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-Cash deposits-Search-Salary-Investigation-Reassessment is valid-Unexplained cash-Source is not explained-Addition is affirmed. [S.68,69A, 132, 148]

Prashant Vithoba Navale v.Dy.CIT (2024) 230 TTJ 341 / 240 DTR 145 / 38 NYPTTJ 664 (Pune) (Trib) Sadashiv Nivruti Navale v. Dy.CIT (2024) 230 TTJ 341 / 240 DTR 145 / 38 NYPTTJ 664 (Pune) (Trib)

S. 147: Reassessment-Cash deposit-No mentioning of name of asseessee in Investigation report-Objection not fully disposed of-Reassessment is quashed. [S.68,133(6), 148]

Manish Rajnarain Goswami v. ITO (2024) 230 TTJ 911 / 240 DTR 169 / 38 NYPTTJ 484 (Mum)(Trib)

S. 147 : Reassessment-Non application of mind-Shell companies-Web site of the Income-tax portal-Re produced information without cross verification-The reopening of assessment is quashed.[S. 148]

Jainco Transmission Ltd. v. DCIT (2024) 230 TTJ 769 / 239 DTR 225 / 38 NYPTTJ 738 (Kol)(Trib)

S. 145 : Method of accounting-Failure to produce details-Rejection of books of account is justified-Matter is restored back to the AO to estimate the profit of the assessee at a percentage worked out on the basis of preceding three years. [S. 145(3)]

Nanda Agrawal v. ITO (2024) 230 TTJ 46 (UO)/ 167 taxmann.com 707 (Raipur) (Trib)

S. 143(3): Assessment-Limited scrutiny-Interest income mismatch-Without following the prescribed procedure and necessary approval of the competent authority conducting an enquiry on the issue which is outside the limited scrutiny would be beyond the jurisdiction of the AO-The Assessment order is quashed. [S. 143(2)]

Sunita Singhvi v.ACIT (2024) 230 TTJ 236 / 38 NYPTTJ 352 (Jodhapur) (Trib)

S. 143(3): Assessment-Jurisdiction-Income include loss-Corporate assessee-Jurisdiction was with ACIT/Dy. CIT-The assessee had disclosed loss of Rs. 3,29,55,888-Notice is valid-Rejection of books of account is justified-Estimate of 10 percent of net profit is reasonable. [S. 2(24), 120, 143(2), 145(2)]

Shivam Builders (P) Ltd v. Dy.CIT (2024) 230 TTJ 257 / 239 DTR 209 /38 NYPTTJ 595 / 163 taxmann.com 196 (Ahd)(Trib)

S. 143(2) : Assessment-Notice-Shifting of residence from Delhi to Gurgaon-Change is reflected in the return filed-Notice issued by the Assessing Officer from Delhi is without jurisdiction-Quashed-Additional ground-Jurisdictional issue-Admitted [S. 254(1)]

Ekta Gupta (Ms) v. ITO (2024) 230 TTJ 398 / 238 DTR 289 / 38 NYPTTJ 514 (Delhi)(Trib)

S. 143(1) : Assessment-Intimation-Failure to file Form No 10B-Adjustment is justified-Disallowance of expenditure-Revenue is directed to intimate the exact reason for disallowing the claim of the assessee while processing the return-The assessee may file an application under S. 154 to rectify the mistake in the intimation, as deemed proper-Assessee is also free to avail the remedy under s. 119 if it so desires. [S. 10(23C), 11, 119, 154, 250(5)]

Shri R.V. Shah Charitable Trust v. Dy. CIT (2024) 230 TTJ 106 / 237 DTR 225 / 38 NYPTTJ 510/ 161 taxmann.com 810 (Ahd.) (Trib.)

S. 143(1) : Assessment-Intimation-Prima facie adjustment-under late payment of employees’ contribution towards PF and ESI-Adjustment is valid-Not allowable as deduction. [S.36(1(va), 37(1), 143(1)(a)]

Checkmate Services (P) Ltd. v. DCIT (2024) 230 TTJ 785 / 241 DTR 185 / 38 NYPTTJ 955/ 164 taxmann.com 498 (Ahd)(Trib)

S. 92C : Transfer pricing-Arm’s length price-Avoidance of tax-International transaction-comparables-There is no error in the reasons given by the TPO/DRP to include L&T in the final set of comparables-PLR-Interest on outstanding receivable-TPO is directed to adopt appropriate rate of interest by considering the currency in which the outstanding receivable by the assessee and its AE. [S.92B]

Oakton Global Technology Services Centre (India) (P) Ltd. v ITO (2024) 230 TTJ 495 / 240 DTR 158 / 38 NYPTTJ 773 / 163 taxmann.com 769 (Hyd) (Trib)