S. 32 : Depreciation – Block of asset – Asset not put to use in the current year or subsequent year – Depreciation cannot be disallowed [ S. 2(11) , 32(2) ]
Beeya Overseas Ltd v .DCIT (2022) The Chamber’s Journal – September – P. 133( Kol)( Trib )
Digest of case laws
Online digest of latest case laws
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 Direct Tax Vivad Se Vishwas Act , 2020
S.7: No refund of amount paid – Refund – Interest @ 5 % to be paid along with refund for delay beyond 90 days [S.3, 4, Art , 226 ]
Anjul ( Mrs ) v .PCIT (2022) The Chamber’s Journal – September – P. 124( Delhi )(HC)S. 276CC : Offences and prosecutions – Failure to furnish return of income – Trail Court in 81 cases took cognizance of tax evasion due to failure to file return – High Court quashed the Trail Court order and directed to pass a speaking order . [ S. 153A, 279, Code of Criminal Procedure S 397, 482 ]
Ashish Agarwal v. Income -tax department (2022) 143 taxmann.com 322 ( Raj )(HC)S. 244A : Refunds – Interest on refunds -Reduction in taxable income – Eligible on the sum refundable due to recomputation [ S. 220(2) 234D, 244A(1)(b) ]
PCIT v. Punjab & Sind Bank ( 2022) 218 DTR 231/ The Chamber’s Journal – September – P. 129( Delhi)(HC)S. 148A: Reassessment – Conducting inquiry, providing opportunity before issue of notice – Professional income not shown – Assessment u/s 143(1) -Reassessment notice is valid – DTAA- India -USA . [ Art , 15 , Art.226 ]
Ernst and Young U.S .LLP v . ACIT ( 2022) 449 ITR 425/ (2023) 146 taxmann.com 64 /( 2022) The Chamber’s Journal – September – P. 125( Delhi)(HC)S.68 : Cash credits – Capital gains – Penny stock –Shell company – Investment in shares were held for more than 10 years – Addition cannot be made as cash credits . [ S. 10(38) ,45 ]
PCIT v. Jagat Pravinbhai Sarabhai ( 2022) 142 Taxmann.com 247 ( Guj)(HC)Maharashtra Value Added Tax , 2002 (MVAT) –Central Sales Tax Act , 1956 (CST)
S. 23 : Assessment – Order passed without giving an opportunity of personal hearing – High Court quashed the Assessment order – On appeal the Supreme Court held that , when an alternative remedy of filing an appeal is available under the Act , High Court should not have entertained the writ petition – Order of High Court is set aside [S. 23(2), Sales Tax Act , 1856 , S. 9(2), Art , 226, 227 ]
State of Maharashtra and Ors v. Greatship ( India ) Ltd (SC) www.itatonline .orgS. 13 : Denial of exemption-Trust or institution-Investment restrictions –Rent charged to trustee less than market rate – Violation of section 13 exemption cannot be denied- Only the income to the extent of violation is liable to tax at maximum marginal rate .[ S. 11, 12 ,12A, 13(1)(c)(ii)]
CIT v. Mukund Bhavan Trust ( Bom)( HC) (UR)Central Goods and Services Tax , 2017 –Central Goods and Services Tax Rules , 2017
S. 62 : Assessment of non -filers of returns – Interest on delayed payment of tax – Central Goods and Services Tax Rules , 2017 – Registration- Strictures against Departmental Officers – Cancellation of registration by Commercial Tax Officer on basis of vague show cause notice in one line order – Officer making mockery of justice and provisions of law – Not to remain in office on such understanding of law – Cancellation of registration was set aside – Liberty was given authority to issue fresh show cause notice [ [S. 50, R. 21 , 86A]
Vageesh Umesh Jaiswal v. State of Gujarat ( 2022) (64) G.S.T.L. 177 ( Guj.)(HC)S. 271C : Penalty – Failure to deduct at source –Mercantile system of accounting – Provision made on estimate basis – Tax was deducted and deposited TDS upon crystallization of liability to pay expenses on receipt of invoices- Penalty is not leviable .[ S. 40(a)(ia), 145 ]
ACIT v. Parsons Brinckershoff India (P)Ltd ( 2022) 140 taxmann.com 645 ( Delhi)( Trib)