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.43B: Deductions on actual payment-Interest paid to financial institutions-Reassessment-Claim for deduction not made earlier-No original assessment-Assessment order pursuant to original and revised return-Claim made during assessment proceedings-Allowable as deduction. [S.43B, 139(5), 147(b), 260A]

KHR Hospitality India Ltd. v. CIT (2024) 338 CTR 761 (Cal) (HC)

S. 40(a)(ii) : Amounts not deductible-Rates or tax-Education cess-Not allowable as business expenditure. [S. 37(1)]

JCIT v. Sesa Goa Ltd (2024) 338 CTR 377/161 taxmann.com 806 (SC) Editorial : Sesa Goa Ltd. v. Jt. CIT (2020) 316 CTR 446/ 193 DTR 41 (Bom)(HC), is set aside.

S. 32 : Depreciation-Block of assets-Hotel-Temporary closure-Put to use less than 180 days-Second proviso-Acquired earlier years-Second and third proviso is not applicable-Depreciation is allowable.[S. 32(1), 260A]

KHR Hospitality India Ltd. v. CIT (2024) 338 CTR 761 (Cal) (HC)

S. 148A: Reassessment – Conducting inquiry, providing opportunity before issue of notice – Following the ratio in UOI v. Rajeev Bansal [2024] 167 taxmann.com 70 (SC) the time limit for issue of notice was extended only up to 30 -6 -2021 – Assessment year 2013 -14 the notice was issued on 29 -7 -2022 , for the Assessment year 2014 -15 the notice was issued on 31 -7 -2022 and for the Assessment year 2015 -16 the notice was issued on 28 -7 -2022 -All the notices are barred by limitation – Reassessment is quashed . [ S. 147, 148 , 148A(b), 148A(d) , 149(1), TOLA, S.2, 3 ]

ITO v. Pushpak Realities Pvt. Ltd. (Mum)( Trib) www.itatonline .org .

Income Declaration Scheme, 2016.
S. 183: Payment of tax-Adjustment of advance tax and self assessment tax-Matter is remanded with the direction for redo the exercise after examining the accounts of the assessee for AY. 2012-13 and ascertain whether the assessee has indeed made a correct declaration of income. [Art. 226]

RJPN Developers v. PCIT (2024) 337 CTR 818 / 162 taxmann.com 569 (Mad)(HC)

Direct Tax Vivad Se Vishwas Act, 2020.
S. 4 : Pendency of appeal-Order passed by Tribunal-Not served on the assessee-Appeal cannot be treated as pending-Rejection of application is held to be justified.[S. 2(1)(a), R.9 Form Nos. 1, 2, Art.226]

Redex Protech Ltd. v. PCIT (2024) 337 CTR 843/ 159 taxmann.com 134 (Guj) (HC)

S. 264 : Commissioner-Revision of other orders-Rejection application under section 154-Intimation-Remuneration to partners-Expenses claimed-Directed to file an appeal-Writ petition is dismissed-Delay in filing the appeal or Revision against the intimation is directed to be condoned. [S. 143(1), 154, 246A, Art. 226]

Hotel Raj Laxmi v. PCIT (2024) 337 CTR 102 (Pat) (HC)

S. 261 : Appeal-Supreme Court-Interpretation of taxing statue-Binding precedent-Review petition is pending-Judgment of the three Judge Bench is holding the field-Judgment has to be followed-Non-Resident-Computer software supplier-Not royalty-Not taxable in India-DTAA-India-USA.[S. 9(1)(vii), 90, Art. 12, Code of Civil Procedure, 1908, Order XLVII, R 1]

CIT v. Gracemac Corporation Supreme (2024) 337 CTR 588 (SC)

S. 205 : Deduction at source-Bar against direct demand-Tax deducted at source-What the Revenue cannot do directly, it is impermissible for it to reach the same end indirectly-Revenue is directed to refund-Mistake apparent-Review petition is dismissed.[S.260A, Form No 16A]

Incredible Unique Buildcon (P) Ltd. v. ITO [2023] 155 taxmann.com 603 / (2024) 337 CTR 121 / (Delhi)(HC) Editorial : Incredible Unique Buildcon (P) Ltd. v. ITO (2024) 337 CTR 129/ 234 DTR 352 (Delhi)(HC)

S. 170A : Effect of order of Tribunal or Court in respect of business reorganisation-Assessment-Effect of order of Tribunal or Court in respect of business reorganisation-Amalgamation-Consolidated return-Assessment order within two days of reply by making 59 additions-Assessment order is quashed and set aside. [S. 148, 143(3), Art. 226]

Pallava Textiles (P) Ltd v. Assessment Unit (2024) 337 CTR 881 / 467 ITR 539 / 159 taxmann.com 246 (Mad) (HC)