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. 144B : Faceless Assessment-Not granting personal hearing-Unexplained investments-Mutual funds-Joint names-Factual dispute-Pendency of appeal-Writ petition was dismissed. [S. 69, 156, 246A, Art, 226]

Afsha Talwar v. UOI (2022) 289 Taxman 696 (Delhi)(HC)

S. 139 : Return of income-Condonation of delay-litigation between promoters and investors-Beyond control of assessee-PCIT and Additional CIT recommending condonation of delay-Rejection of application by CBDT was set aside by High Court was affirmed. [S. 119(1), 119(2)(b), Art, 136, 226]

CBDT v. Vasudeva Adigas Fast Food (P.) Ltd. (2022) 289 Taxman 148 / 220 DTR 463 / ( 2023) 450 ITR 4/ 331 CTR 92 (SC) Editorial : Order of High Court, affirmed, CBDT v. Vasudeva Adigas Fast Food (P.) Ltd (2021) 437 ITR 67/ 282 Taxman 48(Karn)(HC)

S. 127 : Power to transfer cases-Udaipur to Delhi-Opportunity of hearing not granted-Transfer order was set aside. [Art. 226]

Murliwala Agrotech (P.) Ltd. v. UOI (2022) 289 Taxman 702/216 DTR 237 / 327 CTR 662 (Raj.)(HC)

S. 115JB : Book profit-Disallowance made under section 14A could not be added for the purpose of computing book profits. [S. 14A]

PCIT v. Atria Power Corporation Ltd(2022) 142 taxmann.com 412 (Karn.)(HC) Editorial: SLP of Revenue dismissed, PCIT v. Atria Power Corporation Ltd. [2022] 289 Taxman 111 (SC)

S. 92C : Transfer pricing-Arm’s length price-Most appropriate method-Manufacturing and trading of dental products and trading activity-95% trading and 5% manufacturing-Tribunal adopting RPM as MAM to benchmark transaction is held to be justified. [S. 260A]

PCIT v. Dentsply India (P.) Ltd. (2022) 289 Taxman 530 (Delhi)(HC)

S. 92C : Transfer pricing-Arm’s length price-Comparability factors-Profit Margin/Profit Level Indicator-An enquiry under rule 10B(3) ought to be carried out, to determine as to whether material differences between assessee and said entity can be eliminated and unless such differences cannot be eliminated, entity should be included as a comparable. [R. 10B]

PCIT v. Amway India Enterprises (2022) 289 Taxman 648/ (2023)455 ITR 325 (Delhi)(HC)

S. 80IA : Industrial undertakings-Infrastructure development-Interest income from employees on advances-Equipment hire charges-Ammonia tank wagon hire charges-Cane hire charges-interest income from banks and financial institutions-Interest on deposits-Not derived from industrial undertaking-Not eligible for deduction. [S. 28(i), 32AB, 56]

Krishak Bharati Cooperative Ltd. v. JCIT (2022) 142 taxmmann.com 331 (Delhi)(HC) Editorial : SLP of assessee dismissed, Krishak Bharati Cooperative Ltd. v. JCIT (2022) 289 Taxman 75 (SC)

S. 68 : Cash credits-Loans-Information from Investigation wing-Bogus accommodation entries-Statement was recorded and affidavits filed-Opportunity of cross examination was not granted-Merely on the basis of information from Investigation wing addition is not justified-Order of Tribunal affirmed. [S. 131, 133(6), 153A, 260A]

PCIT v. Oriental Power Cables Ltd. (2022) 143 taxmann.com 370 (Raj.)(HC) Editorial : Notice issued in SLP filed by Revenue, PCIT v. Oriental Power Cables Ltd. (2022) 289 Taxman 625 (SC)

S. 68 : Cash credits-Capital gains-Penny stock-Shell company-Shares held as investments for more than ten years-Addition as cash credit was deleted. [S. 45]

PCIT v. Jagat Pravinbhai Sarabhai (2022) 289 Taxman 298 (Guj.)(HC)

S. 45 : Capital gains-Two separate accounts-Investment portfolio-Stock in trade-Sale of investments assessable as capital gains and not as business income. [S. 28(i)]

Gyan Traders Ltd. v. CIT (2022) 289 Taxman 628 (Cal.)(HC)