S.80IA: Industrial undertakings-Enterprises engaged in infrastructure development-Failure to file audit report within prescribed time-limit-Filed the audit report in Form 10CCB prior to the processing of the return under S. 143(1)-Denial of exemption was not valid.[S. 80IA(4)(i), 80IA(7), 143(1), Form No 10CCB.]
S. 80G: Donation-Rejection of application was set aside-Matter was remanded to the file of CIT(E) to examine the accounts of three preceding years-In case there are no expenses exceeding 5 per cent on religious activities, approval under s. 80G(5) is allowable to the assessee if the assessee fulfils all other conditions. [S.11AA(2)(g), 12A, 12AB, 80G(5)]
S. 69C: Unexplained expenditure-Expenditure recorded in the books of account-Supported by third-party invoices and replied by parties-Deletion of addition by the CIT(A) was affirmed. [S.133(6)]
S. 69A: Unexplained money-Income from undisclosed sources-Cash deposits in bank during demonetization period-Books of account not rejected-The assessee has explained the nature and source of the same and recorded the same in his books of account. Addition was deleted. [S. 145]
S. 69 : Unexplained investments-Income from undisclosed sources-Entries on loose papers seized from residential premises of third party-Addition in the hands of the assessee was not sustainable-Presumption under S. 132(4A) is only confined to the person in whose premises search is conducted.[S. 132(4A)]
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]