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. 9(1)(i) : Income deemed to accrue or arise in India-Business connection-For considering the permanent establishment in Article 5(2)(i) the threshold duration is 9 months-Income is not chargeable to tax in India-DTAA-India–Mauritius. [S. 90, Art. 5(2)(i), 7]
GIL Mauritius Holdings Ltd. v. Dy. DIT (IT) (2018) 196 TTJ 896 (Delhi)(Trib.)
S. 271G : Penalty – Documents – International transaction – Transfer pricing – Failure to furnish information or documents-Change In Law — Default occurring prior to date of amendment conferring jurisdiction on Transfer Pricing Officer to impose penalty — Transfer Pricing Officer had no jurisdiction prior to Amendment ie on October 1, 2014 . [ S. 2(7A),92D(3) ]
Ericsson India Pvt. Ltd. v. ACIT ( 2018) 305 CTR 584/ (2019) 411 ITR 333 (Delhi) (HC)/ SLP of Revenue is dismissed ,Add. CIT v .Ericsson India Pvt. Ltd. (2024)468 ITR 2 (SC) (Followed , Varkey Chacko v. CIT (1993) 203 ITR 885 (SC)/ 1994 Suppl (1) SCC 264 )
S. 194C : Deduction at source – Contractors – Milling charges -property in by-products came into ownership of millers from a point of coming of it into existence-Assessee was not owners of such by-products—TDS provisions is not attracted . [ S.201 (1) 201(IA) ]
ITO(TDS) v. Distt. Manager Punjab State Warehousing Corporation ( 2018) 54 CCH 164/ 196 TTJ 815/ ( 2019) 176 DTR 129 (Chd)( Trib)
S. 147 : Reassessment –With in four years-Survey –Reassessment on the basis of statement of the partner –Reassessment is held to be valid- Adoption of cost of construction – Matter is remanded [ S.133A ]
Ganpati Plaza v. ITO (2018) 52 CCH 535 /165 DTR 25 /193 TTJ 86 Jaipur) (Trib)
S. 80P : Co-operative societies – Interest income earned by assessee was from carrying on its business activities— Entitle to deduction [ S.80P(2)(a))(i) ]
ITO v. Maharashtra Bank Employees Co-Operative Credit Society Ltd. (2017) 51 CCH 756 / (2018 )167 DTR 1 / 193 TTJ 735 (Pune) ( Trib)
S.68: Cash credits – Amount transferred from Pakistan – Source properly explained – Deletion of addition is held to be justified .
ITO v. Sangeeta Kotoomal Esrani (2017) 51 CCH 782/ ( 2018) 196 TTJ 1002 ( Pune(Trib)
S. 4 : Charge of income-tax – Pre-operative expenses— Interest from banks—Capital Receipt-Income from other sources . [ S. 3,56, 145 ]
ITO v. Kolkata Metro Rail Corporation Ltd. ( 2017) 51 CCH 779 (2018) 196 TTJ 17(UO) (Kol) (Trib)
S.2(22)(e): Deemed dividend – Intercorporate deposit -Business transactions -Deposit in the course of business- Interest income was offered as income – Not assessable as deemed dividend.
CIT v. Basant Poddar ( 2019) 412 ITR 529/ 173 DTR 368 / 307 CTR 341 ( 2020) 116 taxmann.com 799( Karn) (HC)
S. 276C : Offences and prosecutions-Wilful attempt to evade tax -None of the authorities gave clear finding about evading tax wilfully- Minor lapse on the part of the assessee of not mentioning stock, undisclosed income in the facts of this case do not attract launch of prosecution- Prosecution proceedings were quashed. [S.277, 278B]
N.R. Agrwal Industries Ltd. v. JCIT (2019) 173 DTR 145 (Guj.)(HC)
S. 263 : Commissioner-Revision of orders prejudicial to revenue-Capital gains-Valuation–Reference to valuation Officer- Discretionary power of the AO- Possible view–Revision is held to be not valid. [S. 45, 55A]
Jitindar Singh Chadha. v. PCIT (2019) 175 ITD 32/ 200 TTJ 98 (Delhi)(Trib.)