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. 275 : Penalty-Bar of limitation–Concealment of income-With effect from 1-6-2003–Limitation of six months from end of month in which order of Tribunal is received-Order received on 31-1-2008-penalty order was passed on 31-7-2008–Not barred by limitation. [S. 271(1)(c)]

Parisons Roller Flour Mills P. Ltd. v. CIT (2019)411 ITR 553 / 176 DTR 377/ 307 CTR 825/ 265 Taxman 35 ( Mag.) (Ker.) (HC)

S. 271E : Penalty-Repayment of loan or deposit–No commercial exigency is shown–Levy of penalty is held to be justified. [S. 2(31), 269SS, 271D, 273B]

Vasan Healthcare P. Ltd. v. Add. CIT (2019) 411 ITR 499 / 261 Taxman 594/ 177 DTR 9/308 CTR 346(Mad.)(HC)Editorial: Order of Tribunal in Vasan Healthcare Pvt Ltd v. Add.CIT ( 2019) 69 ITR 189 ( Chennai)(Trib) ,Vasan Medical Centre (I) P.Ltd v. Add.CIT ( 2019)69 ITR 189 ( Chennai)(Trib) is affirmed .SLP of assessee dismissed , Vasan Healthcare P. Ltd. v. Add. CIT ( 2021 ) 278 Taxman 273 (SC)

S. 271C : Penalty-Failure to deduct at source– Delay in paying whole or part of tax deducted at source- Reasonable cause-Penalty can be waived or reduced-Interpretation-When there is ambiguity interpretation in favour of assessee is to be adopted. [S.194C, 276C(1), 273B]

Lakshadweep Development Corporation Ltd. v. ACIT (TDS) (2019) 411 ITR 213 / 307 CTR 500/ 175 DTR 369(FB) (Ker.)(HC)

S. 263 : Commissioner-Revision of orders prejudicial to revenue– Land held as stock in trade-Revision is held to be not valid.

CIT v. Sunil Sankhla (2019) 411 ITR 437 (Raj.)(HC)

S. 254(1) : Appellate Tribunal-Powers-Payments prohibited by law- Reinsurance payments to non-Residents is not prohibited by law-The Tribunal has no power to exceed an order of remand by the High Court-Tribunal must decide issues raised in appeal—Tribunal has no power to declare Transaction illegal under different statute—Matter remanded to decide accordance with law. [S. 37(1), 40(a)(i), Insurance Act, 1938, S. 2(16B), 101A, 114A]

Cholamandalam Ms General Insurance Co. Ltd. v. DCIT (2019) 411 ITR 386 / 261 Taxman 414/ 176 DTR 397/ 309 CTR 252/Mad.) (HC)

S. 226 : Collection and recovery-Modes of recovery-Appeal pending before CIT (A)–Upon payment of Rs.15 lakhs-Garnishee proceedings lifted. [S. 226 (3)]

R. Panneerselvam v. DGI (Inv.) (2019)411 ITR 546/ 263 Taxman 195 (Mad.)(HC)

S. 158BFA : Block assessment–Penalty-Undisclosed income-Not disclosed in the return–15% of undisclosed receipt was added as undisclosed income–Penalty is leviable. [S. 158B(b), 158BC]

CIT v. C. Najeeb (2019) 411 ITR 487/ 178 DTR 83/ 309 CTR 77 (Ker.)(HC)

S. 158BC : Block assessment-Undisclosed income—Does not mean entire undisclosed receipts—Tribunal justified in estimating 15% percentage of undisclosed receipts as undisclosed income. [S.158B(b)]

CIT v. C. Najeeb (2019) 411 ITR 487/ 178 DTR 57/ 309 CTR 77 (Ker.)(HC)

S. 147 : Reassessment-Claim for deduction cannot be made in Reassessment—Limitation- Not barred by limitation.[S. 149]

CIT v. Punalur Paper Mills Ltd. (2019) 411 ITR 563/ 176 DTR 342/ 309 CTR 42 (Ker.)(HC)

S. 147 : Reassessment-Notice based on appellate order-Documents showing share transactions were not genuine–Stockbrokers had elucidated on the sham and bogus nature of the share transaction- Matter remanded. [S. 68, 148]

CIT v. Geetanjali Credits and Capital Limited. (2019) 411 ITR 338/ 307 CTR 125/ 174 DTR 217 (Delhi)(HC)