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. 132A : Powers- Requisition of books of account- Cash seizure- Reassessment notice- Review petition —Information provided under Right to Information Act incorrect-Review petition dismissed.[147, 148, 148A, Art. 226]

Muhammed C. K. v. ACIT (NO. 2) (2025)472 ITR 165 (Ker)(HC) Editorial : Muhammed C. K. v.ACIT (NO. 1) (2025)472 ITR 161 (Ker)(HC), Muhammed C. K. v.ACIT (NO. 3) (2025)472 ITR 166 (Ker)(HC)

S. 119 : Central Board of Direct Taxes- Circular- Delay in filing return- Condonation of delay- National Company Law Tribunal- Revised books of account- Genuine hardship- Power vested in Authority to be judicially exercised- The assessee could file before the jurisdictional Assessing Officer physical returns of income based on books of account revised under section 130(2) of the 2013 Act, as taken on record by the National Company Law Tribunal for the assessment years 2015-16 to 2020-21 within the time stipulated in this order- SLP of Revenue is dismissed. [S. 119(2)(b). 139(4), Companies Act, 2013, S. 130, Art. 136]

ACIT v. CG Power and Industrial Solutions Ltd (2025)472 ITR 642/ 303 Taxman 256 (SC) Editorial : CG Power and Industrial Solutions Ltd v. ACIT (2024)465 ITR 432 / 162 taxmann.com 315 (Bom)(HC)

S. 115JB : Company- Book profit-Long-term capital gains-Order of Tribunal allowing the exemption is affirmed. [S. 10(38), 260A]

PCIT v. Hespera Reality Pvt. Ltd. (2025)472 ITR 630 (Delhi)(HC)

S. 92CA : Transfer pricing Reference to Transfer Pricing Officer- Arm’s Length price- Avoidance of tax- Comparables- Objections of assessee on account of functional dissimilarities is not considered by Tribunal-Matter remanded to Transfer Pricing Officer.[S.92CA(3), 254(1)]

Sequential Technology International India Pvt. Ltd. v. Add. CIT (2025)472 ITR 753/ 169 taxmann.com 256 (Delhi)(HC)

S. 92CA : Transfer pricing Reference to Transfer Pricing Officer- Arm’s Length price- Avoidance of tax- Net profit margin-That Profit margins required to be compared with profit margins of enterprise and not that of any sub-unit or division of enterprise-Res Judicata- Once accepted in earlier year as initial year- Thee same has to be accepted- Company- Splitting transactions unit wise for determining Arm’s Length Price would not be apposite —Order of Tribunal holding payroll taxes as allowable expenditure is not erroneous- Expression an international transaction is to be construed in plural. [S. 2(31),10A, 92CA(3), 92F(iii) R.10A]

CIT v. Birlasoft Ltd. (2025)472 ITR 170/ 302 Taxman 324 (Delhi)(HC)

S. 80I : Industrial undertaking- For computing deduction under section 80I, it would be necessary to give effect to, and factor in, deduction allowed under section 33AC and if result of such deduction under section 33AC was that there was no profit from ship-Deduction under section 80I is allowable-Shipping business-Reserves-Reserve created to be primarily used for acquiring new ship- Cannot partake character of profit-Deduction inextricably linked to business of shipping with direct nexus to shipping operations brought out in provision itself-Total income-Income from capital gains and other sources contribute merely in computation of scale of cap on deduction-Profits of ship to be given effect to and factored in for computation of deduction under Sectionm80I- Provision for creating reserve to acquire new ship-Amendment not applicable to relevant assessment years prior to effective date-Proportionate allocation- Court cannot provide own basis and proportions for apportionment in appeal- Interpretation of meaning of word Ship in provision.[S.80I(3), 80I(6),260A]

Tolani Ltd. v. Dy. CIT (2025)472 ITR 121/ 165 taxmann.com 697 (Bom)(HC)

S. 68 : Cash credits- Cash deposit in the bank-No reasonable explanation- Addition is affirmed. [S.260A]

Mathurbhai P. Viradiya, HUF v. ITO (2025) 472 ITR 217 (Guj)(HC)

S. 37(1) : Business expenditure-Increase in payment to director- Company approved on 30-9-2004-Expenditure not deductible in Assessment Year 2004-05. [S. 145, 260A]

UC Mas Mental Arithmetic (India) Pvt. Ltd. v. ACIT (2025)472 ITR 585 (Mad)(HC)

S. 13 : Denial of exemption-Trust or institution-Investment restrictions- Tribunal right in holding that disqualification would apply only to that part of income which was in violation of conditions-No substantial question of law- Circular No. 387 Dated 6-7-1984 (1985) 152 ITR 1 (St)- Search and seizure- Documents found in the course of search- Question of law admitted. [S. 13(1)(c), 260A].

PCIT v. Sinhagad Technical Education Society (2025)472 ITR 15 (Bom)(HC) Editorial: PCIT v. Sinhagad Technical Education Society (2025)472 ITR 18 (SC), High Court is directed to consider second question of law along with other questions admitted.

S. 9(1)(vi) : Income deemed to accrue or arise in India- Royalty- Transfer of off-the-shelf- Software-Not assessable in India as royalty-DTAA-India- Israel. [S. 260A, Art. 12 (3)]

CIT (IT) v. Cognyte Technologies Israel Ltd. [2023] 155 taxmann.com 292 / (2025)472 ITR 476 (Delhi)(HC)