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. 127 : Power to transfer cases-Search and seizure-Effective and expeditious completion of search proceedings-Objections considered-Order of transfer is valid. [S. 132, Art. 226]

Chhattisgarh Distilleries Ltd. v. UOI (2023)455 ITR 533 (MP)(HC)

S. 119 : Central Board of Direct Taxes-Refund-Tax deduction at source-Limitation-Condonation of delay-Rectification application filed after over 12 years from the relevant assessment year is barred by limitation. [S. 119(2)(b), 237, Art.226]

Gee Cee Metals Pvt. Ltd. (AOP) v. PCIT (2023) 455 ITR 211/ 334 ITR 332 /152 taxmann.com 31 (Uttarakhand) (HC) Editorial : SLP dismissed, as withdrawn, Gee Cee Metals (P.) Ltd. (AOP) v. PCIT (2023) 157 taxmann.com 530//297 Taxman 67 (SC)

S. 115JB : Company-Book profit-Tender bid-Computation of net worth-Deferred tax liability-Rejection of tender bid-Calculation of net worth is primarily on tender issuing Authority and evaluating committee-Court cannot interfere unless arbitrary and contrary to law. [R. 11UA, Art. 226]

Kalinga Commercial Corporation Ltd. v. Steel Authority Of India (2023)455 ITR 1 (Delhi)(HC)

S. 90 : Double taxation relief-Tax credits withheld in USA and Canada-Entitle to credit though the income is exempt under section 10A of the Act-DTAA-India-Canada-USA. [S. 10A]

CGI Information Systems and Management Consultants Pvt. Ltd. v ITO (2023)455 ITR 270/153 taxmann.com 527 (Karn.)(HC)

S. 80IA : Industrial undertakings-Infrastructure development-Initial assessment year-loss or unabsorbed depreciation, which had already been set-off prior to initial year, would not be notionally carried forward and adjusted against profits of eligible business in order to determine deduction. [S. 32, 72, 80IA(5)]

PCIT v. Sterling Agro Industries Ltd. (Delhi) (2023) 455 ITR 65 / 335 CTR 521 /151 taxmann.com 203 (Delhi)(HC)

S. 45(5A) : Capital gains-Joint development agreement-Constitutional validity-Amendment by Finance Act, 2017providing for taxation of capital gains from Joint development agreements-Amendment valid-Different classes of assesses-Amendment is with effect from 1-4-2018 and not retrospective. [S. 2(47)(v), 45,48, Transfer of Property Act, 1882, S. 53A, Art. 14, 226]

Pankaj Kumar v. CIT (2023)455 ITR 583/333 CTR 242/ 226 DTR 169 (Pat)(HC)

S. 40A(3) : Expenses or payments not deductible-Cash payments exceeding prescribed limits-Payments to cultivator, grower or producer of dairy produce-Payments for purchase of cream-Disallowance is justified. [R. 6dd(f)(ii)]

Sri Murugan Ghee Store v. ITO (2023)455 ITR 669/334 CTR 564 (Telangana)(HC)

S. 40A(2) : Expenses or payments not deductible-Excessive or unreasonable-Management fees-International Transactions-Transfer Pricing-Res Judicata-Commercial expediency-Principles of consistency and rule of finality applied. [S. 40A(2)(b), 92A(3), 144C, 260A]

PCIT v. Nippon Leakless Talbros Pvt. Ltd. (2023)455 ITR 335/ 153 taxmann.com 279 (P&H)(HC)

S. 37(1) : Business expenditure-Prior period expenditure-Liability crystallised in relevant previous year-Allowable as deduction. [S. 145]

PCIT v. Balmer Lawrie And Co. Ltd. (2023)455 ITR 198/334 CTR 895/ 149 taxmann.com 286 (Cal)(HC)

S. 37(1) : Business expenditure-Capital or revenue-Annual subscription fee for software licence-Revenue expenditure-Provision for payment to employees based on performance-Not contingent-Allowable as deduction. [S. 145]

CGI Information Systems and Management Consultants Pvt. Ltd. v ITO (2023)455 ITR 270/153 taxmann.com 527 (Karn)(HC)