Category: Income-Tax Act

Archive for the ‘Income-Tax Act’ Category


ACIT v. Lenskart Solution (P.) Ltd. (2022) 196 ITD 297 (Delhi) (Trib.)

S. 68 : Cash credits-Purchases-Shown as trade creditors-Confirmation was filed-Payments were made through banking channels-Addition is not valid.

Yash Vardhan Arya v. ITO(IT) (2022) 196 ITD 276 / 97 ITR 5(SN) (Bang.)(Trib.)

S. 57 : Income from other sources-Deductions-Interest-Not brought on record any documentary evidence to show that it had incurred interest expenditure as against income assessed under head ‘Income from other sources’-Disallowance of interest expenditure was confirmed. [S. 56]

Milk Mantra Dairy (P.) Ltd. v. DCIT (2022) 196 ITD 333 / 220 TTJ 352 (Kol.)(Trib.)

S. 56 : Income from other sources-Share premium-Conversion of CCDs in to equity shares-Provision is applicable-Receipt of any consideration which could not be limited to receipt of money-Provision is not applicable to with respect to share premium amount received from non-resident angel investors for issuance of equity shares-DCF method for valuation-Assessing Officer was not empowered to disregard DCF valuation. [S. 56(2)(viib), R. 11UA]

Bhaskari Madhavan (Mrs.) v. ITO (2022) 196 ITD 85 (Chennai) (Trib.)

S. 54 : Capital gains-Profit on sale of property used for residence-Property purchased in the name of married daughter-Exemption from capital gains tax is not available. [S. 45]

K. Raheja (P.) Ltd. v. DCIT (2022) 196 ITD 607 (Mum.)(Trib.)

S. 50C : Capital gains-Full value of consideration-Stamp valuation-Option deposit-Option agreement for sale of twenty (20) flats in its residential project with its group entity-Addition on sale of those flats to third parties to sales value declared were unjustified. [S. 28(i)]

JP Morgan Funds v. DCIT(IT) (2022) 196 ITD 114 / 219 TTJ 364 / 217 DTR 225 (Mum.)(Trib.)

S. 48 : Capital gains-Computation-Debentures of company-Bonus debentures-Reinvested-Reinvested out of dividend would be considered as cost of acquisition of debentures. [S. 2(22)]

Everest Industries Ltd. v. DCIT (2022) 196 ITD 563 (Mum.)(Trib.)

S. 43B : Deductions on actual payment-Leave encashment-constitutional validity of section 43B(f) had been upheld by Supreme Court-Disallowance is up held. [S. 43B(f)]

Spandana Sphoorty Financial Ltd. v. DCIT (2022) 196 ITD 217 / 217 TTJ 837 / 214 DTR 121 (Hyd.)(Trib.)

S. 43B : Deductions on actual payment-Business of micro-financing-Acquired loan from three banks-Interest was not paid before due date of filing of return-Disallowance is held to be justified. [S. 43B(e), 139(1)]

Infrastructure Logistics (P.) Ltd. v. JCIT (2022) 196 ITD 153/(2023) 223 TTJ 341 (Panaji)(Trib.)

S. 41(1) : Profits chargeable to tax-Remission or cessation of trading liability-Sundry creditors-Burden is on Revenue-Order of CIT(A) is affirmed.

India Cements Capital Ltd. v. ACIT (2022) 196 ITD 127 / 220 TTJ 990 / (2023) 221 DTR 28 (Chennai)(Trib.)

S. 41(1) : Profits chargeable to tax-Remission or cessation of trading liability-Hived off its hire purchase and leasing business to a special purpose vehicle (SPV)-Assigned corresponding receivables together with bank liabilities to SPV at book-Liable to repay-Not chargeable to tax-Bank claimed as bad debt-No outstanding due from Bank in the books of account-Addition cannot be made. [S. 145]