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(24) : Income–Collection of value added tax on behalf of the State Government–Excess over expenditure deposited in State Treasury–Not assessable as income. [S. 2(24(i), 12A]

CIT v. H. P. Excise and Taxation Technical Service Agency. (2019) 414 ITR 539 (HP) (HC) Editorial: SLP of revenue is dismissed CIT v. H. P. Excise and Taxation Technical Service Agency. (2019) 414 ITR 7 (St) (SC)

Prohibition of Benami Property Transactions Act , 1988.
S.3: Prohibition of benami transactions- The Benami Amendment Act, 2016, amending the Benami Act, 1988, comes into force on 01.11.2016 and does not have retrospective effect. [S. 2((9), 5,8 / Art . 226 , 227 ]

Nikharika Jain v. UOI (2019) 107 taxman .com 272 (Raj)(HC), www.itatonline.org

S. 254(1) : Appellate Tribunal -Low tax effect Appeals- Less than 50 lakhs – Applies to all pending appeals- 628 Departmental appeals are dismissed . [ S.253 ] .

ITO v. Dinesh Madhavlal Patel (2019) 108 taxmnn.com 211 / 181 DTR 9 (Ahd)(Trib), www.itatonline.org

S. 197 : Deduction at source – Certificate for lower rate –Quasi judicial – Must be supported by valid and cogent reasons- Orders passed by a statutory authority under “dictation” of a superior officer or anyone else is bad in law .[ R.28AA ]

Bently Nevada LLC v. ITO ( 2019) 267 Taxman 333/ 183 DTR 257/ 311 CTR 677(Delhi)(HC),www.itatonline.org

S. 143(2) : Assessment – Notice –Failure to issue a notice u/s 143(2) renders the assessment order void even if the assessee has participated in the proceedings -Deeming fiction does not operate to save complete absence of notice [ S.292BB ]

CIT v. Laxman Das Khandelwal( 2019) 417 ITR 325/ 266 Taxman 171 / 310 CTR 8/ 180 DTR 313 (SC),www.itatonline.org Editorial: CIT v. Laxman Das Khandelwal ( 2019) 108 taxmann.com 182 (MP )(HC ) is affirmed .

S. 92CA: Reference to transfer pricing officer – CBDT’s Instruction No.3/2003 dated 20.05.2003 makes it mandatory for the AO to make a reference to the TPO- The failure to make reference to the TPO renders the Transfer Pricing Adjustments made therein are bad in law though the assessment order is good- The matter should be restored to the file of the AO so that appropriate reference could be made to the TPO.[ S. 92C, 119 ]

PCIT v. S. G. Asia Holding (I) Pvt. Ltd( 2019)266 Taxman 451/ 108 taxmann.com 213 / 310 CTR 1/ 181 DTR 17 (SC),www.itatonline.org Editorial: Arising from the order PCIT v. S. G. Asia Holding (I) Pvt. Ltd ( 2019) 102 taxmann.com 306 ( Bom) (HC)

S. 68 : Cash credits –Share capital premium- The test of human probabilities cannot be applied to business transactions- The AO cannot reach this conclusion without further investigation and bringing material on record -Reopening is held to be bad in law [ S.147, 148 ]. .

Janani Infrastructure Pvt. Ltd. v. ACIT( 2019 ) 74 ITR 373 /( 2020) 203 TTJ 59 (Bang)(Trib),/ Carmel Asia Holdings (P) Ltd v ACIT 2019) 74 ITR 373/ (2020) 203 TTJ 59 (Bang.)(Trib.), www.itatonline.org

S. 56 : Income from other sources –HUF –Relative – Amounts received by a member from the ‘HUF’ cannot be said to be income of the member exigible to taxation- Revision is held to be not valid [ S.56(2) (vii), 263 ].

Pankil Garg v. PCIT ( 2019) 181 DTR 305 (Chand)(Trib),www.itatonline.org

S. 50C : Capital gains-Full value of consideration- stamp valuation- Though the 3rd Proviso to S. 50C, which provides a safe harbour of 5%, applies w.e.f. 01.04.2019, it must be interpreted to apply since the insertion of s. 50C (01.04.2003) because it is curative and removes an incongruity and avoids undue hardship to assessees. [ S. 43CA, 45 ]

Chandra Prakash Jhunjhunwala v. DCIT ( 2019) 201 TTJ 831/( 2020) 181 ITD 185 /188 DTR 108 (Kol)(Trib), www.itatonline.org

S. 45 : Capital gains – Penny stocks- Bogus capital gains- 282 times gain in 12 months- The meticulous paper work of routing the transaction through banking channel is futile because the results are altogether beyond human probabilities. [ S.10(38) ]

Sanat Kumar v. ACIT (Delhi)(Trib), www.itatonline.org