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
Click here to download the pdf versions of the Digest of case laws

S. 147 : Reassessment-After the expiry of four years-Change of opinion-No failure to disclose material facts-Mistake of Assessing Officer-Error discovered reconsideration of same facts does not give power to the Assessing Officer to reopen the assessment-Reassessment notice and order disposal of objection was quashed-Order of High Court affirmed. [S. 148, Art. 136]

ACIT v. CEAT Ltd. (2022)449 ITR 171 / 218 DTR 441/ 329 CTR 227/(2023) 291 Taxman 435 (SC) Editorial: CEAT Ltd. v. ACIT (2023) 291 Taxman 366 (Bom.)(HC) www.itatonline.org

S. 144C : Reference to dispute resolution panel-Mandatory proceedings-Draft assessment order proposing variations to returned income must be submitted to DRP–Order on remand must also be submitted to DRP-Not curable defects. [S. 92CA, 144C(2), 253(1)(d), 292B]

PCIT v. Appollo Tyres Ltd. (2022) 449 ITR 398 (Ker.)(HC)

S. 144B : Faceless Assessment-Failure to issue show-cause notice or draft assessment order-Natural justice-Assessment orders set aside with directions for issue of show-cause notices or draft assessment orders, hear assessees and pass assessment orders afresh. [S. 143(2), 144C, Art, 226]

P.T. Lee Chengalvaraya Naicker Trust v. NFAC (2022) 449 ITR 351 / 219 DTR 185/ 329 CTR 613 /(2023) 290 Taxman 52(Mad.)(HC)

S. 144B : Faceless Assessment –Principle of natural justice-Failure to grant opportunity of hearing through Video conferencing-Order was set aside. [S.143(3), 144B(7), 263, Art. 226]

Mudar Sudheer v. UOI (2022)449 ITR 344 (AP)(HC)

S. 144B : Faceless Assessment-Violation of the principle of natural justice-Unable to respond due to technical glitch-Order was set aside and matter remanded. [S. 143(3), Art. 226]

Faqir Chand (Through Legal heir Sh. Kapil Muni) v. NEAC (2022)449 ITR 603 (Delhi)(HC)

S. 143(3) : Assessment-Principle of natural justice-Guidelines for passing assessment order-Cash credits-2 G scam-Procedure for assessment laid down in Manual of office procedure issued by Directorate of Income-Tax must be followed-Assessing Officer must furnish to assessee all copies of documents referred to in order of assessment-Direction of the Tribunal must be followed-Prayer for one more opportunity to respondents was rejected-The assessment order was annulled. [S. 68, 254(1), Art. 226]

Kalaignar TV Pvt. Ltd. v. CIT (2022) 449 ITR 492/(2023) 290 Taxman 334 (Mad.)(HC)

S. 143(1)(a) : Assessment-Intimation-Prima facie adjustment-Additional tax-Depreciation-Reduction of loss-Leviable only where attempt to evade tax proved-Department was to be set aside [S. 143(IA).

Steel and Industrial Forgings Ltd. v. Dy. CIT (2022) 449 ITR 164 / 220 DTR 482 /(2023) 291 Taxman 448/ 331 CTR 94(SC) Editorial: Decision in Steel and Industrial Forgings Ltd. v. Dy. CIT (2009) 318 ITR 18 (Ker)(HC), reversed.

S. 92C : Transfer pricing-Arm’s length price-Selection of comparables-Functional dissimilarities and non-availability of segmental data-Finding of fact. [S. 92CA, 260A]

PCIT v. Macquarie Global Services Pvt. Ltd. (2022)449 ITR 306 (Delhi)(HC)

S. 80IB : Industrial undertakings-Manufacture of article falling under Eleventh Schedule-Polyurethane foam-Manufacturing polyurethane foam and supplying it in different sizes and designs to assembly operator for use ultimately for car seats-Not entitled to deduction. [S. 80IB(2)(iii), Sch. XI, Entry 25.]

Polyflex (India) Pvt. Ltd. v. CIT (2022) 449 ITR 244 / 219 DTR 521 / 329 CTR 587 / (2023) 290 Taxman 366 (SC) Editorial: CIT v. Polyflex (India) Pvt. Ltd (2014) 363 ITR 224(Karn)(HC), affirmed.

S. 45(4) : Capital gains-Distribution of capital asset-Transfer-Dissolution of firm-Revaluation of assets and credit to capital accounts of partners-Introduction of new partners-Withdrawal of credit from capital account-Otherwise-Firm is liable to pay capital gains tax. [S. 2(47)(ii), 47(ii), 50]

CIT v. Mansukh Dyeing and Printing Mills (2022) 449 ITR 439 /220 DTR 189 / 329 CTR 673 / 145 taxmann.com 151 / (2023) 290 Taxman 277 (SC) Editorial: Review petition of assessee is dismissed , Mansukh Dyeing and Printing Mills v.CIT ( 2023) 293 Taxman 516 ( SC) / Order of Bombay High Court, CIT v. Mansukh Dyeing and Printing Mills (ITA Nos. 1074 and 1147 of 2009 dt. 24-6-2013 (Bom)(HC), reversed.