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. 9(1)(i) : Income deemed to accrue or arise in India-Business connection-Capital gains-Shares-Not liable to be assessed as capital gains-Explanations 6 and 7 to section 9(1)(i) has to be treated retrospectively as it have to be read along with Explanation 5 which operates from 1-4-1962-OECD Model Convention, Art. 13 [S. 260A]

CIT (IT) v. Augustus Capital Pte. Ltd. (2024) 296 Taxman 398 (Delhi)(HC)

Prohibition of Benami Property Transactions Act, 1988,

S. 24 : Notice and attachment of property involved in benami transaction- Corporate debtor – Liquidation by NCLT – Notice of attachment – Notice is issued in SLP filed by the Liquidator . [ Insolvency And Bankruptcy Code, 2016, 60, 238 ]

P. Eswaramoorthy v. Dy. CIT (2024) 296 Taxman 578 (SC) Editorial : P. Eswaramoorthy v. Dy. CIT( Benami Prohibition ) (2023) 150 taxmann.com 321 (NCLT – Chennai )

S. 220 : Collection and recovery – Assessee deemed in default – Stay – Pendency of rectification application- Pendency of appeal before CIT(A)- Stay is granted on entire demand till disposal of appeal . [ S.2(15), 12A, 154 , 220(6), 250 , Art. 226 ]

Chaitanya Memorial Educational Society v. CIT (E)(2023) 335 CTR 868/ (2024) 296 Taxman 297 (Telangana )(HC)

S. 48 : Capital gains –Mode of Computation – Sale of shares gifted by promoters – BIFR cannot sanction any modification to scheme directing the Income tax department to give further tax concession without department being consenting to grant additional concession .[ S. 45 , Sick Industrial Companies ( Special Provisions ) Act , 1985 , 3(1)(o) , 17 , 18 , 22A, Art. 226 ]

PDGIT v. Indian Plywood Mfg. Co. (P.) Ltd [2023] 153 taxmann.com 416 / [2023] 240 COMP CASE 282 ( Delhi )( HC) Editorial : SLP is granted against the order of High Court , Indian Plywood Mfg. Co. (P.) Ltd. v. PDGIT (2024) 296 Taxman 576 (SC)

S. 147 : Reassessment –With in four years-Redemption of preference shares – Provisions of section 47(iv) are not applicable to redemption of preference shares- Order of Assessing Officer allowing the loss is affirmed – Reassessment notice and order disposing the objection is quashed . [ S. 2(47) 47 , 47 ( iv),47(v) , 148 , Art. 226 ]

Great Eastern Shipping Co. Ltd v. NFAC ( 2023) 157 taaxmann.com 442 ( Bom)( HC) Editorial : SLP of Revenue is dismissed, NFAC v. Great Eastern Shipping Co. Ltd. (2024) 296 Taxman 575 (SC)

S.37(1): Business expenditure – Capital or revenue – Hotel – renovation, refurbishment and repairs- Improved, efficiency of source of profit or income, expenses incurred for that purpose is allowable as revenue expenditure . [ S.30(a)(ii) ]

Asian Hotels Ltd. v. CIT (2023) 335 CTR 114/ (2024) 296 Taxman 225 (Delhi)(HC)

S.147: Reassessment – After the expiry of four years -Advertisement and sales promotion -No failure to disclose material facts – Reassessment notice and order disposing the objection was quashed – SLP of Revenue is dismissed . [ S. 37(1), 148, Art. 136 ]

ACIT v. Asian Paints Ltd. (2023) 335 CTR 113 / (2024) 296 Taxman 74 (SC) Editorial : Refer , Asian Paints Ltd. v. ACIT (2023) 149 taxmann.com 183 (Bom)(HC)

S. 271AA : Penalty-Failure to keep and maintain books of accounts-Documents-International transaction-Transfer pricing-Not specified the documents / information which are required to be kept or maintained-Order of CIT(A) deleting the penalty is affirmed.[S.92D(1), 92D(2)]

DCIT v. Convergys Customer Management Group Inc. (2023) 198 ITD 100 (Delhi) (Trib.)

S. 263 : Commissioner-Revision of orders prejudicial to revenue Capital gains-Penny stocks-Exemption cannot be denied merely based on surrenders made by bogus entry providers claiming that it provided bogus LTCG through shares of such company-Revision order is quashed.[S. 10(38),45 148]

Trivikram Singh Toor. v. PCIT (2023) 198 ITD 533/222 TTJ 798 (Chd) (Trib.)

S. 263 : Commissioner-Revision of orders prejudicial to revenue-Amounts not deductible-Value added tax remittances-Collected VAT along with sale price of liquor bottle-VAT payable by assessee would not attract provisions of section 40(a)(iib) of the Act-Revision order is quashed.[S. 37(1), 40(a)(iib)]

Tamilnadu State Marketing Corporation Ltd. v. ACIT (2023) 198 ITD 363 (Chennai ) (Trib.)