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. 148A : Reassessment-Conducting inquiry, providing opportunity before issue of notice-Capital gains-Search-Violation of principle of natural justice-Without giving a reasonable opportunity to file reply to show cause notice-Order passed under section 148A(d) and notice issued under section 148 were quashed. [S. 48, 148, 148A(b), 148A()d), Art. 226]

Inderpal Singh Sayan v. Assessment Unit ITD (2023) 293 Taxman 731/(2024)462 ITR 220 (Delhi)(HC)

S. 148A : Reassessment-Conducting inquiry, providing opportunity before issue of notice-Limitation-Survey-Charitable purposes-Prima facie amended section 149 might not be applicable-Matter required examination-Matter to be listed on 22-11-2023-Stay was granted for continuation of reassessment proceedings, till further directions of court. [S. 148, 148A(b), 148A(d), 149, Art. 226]

Centre For Policy Research v. Dy. CIT (2023) 293 Taxman 632 (Delhi)(HC)

S. 148A: Reassessment-Conducting inquiry, providing opportunity before issue of notice-Educational institution-Deemed university-Order passed under section 148A(d) and consequential notices were quashed. [S. 10(23C)(iiiab), 139(4C), 148, 148A(b), 148A(d), Art. 226]

Avinashilingam Institute for Home Science and Higher Education for Women v. ACIT (E) (2023) 458 ITR 491/ 293 Taxman 195 (Mad.)(HC)

S. 147 : Reassessment-Special category states-Assessing Officer applied his mind-Proceeding to reopen assessment was actuated merely by a change of opinion and, hence, impugned notice was set aside-Time limit to issue of notice-Notice is not barred by limitation-Sanction obtained satisfaction of Additional Commissioner, an authority who is not covered by provision of section 151(1), as it stood on 1-1-2019, proceeding initiated against assessee-company by issuance of notice under section 148 was held to be not in accordance with law.[S. 80IC, 148, 149, 151 (1), Art. 226]

Dhansri Roller Flour Mills v. UOI (2023) 293 Taxman 716 /335 CTR 328 /(2024) 460 ITR 326(Gauhati)(HC)/Editorial : SLP of Revenue is dismissed on account of gross delay of 294 days . Revenue could not explain the delay satisfactorily , UOI v. Dhansri Roller Flour Mills (2024) 300 Taxman 106 (SC)

S. 147 : Reassessment-With in four years-Change of opinion-Deductions on actual payment-Outstanding Rural Development (RD) cess amount as a liability in balance sheet-Rectification proceeding was dropped-All material facts were disclosed before Assessing Officer at time of original assessment-Affirming the order of the Tribunal the Court held that the reassessment is bad in law. [S. 43B, 143(3), 148, 154]

Mallikarjuna Rice Industries v. ITO (2023)458 ITR 566/ 293 Taxman 400 (Telangana) (HC)

S. 147 : Reassessment-With in four years-Long term capital gains from equities-Instances of insider trading-Formation of opinion based on prima facie, but precise facts-Strong foundation for invoking reassessment-Challenge to notice was dismissed.[S. 10(38), 45, 148, Art. 226]

Munjal M Jaykrishna Family Trust v. ITO (2023) 293 Taxman 665 /333 CTR 364 (Guj.)(HC)

S. 147 : Reassessment-With in four years-Transfer-Revaluation of asset-Estate development-Converted from inventory to fixed asset-Firm converted into company-Order of Tribunal quashing the reassessment was quashed. [S. 2(47), 45(1), 45(4),47(xiii), 148]

PCIT v. Salapuria Soft Zone (2023) 458 ITR 345/ 293 Taxman 739 /334 CTR 367/ 225 DTR 313 (Cal.)(HC)

S. 147 : Reassessment-With in four years-Compensation expenditure-Survey-Capital or revenue-Reopening of assessment on mere change of opinion — Impermissible — Notice was quashed and set aside. [S. 37(1), 133A, 147, Art. 226]

Anjis Developers Pvt. Ltd. v. CIT (2023)455 ITR 523 / 150 taxmann.com 112 (Bom)(HC) Editorial : SLP of Revenue is dismissed, CIT v. Anjis Developers (P.) Ltd. [2023] 293 Taxman 71 (SC)

S.147: Reassessment-After the expiry of four years-Share capital-No failure to disclose material facts-Reassessment order quashing the reassessment is affirmed. [S. 68, 143(3), 148, 260A]

PCIT v. South Delhi Promoters Ltd. (2023) 293 Taxman 123/(2024) 469 ITR 567 (Delhi)(HC)

S. 145 : Method of accounting-Consumption of leather-No suppression of material-Addition was deleted.

Sidhant Leather Exports (P.) Ltd. v. CIT (2023) 459 ITR 318 / 293 Taxman 412 (Cal.)(HC)