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. 254(2) : Appellate Tribunal-Rectification of mistake apparent from the record-Value of any benefit or perquisites-Converted in to money or not-Borrowed term loans and working capital loans from bank-One time settlement (OTS)-Principal value of loan-Order of Tribunal dismissing the miscellaneous application is set aside-Directed the Tribunal to reconsider the application-Writ petition-Discretion of the Court. [S.4, 28(iv), Art. 226]

I.G. Petrochemicals Ltd. v. Income-tax Appellate Tribunal (2023) 295 Taxman 569 (Karn)(HC)

S. 254(1) : Appellate Tribunal-Powers-Dismissal of appeal-Non appearance-Failure to appear on the appointed date, failure to make arrangement to represent her before Tribunal by an authorised representative and also failed to seek another date of hearing-Order of High Court is set aside-Matter is restored to the file of the CIT(A).[S. 54F, Art. 136]

Shobha Lakshman (Smt) v. CIT (Appeals) (2023) 295 Taxman 237 (SC) Editorial : Shobha Lakshman (Smt.) v. CIT (2019) 264 Taxman 198 / 311 CTR 496 / 183 DTR 213 (Karn.)(HC)

S. 245H : Settlement Commission-Power-Grant immunity from prosecution and penalty-Order of High Court remanding the matter to Settlement Commission to determine fresh, the question as to immunity from levy of penalty and prosecution is set aside. [S. 245C, 245D, 271(1))(c), Art. 136]

Kotak Mahindra Bank Ltd. v. CIT (2023) 458 ITR 113 /295 Taxman 588 / 334 CTR 729 (SC) Editorial: ING Vysya Bank Ltd v.CIT (2013) Taxman 115 (Karn)(HC)(SJ), CIT v. Vysya Bank Ltd (2010) 194 Taxman 533/(2012) 344 ITR 658 (Karn)(HC)

S. 245 : Refunds-Set off of refunds against tax remaining payable-Recovery of tax-Must be given information regarding proposed adjustment-Strictures-For not obeying and considering the judgments of the Supreme Court, as well as the provisions of sections 220(6) and 245 of the Act and the circulars of the Department Cost of Rs 50000 was imposed on the Assessing Officer to be deposited with the Rajasthan State Legal Services Authority-High Court order imposing cost of Rs 50000 is set aside. [S. 220(6), 222, 223, 246A, Customs Act, 1962 S. 129(e), 235(f), Art. 14, 19, 265]

ACIT v. Rajendra Kumar (2023) 295 Taxman 407 /334 CTR 343 (SC) Editorial: Rajendra Kumar v. ACIT (2022) 287 Taxman 625/ 445 ITR 622 //327 CTR 116/ 215 DTR 1 (Raj)(HC)

S. 237 : Refunds-Directed to refund verified amount along with interest and balance refund amount the Revenue is directed to locate the file and release the amount based on indemnity bond furnished by the assessee. [Art. 226]

Nokia Corporation v. Dy. CIT (2023) 295 Taxman 267 (Delhi)(HC)

S. 220 : Collection and recovery-Assessee deemed in default-Stay-Pendency of appeal before CIT(A)-Rectification of mistake. [S. 220(6), 246A, Art. 226]

Sukumar Dhanapal v. ITO (2023) 295 Taxman 481 (Mad.)(HC)

S. 201 : Deduction at source-Failure to deduct or pay-Foreign remittance-Purchase of subscription-No liability to pay tax in India-Cannot be treated as assessee in default-DTAA-India-Singapore. [S.9(1)(vii), 201(1), 201(IA), Art. 5, 7, 12(3), 12(4)(a) 12(4)(b)]

CIT v. Red Hat India (P.) Ltd (2023) 295 Taxman 247 (Bom)(HC)

S. 199 : Deduction at source-Credit for tax deducted-Refund of tax deducted at source-Amount wrongly deducted to be refunded if person receiving payment is not claiming credit-Amount to be refunded with interest.[S. 115A,195,195A, 248, Art.226, 265]

Grasim Industries Ltd. v. ACIT (2023) 458 ITR 1 / 295 Taxman 297/ 335 CTR 233 (Bom.)(HC)

S. 195 : Deduction at source-Non-resident-Other sums-Payment to resellers-No permanent establishment in India-Equalisation levy-Directed to withhold 8 percent of payments to Amazon Web Services (AWS) USA-DTAA-India-USA. [S. 9(1)(i),195(2), Finance, Act, 2016, S. 165A, Art. 7, Art.226]

Amazon Web Services India (P.) Ltd v. ITO (2023) 295 Taxman 555/(2024) 336 CTR 471 (Delhi)(HC)

S. 194A : Deduction at source-Interest other than interest on securities-Interest awarded by Motor Accidents’ Tribunal under Motor Vehicles Act-Not income-Not liable to deduct tax at source-Any provision for deduction of tax at source in the section would not govern the taxability of the receipt-SLP granted to the Revenue. [S. 2(24), 56(2)(vii), 145A, 145B, 194A(3), Motor Vehicles Act, 1988, S. 171, Art. 136]

CCIT (TDS) v. Oriental Insurance Co. Ltd. (2023) 295 Taxman 320 (SC) Editorial: SLP granted, Oriental Insurance Co. Ltd. v. CCIT (TDS)(2022) 445 ITR 300/ 287 Taxman 522 (Guj)(HC)