Year: 2020

Archive for 2020


Avm Cine Products v. Dy. CIT (2020)421 ITR 431 (Mad)(HC)

S. 80IA :Industrial undertakings – Business income -Income from other sources – Interest on deposit of margin money and interest on belated payments by customers is assessable as business profits – Entitle to deduction . [ S.28(i) , 56 ]

Parwaz Food Packer (PFP) v. Dy. CIT (2019) 107 CCH 0419 / (2020) 421 ITR 377 (Mad)(HC) Editorial : SLP of the assessee is dismissed , Parwaz Food Packer (PFP) v. Dy. CIT [2020] 421 ITR (St.) 14 ( SC)

S. 80HHC : Export business – Supporting manufacturer – Certificate by main exporter and report of Chartered Accountant is mandatory- Failure to comply the same deduction is not available. [ S.80HHC(IA) ]

CIT (E) v. Shree Tapeshwar Hanumaji Bajrang Charity Trust (2020)421 ITR 358 /189 DTR 237 /314 CTR 622 (Guj) (HC)

S. 80G : Donation – Charitable Trust – Charitable Trust should be registered under Section 12A for availing the benefit .[ S.(2(15), 11, 12A, 12AA ]

PCIT v. Nageshwar Enterprises (2020)421 ITR 388/ 107 CCH 0418/ 277 Taxman 86 (Guj)(HC)

S. 69 :Unexplained investments -Income from undisclosed sources — Addition is held to be not justified merely on the basis of statement made by partner before Custom authorities . [ Customs Act, 1962, S. 108 ]

Housing and Urban Development Corporation Ltd. v Add. CIT (2020) 421 ITR 599 /189 DTR 211/ 314 CTR 583/ 270 Taxman 101 (Delhi)(HC)

S.37(1): Business expenditure —Method of accounting – Accrual of income – Real income- Provision for revision of pay by Government committee —Liability is not contingent — Provision is held to be deductible. [ S.145 ]

CIT (LTU) v. Reliance Industries Ltd. (2019) 104 CCH 0730 / (2020) 421 ITR 686 (Bom) (HC) Editorial: SLP is granted to the revenue CIT v. Reliance Industries Ltd. [2019] 418 ITR 13 (st) (SC)

S.37(1): Business expenditure — Payment to consultant – Statement made in the course of search was retracted – Disallowance is held to be not justified .[ S.132(4) ]

CIT v. Bhagwan Shree Laxmi Narain (2019) 106 CCH 0176 / (2020) 421 ITR 476 (Delhi)(HC)

S. 11 : Property held for charitable purposes – Imparting spiritual education through lectures and congregation and on television channels – Established a temple to Hindu gods and goddesses for the general public [ S.2(15) 12A. 13(1)(c) (ii) ]

Dipesh Ramesh Vardhan v .DCIT ( Mum) (Trib) www.itatonline .org Ramesh Vardhan v .DCIT ( Mum) (Trib) www.itatonline .org Vishal Vardhan v DCIT( Mum) (Trib) www.itatonline .org Rajesh Babulal Vardhan v DCIT ( Mum) (Trib) www.itatonline .org

S. 68 : Cash credits – Capital gains- Penny stocks – Transactions were genuine and duly supported by various documentary evidences- Opportunity of cross examination was not provided – The AO has not discharged the onus of controverting the documentary evidences furnished by the assessee and by bringing on record any cogent material to sustain the addition- Addition as cash credit and addition of 2% as commission was deleted – Assessed as long term capital gains and exemption is allowed [ S.10(38) 45 , 69 ]

Rajpal Singh v .CIT ( 2020) 427 ITR 1/ 118 taxmann.com 508 / 273 Taxman 375/193 DTR 97 / 316 CTR 225( SC) www.itatonline .org

S. 45 :Capital gains – Accrual -Protective assessment – Rule of consistency – Department not bound by rule of consistency – Lease- Completion of transfer with vesting of land in the Government essentially correlates with taking over of possession of the land under acquisition by the Government- However, where possession is taken over before arriving of the relevant stage for such taking over, capital gains shall be deemed to have accrued upon arrival of the relevant stage and not before.- To be more specific, in such cases, capital gains shall be deemed to have accrued: (a) upon making of the award, in the case of ordinary acquisition referable to Section 16; and (b) after expiration of fifteen days from the publication of the notice mentioned in Section 9 (1), in the case of urgency acquisition under Section 17 [ Land Acquisition Act, 1984 , S ,4,6 ,16 ,17,Transfer of Property Act, 1882, . 108(q), 111(a), 116 ]

Hari Krishna Mandir Trust v. State of Maharashtra & Ors (2020) 9 SCC 356; MANU/SC/0580/2020; AIR 2020 SC 3969 (SC)); www.itatonline.org

Constitution of India,
Art. 226, High Courts bound to issue Writ of Mandamus – For enforcement of public duties – Right to property is a fundamental right and human right. [Art. 300A ]