Author: ksalegal

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Vinesh Maheswari v. ITO (2019) 176 ITD 576 (Delhi)(Trib.)

S. 68 : Cash credits-Books of account-Sale of shares-long term capital gains–Bank statement is not books of account-Addition cannot be made without giving an opportunity of cross examination–Addition is deleted. [S. 2(12A), 44AA]

Macrotech Construction (P.) Ltd. v. ACIT (2019) 176 ITD 530 (Mum.)(Trib.)

S. 37(1) : Business expenditure–Construction business- Accounting Standard-2- Justified in debiting all expenses to work-in-progress except expenses related to administration, selling, marketing, etc. [S. 145]

DCIT v. PPFAS Asset Management (P.) Ltd. (2019) 176 ITD 541 (Mum.)(Trib.)

S. 37(1) : Business expenditure-Asset management company– Date of approval given by SEBI was to be regarded as date on which assessee set up its business and was ready to commence said business- Expenses incurred for purpose of business after said date of approval were eligible for deduction. [S. 3, Regulation 21 of the SEBI (Mutual Fund) Regulations, 1996]

Adesh Foundation (Regd.) v. CIT (2019) 176 ITD 506/199 TTJ 105/ 177 DTR 153 (Asr.)(Trib.)

S. 12AA : Procedure for registration–Trust or institution- Possibility of misuse of donations-Approval u/s 80G cannot be denied. [S. 80G ]

CIT v. Poonjar Service Co-Operative Bank Ltd. (2019) 414 ITR 67 (FB) (Ker.) (HC)/Mavilayi Service Co -Operative Bank Ltd v. CIT ( 2019) 309 CTR 121 / 179 DTR 65( FB) (Ker) (HC) PCIT v. Vazhappally Service Co -Operative Bank Ltd ( 2019) 309 CTR 121 /179 DTR 65( FB) (Ker) (HC)

Precedent—Appeal–Merger–Dismissal of appeal on ground of low tax effect-High Court order does not merge in order of Supreme Court.

CIT v. Om Prakash Jakhotia (2019) 414 ITR 176/ 179 DTR 1 / 309 CTR 499/ 265 Taxman 110 (Delhi)(HC)/ Editorial: SLP of assessee is dsmissed, Om Prakash Jakhotia v. PCT (2019) 418 TR 18 (St) (SC)

S. 245D : Settlement Commission–Full and true disclosure-Surrender of income in the course of search- Retraction after two years- Application for settlement showing undisclosed income much lower figure–Report of revenue was not considered- Settlement Commission determining the income higher than the disclosed income–Order of Settlement Commission was quashed. [S. 132(4), 245C, 245D(4)]

Akshar Builders. V. PCIT (2019) 414 ITR 34 (Guj.)(HC)

S. 245D : Settlement Commission–Restoration of matter to Settlement Commission by High Court-Computation of period of 18 months-Period taken by assessee in pursuing remedy before Court and period during which order stayed to be excluded. [S. 245D(4A)]

Oren Hydrocarbons Pvt. Ltd. v. ACIT (2019) 414 ITR 52 (Mad.)(HC)

S. 226 : Collection and recovery-Stay-Pendency of appeal before CIT(A)-Non speaking order-Garnishe notices to Banks was quashed and attachment of Bank account was lifted. [S. 226(3)]

CIT v. Poonjar Service Co-Operative Bank Ltd. (2019) 414 ITR 67 (FB) (Ker.) (HC)/Mavilayi Service Co -Operative Bank Ltd v. CIT ( 2019) 414 ITR 67/ 309 CTR 121 ( FB) (Ker) (HC) PCIT v. Vazhappally Service Co -Operative Bank Ltd ( 2019) 309 CTR 121 ( FB) (Ker) (HC) Editorial: ITO v. Ettumanoor Service Co- Operative Bank Ltd.( 20160 52 ITR 132 ( SN) ( Cochin) (Trib) ITO v. Sahyadri Cohin- Co-Operative Credit Society Ltd ( 2017) 60 ITR 135 (Cochin) ( Trib) is reversed .Editorial: SLP is granted to the assessee Mavilayi Service Co -Operative Bank Ltd v. CIT ( 2019) 418 ITR 12 (St) (SC)

S. 80P : Co-operative societies–Co–Operative Bank-Assessee must substantiate that its main object of incorporation continues to be fulfilled In relevant assessment year-Benefit is not allowable solely on basis of certificate of registration-Assessee is not entitled to deduction if it ceases to be of specified class of society in any year even if it was eligible for initial years. [S. 80P(4)]

PCIT v. Kores India Ltd. (2019) 414 ITR 47/ (2020) 274 Taxman 337 (Bom.) (HC)

S. 80IB(10) : Housing projects- Allotment of more than one unit to members of same family-Allottees Later removing partitions and combining two flats into one-No breach of condition that each unit should not be of more than 1000 Sq. Ft. — Entitled to deduction.