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. 43CA : Transfer of assets-other than capital assets-Full value of consideration- stock in trade-Agreement value–Stamp valuation- Provision of S.43CA have been inserted with effect from 1-4-2014 to relevant assessment year 2014-15-Agreement to sell was entered much prior to that date , i.e. in the year 2007 -Provision of S.43CA(4) cannot be applied- Matter remanded to CIT(A) to determine valuation as on 9-4-2007 and if it is higher than the sale consideration, same can be brought to tax in the year under consideration. [S. 50C]
Indexone Tradecone (P) Ltd v. Dy. CIT (2018) 172 ITD 396 (Jaipur) (Trib.)
S. 23 : Income from house property – Annual value – Vacancy allowance- Flat was not in a position to be let out de hors removal of defects and, therefore, benefit of vacancy allowance in respect of period taken for carrying out necessary alterations.[S. 23(1)(c)]
Saif Ali Khan Pataudi v. ACIT (2018) 172 ITD 345 /195 TTJ 513 / 169 DTR 305 (Mum.)(Trib.)
S. 23 : Income from house property-Annual value–Stock in trade-Construction completed, Feb 2013-Income cannot be estimated on ground that said property remained unsold and vacant at end of financial year, since there was no possibility to let out property just after its completion. [S. 23(1)(a)]
Raj Landmark (P.) Ltd. v. ITO (2018) 172 ITD 339 (Jaipur) (Trib.)
S. 10(23FB) : Venture capital fund-Exemption-Real estate business-Since real estate sector was removed from the negative list with effect from 5-4-2004, much before the assessee came in to existence -Entitle to exemption-Revision order is held to be bad in law. [S. 115U, 263]
Milestone Real Estate Fund v. ACIT (2018) 172 ITD 370 (Mum.)(Trib)
S. 10(23C) : Educational institution-Society running a non profit educational institution- Exemption cannot be denied merely because assessee was simultaneously running profitable hotel, when the exemption was claimed only for educational activities- Matter remanded. [S. 10(23)(iiiab)]
Chandigarh Institute of Hotel Management & Catering Technology (CIHMCT) v. DCIT (2018) 172 ITD 356 (Chd.)(Trib.)
S. 276B : Offences and prosecutions-Failure to pay to the credit tax deducted at source–Directors in charge, to show that offence occurred without their knowledge or due diligence exercised by them to prevent commission of offence-Non-issuance of separate notices, does not absolve directors in charge-Order f lower courts acquitting directors is held to be erroneous-Benefit of probation granted to accused directors of assessee and levy of fine. [S. 2(35), 278B]
ITO v. Anil Batra. (2018) 409 ITR 428 (Delhi)(HC)
S. 260A : Appeal High Court-Abatement of proceedings- Death of assessee on 18-6-2016-Legal heirs not brought on record in spite of time given repeatedly to revenue-Proceedings abated.
CIT v. Jeppiar (2018) 409 ITR 511 (Mad.)(HC)
S. 147 : Reassessment—Within four years-Deduction allowed without discussion in original assessment — Reassessment on the ground that excess deduction was allowed is held to be valid. [S. 148]
Innovative Foods Ltd. v. UOI (2018) 409 ITR 415 (Ker.)(HC)
S. 147 : Reassessment-Beyond four years-Explanation 3, to S.147 by Finance (No. 2) Act, 2009-After issuing a notice under S. 148, he accepts the contention of the assessee and holds that the income which he has initially formed a reason to believe had escaped assessment, has as a matter of fact not escaped assessment, it is not open to him independently to assess some other income-If he intends to do so, a fresh notice under S.148 would be necessary- Assessing Officer has no power to reassess other income not mentioned in notice under S 148. [S. 148]
Tractors and Farm Equipment Ltd. v. ACIT (2018) 409 ITR 369 /( 2019) 175 DTR 312/ (2020) 314 CTR 490(Mad.) (HC)