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-After the expiry of four years-Accommodation entries-Information from DDI (Inv)-No failure to disclose material facts. [S. 68, 143(3), 148]

Dy.CIT v. Pacharia Exports P. Ltd (2022) 95 ITR 13 (SN) (Kol) (Trib)

S. 147 : Reassessment-After the expiry of four years-Non-Resident-Presumptive Tax-No failure to disclose fully and truly all material facts–Reassessment is not valid. [S. 44BB, 143(3), 148]

G and T Resources (Europe) Ltd. v. Add. DIT (IT) (2022) 96 ITR 6 (SN) (Dehradun)(Trib)

S. 147 : Reassessment-After the expiry of four years-No failure to disclose material facts-Reassessment order is invalid. [S. 148]

ACIT v. West Bengal Agro Industries Corporation Ltd. (2022)97 ITR 33 (SN) (Kol) (Trib)

S. 147 : Reassessment-After the expiry of four years-No failure to disclose material facts-Reassessment not valid-Accumulation of income-Claim that 15 Per Cent. of gross receipts should be allowed to be carried forward and up to 85 Per Cent. of gross receipts required to be applied in a year-Corpus donation-Excess application of preceding assessment year can be set off against current year’s receipts. [S. 11, 148]

Jubilee Mission Hospital v. Dy. CIT (2022)100 ITR 221 (Cochin) (Trib)

S. 147 : Reassessment-After the expiry of four years-No failure to disclose material facts-Audit objection-[S. 40(a)(ia), 143(3), 148]

Shree Rajendra Engineering Enterprises v. Dy. CIT (2022) 98 ITR 32 (SN) (Raipur) (Trib)

S. 147 : Reassessment-After the expiry of four years-Bogus purchase-No disallowance made on account of bogus purchase-Reassessment proceedings quashed. [S.69C, 148]

Basant Dharmichand Jain v. Dy. CIT (2022)98 ITR 694 (Mum) (Trib)

S. 145A : Method of accounting-Valuation-Closing stock-Assessing Officer taking average mark-up of 25 Per Cent.-Directed to take average mark-up of 32 Per Cent. to arrive at cost price of closing stock as on date of search. [S. 132]

ACIT v. New Saravana Stores Brahmandamai (2022)95 ITR 7 (SN)(Chennai) (Trib)

S. 145A : Method of accounting-Valuation-Sales Returns-No Provision created-Sales return policy accounted based on sound accounting principles-Deletion of addition is proper.

Inditex Trent Retail India Pvt. Ltd. v. Add.CIT (2022)95 ITR 102 (Delhi)(Trib)

S. 145A : Method of accounting-Valuation-Closing Stock-Valuation-Jewellery business-“Last In First Out” System of Accounting-Consistently valuing its stock of jewellery under “Last In First Out”-Order of CIT(A) is affirmed. [S. 145]

ACIT v. Rajmal Manikchand and Co. (2022) 96 ITR 39 (SN) (Pune) (Trib)

S. 145A : Method of accounting-Valuation-Under valuation of stock-Value of opening stock lower than admitted during survey-Value of opening stock of finished goods higher than average rate-Entire exercise of valuation adhoc and without any basis-Adjustment too minor to hold assessee attempted undervaluation of stock-Additions not justified.[S.133A]

Chirai Salt (India) Pvt. Ltd v. Dy. CIT (2022)97 ITR 12 (SN) (Ahd) (Trib)