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 -SLP dismissed – Observations of High Court to have no reflection on merits.[S. 127(2), 132, 133A Art. 136, 226]

Kamal Nath v. PCIT (2023) 453 ITR 748 / 292 Taxman 240 (SC) Editorial: Kamal Nath v. PCIT (No. 3) (2023) 453 ITR 604 / 292 Taxman 295/ 331 CTR 306/ 223 DTR 73 (Cal)(HC) is affirmed.

S. 92C : Transfer pricing-Arm’s length price -Adjustment on account of interest-free loans-Libor +2 Per Cent.-Corporate guarantee-Write-off of loss on account of investment in equity shares in subsidiary -Book profits -Provision for doubtful debts -No question of law -Order of High Court affirmed -SLP of Revenue is dismissed. [S. 92B, 115JB, Art. 136]

PCIT v. Vaibhav Global Ltd. (2023)453 ITR 31 (SC) Editorial : PCIT v. Vaibhav Global Ltd. (2023) 453 ITR 24 (Raj)(HC) is affirmed.

S. 92C : Transfer pricing -Arm’s length price -Support services -Cost plus model -Commission based model- Comparable –Question of fact. [Art. 136, 226]

PCIT v. Gap International Sourcing (India) Pvt. Ltd. (2023) 453 ITR 770 / 292 Taxman 413 (SC) Editorial: PCIT v. Gap International Sourcing (India) Pvt. Ltd(Delhi)(HC)(ITA No. 531 of 2019 dt 22 -5 2019), is affirmed.

S. 92C : Transfer pricing -Arm’s length price – Reasoned order based on cogent reasons-Order of High Court affirmed -Question of law left open. [S. 136, 260A]

PCIT v. Evalueserve.Com Pvt. Ltd. (2023)453 ITR 8/ 292 Taxman 155/ 331 CTR 217/ 223 DTR 137 (SC) Editorial: CIT v. Evalueserve.Com Pvt. Ltd (2022) 444 ITR 674 (Delhi)(HC) is affirmed.

S. 80IB : Industrial undertakings – derived from – Profits from Duty Entitlement Passbook Scheme and Duty Drawback claims- Not income “Derived From” Industrial Undertaking-Not eligible for deduction. [28(iiib), 28(iiic), Art, 136]

Saraf Exports v. CIT (2023) 453 ITR 625 / 293 Taxman 280 / 332 CTR 188 / 224 DTR 277 (SC) Editorial: Decision of the Jaipur Bench of the Rajasthan High Court is affirmed, Saraf Exports v. CIT (Raj)(HC) (ITA No. 7 of 2014 dt 4-2 -2016)

S. 80IA : Industrial undertakings-Telecommunication Services Change in shareholding-Block of ten consecutive years-Losses which have lapsed cannot be taken into account for purposes profits of undertaking. [S. 79, 80IA(5)]

ACIT v. Vodafone Essar Gujarat Ltd. (2023) 453 ITR 755/149 taxmann.com 1 (SC) Editorial: Vodafone Essar Gujarat Ltd v. ACIT (2020) 424 ITR 498 (Guj)(HC) is affirmed.

S. 68 : Cash credits – Purchase and sale – Genuineness of the Transactions was established -Order of Tribunal deleting the addition was affirmed. [S. 37(1), 260A]

PCIT v. Gaurav Bagaria (2023) 453 ITR 513 (Raj)(HC) Editorial: SLP of Revenue is dismissed, PCIT v. Gaurav Bagaria (2023) 452 ITR 412 (St) (SC)

S. 50B : Capital gains -Slump sale -Sale of each asset -No liability was transferred -Not a Slump sale -Question of fact. [S.2(19AA), 2(42C), 45, 260A]

PCIT v. Hindustan Engineering and Industries Ltd. (2023) 453 ITR 758 (Cal)(HC) Editorial: SLP of Revenue dismissed, PCIT v. Hindusthan Engineering and Industries Ltd. (2023)453 ITR 763 (SC)

S. 50B : Capital gains -Slump sale -Sale of each asset -No liability was transferred-Not a Slump sale-Question of fact. [S. 2(19AA), 2(42C), 45, Art. 136]

PCIT v. Hindusthan Engineering and Industries Ltd. (2023) 453 ITR 763 /293 Taxman 507 (SC) Editorial: Order of High Court in PCIT v. Hindustan Engineering and Industries Ltd. (2023)453 ITR 758 // 151 taxmann.com 431(Cal)(HC) is affirmed.

S. 45 : Capital gains -Capital loss -Capital asset – Loan given to its subsidiary in India -Short-term capital loss —Order of High Court affirmed -SLP of Revenue dismissed. [S. 2(14), Art, 136]

CIT(IT) v. Siemens Nixdorf Information Systemse Gmbh (2023) 453 ITR 741 / 293 Taxman 1 (SC) Editorial : CIT v. Siemens Nixdorf Information Systemse GmbH (2020) 114 taxmann.com 531 (Bom)(HC) affirmed.