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 -Residential Status -Resident or non-resident -Service of notice on chartered Accountant – Reassessment notice was held to be valid- Interest- Levy of interest -Automatic -Working in ITNS 150 forming part of assessment order was proper -Sikkim -Commission -Burden not discharged -Round tripping of funds -Liable to tax in India. [S. 2(35), 5, 6(3)(ii), 131, 142(1), 143(2), 148, 234A, 282]

Mansarovar Commercial Pvt. Ltd. v. CIT (2023)453 ITR 661/ 293 Taxman 312 / 332 CTR 137/ 224 DTR 305 (SC) Editorial: Decision of Delhi High Court, affirmed, CIT v. Mansarovar Commercial Pvt. Ltd (Delhi)(HC) (2016) 134 DTR 105 / 287 CTR 28 (Delhi)(HC)/ CIT v. Pasupati Nath Commercial (P) Ltd. (2016) 134 DTR 105 / 287 CTR 28 (Delhi)(HC) CIT v. Sovereign Commercial (P) Ltd. (2016) 134 DTR 105 / 287 CTR 28 (Delhi)(HC) CIT v. Swastik Commercial (P) Ltd. (2016) 134 DTR 105 / 287 CTR 28 (Delhi)(HC) CIT v. Trishul Commercial (P) Ltd. (2016) 134 DTR 105 / 287 CTR 28 (Delhi)(HC) (ITA Nos. 162/ 164 165 / 167/ 168 of 2002 dt 22 -2 -2016) (AY. 1987 -88, 1988-89, 1989 -90)

S. 147 : Reassessment –With in four years-Speculative transactions-loss of cancellation of forward contract-Change of opinion-No new material -SLP of Revenue dismissed. [S. 43(5), 148, Art. 136, 226]

ACIT v. Parle Products Pvt. Ltd. (2023) 453 ITR 768 (SC) Editorial : Parle Products (P.) Ltd. v. ACIT (2022] 286 Taxman 235 /(2023) 453 ITR 765(Bom)(HC), affirmed.

S. 147 : Reassessment -After the expiry of four years – Specific query in the course of assessment proceedings -Expenditure on cost of samples – Advertisement and sales promotion- Change of opinion -SLP of Revenue is dismissed. [S. 37(1), Explanation, 148, Indian Medical Council (Professional, Conduct, Etiquette and Ethics) Regulations, 2002, Art. 136]

ACIT v. Virbac Animal Health India Pvt. Ltd. (2023)453 ITR 794 (SC) Editorial: Virbac Animal Health India Pvt. Ltd v. ACIT (2023) 453 ITR 787 (Bom)(HC) is affirmed.

S. 147 : Reassessment-After the expiry of four years-Book profit-Revision was dropped-Sanction for reassessment was without application of mind-Reassessment notice and order disposing the objection was quashed.- SLP of Revenue was dismissed. [S. 148, 151, 263, Art. 136, 226]

ACIT v. Godrej and Boyce Manufacturing Co. Ltd. (2023)453 ITR 14/ 293 Taxman 311 (SC) Editorial: Decision in Godrej And Boyce Manufacturing Co. Ltd v. ACIT (2023) 453 ITR 10(Bom)(HC) is affirmed.

S. 147 : Reassessment -After the expiry of four years -No failure to disclose material facts -Change of opinion – Reassessment notice and order disposing the objection was quashed by the High Court was affirmed. [S. 143(3), 148, Art. 136, 226]

ACIT v. E-Land Apparel Ltd. (2023) 453 ITR 23 / 293 Taxman 453 (SC) Editorial: E-Land Apparel Ltd v. ACIT (2023) 453 ITR 16 (Bom)(HC), is affirmed.

S. 147 : Reassessment-Notice after six years-Notice issued prior to 1-4-2021 more than six years after expiry of Assessment year – High Court quashed notice and orders- SLP of Revenue is dismissed. [S. 148, Art. 136, 226]

ITO v. Salu Agarwal (2023)453 ITR 786/ 293 Taxman 454 (SC) Editorial: Refer Salu Agarwal v. ITO (2023)453 ITR 784 (Orissa)(HC)

S. 144B : Faceless Assessment-Writ-Territorial Jurisdiction of Court -Doctrine of forum non convenience – Assessment order -Cause of action – Situs of Assessing Officer would be determinative of Jurisdiction of High Court -Complexity of Legal issues -Matter referred to larger Bench. [S. 143(3), 144B(1)(xxxii), 156, 271AACC (1), Art. 226]

GPL-Rktcpl JV v. NFAC (2023) 453 ITR 384 / 291 Taxman 409 / 330 CTR 362 / 221 DTR 272 (Delhi)(HC) Pharmachol Chemicals Pvt. Ltd. v. NFAC (2023) 453 ITR 384 / 291 Taxman 409/ 330 CTR 362/ 221 DTR 272 (Delhi)(HC) RKKR Foundation v. NFAC (2023) 453 ITR 384 / 291 Taxman 409/ 330 CTR 362 / 221 DTR 272 (Delhi)(HC)

S. 144B : Faceless Assessment-Failure to follow the procedure-Certain observations of High Court is expunged-Liberty to Department to seek review in light of omission of section 144B(9) of the Act. [S. 144B(9), Art. 136, 226]

NFAC v. Mantra Industries Ltd. (2023) 453 ITR 239 (SC) Editorial : Mantra Industries Ltd v. NFAC (2021) 283 Taxman 459/ 323 CTR 249/ 207 DTR 161/ (2022) 441 ITR 467 (Bom)(HC), observation of the High Court was expunged.

S. 144B : Faceless Assessment –Failure to follow procedure -Subsequent omission of provision -Judgment of High Court set aside and matter remanded to the High Court to consider effect of omission of provision. [S. 119, 144B (9), Art, 136, 226]

NFAC v. Chander Arjandas Manwani (2023) 453 ITR 236 (SC) Editorial : Chander Arjandas Manwani v. NFAC (2021) 283 Taxman 380 / (2022) 442 ITR 197 (Bom)(HC), set aside and matter remanded.

S. 144B : Faceless Assessment –Draft assessment order -Failure to issue notice and draft assessment order -Non est -Matter remanded to Assessing Officer to assess afresh. [Art. 136, 226]

NFAC v. Automotive Manufacturers Pvt. Ltd. (2023)453 ITR 230 (SC) Editorial: Decision of Bombay High Court, modified, Automotive Manufacturers Pvt. Ltd v NFAC (Bom)(HC)(W.P.(L) No. 16281 of 2021 dt. 14 -10 -2021)