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. 115JB : Book profits-Computation-Expenses on initial Public Offer-Assessing Officer to consider book profits as per treatment given in finalisation of accounts.

ACIT v. PC Jewellers Ltd. (2022) 93 ITR 244 (Delhi)(Trib.)

S. 115JAA : Book profit-Deemed income-Tax credit-Surcharge and cess part of Income-Tax available for adjustment against Minimum alternate tax credit. [S. 115JB]

Tata Motors Ltd. v. Dy. CIT (LTU) (2022) 93 ITR 714 (Mum.)(Trib.)

S. 92C : Transfer pricing-Arm’s length price-Comparables-Companies with turnover in excess of Rs. 200 Crores-Not Comparable-Companies functionally different and those with diversified activities without segmental details not comparable–Working capital adjustment to be computed on basis of actuals without an upper limit-Matter Remanded-Reference to Transfer Pricing Officer-Limitation-Extended limitation available to Revenue. [S. 92CA, 144C, 153]

Sandisk India Device Design Centre Pvt. Ltd. v. ITO (2022) 93 ITR 569 (Bang.)(Trib.)

S. 92C : Transfer pricing-Arm’s length price-Comparables-Data could be compared from audited accounts of companies-Working Capital adjustment-Failure to consider correct figures while Computing adjusted margin-Directed to consider correct figure. [S. 92CA, 234B]

First Advantage Global Operating Centre P. Ltd. v. Dy. CIT (2022) 93 ITR 101 (Bang.)(Trib.)

S. 92C : Transfer pricing-Arm’s length price-Comparables-Companies having no segmental information or subject to extraordinary event or companies fully involved in related-party transactions-Not comparable. [S. 92CA]

Sas Research and Development (India) P. Ltd. v. Dy. CIT (No. 2) (2022) 93 ITR 501 (Pune)(Trib.)

S. 92C : Transfer pricing-Arm’s length price-Arm’s Length Price-Comparables-Functionally distinct with different areas of development and services-Cannot be benchmarked-Directed to exclude two comparables and include one comparable based on appreciation of evidence. [S. 92CA]

Sas Research and Development (India) Pvt. Ltd. v. Dy.CIT (No. 1) (2022) 93 ITR 482 (Pune)(Trib.)

S. 69C : Unexplained expenditure-Bogus purchases-Books of account not rejected-Identity of party established and genuineness of transactions proved-Deletion of addition is justified. [S. 145]

ACIT v. Vishal Paper Industries Pvt. Ltd. (2022) 93 ITR 41 (Chd.) (Trib.)

S. 68 : Cash credits-Cash deposit in bank-Past withdrawals-Household withdrawals explained-Addition is held to be not valid.

Sunil Mathur v. ITO (2022) 93 ITR 86 (Jaipur)(Trib.)

S. 68 : Cash credits-Unsecured loans-Proved identity creditworthiness and genuineness of transactions-Relying on statement of third parties without giving an opportunity of cross examinations, additions cannot be made. [S. 131]

ACIT v. Overtop Marketing Pvt. Ltd. (2022) 93 ITR 132 (Kol.)(Trib.)

S. 68 : Cash credits-Share application money-Addition was deleted on merits-Reassessment valid. [S. 68, 147, 148]

Ancon Chemplast P. Ltd. v ITO (2022) 93 ITR 167 (Delhi)(Trib.)