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. 147 : Reassessment- With in four years- Accommodation entries- Shell company- Deposit of demonetized cash- Sales Borrowed satisfaction- Not independently applied the mind- Reassessment notice and order disposing the objection was quashed-Delay of 354 days- SLP of Revenue is dismissed on account of delay as well as on merits. [S. 69A, 143(1), 148, Art.136]

ACIT v. B. U. Bhandari Autolines Pvt. Ltd. (2025)472 ITR 1 /171 taxmann.com 130 (SC) Editorial : B. U. Bhandari Autolines (P.) Ltd. v. Asstt. CIT (2023) 292 Taxman 195/ 456 ITR 56 (Bom)(HC)

S. 144C : Reference to dispute resolution panel- Assessment-Mandatory condition-Order passed without following procedure- Order is quashed.[S.292B Art. 226]

Shell India Market Pvt. Ltd. v. Add. CIT (2025)472 ITR 558 (Bom)(HC)

S. 144B : Faceless Assessment-Jurisdiction of Assessing Officer-Territorial Jurisdiction- Additional Commissioner of National Faceless Assessment Centre Vested with Jurisdiction to issue notice- Appeal and rectification application filed- Writ is not maintainable. [S.119(2), 120, 124 (2), 143(2) 154, 246A, General Clauses Act, 1897, S. 24, Art. 226]

Adarsh Developers v. Dy. CIT (2025) 472 ITR 765 / 158 taxmann.com 81 (Karn)(HC)

S. 144 : Best judgment assessment-Estimation of gross receipt-Special Audit Report —Special Audit Report for earlier assessment year cannot be basis to make addition for later assessment year- Matter remanded to Assessing Officer for re computation of income. [S. 37, 142(2A), Art. 226]

World Vision India v. Add. CIT (2025)472 ITR 564 / 170 taxmann.com 594 (Mad)(HC)

S. 143(3): Assessment- Principle of natural justice-Reply of assessee is not considered- Order is set aside. [Art. 226]

Aryan Pumps and Environment Solution Pvt. Ltd. v. NFAC (2025) 472 ITR 152 (Bom)(HC)

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)