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. 143(3): Assessment – Real income- lease rental- Interest and loan recovery – Guidance Note issued by the ICAI carries great weight – An assessee can only be taxed on “real income” -Lease rental is allowable [ S. 37(1),145(3), CA 1956, S.211 ]
CIT v. Virtual Soft Systems Ltd (2018)404 ITR 409/ 165 DTR 121 /302 CTR 65 / 255 Taxman 352 (SC) , www.itatonline.orgEditorial: Refer CIT v. CIT v. Virtual Soft Systems Ltd ( 2012)341 ITR 593 / 67 DTR 410 ( Delhi) (HC) is affirmed
S. 143(2): Assessment – Notice by an AO not having jurisdiction over the assessee is irrelevant- Assessment was held to be bad in law .
ITO v. NVS Builders Pvt. Ltd.( 2018) 169 ITD 679(Delhi)(Trib) , www.itatonline.org
S. 143(2) : Assessment – Block assessment -Notice issued with in period of limitation , however the notice was served beyond limitation period hence the assessment was held to be in valid and quashed- Tribunal was justified in considering the issue of limitation first time raised before the Tribunal [ S. 158BC, 254(1),292BB ]
CIT v. V.V. Devassy (2018) 403 ITR 25/ 252 Taxman 390/ 163 DTR 76 (Ker.)(HC)
S. 143(2) : Assessment -Notice – Notice to authorised representative was held to be deemed service of notice on assesse and sufficient compliance – Non availability of assesse on the given address the notices were could not be served [ S. 143(3) ]
ITO v. Dharam Narain ( 2018) 163 DTR 41/ 253 Taxman 479/ 301 CTR 41 ( SC)
S.142(2A): Inquiry before assessment– Special audit– Order passed without application of mind and objections of the assesse was held to be bad in law .
Karnataka Industrial Area Development Board v. CIT (2018) 401 ITR 74 / 162 DTR 73/ 300 CTR 449/ 253 Taxman 178 (Karn) (HC)
S. 143(1)(a) : Assessment – Intimation –Provision for doubtful over due instalments – Adjustment was held to be not valid – Interpretations given by High Courts and Tribunals cannot be ignored by the Assessing Officers [ S. 36(1)(vii), 36(2) ]
Bajaj Auto Finance Ltd. v. CIT (2018) 404 ITR 564 / 166 DTR 379 (Bom)(HC) , www.itatonline.org
S.142(2A): Inquiry before assessment– Special audit–Time limit for assessment-Opportunity of oral and written submission against the order for special audit was considered , hence writ is not maintainable – Issuance and despatch of order u/s 142(2A) with in period of limitation and service on assesse beyond limitation period , order does not abate. [ S. 143(3), 153 , Expl. 1(iii) ]
Nokia India Pvt Ltd v. Addl.CIT ( 2018) 402 ITR 517 / 301 CTR 665 / 164 DTR 121/ 255 Taxman 266 ( Delhi) (HC).Editorial: SLP filed by the assessee, Nokia India Pvt Ltd v. Addl. CIT (2018)169 DTR 1(SC) ( 2018) Direction of special audit stayed .
S. 139D : Return in electronic form – Form V furnished through post within stipulated extended period — Originally filed return was held to be valid [ S. 139C, 295B ]
PCIT v. National Informatics Centre Services Inc. (2018) 400 ITR 387/ 162 DTR 97/ 300 CTR 495 (Delhi) (HC)
S. 139AA : Permanent account number – Date for linking of Aadhaar with all schemes of ministries/Departments of Union Government linking of bank accounts for existing bank accounts and for completion of Aadhaar based E-KYC process in respect of mobile phone subscribers is to be extended until 31-3-2018
K. S. Puttaswamy v. UOI (2018) 252 Taxman 357 (SC)
S. 139 : Return of income – Set off of carry forward loss – Audit report –Matter was remanded for fresh disposal .
Scorpion Industrial Polymers (P.) Ltd. v. CIT (2018) 252 Taxman 413/ 163 DTR 333 / 301 CTR 481 (Mad.)(HC)