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.144: Best judgement assessment- Books destroyed due to flood- Expenditure cannot be disallowed arbitrarily – Best judgement should not be made as a best punishment assessment .[ S.37 (1)

PCIT v. Rahul J. Jain ( Bom) (HC) (UR) Editorial: Order in ACIT v Rahul J. Jain (Mum) (Trib) ( ITA NO 5986 /M/ 2013 dt 28 -9-2015) is affirmed

S.68: Cash credits – Loans – Confirmation, balance sheet, bank account produced -AO had made no effort to verify the details filed by the assessee- Addition is held to be not justified .

PCIT v. Parth Enterprises ( Bom) (HC) (UR) Editorial. Order in ITO v. Parth Enterprises ( Mum) (Trib) ( ITA No 976/M. 2016 dt. 10-06-2015 is affirmed .

S. 254(1) : Appellate Tribunal- Duties-Failure consider the pleas raised by the assessee–Matter remanded. [S. 68]

Rajiv Jain. v. ITO (2019) 410 ITR 179 / 308 CTR 393TR 27/ 177 D(Delhi) (HC)

S. 147 : Reassessment- Scientific research expenditure- Absence of concluded facts – Writ petition was dismissed. [S. 148, Art. 226]

Alkem Laboratories Ltd. v. CIT (2019) 410 ITR 205 (Pat.)(HC) Editorial : SLP of assessee is dismissed; Alkem Laboratories Ltd. v. CIT (2018) 409 ITR 4 (St.) / (2019) 260 Taxman 101 (SC)

S. 143(3) : Assessment-Transport business—Estimation of income- Tribunal should have adopted same method in case of assessee’s son-Income from shares- Assessable in the hands of individual-Question of fact -Estimation of income–Could not be telescoped. [S. 5, 145]

S. Dhanapal (Smaller (HUF) (Specified) v. ACIT (2019) 410 ITR 230 (Mad.) (HC) S.Dhanpal (Bigger HUF) (Specified) v. ACIT (2019) 410 ITR 230 (Mad.) (HC) S. Dhanpal (Individual) v. ACIT (2019) 410 ITR 230 (Mad.)(HC)

S. 115JA : Book profit- Company—Provision for bad debts— Amended provision By Finance (No. 2) Act, 2009 with retrospective effect from 1-4-1998 — Matter Remanded to Assessing Officer to decide applicability of the provision.

Chettinad Cement Corporation Ltd v. DCIT (2019) 410 ITR 224 (Mad.)(HC)

S. 80P : Co-Operative Bank- Income from sale of goods for public distribution system of State Government under directive of State Government–Ancillary activity–Entitle to deduction. [S. 80P(1)(2)(a)(i), Tamil Nadu Co-Operative Societies Act, 1983, S.2(13)]

Kodumudi Growers Co-Operative Bank Ltd. v. ITO (2019) 410 ITR 218 (Mad.)(HC)

S.45 : Capital gains—Computation-Revaluation of assets— Transferred to firm – For the purpose of computing capital gains value of assets recorded in books of the firm on date of transfer would be deemed to be full value of consideration received as a result of transfer Valuation of assets cannot be entertained in appeal. [S. 45,260A]

CIT v. DR. D. Ramamurthy. (2019) 410 ITR 236 / 102 Taxman.com 330/ 261 Taxman 435 (Mad) (HC) Editorial: SLP of revenue is dismissed; CIT v. DR. D. Ramamurthy. (2018) 408 ITR 18 (St.)/( 2019) 261 Taxman 560 (SC)

S. 45 : Capital gains- Business income-No distinction can be made whether borrowed money or own funds–Circular is binding on department -Consistency must be followed -Surplus from sale of shares is assessable as capital gains and not as business income. [S. 28(i)]

CIT v. Hardik Bharat Patel. (2019) 410 ITR 202 /260 taxman 294(Bom.)(HC),Editorail : SLP of revenue is dimissed , as withdrawn due to low tax effect, PCIT v. Hardik Bharat Patel ( 2020 ) 269 Taxman 562 (SC)

S. 37(1) : Business expenditure—Commission—No evidence of services rendered -Disallowance is held to be justified. [S. 133(6),260A]

Alpasso Industries Pvt. Ltd. v. ITO (2019) 410 ITR 212/ 261 Taxman 442 (Delhi)(HC)