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. 44BB : Mineral oils-Computation-Vessels to be used in Seismic support duties and transport of coated pipes in India-Receipts are covered under section 44BB-Excluded from the definition. of royalty-DTAA-India-Singapore. [S. 9(1)(vi), Explantion 2(via), 115JA, Art. 12]
Pacific Crest Pte. Ltd. v Dy. CIT (IT) [2023] 201 ITD 11 (Delhi)(Trib)
S. 44AD : Tax on presumptive basis-Demonetisation-Unexplained cash deposits during demonetisation period-Cash deposits explained-Held, addition is unsustainable. [S. 68,69A]
Sanjana R. Jain (Mrs.) v. ITO (2023)103 ITR 546 (SMC) (Mum)(Trib)
S. 44AD : Presumptive basis-Dissolution of partnership firm-Partner carried on business in capacity as proprietor-Amount taxed in the assessment of firm-Matter set aside to AO for verification of facts. [S. 44ADA, 194 J, Form No. 26AS]
Mathur Ugam and Associates v .ITO (2023) 153 taxmann.com 504 /104 ITR 442 (Delhi)(Trib)
S. 43CA : Transfer of assets-other than capital assets-Full value of consideration-Stock in trade-Agreement value-Stamp valuation-Benefit of proviso available retrospectively, Addition to be determined on the basis of fair market value determined by DVO.[S. 50C]
Dugad Properties v. DCIT (2023) 103 ITR 65 (SN) (Pune) (Trib)
S. 43(5) : Speculative transaction-Foreign exchange fluctuation-Hedging-loss arising on forwards contract cancelled by the assessee prior to the date of settlement-Not speculative-Allowable as business loss. [S. 28(i), 43(5)(a)]
ACIT v. Gimpex (P) Ltd. (Chennai)(2023) 202 ITD 784 / 106 ITR 44 (SN) (Chennai)(Trib).
S. 41(1) : Profits chargeable to tax-Remission or cessation of trading liability-Sundry creditors outstanding for more than three years-Credit not written off in assessee’s books-Not to be treated as income. [S. 4, 28 (i)]
Dy. CIT v. Wahid Sandhar Sugars Ltd. (2023)104 ITR 60 (SN)(Delhi) (Trib)
S. 40(a)(ia): Amounts not deductible-Deduction at source-CIT(A)’s deletion of additions made by Assessing Officer for non-deduction of TDS on Labour Contract Expenses, accepting that subcontractors had declared and paid taxes on the income stands ratified.
ITO v. Satyam Enterprise (2023) 103 ITR 56 (SN) (Surat)(Trib)
S. 40(a)(ia) : Amounts not deductible-Deduction at source-Commission-Sale of prepaid sim card at discounted price to distributors-Difference between maximum retail price and discounted price not commission on which TDS is required-disallowance of discount not justified. [S. 194H]
Asst. CIT v. Bharti Haxacom Ltd. (2023) 105 ITR 74(SN) (Delhi) (Trib)
S. 40(a)(ia): Amounts not deductible-Deduction at source-Payment of freight charges to transporters after obtaining PAN of transporters-No disallowance is called for.[S.194C(6), 194C(7)]
Sukumar Solvent (P.) Ltd. v. ACIT v ACIT (2023) 200 ITD 614 (Kol (Trib.)
S. 40(a)(ia): Amounts not deductible-Deduction at source-Salary to partners-Not liable to deduction of tax at source-Deletion of disallowance is affirmed.[S. 15, Explanation 2,192 194D]
ACIT v. Dhar Construction Co. (2023)101 ITR 49 (SN)(Gau) (Trib)