Settlement Commission and formation of Interim Board for Settlement-On oath, Vice-President and member of Settlement Commission confirmed conclusion of hearing and pronouncement of settlement-Interim Board directed to pass order under s. 245D(4) accepting settlement as pronounced. [S. 245C(1), 245D(4), Art. 226]

Gagjibhai Bhurabhai Koshiya & Ors. v. Interim Board of Settlement & Anr. [2024] 161 taxmann.com 48 / (2025) 475 ITR 249 (Guj)(HC)

S. 245D : Settlement Commission-Settlement of cases-Cash credits-Share application-Order of Settlement Commission accepting claim for deduction need not be interfered with-Order of Settlement Commission holding that addition of unsubstantiated share capital under s. 68 would not qualify for deduction under s. 80-IC set aside-Section 115BBE (introduced later) not applicable; assessee entitled to special deduction. [S. 68, 80-IC, 115BBE, 245D(3), 245D(4), Art. 226]

Valley Iron and Steel Co. Ltd. v. PCIT [2024] 161 taxmann.com 72 / (2025) 475 ITR 231 (Delhi)(HC)

S.37(1): Business expenditure-Construction business-Order of Tribunal deleting the disallowance was affirmed.[S. 260A]

PCIT v. Keti Construction Ltd [2024] 162 taxmann.com 278 / (2025) 475 ITR 182 (MP) (HC)

S. 32 : Depreciation-Pipeline installation-Contingent liability
Disallowance justified where liability towards port authorities was contingent and not crystallized-No substantial question of law. [S. 260A]

Petronet V. K. Ltd. v. Asst. CIT (2025) 475 ITR 494 (Guj)(HC)

S.14A : Disallowance of expenditure-Exempt income-No exempt income-No disallowance can be made-Amendment in law will be applicable prospectively from 1-4-2022. [S. 260A, R.8D]

PCIT v. Keti Construction Ltd [2024] 162 taxmann.com 278 / (2025) 475 ITR 182 (MP) (HC)

S. 11 : Property held for charitable purposes-Investment-Exemption-Purchase of shares of subsidiary-Non-profit entity-Pursuant to Government policy and TRAI recommendations-No violation Exemption allowable. [S. 11(5), 12, 13(1)(d), 260A, Companies Act, 1956, S. 25]

CIT v. Indian Broadcasting Foundation (2025) 475 ITR 580 / 173 taxmann.com 311 (Delhi)(HC)

S. 9(1)(vi) : Income deemed to accrue or arise in India-Royalty
Payments for purchase of licensed software not taxable as royalty. [S. 260A]

Sasken Communication Technologies Ltd. v. ITO (IT) (2025) 475 ITR 516 (Karn)(HC)

S. 254(1) : Appellate Tribunal- Powers- Tribunal remanding matter with cost – Cost of ₹50,000 imposed on small trader held to be harsh and unjustified – Order of Tribunal set aside . [ S. 250(6) ,254(2B), 260A ]

Abdul Mannan v. ITO(Cal)(HC) www.itatonline .org . Editorial : Order of Tribunal in Abdul Mannan v. ITO , ITA No. 738/Kol/ 2025 dt .15 -7 -2025(SMC) ( AY. 2017 18 ), levying cost of Rs .50,000/ was set aside .

S. 250 : Appeal – Commissioner (Appeals) – Procedure – Time bound disposal of appeals) – Delay in disposal of appeals – Pending for five years – Stipulation of one year period for disposal of appeal in provisions of section 250(6A) – Legislative intent – Inordinate delay would defeat objective of provision -If the appeal was not disposed within this period, the reasons for such delay must be explicitly recorded in the orders, so as to reflect whether the delay was attributable to the assessee or the Department and efforts should be made to decide the appeals maximum within a period of two years – Commissioner (Appeals) directed to decide appeal within three months from date of order of court – The Registry was directed to send a copy of this order to Union of India, the Central Board of Direct Taxes, the Commissioner (Appeals), the Assistant Commissioner and the Principal Commissioner (Central) for necessary compliance. [ S. 246A , 250(6A) , Art. 226.]

Kulwinder Paul Singh v .CBDT (2025) 475 ITR 371/ 173 taxmann.com 358 (P & H) (HC)