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. 50C: Capital gains-Full value of consideration – Stamp valuation-The valuation of the stamp authority cannot be adopted for the purpose of collecting capital gain tax in the hands of the assessee, if there is a long gap between the date of execution of the MOU and the execution of a formal development agreement.[ S.45, 269UL(3) ]

PCIT v. The Executor of Estate of Late Smt. Manula A. Shah ( Bom)(HC),www.itatonline.org

S. 41(1) : Profits chargeable to tax – Remission or cessation of trading liability – Provision for doubtful debt- Burden is revenue to prove that excess provision for bad and doubtful debt written back in profit and loss account was allowed as deduction in previous years -Deletion of addition is held to be justified [ S. 36(1)(viia) ]

CIT v. Pragathi Gramina Bank ( 2018) 91 taxmann.com 343 ( Karn) (HC) Editorial: SLP of revenue is dismissed , CIT v. Pragathi Gramina Bank ( 2018) 259 Taxman 219 ( SC)

S. 14A : Disallowance of expenditure – Exempt income – Disallowance cannot exceed exempt income [ S. 263 ,R.8D ]

PCIT v. State Bank of Patiala ( 2018) 99 taxmann.com 285 / 259 Taxman 315 ( P& H) (HC) Editorial: SLP of revenue is dismissed , PCIT v. State Bank of Patiala ( 2018) 259 Taxman 314( SC)

S.37(1): Business expenditure – Ad hoc disallowance of 10% claim – Bricks, machinery repairs, cartage , labour expenses- No ad hoc disallowances can be made without rejecting the books of account and also allowed in the past consistently such expenses in scrutiny assessments . [ S.143(3), 144 ]

PCIT v. R. G. Buildwell Engineers Ltd ( 2018) 99 taxmann.com 283 / 259 Taxman 371 ( Delhi) (HC) Editorial: SLP of revenue is dismissed , PCIT v. R. G. Buildwell Engineers Ltd ( 2018) 259 Taxman 370 (SC)

S. 147 : Reassessment –Order passed consequent to reassessment had not confirmed the addition attributable to the reasonable belief of the Assessing Officer, while passing the reassessment order – Reassessment is held to be bad in law.[ S.148 ]

PCIT v. Lark Chemicals ( P) Ltd ( 2018) 99 taxmann.com 311/259 Taxman 366 (Bom) (HC) Editorial: SLP of revenue is dismissed , PCIT v. Lark Chemicals ( P) Ltd ( 2018)259 Taxman 265 ( SC)

S. 147 : Reassessment – Change of opinion- Income from other sources -AO has consciously considered the claim for deduction u/s 80IC in the regular assessment proceedings – Accordingly reassessment is held to be not valid .[ S.80IC, 148 ]

PCIT v. Century Textiles & Industries Ltd ( 2018)167 DTR 105 / 99 Taxmann.com 205/ 259 Taxman 361 ( 2019) 412 ITR 228 (Bom) (HC) Editorial: SLP of revenue is dismissed, PCIT v. Century Textiles & Industries Ltd ( 2018) 408 ITR 59 (St)/ 259 Taxman 360 ( SC)

S. 147 : Reassessment – Export oriented undertakings – Where in the course of original assessment proceedings the Assessing Officer has raised several queries and allowed the claim-Reassessment cannot be made to examine another facet of said claim.[ S.10B, 148 ]

QX KPO Services ( P) Ltd v. Dy. CIT ( 2018) 94 taxmann.com 467/ 2019) 414 ITR 429 ( Guj) (HC) Editorial: SLP of revenue is dismissed ,Dy.CIT v. QX KPO Services ( P) Ltd ( 2018) 259 Taxman 31/ 408 ITR 73 (St) (SC)

S. 12AA : Procedure for registration –Trust or institution- In the absence of any cogent material or evidence to establish any violation of provisions of S. 12AA(3),cancellation of registration retrospectively is held to be not justified [ S.11, 12AA(3) ]

CIT v. Rama Educational Society ( 2018) 99 taxmann.com 281/ 259 Taxman 369 ( All) (HC) Editorial: SLP is granted to the revenue , CIT v. Rama Educational Society ( 2018) 259 Taxman 368 (SC)

S. 4 : Charge of income-tax -Capital-Revenue- Amount received by assessee from assigning its business rights is held to be capital receipts . Amount is also not to be included in computing book profits . [ S.155JB, 263 ]

CIT v. Om Metals Infraprojects Ltd ( 2018) 99 taxmann.com 228 / 259 Taxman 355 ( Raj) (HC) Editorial: SLP of revenue is dismissed , CIT v. Om Metals Infraprojects Ltd ( 2018) 259 Taxman 354 (SC)

S. 69 :Unexplained investments -Investment in immovable property- Merely on the basis of statement u/s 132(4) during the course search proceedings additions cannot be made- Order of Tribunal deleting the addition is affirmed . [ S.132(4) ]

CIT v. Nirmal Kumar Agarwal ( 2018) 99 taxmann.com 291/ 259 Taxman 320 ( Raj) (HC) Editorial: SLP is granted to revenue , CIT v. Nirmal Kumar Agarwal ( 2018) 259 Taxman 320 (SC)