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. 264 :Commissioner – Revision of other orders – Application for condonation of delay cannot be dismissed for technical reasons —Principle of substantial justice- Matter remanded . [ S.80P ]

Kammavari Credit Co-Operative Society Ltd . v. ACIT (2019) 416 ITR 180 (Karn)(HC)

S. 158BFA : Block assessment – Penalty – Legal representative-
No proceedings for penalty for concealment of income was initiated against person prior to his death — Penalty cannot be imposed on legal representatives .[ S. 158BC, 159 271(1)( c ) ]

CIT v. Dr. K. C. G. Verghese (Late) (2019) 416 ITR 155 (Mad) (HC)

S. 147 : Reassessment –With in four years- Change of opinion- Details were submitted in the original assessment proceedings – Reassessment for purpose of verification and investigation is held to be not valid .[ S.148 ]

Jarun Pharmaceuticals Pvt. Ltd. v. ITO (2019) 416 ITR 249 (Guj)(HC)

S.147: Reassessment-After the expiry of four years- Failure to disclose material facts – Reassessment notice is held to be valid- Disputed questions of facts — Alternative remedy of appeal – Notice of reassessment is held to be valid .[ S.148 , 151 , Art .226 ]

North Eastern Electric Power Corporation Limited And Another. v. CIT (2019) 416 ITR 205 / 182 DTR 233/ 310 CTR 856(Meghalaya) (HC)

S.147: Reassessment-After the expiry of four years- No failure to disclose material facts – Denial of exemption in subsequent year is not aground for reassessment .[ S. 10A, 148 ]

Infosys Ltd. v. DCIT (2019) 416 ITR 226/ 182 DTR 308/( 2020) 312 CTR 61 (Karn)(HC)

S. 144 : Best judgment assessment – Not responding to notices and summons – Best judgement order is held to be valid – Cancellation of registration and exemption is also held to be valid . [ S.10 (23C) (vi), 12AA, 132, 142(1) 143(2) 153A ]

Prathyusha Educational Trust. v. CIT (2019) 416 ITR 129/ 266 Taxman 105/ 310 CTR 545 (Mad)(HC) Editorial: SLP of the assessee is dismissed Prathyusha Educational Trust. v. CIT (2019) 416 ITR 132 (SC)

S. 144 : Best judgment assessment –Accommodation entries – Purchase of fictitious silver items – Unexplained sales – Sales not substantiated by providing identity and credit worthiness of buyers – Rejection of books of account is held to be proper – Cryptic order -Addition made by the AO is affirmed .[ S.132, 145(3) , Voluntary Disclosure Of Income Scheme, 1997 .]

CIT v. Rajiv Gupta. (2019) 416 ITR 199/181 CTR 116 / 310 CTR 379/ 267 Taxman 305 (Delhi) (HC) CIT v. Ajay Kumar Gupta (2019) 416 ITR 199//181 CTR 116 / 310 CTR 379 (Delhi) (HC)

S. 54EC : Capital gains – Investment in bonds -Part consideration in escrow account – Invested in the year of receipt -Entitle to exemption .[ S.45 ]

CIT v. Mahipinder Singh Sandhu (2019) 416 ITR 175/ 182 DTR 369/ 311 CTR 116 (P&H) (HC)

S. 40(a)(ia): Amounts not deductible – Deduction at source – Sale transaction trough dealers on principal -to -principal basis –Dealer could not be considered as commission agent of the assessee- Not liable to deduct tax at source- No disallowances can be made . [ S.194H ]

CIT v. Gujarat Narmada Valley Fertilizer and Chemicals Ltd. (2019) 416 ITR 144/ 266 Taxman 19 (Mag)/ 311 CTR 556 / 184 DTR 84 (Guj)(HC)

S.37(1): Business expenditure – Capital or revenue – Replacement of components of existing machinery to maintain efficiency and production capacity- Held to be revenue expenditure .

CIT v. Gujarat Narmada Valley Fertilizer and Chemicals Ltd. (2019) 416 ITR 144/266 Taxman 19 ( Mag)/ 311 CTR 556 / 184 DTR 84 (Guj)(HC)