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. 4 : Charge of income-tax-Service charges-Reassessment-After the expiry of four years-Difference between TDS certificate and amount shown-Reassessment is held to be not valid. [S. 143(2), 147, 148]

CIT v. B. Suresh Kumar (2020) 430 ITR 60 / 120 taxmann.com 404 / 275 Taxman 606 (Mad.)(HC)

S. 4 : Charge of income-tax-Capital or revenue-Non-Compete fee- Prior to 1-4-2003-Restraining it from entering into insurance business on its own-Capital receipt. [S. 28(i)]

Sundaram Finance Ltd. v. ACIT [2020] 119 taxmann.com 288 (Mad.)(HC) Editorial : SLP of revenue is dismissed ,ACIT v. Sundaram Finance Ltd. (2020) 119 taxmann.com 289 / 274 Taxman 217 (SC)

S. 4 : Charge of income-tax-Capital or revenue-NBFC- Waiver of principal component of deposits and debentures-Capital receipts not liable to tax. [S. 28(i)]

Manipal Sowbhagya Nidhi Ltd. v. Dy.CIT (2019) 112 taxmann.com 325 (Karn.)(HC) Editorial : SLP of revenue is dismissed Dy.CIT v. Manipal Sowbhagya Nidhi Ltd. (2019) 112 taxmann.com 326 / (2020) 268 Taxman 329 (SC)

S. 4 : Charge of income-tax-Interest accrued-Grants received from State Government-Not liable to be taxed. [S.144, 147, 148]

Punjab Police Housing Corporation Ltd. v. PCIT (2020) 116 taxmann.com 402 (P&H)(HC)

S. 4 : Charge of income-tax-Compensation-Acquisition of non- Agricultural land-Corporation of Kochi-Compensation received is held to be not taxable. [Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013, S. 96, Land Acquisition Act, 1894]

M. Vishwanathan v. CCIT (2020) 116 taxmann.com 894 / 274 Taxman 411 (Ker.)(HC)

S. 2(22)(e) : Dividend-Deemed dividend-Loan by subsidiary company to holding company-Business purposes-Loan cannot be treated as deemed dividend-No question of law. [S. 260A]

CIT v. ACCEL Ltd. (2020) 429 ITR 36 / 273 Taxman 424 (Mad.)(HC)

Right to Information Act, 2005

2.(j): Right to information – Tax Informer — Tax evasion petition- Not entitled to information regarding progress of investigation following his report.[ Black Money ( Criminal Procedure Code , S. 482, Undisclosed Foreign Income and Assets) and Imposition of Tax Rules Act , 2015 , S. 51, 55 ]

PDIT( Inv) v. Rajiv Yaduvanshi (2020)429 ITR 369 (Delhi)(HC)

Wealth-Tax Act , 1956

S.27A: Appeal -High Court – Monetary Limit — Applicable to wealth tax Appeals . [ S. 2(e ), IT Act , S.260A ]

CIT v. Sushila Devi Kejriwal (Smt.) (2020) 429 ITR 552 ( 2021 ) 201 DTR 333(Mad)(HC) PCIT v. M. Balasubramaniam (2020)429 ITR 556 (Mad)(HC)

Wealth-Tax Act , 1956

S. 2(e ) (a) : Asset — Urban land — Urban land on which construction has been prohibited — Not an asset for purposes of wealth -Tax .[ S.16(3) ]

PCIT v. M. Balasubramaniam (2020)429 ITR 556/ ( 2021 ) 201 DTR 333 (Mad)(HC) CIT v. Sushila Devi Kejriwal (Smt.) (2020) 429 ITR 552 (Mad)

S. 43D : Public financial institutions -Accrual of income — Non-Banking financial company —Interest on non-performing assets — Cannot be assessed on accrual basis . [ S. 36(1) (vii), 36(1)(viia) ]

Bhind District Co-Operative Central Bank Ltd. v Income-Tax Department (2019) 177 DTR 196/309 CTR 316/ (2020)429 ITR 121 (MP) (HC)