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. 115JB : Book profit – Share of profit from AOP- Insertion of clause (iic) in Explanation 1 to section 115JB by Finance Act, 2005, w.e.f. 1-4-2016, is retrospective in nature- Share income would not be included while computing total income for purpose of book profit [ S. 67A, 86]
ACIT v. Om Metal Infraproject Ltd. (2019) 176 ITD 202 (Jaipur)(Trib.)
S. 115BBE : Tax on income referred in S 68, 69, 69B, 69C, S69D-Set off of loss-Survey-Surrender of income-Set off of losses was to be allowed-The amendment made to section 115BBE denying the benefit of set off of losses with effect from 1-4-2017 was retrospective in nature. [S. 68 to 69C, 71, 115BBE, 133A]
Famina Knit Fabs v. ACIT (2019) 176 ITD 246/ 177 DTR 140/ 199 TTJ 258 (Chd.)(Trib.)
S. 92C : Transfer pricing-Arm’s length price-Management fee-TPO is not justified in holding that arm’s length value of management fee was nil and accordingly making an upward adjustment.
CEVA Freight India (P.) Ltd. v. DCIT (2019) 176 ITD 341 (Delhi) (Trib.)
S. 92C : Transfer pricing-Arm’s length-Selection of comparable-TPO’s own filters were not proportionate with range of 75 – 85 per cent (freight cost/freight income)-Directed to exclude said comparable from list of comparables.
CEVA Freight India (P.) Ltd. v. DCIT (2019) 176 ITD 341 (Delhi) (Trib.)
S. 92C : Transfer pricing–Capital asset-Share application money- Investment made in shares or applying for shares cannot be given different colour so as to expand scope of transfer pricing adjustment by recharacterizing it as interest free loan– Adjustment made is held to be not valid. [S. 92B]
Unitech Ltd. v. DCIT (2019) 176 ITD 266 (Delhi) (Trib.)
S. 69A : Unexplained money-Misappropriation of cash -Director – Authorised agent of company-No addition can be made in the hands of the director.
Awanindra Singh v. DCIT (2019) 176 ITD 355/ 180 DTR 17 (Delhi)(Trib.)
S. 69 : Unexplained investments-FDRs found from premises of director–Reflected in the accounts of the company–Addition cannot be made as unexplained investments.
Awanindra Singh v. DCIT (2019) 176 ITD 355/180 DTR 17 (Delhi)(Trib.)
S. 68 : Cash credits-Share application money–Balance sheet, profile, bank statements and PAN details of subscriber companies were provided – Addition cannot be made as cash credits. [S. 133(6)]
Flourish Builders & Developers (P.) Ltd. v. DCIT (2019) 176 ITD 409 (Delhi)(Trib.)