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. 195 : Deduction at source-Non-resident-Purchase of shares on 11-7 2008-Explanation 2 to section 195 which imposes tax withholding obligations on non-residents in respect of payments involving income taxable in India, was introduced by Finance Act 2012-Not liable to deduct tax at source. [S. 201(IA)]

DCIT v. WNS Capital Investment Ltd. (2021) 190 ITD 344 / 202 DTR 97 (Mum.)(Trib.)

S. 154 : Rectification of mistake-Defect in application-Records-Opportunity must be provided to correct the defect-Every statutory order/decision and relevant facts which went into decision making of punching figures on e-portal at relevant point of time would constitute record for purposes of proceedings under section 154 of the Act-Matter remanded. [S. 139]

Amrik Singh Bhullar v. ITO (2021) 190 ITD 355 (Chandigarh)(Trib.)

S. 153A : Assessment-Search-Unexplained money-Foreign Bank account-HSBC, Geneva, Switzerland-Information was not provided as per Article 26 of DTAA which came in to effect from 1-4-2011-Addition as unexplained Swiss Bank deposits or interest earned was deleted-DTAA-India-Switzerland. [S. 69A, 132, Art. 26]

Bhushan Lal Sawhney v. DCIT (2021) 190 ITD 225 / 91 ITR 565/ 212 TTJ 357/ 203 DTR 249 (Delhi)(Trib.)

S. 148 : Reassessment-Notice-Non disclosure of capital gains-Legal heirs-Notice was served upon only on three legal heirs out of seven and the assessment was framed in the name of one legal heir-Matter remanded to the Assessing Officer to issue notice to all legal heirs and decide afresh. [S. 143(3), 147]

Tahar Singh v. ITO (2021) 190 ITD 303 (Delhi)(Trib.)

S. 147 : Reassessment-With in four years-Share premium-Director (Inv.)-Reassessment was held to be not valid [S.56(2)(viib), 148]

Future Tech IT Systems (P.) Ltd. v. ITO (2021) 89 ITR 676 / 190 ITD 52 (Chd.)(Trib.)/Abacus Edutech Pvt. Ltd. v ITO (2021) 89 ITR 676 (Chd) (Trib) Axis Education Technologies (P.) Ltd. v ITO (2021) 89 ITR 676 (Chd) (Trib)

S. 147 : Reassessment-With in four years-Change of opinion-Provision for bad and doubtful debts-Reassessment notice was held to be not valid. [S. 36(1)(viia), 148]

District Co-operative Central Bank Ltd. v. ACIT (2021) 190 ITD 105 (Bang.)(Trib.)

S. 147 : Reassessment-With in four years-Ex-servicemen corporation-No failure to disclose any material facts-Reassessment proceedings for denial of exemption is held to be not justified [S. 10, 26BBB, 148)

Uttarakhand Purv Sainik Kalyan Nigam Ltd. v. ITO (2021) 190 ITD 193 / 212 TTJ 498/ 203 DTR 279 (Dehradun)(Trib.)

S. 145 : Method of accounting-Rejection of books of account and estimate of net profit at 7% as against net profit of 6.5% shown by the assessee-Adoption of net profit at 7% was held to be unjustified. [S.145 (3)]

L.P.R. Construction v. DCIT (2021) 190 ITD 439 (All.)(Trib.)

S. 145 : Method of accounting-Valuation of closing stock of dust / scrap-Ad-hoc addition was held to be not justified.

Universal Stone Crushing Co. Dala v. ITO (2021) 190 ITD 415 (SMC) (All.)(Trib.)

S. 145 : Method of accounting-Business of supply of processes, designing, construction etc.-completed contract method of accounting-Rejection of books of account is held to be not justified.

UHDE India (P.) Ltd. v. ACIT (2021) 190 ITD 777/ 211 TTJ 339 (Mum.) (Trib.)