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. 148A: Reassessment-Conducting inquiry, providing opportunity before issue of notice-Credits pertaining to earlier years-Transaction explained-Reassessment notice and order disposing the objection was quashed. [S. 68, 147, 148, 148A(b), 148A(d), Art. 226]

Ajay Cotspin Industries v. ITO [2025] 178 taxmann.com 64 (Guj)(HC)

S. 80IA : Industrial undertakings-Enterprises engaged in infrastructure development-Income tax refund-Interest on excess payment of tax-Income derived from eligible business-Eligible for deduction- No substantial question of law. [S. 260A]

PCIT (Central)-1 v. Hiranandani Builders, (Bom)(HC)www.itatonline.org

S. 80IA : Industrial undertakings-Enterprises engaged in infrastructure development-Derived-Interest income on fixed deposits kept for contractual obligations and Interest on wrongful deduction of TDS refund-Eligible for deduction as profits derived from infrastructure facility. [S. 56 , 80IA(ii), 254(2), 260A, Art. 226]

Gateway Terminals India Pvt. Ltd. v. DCIT [2025] 177 taxmann.com 707 (Bom) (HC)

S. 254(2) : Appellate Tribunal-Rectification of mistake apparent from the record-Deduction-Rectification application of revenue was dismissed. [S. 80P(2)(d)]

ITO v. Bhoomi Classic Co-op HSG. Soc. Ltd. (Mum.)(Trib.)(UR)

S. 151 : Reassessment – Sanction for issue of notice –Order passed by ignoring revised return filed by assessee – No satisfaction recorded by Pr. CIT before granting approval- Reassessment order was quashed and set aside. [ S. 147 , 148 ]

Pradeep Kumar Banerjee v. CIT (A) (Kol.)(Trib) (UR )

S. 80P : Co-operative societies-Commission income from MSEDCL Bill Collection-Services rendered to members-Entitle to exemption. [S. 80P(2)(c)]

DCIT v. Jaimuni Sahakari Patpedhi Maryadit, (Mum)( Trib)

S. 68 : Cash credits-Capital is recorded through proper banking channel-Capital introduced by partner in firm-No addition can be made in the hands of the firm. [S. 2(31)(iv), 133(6)]

ITO v. Goodfarm Rearing (Ahd.)(Trib.)(UR)

S. 68: Cash credits- Conversion of private limited company into LLP – The transfer of share capital and reserves to partners’ accounts upon conversion – The addition was not justified since the nature and source of the credit were explained and not unexplained. [S. 47(xiiib)(f), 115BBE]

ITO v. NICAF LLP [2025] 175 taxmann.com 1001(Mum) (Trib.)

S. 68 : Cash credits-Firm -Partners-Once partners’ identity, creditworthiness, and genuineness of capital contribution are established through evidence, addition u/s. 68 cannot be made in the firm’s hands, as the firm is not required to explain the source of partners’ funds. [S. 2(31)(iv)]

Dy. CIT v. A.A. International (Mum)(Trib.)(UR )

S.43CA: Transfer of assets- other than capital assets-Full value of consideration-stock in trade-Agreement value-Stamp valuation Difference between SDV and agreement value was less than 5 per cent-Addition is deleted-Change of opinion-Reopening is not justified. [S. 50C, 147, 148]

Om Shriniwas Developers v. ITO [2025] 177 taxmann.com 610 (SMC) (Pune)(Trib.)