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
Click here to download the pdf versions of the Digest of case laws

S. 263 : Commissioner-Revision of orders prejudicial to revenue Revision-Failure to consider report of Directorate of Vigilance and Anti-Corruption-Order is erroneous-Order of the Tribunal is set aside-Interlocutory order passed by Commissioner (Appeals) is not binding on Tribunal. [S. 254(1) 260A]

CIT v. N. Sasikala (2023)454 ITR 387 (Mad)(HC)

S. 263 : Commissioner-Revision of orders prejudicial to revenue-Charitable purpose-Cancellation of registration-Section 12AA(3) is applicable only from the AY. 2011-12-Tribunal following its own decision against which appeal of the Revenue was dismissed. [S. 12A, 12AA, 143(3) 147, 260A]

CIT (E) v. Sarlaben Bhansali Charities Trust (2023)454 ITR 44 (Cal)(HC) Editorial : SLP of Revenue is dismissed, CIT (E) v. Sarlaben Bhansali Charities Trust (2023)454 ITR 46 / 293 Taxman 599 (SC)

S. 263 : Commissioner-Revision of orders prejudicial to revenue-Judicial custody-Service of notice-Notice not served through Superintendent of Jail-Notice sent by speed post to last known address-Not valid service of notice-Revision order set aside-Appeal of Revenue is dismissed. [S. 132,143(3), 153C, 292BB]

PCIT v. Narayan Kumar Khaitan (2023)454 ITR 766 (Orissa)(HC)

S. 263 : Commissioner-Revision of orders prejudicial to revenue-Registration-Trust or institution-Revision denying benefit for AY. 2010-11 on basis of provision as amended in 1997 requiring to produce certificate of registration-Not valid-Provision prevailing in year when applied for registration is applicable. [S. 12A]

Maharishi Institute of Creative Intelligence v. CIT (E) (2023)454 ITR 533 / 293 Taxman 445/ 332 CTR 380 (SC) Editorial : Decision in CIT v. Maharishi Institute Of Creative Intelligence (All )(HC) (ITA No. 55 of 2016 dt. 12-1-2017 and Revie Application No 17685 of 2017 in ITA No. 55 of 2016 dt 7-3-2017)reversed.

S. 263 : Commissioner-Revision of orders prejudicial to revenue-Failure to claim larger claim of depreciation-SLP of the assessee is dismissed-Matter remanded to the Assessing Officer. [S. 32, 40A(2), 142(2A) Art. 136]

BSES Rajdhani Power Ltd. v. PCIT (2023)454 ITR 436/ 293 Taxman 605 (SC) Editorial: Decision of Delhi High Court in BSES Rajdhani Power Ltd. v. PCIT(2017) 399 ITR 228 (Delhi)(HC)

S. 263 : Commissioner-Revision of orders prejudicial to revenue-Limitation-Issues not covered in reassessment proceedings-Limitation to be reckoned from date of original assessment and not of reassessment. [S. 147, 148]

CIT v. Industrial Development Bank of India Ltd. (2023)454 ITR 811/333 CTR 570 (SC) Editorial: CIT v. Industrial Development Bank of India Ltd(Bom)(HC) (ITA (L) No. 2115 of 2007 dt. 7-5 2009 ), affirmed.

S. 260A : Appeal-High Court-Territorial Jurisdiction-Delay of 130 days was condoned with liberty given to withdraw appeals-Leave granted to file appeals before High Court with jurisdiction. [S. 254(1)]

CIT (IT) v. Posco Engineering and Construction Co. (2023)454 ITR 201 (Delhi)(HC)

S. 260A : Appeal-High Court-Transfer pricing-Arm’s length price-International transactions-Determination-Court can consider whether relevant guidelines under Act and Rules taken into consideration–Comparability of two companies-Selection of filters judiciously done and on basis of relevant material and evidence on record-Matter remanded to the High Court to take a fresh decision.[S. 92, 92A to 92CA, 92D, 92E and 92F, R.10B to 10E, Art. 136]

PCIT v. Subex Ltd. (2023)454 ITR 519/ 293 Taxman 679 (SC) Editorial: PCIT v. Subex Ltd(Karn)(HC) (ITA No.492 of 2016 dt 1-10-2021)

S. 260A : Appeal-High Court-Transfer pricing-Arm’s length price-International transactions-Determination-Court can consider whether relevant guidelines under Act and Rules taken into consideration–Comparability of two companies-Selection of filters judiciously done and on basis of relevant material and evidence on record-Matter remanded to the High Court to take a fresh decision.[S. 92, 92A to 92CA, 92D, 92E and 92F, R.10B to 10E, Art. 136]

Sap Labs India Pvt. Ltd. v. ITO (2023)454 ITR 121/ 293 Taxman 263 / 332 CTR 249 / 225 DTR 1 (SC) Editorial : Decisions of Karnataka High Courts in Indigra Exporters P. Ltd v. Dy. CIT (2018) 407 ITR 396 (Karn)(HC). PCIT v. Kirloskar Toyata Textile Machnery P.Ltd (2019) 412 ITR 359 (Karn)(HC), PCIT v. E. Valuesrve SEZ (Gurgaon) P. Ltd (2019) 416 ITR 51 (Delhi)(HC) PCIT v. Mphass Ltd (2022) 446 ITR 361 (Karn )(HC), and PCIT v. Softbrands India (P) Ltd (2018) 406 ITR 513 (Karn) impliedly overruled. Sap Labs India Pvt. Ltd. v.ITO (Karn)(HC) (ITA. No. 10 of 2011 dt 9-7-2018)(2010) 6 ITR 81 (Trib), Remanded.

S. 245D : Settlement Commission-Settlement of cases-Entire tax on admitted additional income was paid-Short fall of tax was brought to Knowledge through report-Deposited the amount immediately-Sufficient Compliance-Application restored to Settlement Commission. [S. 132, 245C, 245D(2B), Art. 226]

Sri Lakshmi Ammal Educational Trust v. ITSC(2023)454 ITR 804 (Mad)(HC)