S. 69: Unexplained investments-Purchase of house property-Residential house was purchased in joint names by the assessee along with his wife-Explained the source of investment-Addition was not valid-Reassessment-Information was received from the office of the Sub-Registrar under s. 285BA Sanction for reassessment was valid-PCIT has recorded the satisfaction-Approval was valid. [S. 133(6), 147, 148, 151, 285B]
S. 68: Cash credits-Share capital-Filed copies of PAN details, memorandum of association and articles of association, audit reports and balance-sheets, bank statement, copies of share application forms along with board resolutions and also confirmation of the companies-Order of CIT(A) deleting the addition was affirmed.
S. 56: Income from other sources-Property received as a gift from step-sister-Step-sister and step-brother fall within the definition of ‘relative’ and therefore, they are to be treated as brother and sister for S. 56(2)(vii) and, consequently, property received by a stepbrother from a stepsister by way of gift cannot be taxed under s. 56(2)(vii)(b). [S.2(15B), 56(2)(viib), Reserve Bank of India Act, 1934, S. 45S, Companies Act, 2013, S.2(77)]
S.54F: Capital gains-Investment in a residential house. Year of chargebility-Addition made by Assessing Officer for assessment year 2018-19, treating the amount withdrawn from CGAS account in the succeeding year 2019-20 as the assessee’s income under the head LTCG was deleted.[S.2(14), 45, 54F(4)]
S. 54B: Capital gains-Land used for agricultural purposes-Investments made beyond the statutory time-limit-Received the sale proceeds in a staggered manner over the years, from 2012 to 2016, Reinvested the capital gains in a residential property and agricultural land as and when funds were available-Exemption under ss. 54B and 54F cannot be denied solely on the ground of non-adherence to strict time-limits-Assessee is entitled to claim deduction in respect of investments made beyond the prescribed time period-AO is directed to recompute the assessee’s taxable capital gains by allowing proportionate exemption under ss. 54B and 54F for the investments made within the statutory time limits. Ownership of land in the assessee’s name is a mandatory condition and, therefore, assessee cannot claim exemption under S. 54B for the land purchased in the name of his brother. [S. 45, 54F]
S. 50: Capital gains-Depreciable assets-Block of assets-Sale of trade marks acquired before amendment of s. 32(1) w.e.f. 1st April, 1999-Assessable as long-term capital gains. [S. 2(11), 32(1), 45]
S. 45: Capital gains-Capital loss-Carry forward and set off by non-resident-Capital loss incurred under the provisions of the Act r/w art. 13(5) of the India-Ireland DTAA cannot be set off against short-term capital gain derived from the sale of rights entitlement because such gain is not subject to tax in India as per art. 13(6) of the DTAA DTAA-India-Ireland [Art. 13(6)]
S. 45: Capital gains–Rights entitlement-Capital gains arising on sale of rights entitlements are not equity shares as s. 62 of Companies Act, 2013-rights entitlement are covered under the provisions of art. 13(6) and, therefore, cannot be subjected to tax in India but is taxable in the resident State of the assessee i.e., Ireland-DTAA-India-Ireland. [S.90, Art. 13(6), Companies Act, 2013, S.62,]
S. 45: Capital gains-Beneficial owner-Entire consideration was paid by brother-Declared entire consideration in his return of income-Assessee is not a beneficial owner of the said property-Addition was deleted.
S. 45: Capital gains-Joint Development Agreement-Co-owners-Matter remanded to determine the share of each co-owner and decide the taxability-Construction of house within specified period-Matter remanded to decide after considering the relevant documents. [S. 54]