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 – Limitation – TOLA did not apply as the limitation period expired before 20.03.2020- Notice under section 148 issued in 31-7-2022, which is beyond the prescribed time limit – Reassessment held to be invalid. [S. 68, 133(6), 142(1), 148, 148A(b), 148A(d), 149, 151, 154, 115JB]

CLE Private Ltd. v. DCIT (Mum)( Trib) www.itatonline .org

S. 147: Reassessment – With in four years- Change of opinion – Alleged double deduction – No failure to disclose material facts – Reassessment is quashed and set aside. [S. 143(3), 148, 149, 151, 36(1)(vii), 37(1), Art. 226]

Indusind Media & Communications Ltd. v. ACIT 11(1) (Bom)(HC) www.itatonline.org .

S. 147: Reassessment – Revision -Notional rent – Income from house property – Change of opinion – Reopening based on issues already examined in revision proceedings – The original assessment order dt.31.12.2015) is no longer existed, as it was set aside under Section 263- Making the reopening procedurally invalid – Reassessment is quashed . [S. 22, 143(3), 148, 149, 151, 263, Art. 226]

Dilip Gangaram Patil v. ACIT (Bom)(HC) www.itatonline.org .

S. 132: Search and Seizure – Ultra vires seizure – Stock in trade – Writ petition disposed of with directions to avail alternative remedy under S. 132B of the Act . [S. 131(1A), 132(1)(iii), 132B, Art. 226]

H. K. Jewels Private Limited v. ADIT (Bom)(HC) www.itatonline.org

The Power of Attorney Act , 1882

S. 2: Execution of power- of- attorney -General power of attorney – Transfer – Power of attorney and agreement to sell were not registered- In absence of registration under section 17(1)(b) of Registration Act, it would not be open for holder of power of attorney (POA ) to content that she had a valid right, title and interest in immovable property to execute registered sale deed in favour of appellant- Sale deed executed by General Power of attorney (POA) holder after death of original owner was invalid. [ S. 1A , Indian Contract Act , 1872, 201, 202 , Indian Income -tax Act , 1961 , 2(47) , Indian Registration Act ,1908, 17(1))(b) , 49, , Limitation Act , 1963 , Article . 58 , 65, Transfer of Property Act , 1882 , S.40,53A, 54, 55 , Specific Relief Act ,1877, ]

M. S. Ananthamurthy v. J. Manjula [2025] 172 taxmann.com 7 (SC)

S. 271(1)(c) : Penalty-Concealment-Deemed addition- Addition under section 56(2)(vii)(b)- Penalty is deleted. [S. 56(2)(vii)(b)]

Bankimbhai Natverbhai Patel v. ITO (Ahd.)(Trib.)(UR)

S. 270A : Penalty for under -reporting and misreporting of income – Not specifying the limb – Levy of penalty is not valid . [ S.270A(8) 270A(9) ]

Shri Shivaji Dattatray Sonawane v. ITO (Pune)(Trib) (UR)

S. 143(3): Assessment – Validity – Addition on account of bogus LTCG – Addition based on some incriminating material found in a search at premises of third parties- Assessment order should have been framed as per provisions of section 153C- assessment order passed under section 143(3) is set aside being bad in law. [ S. 132, 143(1), 153A , 153C ]

Shri Rajender Agarwal v. ACIT (Delhi)( Trib)(UR)

S. 69 : Unexplained investments – investment in the books of account – Evidences to prove genuineness of the purchase- Addition is deleted .[ S. 143(3), 145 ]

Sureshchandra Seksaria HUF v. ITO (Mum) ( Trib.)(UR)

S. 68. : Cash credits – Receipt of share capital/premium – Summons issued to investors returned unserved- Addition cannot be made under section 68 for the mere reason that summons issued to investors were returned unserved . [ S. 131 , 133(6)]

ITO v. Gitika Commodities Pvt. Ltd. ( Kol)(Trib) (UR)