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. 145 : Method of accounting- Income -Accural-land development, had been Mercantile system of accounting- Cash system of accounting-Cannot adopt cash system in respect of one project and mercantile system in respect of other projects. [ S.5 ]
Ace Real Estate & Developers. v. ACIT (2019) 260 Taxman 37/ 175 DTR 437 / 308 CTR 481(Bom.)(HC)
S. 132 : Search and seizure – Issue of warrant of authorisation against the locker of the assessee, without disclosing any material or information stating that locker contained valuable jewellery or other articles representing undisclosed income warrant was unjustified and held to be illegal [ S.153A]
Shah E Naaz Judge v. ADIT (2019) 260 Taxman 116/ 306 CTR 42 / 173 DTR 169 (Delhi)(HC)/Sahyr Kohli v ADIT (2019) 260 Taxman 116/ 306 CTR 42/ 173 DTR 169 (Delhi)(HC) Sandeep Kohli v. ADIT (2019) 260 Taxman 116/ 306 CTR 42/ 173 DTR 169 (Delhi)(HC)
S. 127 : Power to transfer cases–Recording of reasons–Non application of mind -Reason must disclose that patently, logic and prudence has been applied before passing the order– Decentralisation of central charges cannot constitute sufficient reason to transfer the cases.
PCIT v. Rohtas Project Ltd. (2018) 100 Taxman 383 / (2019) 260 Taxman 95 (All.)(HC) Editorial : SLP of revenue is dismissed ;PCIT v. Rohtas Project Ltd. (2019) 260 Taxman 94 (SC)
S. 45 : Capital gains- Business income- Set of off loss from one transaction against gain form second transaction is held to be allowable. [S. 28(i)]
PCIT v. Adar Cyrus Poonawalla (2019) 260 Taxman 41 (Bom.)(HC)
S. 36(1)(vii) : Bad debt–Waiver of right to receive sale consideration from director and family members–Avoid deadlock in management-Family settlement–Partition recognised u/s 171–Allowable as bad debt [S. 171]
CIT v. Millennia Developers (P.) Ltd. (2019) 260 Taxman 142/ 307 CTR 226 /174 DTR 282 (Karn.)(HC).Editorial: SLP of revenue is dismissed , CIT v. Millennia Developers (P.) Ltd ( 2019) 266 Taxman 186 (SC)
S. 28(i) : Business loss-Trading loss-Purchase and sales through commission agent-Loss held to be non -genuine -Disallowance is held to be justified–CIT(A) can consider the record relating to past assessment, while deciding the appeal. [S. 250, 260A]
Mathur Marketing (P.) Ltd. v. CIT (2019) 260 Taxman 9/ 173 DTR 74/ 307 CTR 613/ 413 ITR 353 (Delhi)(HC)