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.147: Reassessment —With in four years -Cash credit — Capital – Partner- Return was not filed – No specific direction by CIT(A)- Notice for reassessment was held to be valid . [ S.68, 148 ]

Alfa Investments. v. ITO (2018) 409 ITR 540 (Mad) (HC) Editorial: Decision of single judge in Alfa Investments. v. ITO (2018) 400 ITR 445 ( Mad) (HC) is affirmed .

S.147:Reassessment –With in four years-Change of opinion- Block assessment -Notice to reassess amount discovered during post search enquiries is held to be not valid . [ S.132,148, 158BC ]

P. A. Ahamed. v. CIT (2018) 409 ITR 530 /( 2019) 177 DTR 341/ 308 CTR 574 (Ker)(HC)

S. 145A : Method of accounting – Valuation -Stock- Trading in shares — Valuation of shares according to net realisable value is held to be justified .[S.145(2) ]

P. Amarnath Reddy. v DCIT (2018) 409 ITR 645 (Mad)(HC)

S. 80-O : Royalties – Foreign enterprises -Fees for technical services rendered to foreign entity — Explanation added with effect from 1-4-1992 — Fees for services rendered in India- Not entitled to deduction – Principle of consistency or doctrine of precedents would not apply when there is change in law.

SGS India Pvt. Ltd. v. JCIT (2018) 409 ITR 550/ 304 CTR 640/ 169 DTR 219 (Bom)(HC)

S. 80IC : Special category States -Initial Assessment Year —Substantial expansion- Claimed 100% deduction for five years- Cannot claim deduction at 100 Per Cent. beyond period of five years on ground of substantial expansion.

Admac Formulations. v. CIT (2018) 409 ITR 661 (P&H)(HC) Editorial: Order in Hycron Electronics v. ITO ( 2015) 41 ITR 486 (Chd) (Trib) is affirmed

S. 45(4) : Capital gains – Distribution of capital asset – Dissolution of firm -Change in constitution of firm -Retirement of some partners and induction of new partners — No revaluation of assets — Businesses continued — Firm reconstituted and not dissolved-Not liable to pay capital gains tax . [ S. 45,187(2) ]

G. H. Reddy And Associates v. ACIT (2018) 409 ITR 514 (Mad) (HC) Editorial: SLP of revenue s dismissed ACT v G. H. Reddy And Associates ( 2019) 418 ITR 11 (St)/ ( 2020 ) 274 Taxman 283 (SC)

S.37 (1): Business expenditure —Travelling expenditure of wife of Company’s Senior Executive accompanying him abroad for his medical treatment — Expenditure is held to be not allowable . [ S.264 ]

Harrisons Malayalam Ltd. v. CIT (2018) 409 ITR 621 (Ker) (HC)

S. 36(1)(iii) :Interest on borrowed capital -Commercial expediency – Interest free advance to third parties -Interest paid is held to be allowable as deduction .

CIT v. Reebok India Company. (2018) 409 ITR 587 (Delhi)(HC) Editorial: Reebok India Company v. Dy CIT ( 2017) 56 ITR 211 ( Delhi) (Trib) is affirmed.

S. 11 : Property held for charitable purposes – Accumulation of income- Explanation of purposes for which funds accumulated was furnished during course of assessment proceedings is a sufficient compliance . [ S.11(2), form No 10 ]

CIT v. Bochasanwasi Shri Akshar Purshottam Public Charitable Trust. (2018) 409 ITR 591 / ( 2019) 261 Taxman 229(Guj) (HC)

S. 10 (23C): Educational institution- Registration u/s 12AA is not mandatory to claim exemption.[ S.12AA, 10 (23C(iiiad)]

CIT v. Shanti Devi Educational Trust. (2018) 409 ITR 522 /( 2019) 261 Taxman 339(P&H) (HC) Editorial: SLP of revenue is dismissed, CIT v. Shanti Devi Educational Trust ( 2018) 405 ITR 20 (St.)