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. 226 : Collection and recovery-Modes of recovery-Priority over debts-FDR to secure payment of debt-Secured creditor-Priority over Income Tax department who is an unsecured creditor. [Securities Contracts (Regulation) Act, 1956, 8, 9]
IFCI Factors Ltd. v. Bank of India (2022) 289 Taxman 654 /(2023) 455 ITR 705 (Delhi)(HC)
S. 220 : Collection and recovery-Assessee deemed in default-Stay of demand-Directed to deposit 20 percent of demand sum-Recovery proceedings was stayed. [S. 220(6), Art. 226]
Urban Improvement Trust v. ACIT (2022) 142 taxmann.com 239 (Raj.)(HC) Editorial : SLP dismissed as withdrawn, Urban Improvement Trust v. ACIT (2022) 289 Taxman 2 (SC)
S. 206C : Collection at source-Trading-Forest produce-Trading of timber sawn into logs of different dimensions and shapes which was imported from other countries-Timber sold by assessee would not amount to forest produce and, thus, provisions of section 206C(1) were not applicable on same. [S. 206(1)]
PCIT v. Nirmal Kumar Kejriwal (2022) 289 Taxman 51 / 216 DTR 441/ 328 CTR 222 / ( 2023) 454 ITR 777 (Cal.)(HC)
S. 206AA : Requirement to furnish Permanent Account Number-Non-Resident-Provisions cannot have overriding effect on DTAA-Rates prescribed under DTAA are applicable-DTAA-India-Netherland. [S. 2(37A)(iii), 4, 5, 9(1)(i), 90(2), 206AA(7), Art. 12(4)]
CIT v. Air India Ltd. (2022) 289 Taxman 492/(2023) 456 ITR 117 (Delhi)(HC). Editorial: SLP of Revenue dismissed , CIT (IT) Air India Ltd ( 2023 ) 456 ITR 139/294 Taxman 163 ( SC)
S. 199 : Deduction at source-Credit for tax deducted-Rectification of application was directed to be allowed-Matter remanded to the Appellate Authority to decide afresh. [S. 154]
Chetna Jain. (Smt.) v. CIT (2022) 289 Taxman 549/ 220 DTR 417/(2023) 332 CTR 866 (Cal.)(HC)
S. 194A : Deduction at source-Interest other than interest on securities-Interest on compensation-Motor Accidents Claims Tribunal award-TDS cannot be deducted by insurance companies on interest on compensation with effect from 1-6-2015 even if interest is beyond Rs. 50,000 in a particular year. [S. 2(24), 2(28A), 56(2), Form 15G, Rule, 29C, Motor Vehicle, Act. 1988]
New India Assurance Company Ltd. v. Ravinder Kumar @ Vickey. (2022) 289 Taxman 497/223 DTR 16 / (2023) 331 CTR 272 (P& H)(HC)
S. 153C : Assessment-Income of any other person-Search-Unexplained investment-Share transaction-No incriminating material was found in the course of search-Addition cannot be made. [S. 69]
PCIT v. Sunway Realtech (P.) Ltd. (2022) 289 Taxman 543 /(2023) 457 ITR 123(Delhi)(HC)
S. 153A : Assessment-Search or requisition-Long term capital gains on sale of shares-No incriminating material was found-Merely on the basis of statement of and letter of Managing Director of company-Addition cannot be made. [S. 10(38), 68]
PCIT v. Suman Agarwal (Ms) (2022) 289 Taxman 674 /(2023)451 ITR 364 (Delhi)(HC)
S. 153A : Assessment-Search or requisition-Cash credit-Capital gain-Sale of shares-Incriminating material-When no incriminating material found during course of search and AO had made additions solely relying on disclosures made by Managing Director of a company on which search was conducted, impugned addition was unjustified. [S. 10(38), 45, 68]
PCIT v. Shiv Kumar Agarwal (2022) 289 Taxman 278 (Delhi)(HC)
S. 148A : Reassessment-Conducting inquiry, providing opportunity before issue of notice-Unexplained investments-Shares-SEBI registered broker-Information was not reported by the Assessing Officer of Vishesht Financial Services Pvt. Ltd. (VFSPL) to assessee’s Assessing Officer-Notice was set aside and matter was to be remanded to Assessing Officer to pass a fresh order-Matter remanded. [S. 69, 147, 148, 148A(d), Art. 226]
South Asian Stocks Ltd. v. ACIT (2022) 289 Taxman 33 (Delhi)(HC)