Southern India Regional Council of
The Institute of Chartered Accountants Of India
(Setup by an Act of Parliament)


Income Tax Updates- March 2018


Gist of Judgments of Supreme Court
Sr. No. Name of the Appellant / Respondent Appeal No and date of decision Gist of Judgments / Orders passed
1 CIT Vs Essar Teleholding AC 2165/12 and batch dt 31.01.18 The Rule 8D is prospective in operation and could not have been applied to any assessment year prior to Assessment Year 2008-09
2 SEBI Vs Rakhi Trading Co AC 1969 OF 2011 dt 8.2.18 SAT held that even assuming that non-genuine synchronized trades have been entered into for the purposes of tax planning, such trade could be held objectionable only if they have resulted in influencing the market in one way or other……….If the findings of SAT are to be sustained, it would have serious repercussions undermining the integrity of the market and the impugned order of SAT is liable to be set aside
3 Industrial Infrastructure Development Corporation (Gwalior) M.P. Ltd. Vrs CIT AC 6262/10 Dt 16.2.18 (uploaded in Daily Orders) The CIT has no power to cancel/withdraw/recall the registration certificate granted u/s 12A until express power to do so was granted by s. 12AA(3). Though the grant of certificate is a quasi judicial function, s. 21 of the General Clauses Act cannot be applied to support the order of cancellation of the registration certificate