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. 2(22)(e) : Deemed dividend-Substantial share holding–Sale of flat and a major portion of price remained unpaid by end of previous year–justified in treating said amount as deemed dividend. [S. 260A]

Bhagavathy Velan v. DCIT (2019) 264 Taxman 146/ 187 DTR 364/ 315 CTR 118 (Mad.)(HC)

S. 2(14)(iii) : Capital asset-Agricultural land- Classified as dry land for which Kishtu had been paid- Adjacent land was divided into plots for sale cannot be the ground to reject the claim of the assessee. [S. 45, 260A]

CIT v. Venkateswara Hospital (2019) 106 taxmann.com 282 / 264 Taxman 90 (Mad.)(HC) Editorial : SLP of revenue is dismissed, CIT v. Venkateswara Hospital. (2019) 264 Taxman 89 (SC)

S. 271C : Penalty-Failure to deduct at source-Regular delays on part of assessee in depositing tax deducted at source-Levy of penalty is held to be justified. [S. 273B]

CIT v. Eurotech Maritime Academy (P.) Ltd. v. CIT (TDS) (2019) 415 ITR 463 / 106 taxmann.com 86 / 264 Taxman 22 (Ker.) (HC) Editorial: SLP is granted to the assessee, Eurotech Maritime Academy (P.) Ltd. v. CIT (TDS) (2019) 264 Taxman 21//411 ITR 37 (St) (SC)

S. 263 : Commissioner-Revision of orders prejudicial to revenue– Cash credits- Sale of goods-Produced statement of bank account, copies of bills issued to purchasers as also books of account showing entries of deposits made in bank-Revision is held to be not valid. [S. 68]

PCIT v. Dilip Kumar Swami (2019) 264 Taxman 33 (Raj.)(HC)

S. 251 : Appeal – Commissioner (Appeals)–Powers-Stay was granted by depositing 20% of tax in dispute–High Court reduced to 50 per cent of amount directed in order passed by Commissioner (Appeals) and time to make the payment. [S. 226]

Popular Traders. v. ACIT (2019) 106 taxmann.com 88 / 264 Taxman (Ker.) (HC) Editorial : SLP is dismissed, since time to make payment of first instalment was expiry further time of two weeks was granted to the assessee to make the payment . Popular Traders v. ACIT (2019) 264 Taxman 3 (SC)

S. 220 : Collection and recovery-Assessee deemed in default–Stay-Issue decided in favour of assessee by CIT(A) in other proceedings-Pendency of appeal before CIT(A)-AO cannot pass the order to deposit 20% of tax in dispute-Stay was granted against recovery of demand.

ARCIL Retail Loan Portfolio 001-D-Trust v. Pr. CIT (2019) 264 Taxman 61 (Bom.)(HC)

S. 201 : Deduction at source-Failure to deduct or pay-Rs. 10 Million US Dollars in escrow account- TDS liability-Notices issued under S 201 and 201(1A) would stand stayed during pendency of proceedings.[ S.195, 201(1), 201(IA)]

Business Process Outsourcing, LLC v. AAR (2019) 264 Taxman 59 (Bom.)(HC)

S. 147 : Reassessment–Second reassessment-High Court set aside the reassessment on one issue–Second reassessment on another ground is held to be not valid. [S. 32, 148]

Rallies India Ltd ( 2018) 411 ITR 452 / 89 taxmann.com 88 (Bom.) (HC) Editorial : SLP of revenue is dismissed, DCIT v. Rallis India Ltd. (2019) 264 Taxman 25 (SC)

S. 147 : Reassessment-After the expiry of four years-No failure to disclose all material facts–Reassessment is bad in law. [S.80IB(10), 148]

Akshar Anshul Construction LLP v. ACIT (2019) 264 Taxman 65 (Bom.)(HC)

S. 145 : Method of accounting-Estimating profit rate of 15% per cent which was arrived at with consensus between both parties- Addition is held to be justified.

Mayur Sheet Grah (P.) Ltd. v. CIT (2019) 106 taxmann.com 129/ 264 Taxman 18 (All.) (HC) Editorial: SLP of the assessee is dismissed , Mayur Sheet Grah (P.) Ltd. v. CIT (2019) 264 Taxman 17 (SC)