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. 147 : Reassessment–Method of accounting-Full and true disclosure of all material facts regarding change in method of accounting in respect of Non-Performing Assets (NPAs) at time of assessment itself-Reassessment is held to be bad in law. [S. 145, 148]

PCIT v. Punjab and Sind Bank. (2019) 108 taxmann.com 351 / 265 Taxman 538 ( Delhi) (HC) Editorial: SLP of revenue is dismissed, PCIT v. Punjab and Sind Bank. (2019) 265 Taxman 537 (SC)

S. 147 : Reassessment-Survey-Merely on the basis of statement of partner addition cannot be made in respect of difference between stamp valuation and sale price of property on basis of such offering made by partner-Reassessment was quashed. [S. 43C, 45, 133A, 148]

Zain Constructions. v. ITO (2019) 265 Taxman 82 (Mag.) (Bom.) (HC) / Editorial, SLP of revenue is dismissed (2020) 269 Taxman 274 (SC)

S. 147 : Reassessment–With in four years-Change of opinion Interest income-Income from other sources–Adjustment of interest income against interest expenditure and remaining amount was transferred to work-in-progress account-Reassessment is held to be not valid. [S. 56, 148]

Rubix Trading (P.) Ltd. v. ITO. (2019) 108 taxmann.com 176 /265 Taxman 424 174 DTR 1 / (2020) 421 ITR 330/314 CTR 876 (Bom.) (HC) Editorial: SLP of revenue is dismissed, CIT v. Rubix Trading (P.) Ltd. (2019) 265 Taxman 423 (SC)

S. 145 : Method of accounting–Stock valuation-Cash credit limits-Discrepancy in stock as per books of account of assessee and that shown in bank statements–Deletion of addition is held to be justified.

PCIT v. Janam Steel and Alloys (2019) 108 taxmann.com 349 / 265 Taxman 552 (Guj.)(HC) Editorial : SLP is granted to the revenue; PCIT v. Janam Steel and Alloys (2019) 265 Taxman 551 (SC)

S. 145 : Method of accounting–Stock valuation of gold-LIFO method of valuation–Recognised in law–No substantial question of law. [S. 260A]

CIT v. Sharad Mohanlal Shah (2019) 108 taxmann.com 35 (Guj.) (HC) Editorial: SLP of revenue is dismissed, CIT v. Sharad Mohanlal Shah. (2019) 265 Taxman 539 (SC)

S. 145 : Method of accounting–Trading in rice-Assessing Officer was justified in accepting two entries relating to profits and disregarding other two entries concerning losses.

Marhur Marketing (P) Ltd. v. CIT (2006) 281 ITR 379/ 151 Taxman 123 (Delhi ) (HC) Editorial : SLP of assessee is dismissed, Mathur Marketing (P.) Ltd. v. CIT (2019) 265 Taxman 316 (SC)

S. 144 : Best judgment assessment–Statutory remedy of appeal is available-Writ is held to be not maintainable. [S. 246, Art. 226]

Ram Pal Singh v. CIT (2019) 265 Taxman 51 (Mag.) (Uttarakhand)(HC)

S. 143(2) : Assessment–Notice–Issue of notice beyond period prescribed in proviso to S.143(2)–Assessment is barred by limitation.

Bihar Police Building Construction Corporation (P.) Ltd. v. P CIT (2019) 265 Taxman 373 / (2020) 187 DTR 449/ 313 CTR 806(Patna) (HC)

S. 143(2) : Assessment–Notice-Non service of notice with in limitation period–Order is bad in law-Provision of S.292BB cannot be invoked since assessee neither appeared nor co-operated in inquiry during assessment proceedings as the order was passed u/s. 144 of the Act. [S. 144 , 292BB, Art. 226]

Nittur Vasanth Kumar Mahesh v. ACIT (2019) 265 Taxman 277/ 311 CTR 332/ 183 DTR 150 (Karn.)(HC)

S. 115JA : Book profit-Provision for bad and doubtful debts is a provision for unascertained liability, and thus, same could not be excluded while computing book profits-Provision made for payment of purchase tax, payment of purchase tax on cane subsidy and provision for wealth tax, in anticipation of Government Notification, were provisions for unascertained liability, liable to be added back while computing book profits. [S. 36(1)(vii)]

EID Parry (India) Ltd. v. ACIT (2019) 265 Taxman 454 / (2020)425 ITR 508 (Mad.)(HC)