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 -Best judgment assessment-Reassessment-Alternative remedy High Court in writ jurisdiction cannot consider facts-Writ was dismissed.-National Faceless Assessment Scheme – Disposal of objections and framing of assessment was done by AO- only orders were conveyed by NFAC instead of AO – Claim of petitioner that NFAC was not income tax authority to exercise power of framing assessment was invalidDuty of assessee to intimate change of aaddress to Imcome -tax Autoriries [S. 139,139A(5), 144 147, 148, 282 Art. 226]
S. K. Srivastava v. CBDT (2022) 445 ITR 390 / 327 CTR 397//215 DTR 385 (Delhi)(HC)
S. 144B : Faceless Assessment-Cash credits-Failure to afford requested opportunity of hearing-Assessment order quashed and matter remanded. [S. 68, 142(1), Art. 226]
Arun Excello Foundations v. NFAC (2022)445 ITR 642 (Mad.)(HC)
S. 144A : Power-Joint Commissioner-Direction-Transfer pricing-Arm’s Length Price-Must be given opportunity to be heard-Order not valid. [S. 37, 40A(2), 92(1), 139, 142(1), Art. 226]
MRF Ltd v. Dy. CIT (2022) 445 ITR 103/ 215 DTR 165/ 328 CTR 976// 140 taxmann.com 512 /(2023) 334 CTR 692 (Mad.)(HC)
S. 139A : Permanent account number-Duty of assessee to intimate change of address to Income-Tax Authorities. [S. 139A(5)(d), 144, 147, 148, Art. 226]
S. K. Srivastava v. CBDT (2022) 445 ITR 390 / 327 CTR 397//215 DTR 385 /139 taxmann.com 6 (Delhi)(HC)
S. 132 : Search and seizure-Non-filer of return-Satisfaction note showed that the Assessee had assets or income which would not be disclosed to Income-Tax Authorities-Search proceedings valid. [Art. 226]
Durgappa Lakkanna v. ACIT (2022)445 ITR 681 /287 Taxman 190 / 215 DTR 452/ 328 CTR 119 (Karn.)(HC)
S. 132 : Search and seizure-Non-filer of return-Satisfaction note showed that the Assessee had assets or income which would not be disclosed to Income-Tax Authorities-Search proceedings valid. [Art. 226]
Durgappa Lakkanna v. ACIT (2022) 445 ITR 681 /287 Taxman 190 / 215 DTR 452/ 328 CTR 119 (Karn.)(HC)
S. 131 : Power-Discovery-Production of evidence-Survey-Impounding of documents-Retention beyond fifteen days without approval of higher Authority is not valid-Decision of approval must be communicated to the assessee. [S. 131(3), 133A]
Muthukoya T. v. CIT (2022) 445 ITR 450 (Ker.)(HC)
S. 127 : Power to transfer cases-Opportunity of hearing should be provided-Reason for transfer should be recorded-Transfer of case without notice and reasons for transfer is not valid. [Art. 226]
Nagindas Kasturchand and Bros. v. PCIT (2022) 445 ITR 50/ 288 Taxman 66 / 214 DTR 29/ 326 CTR 716 (Guj.) (HC)
S. 90 : Double taxation relief-Mutual agreement procedure-DTAA has precedence over provisions of Act where beneficial to assessee-Respondents are directed to take necessary measures within a reasonable time-DTAA-India-USA. [S. 90(2), IT Rule, 44F, 44G 44H, Art. 27(2)]
Harman Connected Services Corporation India P. Ltd. v. Jt. Secretary (Foreign Tax and Tax Research-I) (2022) 445 ITR 346 / 215 DTR 177/ 327 CTR 241 (Karn.)(HC)
S. 57 : Income from other sources-Deductions-Advance towards purchase of properties-Not necessary that expenses should have resulted in income-Sufficient if nexus is established between expenses and income-Question Before Tribunal regarding extent of deduction allowable-Tribunal does not have power to disallow entire Deduction [S. 36(1)(iii), 57(iii), 254(1)]
West Palm Developments LLP v. ACIT (2022) 445 ITR 511 (Karn.)(HC)