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. 158BD : Block assessment-Undisclosed income of any other person-Non-recording of reasons independently by Assessing Authority of searched person, could not be said to be fatal for initiating proceedings. [S. 132, 158BC]

V. Vijayalakshmi (Smt.) v. DCIT (2019) 265 Taxman 71 (Mag) (Mad.) (HC)

S. 153A : Assessment–Search-Address at which search could be conducted would be place or location, where books of accounts, documents, jewellery, unaccounted assets could be located and it need not be registered office of person concerned-Proceedings u/s 153A is held to be valid. [S. 133A, 153A, Art. 226].

Zinzuwadia and Sons v. DCIT (2019) 419 ITR 169/ 265 Taxman 261/ 183 DTR 65/ 311 CTR 297 (Guj.)(HC)

S. 147 : Reassessment–Housing project–Claim was examined in original assessment proceedings-Merely because the AO did not examine such claim from angle of clauses (e) and (f) thereof, would not be a valid ground for reopening assessment. [S. 80IB(10), 148]

Royal Infrastructure. v. DCIT (2019) 265 Taxman 103 (Mag) (Guj.)(HC)

S. 147 : Reassessment–Method of accounting-Full and true disclosure of all material facts regarding change in method of accounting in respect of Non-Performing Assets (NPAs) at time of assessment itself-Reassessment is held to be bad in law. [S. 145, 148]

PCIT v. Punjab and Sind Bank. (2019) 108 taxmann.com 351 / 265 Taxman 538 ( Delhi) (HC) Editorial: SLP of revenue is dismissed, PCIT v. Punjab and Sind Bank. (2019) 265 Taxman 537 (SC)

S. 147 : Reassessment-Survey-Merely on the basis of statement of partner addition cannot be made in respect of difference between stamp valuation and sale price of property on basis of such offering made by partner-Reassessment was quashed. [S. 43C, 45, 133A, 148]

Zain Constructions. v. ITO (2019) 265 Taxman 82 (Mag.) (Bom.) (HC) / Editorial, SLP of revenue is dismissed (2020) 269 Taxman 274 (SC)

S. 147 : Reassessment–With in four years-Change of opinion Interest income-Income from other sources–Adjustment of interest income against interest expenditure and remaining amount was transferred to work-in-progress account-Reassessment is held to be not valid. [S. 56, 148]

Rubix Trading (P.) Ltd. v. ITO. (2019) 108 taxmann.com 176 /265 Taxman 424 174 DTR 1 / (2020) 421 ITR 330/314 CTR 876 (Bom.) (HC) Editorial: SLP of revenue is dismissed, CIT v. Rubix Trading (P.) Ltd. (2019) 265 Taxman 423 (SC)

S. 145 : Method of accounting–Stock valuation-Cash credit limits-Discrepancy in stock as per books of account of assessee and that shown in bank statements–Deletion of addition is held to be justified.

PCIT v. Janam Steel and Alloys (2019) 108 taxmann.com 349 / 265 Taxman 552 (Guj.)(HC) Editorial : SLP is granted to the revenue; PCIT v. Janam Steel and Alloys (2019) 265 Taxman 551 (SC)

S. 145 : Method of accounting–Stock valuation of gold-LIFO method of valuation–Recognised in law–No substantial question of law. [S. 260A]

CIT v. Sharad Mohanlal Shah (2019) 108 taxmann.com 35 (Guj.) (HC) Editorial: SLP of revenue is dismissed, CIT v. Sharad Mohanlal Shah. (2019) 265 Taxman 539 (SC)

S. 145 : Method of accounting–Trading in rice-Assessing Officer was justified in accepting two entries relating to profits and disregarding other two entries concerning losses.

Marhur Marketing (P) Ltd. v. CIT (2006) 281 ITR 379/ 151 Taxman 123 (Delhi ) (HC) Editorial : SLP of assessee is dismissed, Mathur Marketing (P.) Ltd. v. CIT (2019) 265 Taxman 316 (SC)

S. 144 : Best judgment assessment–Statutory remedy of appeal is available-Writ is held to be not maintainable. [S. 246, Art. 226]

Ram Pal Singh v. CIT (2019) 265 Taxman 51 (Mag.) (Uttarakhand)(HC)