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. 4 : Charge of income-tax – Capital or revenue -Sales tax subsidy – Purpose of sales tax subsidy scheme was to attract people to invest and take part in industrialization of certain areas in the State, either by setting up new unit or expanding existing unit – Subsidy was a non-taxable capital receipt. [S. 28(i)]
Grasim Industries Limited v. ACIT (2018) 193 TTJ 25 (UO) (Mum.)(Trib.)
S. 260A : Appeal – High Court – Place of assessment –Pilot employed by the Indian Airlines-Jurisdiction- Transfer of case -Reassessment -Residing in Mumbai and assessed in Hyderabad — Reassessment notices in Mumbai and Hyderabad — Participating in assessment proceedings in Hyderabad — Objection to reassessment notice issued in Mumbai cannot be raised for first time before High Court — Assessment proceedings is held to be valid. [S. 120(3) 124, 127, 143(3), 147, 148]
J. Aditya Rao v. ACIT (2018) 409 ITR 169 (T&AP) (HC)
S. 271(1)(c) : Penalty – Concealment -International transaction — Transfer pricing —Explanation of Arm’s length price is found to be bona fide—Penalty cannot be imposed- Explanation 7. [S. 92C]
CIT v. Sinosteel India P. Ltd. (2018) 409 ITR 116/ 304 CTR 356 / 169 DTR 265 (Delhi)(HC)
S. 254(1) : Appellate Tribunal – Duties- Reasoned speaking order which is the mandate as laid down by the Supreme Court in Kranti Associates Pvt Ltd v. Masood Ahmed Khan ( 2010) 9SCC 496 and Canara Bank v. V.K Awasthy (2005) SC 2090-Non speaking orders by Tribunal as well as Commissioner (E)- Natural justice is violated matter remitted to Commissioner (E) for fresh consideration.[S. 12AA]
CIT v. Tara Ripu Dhamanpal Trust. (2018) 409 ITR 102 (P&H) (HC)
S. 234B : Interest – Advance tax – Salary income -An assessee whose income -tax liable to be deducted at source is not liable to pay advance tax and consequently not liable to pay interest u/s 234B(1). [S. 15, 192]
J. Aditya Rao. v. ACIT (2018) 409 ITR 169 (T&AP) (HC)
S. 147 : Reassessment—Alternative remedy- Share premium-Notice based on information — Reasons for notice furnished to assessee—Writ petition against the notice is not maintainable [ S. 68,148, Art .226 ]
Sun Direct TV P. Ltd. ACIT (2018) 409 ITR 49/ 259 Taxman 228 (Mad) (HC)
S. 147 : Reassessment -Reason to believe -Based on decision of Tribunal accepting contention of Assessee’s son in his case that income was chargeable in assessee’s hands as first holder of investments in mutual funds—Formation of belief is within subjective satisfaction of Assessing officer- Notice for reopening of assessment is valid. [S. 148]
S. Rajalakshmi ( Smt.) v. ITO (2018) 409 ITR 157 / 172 DTR 36/ 305 CTR 929/ ( 2019) 260 Taxman 205(Bom.)( HC). www.itatonline.org
S. 147 : Reassessment—Shell companies–Bogus long term capital gains-Assessment under S.143(1)-Notice of reassessment based on information from departmental channels-Assessing Officer had no occasion to form opinion- pinion—Reassessment is held to be valid. [S. 10 (38), 45, 143(1), 148]
Purviben Snehalbhai Panchhigar v. ACIT (2018) 409 ITR 124 (Guj.)(HC)
S. 147 : Reassessment—Doctrine of merger—Annulment of reassessment proceedings was held as invalid -The original assessment order would automatically get restored-Doctrine of merger does not apply. [S. 143(3), 148]
Patiala Improvement Trust. ACIT (2018) 409 ITR 43 ( 2019) 175 DTR 148/ 307 CTR 443 (P&H) (HC)