This Digest of case laws is prepared by KSA Legal and AIFTP from judgements reported in BCAJ, CTR, DTR, ITD, ITR, ITR (Trib), Chamber's Journal, SOT, Taxman, TTJ, BCAJ, ACAJ, www.itatonline.org and other journals
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S. 68: Cash credits-Share capital and share premium-Shares premium of 490 on a share with face value of Rs 10-Subscribers are not traceable-Addition is justified.[S.68, 131]

Nexcare Agency P. Ltd. v. ITO (2024)116 ITR 594 (Kol)(Trib)

S. 56 : Income from other sources-Interest income-Lending to members-Only the expenditure attributable to earning of interest income is allowable-Issue which was not examined in first round of litigation is cannot be raised in second round of litigation. [S. 57.80P(2)(a)(i)]

West Bengal State Co-Operative Agriculture And Rural Development Bank Ltd. v. ACIT (2024)116 ITR 610 (Kol)(Trib)

S. 55 : Capital gains-Cost of improvement-Cost of acquisition-Sale of property-Non-Resident-Fair market value as on 1-4-2001-Valuation on the basis of approved Government Valuer-Assessing Officer is directed to adopt fair market value of property on the basis of as determined by Registered valuer. [S. 48, 144C(7)(a), 144C(7)(b)]

Lalita Trehan v. Dy.CIT(IT) (2024) 116 ITR 1(SN)(Delhi)(Trib)

S. 45: Capital gains-Long-term capital gains-Purchase and sale of shares-Penny stock-Matter remanded to the Assessing Officer. [S. 10(38)]

Nidhi Manan Shah v. ITO (2024)116 ITR 62 (SN)(Mum)(Trib)

S. 45 : Capital gains-Compulsory acquisition of land by National Highways Authority of India-Compensation-Entitle to exemption. [S. 4] Right to fair compensation and transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013,S.96 S. Circular No. 36 Of 2016, Dated 25-10-2016 (2016) 388 ITR 48 (St)

Surinder Kumar v. ITO (2024)116 ITR 529/ [2025] 172 taxmann.com 13 (Amritsar)(Trib)

S. 43CA : Transfer of assets-other than capital assets-Full value of consideration-stock in trade-Agreement value-Stamp valuation-Difference between sale value and stamp value is below threshold margin of 10 Per Cent-Addition is deleted. [S.50C]

Dy. CIT v. Neepa Real Estates P. Ltd. (2024)116 ITR 247// 171 taxmann.com 56 (Mum) (Trib)

S. 90 :Double taxation relief – Capital gains – Mutual fund Units – Singapore resident – Sale/redemption of mutual fund units would be covered Article 13 of DTAA – Not taxable in India – DTAA – India – Singapore. [ Art. 13(4), 13(5) ]

Anushaka Sanjay Shah(Ms) v .ITO (IT) ( Mum)( Trib ) www.itatonline .org

S. 41(1) : Profits chargeable to tax-Remission or cessation of trading liability-Goods purchased from brother-Writing off dues as personal help-Liability ceasing to exist on written off by creditor in his books-Addition is justified.

Maideen Pitchai Rawther Peer Mohammed v. ACIT (2024)116 ITR 71 (SN)(Chennai)(Trib)

S.37(1): Business expenditure-Ad-hoc disallowance-Salary-business promotion expenses, commission,miscellaneous expenses, service and maintenance expenses, telephone,-Repair to building-Books of account not rejected-Disallowance is deleted. [S. 143(3)]

Sadana Electric Store v. Dy. CIT (2024)116 ITR 33 (SN)(Lucknow)(Trib)

S. 37(1) : Business expenditure-Method of accounting-Completed-contract method-Books of account not rejected-Expenditure on completed project for defects and finishing allowable.[S. 145(3)]

Royal Mahanagar Developers v. Dy. CIT (2024)116 ITR 48 (SN) (Cuttack)(Trib)