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
S. 263 : Commissioner – Revision of orders prejudicial to revenue -Total income -Eligible profit -Export profit -Deduction under Section 80HHC to be computed on eligible profits only after reducing profits on which deduction availed of under Section 80IB of the Act -Revision was affirmed -Special Leave to appeal of the assessee was dismissed. [S.80HHC, 800IA(9), 80IB(13)]
Broadways Overseas Ltd. v.CIT (2023)453 ITR 774/ 292 Taxman 33 (SC) Editorial : Broadways Overseas Ltd v. CIT (P& H)(HC) (ITA No. 234 of 2009 dt. 22-11 -2013) is affirmed.
S. 197 : Deduction at source – Certificate for lower rate -Non -Resident – Payments under distributor agreement —Certificate for withholding tax at rate of 9.99 Per Cent- Order set aside- Precedent -Supreme Court -Binding on Authorities. [S. 195, Rule 28AA, Art. 226]
Milestone Systems A/S v. Dy. CIT (No. 1) (2023) 453 ITR 250 (Delhi)(HC) Milestone Systems A/S v. Dy. CIT (NO. 2) (2023)453 ITR 255 (Delhi)(HC)
S. 195 : Deduction at source – Non-resident -Observations of High Court that if in assessment proceedings of Netherlands company, that company held liable to be taxed in India and assessee would also be treated as in default -Observation was quashed. [S.40(a)(i)), Art. 136]
Van Oord Acz India Pvt. Ltd. v. CIT (2023)453 ITR 214 / 292 Taxman 405/ 226 DTR 89 (SC) Editorial: Observation of Delhi High Court set aside, Van Oord Acz India Pvt. Ltd. v. CIT (2010) 323 ITR 130 (Delhi)(HC)
S. 158BE : Block assessment – Time limit – Search and seizure – Limitation -From date of last Panchnama and not date of last warrant of authorisation [S. 132, 158C]
Anil Minda v. CIT (2023) 453 ITR 1 / 292 Taxman 407 / 224 DTR 665 (SC) Editorial: CIT v. Anil Minda (2010) 328 ITR 320 (Delhi)(HC) is affirmed.
S. 156 : Notice of demand -Bogus accommodation entries – lacked bona fides- Refund of money transferred to bank account in which Department had Lien for tax dues of company- Question of facts -The assessee was directed to approach appropriate Forum or Civil Court for recovery of its claim. [Art. 226]
Garwal Logistics Ltd. v. CIT (2023)453 ITR 524 (Delhi)(HC) Editorial: Order of single judge is affirmed, Garhwal Logistics Ltd. v. ITO (2023)453 ITR 527 (Delhi)(HC)
S. 156 : Notice of demand -Bogus accommodation entries – lacked bona fides- Refund of money transferred to bank account in which Department had Lien for tax dues of company- Question of facts –Single judge held that the assessee should approach appropriate Forum or Civil Court [Art. 226]
Garhwal Logistics Ltd. v. ITO (2023)453 ITR 527 (Delhi)(HC) Editorial : Order single judge, Garwal Logistics Ltd. v. CIT (2023)453 ITR 524 (Delhi)(HC),
S. 153C : Assessment – Income of any other person – Search – Provision applicable to searches conducted prior to date of amendment – (Prior to and after amendment by Finance Act, 2015, with Effect From 1-6-2015)-Search conducted prior to amendment with effect from 1-6-2015 – Books received by Assessing Officer of assessee after that date -Belongs or belong to – Deeming fiction that date of initiation of search would be date when Assessing Officer of third person receives seized material -Amended provision applicable -Interpretation of taxing statutes -Interpretation which effectuates object and purpose of statute preferred.-Amendment by substitution —Rule against retrospectivity. [S. 132]
ITO v. Vikram Sujitkumar Bhatia (2023) 453 ITR 417/ 293 Taxman 4 / 332 CTR 1 / 224 DTR 217 (SC) Editorial: Anil Kumar Gopikrishna Agarwal v.ACIT (2019) 418 ITR 25 /(2020) 186 DTR 273 / 313 CTR 520 (Guj)(HC), reversed.
S. 153C : Assessment – Income of any other person-Search-Prior to and after amendment by Finance Act, 2015, with effect from 1-6-2015 -Order of High Court set aside. [S. 132, Art. 136]
ACIT v. Shruti Bhamasha Shah (2023) 453 ITR 735 (SC)
S. 151 : Reassessment – After the expiry of four years – Sanction for issue of notice -Sanction of approval by Joint Commissioner and Not by Principal Chief Commissioner or Chief Commissioner or Principal Commissioner or Commissioner – Notice and order on objections set aside.[S. 147, 148, Art, 226, Taxation and Other Laws (Relaxation of Certain Provisions) Act, 2020]
Sidhmicro Equities Pvt. Ltd. v. Dy. CIT (2023)453 ITR 33 (Bom)(HC) Editorial: SLP of Revenue dismissed, Dy.CIT v. Sidhmicro Equities Pvt. Ltd (2023) 453 ITR 35 (SC)