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. 80P : Co-operative societies-Interest from Nationalised Banks-Not entitled to deduction-Net interest from deposits with Scheduled Bank to be excluded from computation of deduction-Interest from Co-Operative Societies or Co-Operative Banks-Entitled to deduction-Net interest to be allowed as deduction. [S.80P(2)(a)(i), 80P(2)(d)]

Lunawada Taluka Primary School Teachers Co-Op. Credit Society Ltd. v. ITO (2020) 77 ITR 46 (SN) (Ahd.)(Trib.) Vir Transport Operator Co-Op. Credit and Services Society v. ITO (2020)77 ITR 46 (SN) (Ahd.)(Trib.)

S. 80P : Co-operative societies-Certificate issued by Registrar of Co-Operative Societies is not binding on AO–Interest on investments with Co-Operative Banks-AO is to follow law laid down by full bench of Kerala High Court in Mavilayi Service Co-Operative Bank Ltd. v. CIT (2019) 414 ITR 67 (FB) (Ker.)(HC) [S.80P(2)(4)]

Chirakara Service Co-Operative Bank Ltd. v. ITO (2020) 77 ITR 457 (Cochin)(Trib.) Pangode Service Co-Operative Bank Ltd. v. ITO (2020) 77 ITR 33 (SN) (Cochin)(Trib.) Andoorkonam Service Co-Operative Bank Ltd. v. ITO (2020) 77 ITR 33 (SN) (Cochin)(Trib.) Varkala Service Co-Operative Bank Ltd. v. ITO (2020) 77 ITR 33 (SN) (Cochin)(Trib.)

S. 80G : Donation-Approval-Approval granted to assessee is still continuing-Order rejecting approval is redundant in law. [S. 80G(5)(vi)]

Ashwini Sahakari Rugnalaya Ani Sanshidhan Kendra v. CIT(E) (2020) 77 ITR 61 (SN) (Pune)(Trib.)

S. 80G : Donation-Corporate Social Responsibility requirements-Denial of approval is not justified. [S. 12A, 80G(5)(vi)]

Sabtera Foundation v. CIT(E) (2020) 77 ITR 296 (SN) (Chd.)(Trib.)

S. 69A : Unexplained money–Cash gift from brother–Stamp paper used for the alleged gift was purchased after two years after declaration of gift-Addition is held to be valid-regarding professional receipts–Addition is deleted.

Soniya Ashokkumar Sachdev v. ITO (2020) 77 ITR 54 (SN) (Pune)(Trib.)

S. 69 : Unexplained investments-Books of account not audited–Net profit to be estimated at 8%-Cash gift from relatives-Mother in law-Relative-Agricultural income-No reason to doubt genuineness and creditworthiness of source-Addition is not justified. [S. 56, Explanation, (e), 68]

Vinod Kumar Jain v. ITO (2020) 77 ITR 83 (SN) / 205 TTJ 527(Indore)(Trib.)

S. 69 : Unexplained investments-Purchase of property-Source of investment-Remanded to CIT(A). [S. 250]

Mustafa Chhawaniwala v. ITO (2020) 77 ITR 5 (SN) (Indore)(Trib.)

S. 69 : Unexplained investments–Search and Seizure-Unexplained cash and jewellery-Benefit is given as per circular No 1016 dt 5-11-1994-Explanation is not satisfactory–Addition is held to be justified. [S. 132]

Bishan Bansal v. Dy.CIT (2020) 77 ITR 95 (SN) (Delhi)(Trib.)

S. 68 : Cash credits-Purchase of site-Transaction has not materialized–Addition is held to be not justified.

P. Ramachandra Reddy v. ITO (2020) 77 ITR 49 (SN) (Hyd.)(Trib.)

S. 68 : Cash credits-Failure to prove creditworthiness of the creditor –Addition is held to be justified.

Dibyajyoti Chemicals P. Ltd. v. Dy. CIT (2020) 77 ITR 40 (SN) (Cuttack)(Trib.)