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. 144C : Dispute Resolution Panel – Draft Assessment Order – Eligible assessee – Not an eligible assessee if TPO makes no variation – Assessment order without jurisdiction.- Quashed assessment order. [S. 92CA(3), 144C(15)(b) , Art. 226 ]

Classic Legends Pvt Ltd v. Assessment Unit (Bom)(HC) www.itatonline .org

S. 271(1)(c) : Penalty – Bogus purchases – Addition on estimation –Rejection of books oaf account – Penalty not leviable.[ S. 145(3) ,147, 148 , 260A ]

PCIT v. Colo Colour Pvt. Ltd. (Bom)(HC) www.itatonline.org .

S. 192 : Deduction at source – Salary – Consultant doctors – No employer-employee relationship – TDS deductible u/s 194J – Income from business or profession-No substantial question of law – Contract – Annual Maintenance Contracts (AMCs) – Whether technical services – Matter remanded to the Tribunal to verify the contract . [S. 133A, 194C , 194J, 201(1), 201(1A), 260A ]

CIT (TDS)-1 v. Dr. Balabhai Nanavati Hospital (Bom)(HC) www.itatonline.org .

S. 56 : Income from other sources – Property received for inadequate consideration – Difference between agreement value and stamp duty value – Oral agreement supported by contemporaneous evidence –Agreement fixing the consideration and does not mandatorily require a written agreement – Change in stamp duty valuation method – Addition not sustainable- No binding precedent – Tribunal held that decision is based the facts and circumstances unique to assessee’s case and therefore the same cannot be applied as precedent in any other case. [S. 56(2)(vii)(b)(ii), 69B ]

Sharad Sevantilal Shah v. ITO (Mum)(Trib.) www.itatonline .org

S. 11 : Property held for charitable purposes – Carry forward of deficit – Excess expenditure incurred by trust in earlier years – Set off against income of subsequent years – Permissible – Appeal of Revenue dismissed. [S. 11(1)(a), 11(1)(d), 260A .]

CIT (E) v. Tata Education and Development Trust (Bom)(HC) www.itatonline.org .

S. 270A : Penalty for under -reporting and misreporting of income – Transfer Pricing adjustment – Advanced Pricing Agreement – No order passed u/s. 92CD(3) on modified return – Virtual hearing mandatory under Faceless Penalty Scheme – Penalty order quashed and matter remanded to AO to grant virtual hearing and pass fresh speaking order within 12 weeks. [S. 92CD(3) , 143(3), 144C(3), Art. 226 ]

Man Truck & Bus India Pvt Ltd v. The Assessment Unit, ITD (Bom)(HC) , www.itatonline.org

S. 143(3) Assessment – Disallowance of expenditure – Business income – Entries in the books of account is not conclusive- Alternative remedy – No deduction of expenses claimed either by assessee or unit holders – Addition made by AO wholly without jurisdiction – Writ petition maintainable – Assessment order quashed. [S. 10(23FBA), 28(i), 37(1), 115UB, 144B , 246A , Art. 226]

Kedaara Capital Fund II LLP v. NFAC (Bom)(HC) www.itatonline .org

S. 254(2) : Appellate Tribunal – Rectification of mistake apparent from the record – PF/ESI contribution – Subsequent decision of Supreme Court – Cannot be ground for rectification – Tribunal erred in recalling its order on the basis of subsequent ruling – Writ petition allowed. [S. 254(1), 143(1)(a), 36(1)(va), 43B, 260A, Art. 226, CPC O.47 R.1]

Vaibhav Maruti Dombale v. Assistant Registrar, ITAT (Bom)(HC) www.itatonline.org

S. 73 : Loss in share trading – Speculation loss – Set-off – Not allowable against profit from F&O transactions – Arbitrage operations – Explanation to S.73 operates independently of S.43(5) – Speculative loss cannot be adjusted against F&O business income.[ S.28(i) , 43(5)]

DCIT v. JM Financial Services Ltd ( TM ) ( Mum)( Trib) www.itatonline.org

S. 143(3): Assessment – Appeal pending before CIT(A)- Writ – Alternate remedy – Writ petition not maintainable- Extraordinary jurisdiction – Not to be invoked when alternate statutory remedy is available- The Court directed CIT(A) to dispose of the appeals (both against assessment and penalty orders) within eight weeks. [ S. 144B 250 , Art. 226 ]

Anil Ramchandran Pillai v. NFAC (Bom)(HC) www.itatonline.org