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. 37(1):Business expenditure -Contribution to recognized provident fund -Payment of pension to retired employees which had been duly approved and notified by Central Government under ‘Tuticorin’ Port Trust Employees Regulations, 1979, said payment being in terms pf statutory regulation, would fall within general deductions under S. 37(i) and, same could not be brought under S. 36(1)(iv) and (v) of the Act .[ S 36(1)(iv) 36(1) (v) ]

CIT v. V.O. Chidambaranar Port Trust (2019) 266 Taxman 141 / 311 CTR 227(Mad) (HC)

The Prevention of Money Laundering Act, 2002

S. 50(2): Summons- Summons cannot be quashed in Writ proceedings — [ S. 3, 50(3) , Art . 20 ,226 ]

Sachin Narayan. v. Income-Tax Department (2019)417 ITR 641 (Karn)(HC)

S. 271AAA : Penalty – Search initiated on or after 1st June, 2007 – Notice issued u/s 271AAA and subsequent corrigendum issued stating that notice was u/s 271AAB – Notice and subsequent levy of penalty is held to be valid .[ S. 132 ,271AAB ]

Ramgopal Ochhavlal Maheshwari. v. DCIT (2019) 417 ITR 710/ (2020) 187 DTR 417/ 315 CTR 458 (Guj)(HC)

S. 271(1)(c) : Penalty – Concealment – Quantum became final – Jewellery disclosed in the course of search – Matter remanded to the Tribunal to give an opportunity of reconciling quantum of jewellery [ S.132 , 254(1) ]

R. Revathy. v. DCIT (2019) 417 ITR 704/ (2020) 196 DTR 395 (Mad) (HC)

S. 254(2): Appellate Tribunal-Rectification of mistake apparent from the record – Substantial justice – High Court has the power to condone the delay in filing of miscellaneous petition- Matter remanded to Tribunal to decide on merit. [S.254(1) ,271(1)) ( c ) Art .226 ]

Muninaga Reddy. v. ACIT (2019) 417 ITR 699 (Karn)(HC)

S. 240 : Refund – Appeal – On assessment order is set aside –Refund is not automatic – Amount recovered is directed to be refunded with in four weeks from the date of the order passed by the Tribunal , in the event the appeal is decided in favour of the assessee. [S.253(3) ]

CIT v. Bidar Nirmiti Kendra And Another. (2019) 417 ITR 491/ 310 CTR 185 / 266 Taxman 427/ 181 DTR 33 (Karn) (HC) Editorial : Order of single judge in Bidar Nirmiti Kendra. v. CIT (2019) 417 ITR 485/ 310 CTR 220 (Karn)(HC) is partly set aside.

S. 234D : Interest on excess refund – Reduction of refund – Interest on excess refund – Amendment is applicable for regular assessment — Rectification of assessment after 1-6-2003 — Not a regular assessment — Amendment is not applicable . [ S.154 ]

Sundaram Finance Ltd. v. DCIT (2019) 417 ITR 679 /(2020) 189 DTR 406/ 315 CTR 209 (Mad) (HC)

S. 234A : Interest – Default in furnishing return of income – Long term capital gains – Rejection of one’s stand in a legal proceeding cannot be construed as an unavoidable circumstance- Interest cannot be waived . [S. 234B , 234C ]

Tushin T. Mehta (Legal Heir of Late Tushaar Mehta) v. CIT (2019) 417 ITR 529/ 311 CTR 470/181 DTR 281 (Mad) (HC)

S. 222 : Collection and recovery – Certificate to Tax Recovery Officer – Recovery officer can enforce personal attendance of defaulter – High Court rejected the petition on the ground that the assessee had not co-operated in the assessment proceedings. Hence even if the summons under rule 83 were illegal, the conduct of the petitioner disentitled him to any relief. [ Second Schedule , R. 73, 83 , Art .226 ]

Maulikkumar Vinodkumar Patel. v. TRO (2019) 417 ITR 590/ 266 Taxman 221 / (2020) 189 DTR 413/ 316 DTR 65 (Guj) (HC)

S. 220 : Collection and recovery – Stay of demand- Assessee deemed in default –Order confirmed by CIT (A) – Discretion of revenue to grant stay subject to deposit of specified percentage of disputed Amount — Assessee cannot insist on such percentage – Recovery of amount before expiry of period of limitation prescribed for filing an appeal before the Tribunal is held to be valid. [ S. 225,226, 253(3) ]

CIT v. Bidar Nirmiti Kendra And Another. (2019) 417 ITR 491/ 310 CTR 185 (Karn) (HC) Editorial : Order of single judge in Bidar Nirmiti Kendra. v. CIT (2019) 417 ITR 485/ 310 CTR 220 (Karn)(HC) is partly set aside.