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.45: Capital gains- Allotment letter- Period of holdings- The law laid down in CIT v Suraj Lamps & Industries Pvt Ltd ( 2012 ) 340 ITR 1 (SC) that transfer of immovable property is effective only on registration of conveyance deed is not applicable for computing the holding period of property. Holding period should be computed from the date of issue of the allotment letter and not from the date of the conveyance deed, ratio in Rasiklal M. Parikh v. ACIT (2017 ) 393 ITR 536 (Bom)(HC) is explained [ S.2(42A ), 2(47) 54 ]
Sanjaykumar Footermal Jain, v. ITO (Mum)(Trib) , www.itatonline.org
S. 32 : Depreciation – Carry forward and set-off of unabsorbed depreciation of Assessment Year 1999-2000 and Assessment Year 2000-2001 against the profits of Assessment Year 2009- 2010 without appreciating that as per the provisions of S.32(2) as they stood prior to the amendment by Finance Act, 2001 w.e.f. 01.04.2002, such unabsorbed depreciation was eligible for carry forward and set-off . There is no conflict between CIT v. Hindustan Unilever Ltd (2017) 394 ITR 73 (Bom) & CIT v. Milton Pvt Ltd, CIT v. Confidence Petroleum India Ltd, because while the former is at the stage of final hearing, the latter is at the stage of admission. Accordingly, the request for reference to a larger Bench is not acceptable. Merely filing of an SLP would not make the order of this Court bad in law or give a license to the Revenue to proceed on the basis that the order is stayed and/or in abeyance. Unabsorbed depreciation is allowed to be set off . [ S.32(2) ]
PCIT v. Associated Cable Pvt. Ltd. (Bom)(HC), www.itatonline.org
Service matters – Regularisation of services – Appellants appointed as casual employees in tax department since 1993-94 and were working continuously – Failure by Department to regularize Appellant’s services would be illegal in view of Supreme Court’s decision in case of Uma Devi (2006) 4 SCC 1.
Ravi Verma .v. UOI (2018) 255 Taxman 73 (SC )
S. 54F : Capital gains – Investment in a residential house – Construction of house – Deduction available only if construction is completed within a period of three years after date of transfer- Even within extended definition of S. 2(47) of the Act no transfer takes place on mere execution of agreement to sale [ S.2(47) , 45 ]
Ushaben Jayantilal Sodhan .v. CIT (2018) 407 ITR 276/ 255 Taxman 454 / 169 DTR 31 / 304 CTR 201(Guj)(HC).
S. 254(1) : Appellate Tribunal – Duties – Order for early hearing is not merely an administrative order but judicial order- Revenue has to move a formal application under Rule 29 of the ITAT Rules to bring on record additional evidences. [ S.254(2), R. 29 ]
Dr. Prannoy Roy .v. DCIT (2018) 303 CTR 122 /255 Taxman 369 / 166 DTR 317 (Delhi) (HC) Radhika Roy (Smt) .v. DCIT & Ors (2018) 303 CTR 122 /255 Taxman 369 / 166 DTR 317 (Delhi) (HC)
S. 254(1): Appellate Tribunal – Stay of demand – Assessing Officer based on the information from the Central Excise Department rejected claim under S. 80IC of the Act – No independent inquiries conducted by Assessing Officer, apart from relying on information from Central Excise Department – 30% of tax demand deposited by Assessee – Assessee has made out a strong prima facie case in its favour for stay of balance demand. [ S.80IC ]
Turbo Energy (P.) Ltd .v. Asst Registrar, ITAT, Chennai (2018) 255 Taxman 175 / 168 DTR 380/ 304 CTR 322 (Mad)(HC)
S. 220 : Collection and recovery – Assessee deemed in default – Assessee to pay only a meager portion of tax demand (10%) for stay – Several cases were selected for scrutiny with aid of computers hence case not picked up for scrutiny maliciously – No need to interfere with the stay order of Revenue Authorities.
St Joseph’s Granites .v. ACIT (2018) 255 Taxman 123 (Ker)(HC)
S. 153D: Assessment – Search and seizure – Approval – No requirement under S. 153D of the Act for prior approval for passing order pursuant to / complying with remand or revisional directions by CIT [S. 143(3) ,263 ]
Osho Forge Ltd .v. CIT (2018) 255 Taxman 375 / 303 CTR 832/ 168 DTR 361/( 2019) 410 ITR 198 (P&H)(HC)
S. 148 : Reassessment – Validity of service – Notice was sent on the address where assessee was not residing – Service made at the address which was referred on the envelope not of assessee – Presumption of service cannot be drawn –Reassessment is held to be bad in law .[ S.147,292BB ]
Shubhashri Panicker (Mrs) v. CIT (2018) 403 ITR 434/166 DTR 1 (Raj)(HC)
S. 143(1D) : Assessment – Processing of return – Matter pending for scrutiny before competent authority – No mandamus can be issued by Court at this stage for granting refund [ S.237 ]
Uttar Bihar Gramin Bank v PCIT (2018) 166 DTR 407 / 303 CTR 303 (Pat)(HC)