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Section 127, 132(4) HIGH COURT OF BOMBAY on Jul 15, 2019 held that when the assessment of an Assessee is being transferred from one Commissionerate to another, the requirement of hearing and following the principle of natural justice is inbuilt in the statutory provisions contained in Section 127 of the Act. Therefore the giving of notice to the assessee containing the reasons and the statements or even the gist of the statements to the extent relevant for the proposed action is a basic postulate. The views of the noticee are to be considered by the authority before taking any decision to confirm or drop the notice. A show cause notice to be effective must be adequate so as to enable a party to effectively object/respond to the same. The authority concerned is obliged to consider the objections, if any, and thereafter, reach a finding one way or the other. The impugned order is quashed. NARESH MANAKCHAND JAIN vs PCIT. IN favour of the assessee.
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Section 153C: Delhi High Court on 09.08.2019 held that since the search took place and Notice under Section 153C prior to 1st June, 2015 and, therefore, Section 153C of the Act as it stood at the relevant time applied. Therefore, the onus was on the Revenue to show that the incriminating material/documents recovered at the time of search belongs’ to the Assessee. In other words, it is not enough for the Revenue to show that the documents either pertain’ to the Assessee or contains information that relates to’ the Assessee. Further the licence issued to the Assessee by the DTCP and the letter issued by the DTCP permitting it to transfer such licence are not incriminating material and therefore jurisdiction can not be assumed by the AO under Section 153C of the Act. PCIT vs M/S. Dreamcity Buildwell Pvt.
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THE SUPREME COURT OF INDIA on 5th June, 2020 held that the taxing statutes are subject to the rule of strict interpretation, and the benefit of ambiguity in case of an exemption notification or an exemption clause must go in favour of the revenue; and the same principles would apply in relation to Section 80-O of the Act. Constitution Bench decision in Dilip Kumar & Co. (supra), RAMNATH & CO. Vs CIT.
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Section 14A envisages that there has to be an actual receipt of exempt income during the relevant previous year for purpose of making any disallowance u/s 14A, Section 2(22)(e) do not apply when transactions are trading business transactions and The provisions of section 50C cannot be incorporated in the computation of block of the assets. DCIT vs. FUTURZ NEXT SERVICES (PRIVATE) LIMITED. AY 2013-14
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Section 43(1), 143(3), 263 ITAT KOLKATA on May 29, 2020 hold that the industrial promotion assistance it received was on capital account.
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Rule 27 of ITAT Rules :HIGH COURT OF DELHI on May 18, 2020 hold that Not having filed a cross objection, even when the appeal was preferred by the Revenue, it does not mean that an inference can be drawn that the assessee had accepted the findings in part of the final order, that was decided against him. Therefore, when the Revenue filed an appeal before the ITAT, the assessee was entitled under law to defend the same and support the order in appeal on any of the grounds decided against it. SANJAY SAWHNEY vs. PCIT AY 2008-09
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Section 145 HIGH COURT OF KARNATAKA on May 5, 2020 held that There cannot be any dispute to the fact that every assessee being entitled to arrange its affairs and follow the method of accounting, which the Department has earlier accepted. Further if assessee is in the business of taking land, putting up commercial building thereon, letting out such building with all furniture as his profession or his business then notwithstanding the fact that he has constructed building and he has also provided other facilities and even if there are two separate rental deeds, it does not fall within the income from house property. CIT vs. PRESTIGE ESTATE PROJECTS PVT. LTD. AY 2005-06
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Section 263 ITAT DELHI on May 14, 2020 Issues subject to revision u/s 263 were pertaining to original assessment u/s 143(3) and not the reopened assessment u/s 147; the limitation should also start from the original assessment. In this case as original assessment order u/s 143(3) of the act was passed on 16.01.2014, the revision thereof could have been taken up to 31.3.2016. Impugned order u/s 263 of the act was passed on 26/2/2019, therefore it is clearly beyond the limitation prescribed u/s 263 (2) of the act. JINDAL STEEL & POWER LTD. vs. PCIT
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Section 153C- Supreme Court of India on on 5 March, 2020 Before issuing notice under Section 153C of the Act, the Assessing Officer of the searched person must be “satisfied” that, inter alia, any document seized or requisitioned “belongs to” a person other than the searched person. If the satisfaction note recorded under Section 153C of the Act in respect of the assessee, i.e., a third party, hold invalid entire proceedings taken there under is null and void. However, in the case where the Assessing Officer of the searched person and the other person is the same, it is sufficient by the Assessing Officer to note in the satisfaction note that the documents seized from the searched person belonged to the other person i.e; the assessee. In the case of M/S. Super Malls Private Limited. vs PCIT. AY 2008-09
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Section 2(14): Income earned by the assessee constitute business income not Long Term Capital Gains reason that the assessee has always shown it as closing stock of agricultural land in the balance sheets and the object is of property business. Following contention of the assessee was not accepted the land is always valued at cost, period of holding for 13 years, accepting by deptt for deriving of agricultural income from the land. KOHLI ESTATES PVT. LTD. vs. ITO ITAT DELHI on May 5, 2020 AY 2011-12.