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-Foreign ECB loan for purpose of acquisition of a capital asset-Construction period-Temporarily parked ECB loan in FDRs-Interet income is allowed to be capitalised-Not assessable as income from other sources-SLP of Revenue is dismissed. [S.56]

PCIT v. Triumph Realty (P.) Ltd. (2025) 303 Taxman 108 (SC) Editorial : PCIT v. Triumph Realty (P.) Ltd. (2025) 170 taxmann.com 286 (Delhi)(HC)

S. 149 : Reassessment – Time barring – First proviso – Faceless regime – Jurisdiction of AO – Notice held barred by limitation and without jurisdiction. [S. 80IA, 133A, 143(3), 148, 148A(b), 148A(d), 151A, Art .226 ]

Shree Cement Ltd. v. ACIT & Ors. (Raj.)(HC) [2025:RJ-JP:29991-DB ] www.itatonline .org .

S. 149 : Reassessment – Time barring – First proviso – Notice issued beyond six years – Fifth proviso not applicable – Notice quashed. [S. 147 ,148, 148A(b), 148A(d) ]

Babu Hasan Shaikh v. ITO (2025) (Mum)(Trib) www.itatonline.org

S. 147 : Reassessment – Long-term capital gains – Addition on issue forming reasons for reopening deleted by CIT(A) – Reassessment held invalid.[S. 68, 69, 10(38), Expl. 3 to S. 147, 148 , 255(4)]

Mahesh Kumar v. ITO (2025) (TM) (Delhi)(Trib) www.itatonline.org

S. 250 : Appeal – Commissioner (Appeals) – Procedure – Second order passed in same appeal – Faceless regime – Cost of Rs .10,000 was imposed on Department.[ ITAT Rules, 1963, R. 32A(2) ]

Karnataka Sangha v. ITO (E)-1(4), Mumbai (Mum)(Trib) www.itatonline.org

S. 68 : Cash credits – Long term capital gain – Penny stock – Sale of shares – Turbo Tech Engineering Ltd – Kappac Pharma Ltd – Acquired at Rs 12 and sold at Rs 720 per share – Abnormal price rise – General investigation report – Cash purchase and late dematerialisation – No cogent evidence of genuine transaction – Addition upheld. [S. 10(38), 115BBE, 131, 133(6) ]

Chitra Avdhesh Mehta (Smt) . v. ITO (SMC) (Mum)(Trib)www.itatonline .org

Code of Criminal Procedure, 1973
S. 439: Bail – Allegation of foreign nationality – Forged Indian identity documents – Aadhaar Card , PAN, Voter ID, Passport and Ghumasta Licence – Alleged Civil contractor – Suspected Bangladeshi origin – National security – Bail denied. [Bharatiya Nyaya Sanhita, 2023, S.3(5, ) 193(8), 335, 336(3), 340 , Passport (Entry into India) Act, 1950, S. 3(a), 6(a); Foreigners Order, 1948, S. 3(1), 3(2), 14; Citizenship Act, 1955; Foreigners Act, 1946, S. 9, Art. 5 to 11 ]

Babu Abdul Ruf Sardar v. State of Maharashtra (Bom)(HC)(UR)

S. 56 : Income from other sources – Share premium – Valuation under DCF method – AO cannot substitute or reject valuation done by a prescribed valuer without authority – Projection variations with actuals cannot be a ground to disregard valuation – Deletion of addition justified. [S. 56(2)(viib), 11UA(2)(b) ]

Max Hospitals and Allied Services Ltd. v. DCIT, (Mum)(Trib)www.itatonline.org

S. 32 : Depreciation – Intangible asset – Non-refundable deposit for rights to operate and manage hospital – Eligible for depreciation – Depreciation allowed in earlier years cannot be denied in subsequent years.[ S. 32(1)((ii) ]

Max Hospitals and Allied Services Ltd. v. DCIT, (Mum)(Trib) www.itatonline.org

S. 245R: Advance rulings – Non-resident – Entitlement to benefits under DTAA – Transfer of shares – Capital gains – Transfer of shares in a foreign company by one non-resident to another – Treaty shopping – Lifting the corporate veil – Department must establish treaty abuse – Share transaction grandfathered under Article 13(3A) – Order of AAR holding transaction as tax avoidance arbitrary and illegal – Assessee entitled to DTAA benefit – SLP filed by Revenue – Operation of order stayed – DTAA – India–Mauritius [S. 45, 90, 119, 245R(2), Arts. 13(3), 13(3A), 27A]

AAR v. Tiger Global International II Holdings (2025) 303 Taxman 252 (SC) Editorial: Tiger Global International II Holdings v. AAR (2024) 165 taxmann.com 405 / 468 ITR 405 / 341 CTR 713 (Delhi)(HC) – operation of the order stayed.