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. 153A: Assessment-Search-Unabated assessment-No incriminating material found during search-Addition based on third-party statements recorded outside search-Not sustainable-Conditions for reopening under fourth proviso to section 153A not fulfilled-No seized material representing escaped income in the form of assets-Addition deleted.[S. 68, 69C 131, 132, 142(1)]
Dy. CIT v. Southwinds Project LLP (2025) 124 ITR 292 (Kol.)(Trib.)
S. 148: Reassessment-Notice issued by non-jurisdictional Assessing Officer-Assessment completed by jurisdictional Assessing Officer without fresh notice-Invalid.[S. 147]
Raman Pillai Sivasankara Pillai v. Dy. CIT (2025) 124 ITR 388 (Chd.)(Trib.)
S. 147: Reassessment-Reasons recorded for reopening based on cash deposits-No addition made on recorded reasons-Addition on other issues beyond jurisdiction-Assessment quashed. [S. 148]
Kailash Chand v. ITO (2025) 124 ITR 410 / 173 taxmann.com 357 (Jaipur)(Trib.)
S. 143(3): Assessment-Document Identification Number (DIN)-Absence of DIN on assessment order-No prejudice established-Assessment not invalid-Digital signature-Absence of proof of prejudice-Assessment not invalid-Search assessment-Approval by Additional Commissioner-Prior approval obtained-Assessment valid.[S. 132, 153D, 282A]
Kavita Samtani v. Dy. CIT (2025) 124 ITR 119 (Jaipur)(Trib.)
S. 143(1): Assessment-Intimation-Employees’ contribution to Provident Fund and ESI-Delay in deposit-Adjustment while processing return under section 143(1)-Valid-Processing of return-Intimation dated 31-3-2021 communicated by e-mail on 1-4-2021-Not barred by limitation-Prima facie adjustment-Incorrect claim apparent from return-Adjustment based on tax audit report-Valid-Prima facie adjustment-Prior intimation through e-mail-Compliance with principles of natural justice. [S. 36(1)(va), 143(1)(a)]
Checkmate Services (P.) Ltd. v. Asst. CIT [2024] 164 taxmann.com 498 / (2025) 124 ITR 188 (Ahd.)(Trib.)
S. 115JB: Company-Book profit-Minimum Alternate Tax-Book profit-Sales tax subsidy-Capital receipt-Subsidy reduced from written-down value of assets-Not includible in book profit. [S.2(24)(xviii)]
Economic Explosives Ltd. v. Asst. CIT [2024] 167 taxmann.com 9 / (2025) 124 ITR 443 (Nagpur)(Trib.)
S. 92C: Transfer pricing-Arm’s length price-Avoidance of tax-International transaction-Captive software development services-Business closed after expiry of service agreement-Adjustment cannot be made on expenses incurred for closure of operations-Notional income not taxable.[S.92CA]
Motricity India (P.) Ltd. v. Dy. CIT (2025) 124 ITR 166 / 170 taxmann.com 504 (Delhi)(Trib.)
S. 92C: Transfer pricing-Arm’s length price-Avoidance of tax-International transaction-Advertisement, Marketing and Promotion (AMP) expenditure-Revenue failed to establish existence of international transaction-No transfer pricing adjustment-Information Technology support services-Separate international transaction-Matter remanded for fresh benchmarking.[S.92, 92B,92CA, 92F]
BMW India (P.) Ltd. v. Dy. CIT [2019] 108 taxmann.com 419 / (2025) 124 ITR 584 (Delhi)(Trib.)
S. 69A: Unexplained money-Cash deposits during demonetisation-Cash generated from additional income disclosed before Settlement Commission-Source explained-Addition deleted.
Dy. CIT v. Baashyaam Constructions (P.) Ltd. (2025) 124 ITR 272 (Chennai)(Trib.)
S. 69A: Unexplained money-Search assessment-Financial broker-Cash loans belonging to clients-Brokerage income already disclosed-Addition as unexplained money deleted-Seized document-Entire document to be read as a whole-Revenue cannot rely selectively on favourable entries.[S.69A, 132, 132(4), 153C]
Dy. CIT v. Biharilal Shadhuram Chhabriya (2025) 124 ITR 149 (Nagpur)(Trib.)