Year: 2020

Archive for 2020


Subhalakshshmi Kurada v ACIT ( 2020) BCAJ -June – 44 ( Bang) (Trib)

S. 54 : Capital gains – Profit on sale of property used for residence -Exemption cannot be denied when the property was purchased in the joint name of assessee and others [ S.45 , 54F ]

The Chamber of Tax Consultants v . UOI ( Bom) (HC) www.itatonline.org

S.50CA: Capital gains- Full value of consideration for transfer of share other than quoted shares – Validity of Section 49, 50CA, 56 of Income-tax Act,1961 read with Rule 11U, 11UA etc challenged before Bombay High court. [ S. 49 56 , Rule 11U 11UA ]

PCIT v. VVF Ltd ( 2020) 118 Taxmann .com 375 ( Bom) (HC))

S. 37(1) : Business expenditure –Wholly and exclusively – Salary paid to director- Held to be allowable though the payment made was voluntary .

New Woodlands Hotel Pvt. Ltd. v. ACIT (2020) 428 ITR 492 / 274 Taxman 468/ 196 DTR 449 ( Mad) (HC) www.itatonline org .

S. 37(1) : Business expenditure – Service charges to employees- Held to be allowable as business expenditure – The Assessing Officer should not have used the expression “modus operandi” to mean that the assessee had adopted dubious tactics to inflate its expenditure.

Span Realtors v ITO ( 2020 ) BCAJ -September – P. 42 ( Mum) (Trib)

S. 35 : Scientific research -Donation- When a valid registration exists while donation was given by the assessee and if at a later point of time such registration is cancelled with retrospective effect , no disallowance can be made [ S.35(1) (ii) ]

Genesys International corporation Ltd v DICIT ( 2020) BCAJ -April – 34 ( Mum) (Tri)

S. 10AA : Special economic zones – Profit of eligible unit should be allowed without set off of loss of other units [ S.72 ]

Surender v .ITO ( 2020) BCAJ -June -P 43 ( Delhi) (Trib)

S. 10(37) : Capital gains – Agricultural land – Interest received on enhanced consideration as per Land acquisition Act, 1894 is held to be not taxable [ S .4, 56(2) (viii) Land Acquisition Act , 1894 , S 4, 28, 34 ]

Sandip Kumar Bajaj & Ors v SBI MANU/WB/0662/2020 ( Cal ) (HC) www.itatonline .org

Insolvency & Bankruptcy Code, 2016

S. 14:Moratorium- Proceedings for declaration of wilful defaulter can continue pending moratorium under the IBC Law- Writ petition dismissed [ S.29, 39 , Art , 226 ]

Satish Chnadra Ahuja v .Sneha Ahuja AIR 2020 SC 5397; (2021) 1 SCC 414; MANU/SC/0767/2020 ( SC) www.itatonline.org.

Protection of Women from Domestic Violence Act 2005

S. 2(s ): Shared household – Right to stay/reside in the shared household- Daughter in law – gratuitous licences – Order of High Court affirmed [ CPC 151 , Hindu Succession Act 2005 ]

CIT v. Bokaro Steel Ltd. (1999) 236 ITR 315/102 Taxman 94/151 CTR 276 (SC)

S. 4: Charge of income tax – Capital or revenue- Business income-Receipts from Construction company – Netting of receipts and payments- Receipts from the Construction Company being intrinsically connected with construction of assessee’s plant, would be considered as a capital receipt and not income of assessee from any independent source-Amounts received by the assessee would go to reduction of cost of construction. [S, 28(i), 56, 145]