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. 271(1)(c) : Penalty – Concealment – Capital gains —Claiming exemption under S.10(38) with a note that reserved its right to carry forward the loss – Deletion of penalty is held to be justified [ S.10(38), 45 ]
DIT (IT) v. Nomura India Investment Fund Mother Fund. (2018) 404 ITR 636 (Bom) (HC) Editorial: SLP of revenue is dismissed DIT (IT) v. Nomura India Investment Fund Mother Fund( 2018) 401 ITR 172 (St)(SC)
S. 226 : Collection and recovery – Modes of recovery -Attachment of bank account – Interim in junction was granted subject to payment of 20 percent of disputed tax on account of claim of additional depreciation .[ S 32(1)(iia), 226(3) ]
S. P. Mani and Mohan Dairy. v. ACIT (2018) 404 ITR 633/ 255 Taxman 172 (Mad) (HC)
S.147: Reassessment- Recording of reasons is mandatory -Capital gains- Inflated cost of indexation of land- The Assessing Officer cannot supply reasons from any material or grounds outside the reasons recorded by him -Notice issued without application of mind is held to be in valid [ S.148 ]
Vithalbhai G. Prajapati v. ITO ( 2018) 404 ITR 732 / 172 DTR 331/85 taxmann.com 249( Guj) (HC)
S. 147 : Reassessment -Capital gains- Sale of land on the basis of valuation by Government approved valuer -Reassessment notice based on the valuation by Valuation officer is held to be bad in law [ S.148 ]
Munir Ismail Voraji v. ITO (2018) 404 ITR 696 (Guj) (HC)
S. 147 : Reassessment -Order passed without following the procedure -Order passed before disposal of objections raised by assessee on reasons recorded for reopening is curable irregularity does not vitiate the proceedings .Matter can be remitted for compliance with procedure [ S. 148 ]
Home Finders Housing Ltd. v. ITO (2018) 404 ITR 611/ 166 DTR 393 /93 Taxmnn.com 371/ 303 CTR 269 (Mad) (HC).Editorial: SLP of assessee is dismissed Home Finders Housing Ltd. v. ITO (2018) 256 Taxman 59 (SC)
S.143(3): Assessment – Construction business-Estimate of gross profit rate of 8% and peak credit of undisclosed cash receipts is finding of fact-No substantial question of law [ S.260A ]
CIT v. Vikas A. Shah. (2018) 404 ITR 627 (Guj) (HC)
S.139: Return- Refund – AO wrongly treated the return filed as in valid- Fresh return filed along with condonation of delay which was rejected – AO is directed to pay the refund to the assessee after scrutinizing return [ S. 119(2)(b), 139 (9) ]
Shubharam Complex v. ITO ( 2018) 255 Taxman 364 ( Karn) (HC)
S.45: Capital gains —Sale of agricultural Land — Land should be agricultural at the time of sale — Purchase of agricultural land for building factory and subsequent sale as residential plots — Profits is not exempt from capital gains tax [ S. 2(14)(iii) ]
Synthite Industries Ltd. v. CIT (2018) 404 ITR 605 (Ker) (HC)
S. 37(1) : Business expenditure -Club expenses – Payment made for acquiring membership in a social club is not allowable as business expenditure, in the absence of any evidence to effect that membership was acquired for entertaining customer .
L. Jairam Parwani v. Dy. CIT ( 2018) 225 Taxman 362 ( Mad) (HC)