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.37(1):Business expenditure – Allocation of expenses-Difference between “Res Judicata” and “Consistency Principle” explained. While “res judicate” does not apply to income-tax matters, the principles of consistency does. If the Revenue has accepted a practice and consistently applied and followed it, the Revenue is bound by it. The Revenue can change the practice only if there is a change in law or change in facts and not otherwise [ S.143(3) ]

PCIT v. Quest investment Advisors Pvt. Ltd( 2018)409 ITR 545/ 257 Taxman 211/ 169 DTR 216/ 304 CTR 637 (Bom)(HC), www.itatonlineorg

New Okhla Industrial Development Authority (NOIDA) v. CCIT ( 2018) 95 taxmann.com 58(SC)/ www.itatonlin.org
S. 35 :Scientific research – Rejection of weighted deduction in respect of donation cannot be denied when the institution was enjoying approval within the meaning of S. 35(1)(ii) as on date of receipt of donation, no matter that the approval was cancelled subsequently with retrospective effect.

Vora Financial Service P. Ltd. v. ACIT( 2018) 171 ITD 646 / 194 TTJ 746 / 65 ITR 77 (SN)/(2019) 178 DTR 58( Mum)(Trib), www.itatonline.org

S. 10(20): Local authority –Industrial township referred to in proviso to Article 243Q is not equivalent to a “municipality” and a “local authority” – Income is not entitle to exemption .[S.10(20A), Art. 243P,243Q ]

New Okhla Industrial Development Authority (NOIDA)(No.1) v. CCIT ( 2018) 406 ITR 178/ 256 Taxman 396/ 303 CTR 448/ 168 DTR 48(SC)/ www.itatonlin.org

S. 271(1)(c) : Penalty – Concealment – Accepting addition does not mean assessee furnishing inaccurate particulars — Levy of penalty is held m to be not valid .

ITO v. Future Mobile And Accessories Ltd. (2018) 64 ITR 699 (Mum) (Trib)

S. 263 : Commissioner – Revision of orders prejudicial to revenue – Order was passed by the AO after conducting detailed enquiries on all issues —Revision is not valid .

Abhimanyu Gupta v. CIT (2018) 64 ITR 611 (Chand) (Trib)

S. 249 : Appeal – Commissioner (Appeals) – E- Filing of appeal-Appeal filed in manual form cannot be dismissed on technical grounds during transition period. CIT(A) is directed to condone the delay in filing the appeal in electronic format and to decide the issue on merits [ S.246A ]

Asterix Reinforced Ltd v ITO ( 2018) 64 ITR 79 (SN) (Trib) (Mum)

S. 192 : Deduction at source – Salary -Contributions to unrecognised Provident Fund is not eligible for deduction u/s 80C. Interest accrued to Employees contribution to unrecognised Provident Fund is taxable as income from other sources and liable for deduction of tax at source [ S.2(38) 80C, 201(1) 201(IA) ]

Chirakkal Service Co-Operative Bank Ltd. v. ITO (TDS)( 2018) 64 ITR 670 (Cochin ) (Trib)

S.147: Reassessment —Merely on the basis of statement recorded by investigation wing and cross examination was not provided- Reopening assessment on borrowed satisfaction rather than his own satisfaction – Reassessment is held to be invalid [ S.148 ]

Nirmala Agarwal v. ACIT (2018) 64 ITR 658 (Jaipur) (Trib)

S.147: Reassessment-After the expiry of four years- Bogus share capital- Statement was retracted -No allegation of failure on part of assessee to disclose material facts-Reasons recorded without independent application of mind – Reassessment is held to be in valid [ S.148 ]

ACIT v. Adhunik Cement Ltd ( 2018) 64 ITR 65 (SN)/ 194 TTJ 626/ 168 DTR 25 (Kol) (Trib)

S.143(3): Assessment – Income from undisclosed sources — Survey – Surrendered during survey and assessee retracting statement — Onus is on AO to investigate further and establish additions made on basis of surrender- Addition of Rs 1,42,778 on account of gross profit was confirmed. [ S.133A ]

Satish Chand Agarwal v. ITO (2018 64 ITR 713 (Jaipur) (Trib)