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 application and share premium-Received earlier year-Addition cannot be made in the current financial year.

Geeri Fashion (P.) Ltd. v. ITO (2021) 191 ITD 155 (Surat)(Trib.)

S. 68 : Cash credits-Unproved purchases-Reconciliation statement was filed-Custom duties paid-No addition can be made. [S. 143(3)]

ACIT v. Nilkanth Concast (P.) Ltd. (2021) 191 ITD 73(Delhi)(Trib.)

S. 68 : Cash credits-Brought forward creditors from earlier financial year-Addition cannot be made as cash credits for the relevant assessment year.

Ravindra Arunachala Nadar v. ACIT (2021) 191 ITD 520 (Chennai)(Trib.)

S. 68 : Cash credits-Unsecured loan-Confirmation, financial statements and bank statements of creditors were produced-Addition is held to be not justified.

K.P. Manish Global Ingredients (P.) Ltd. v. (2021) 191 ITD 548 / 212 TTJ 375 / 203 DTR 1 /(2022) 96 ITR 657 (Chennai)(Trib.)

S. 68 : Cash credits-Bank account-Cash flow statement-Unexplained income-Peak credit-Directed to grant peak credit.

Renukaben Umedsinh Parmar (Smt.) v. ITO (2021) 191 ITD 672 / 87 ITR 707 (Surat)(Trib.)

S. 68 : Cash credits-Regular books of account maintained-Commission income cannot be assessed as unexplained cash credits. [S. 132]

Amitbhai Manubhai Kachadiya v. DCIT (2021) 191 ITD 759 (Surat) (Trib.)

S. 57 : Income from other sources-Deductions-Investment in firm-Dispute-Arbitral award-Interest was held to be allowable as deduction. [S. 56, 57(iii)]

Ashok Raitlal Miyani v. ITO (2021) 191 ITD 734 (SMC) (Mum.)(Trib.)

S. 56 : Income from other sources-Share premium-Business of trading-Discounted cash flow method (DCF)-Net asset value (NAV) method-Assessing Officer cannot adopt different method-Addition was deleted. [S. 56(2)(viib), Rule 11UA]

Town Essential (P.) Ltd. v. CIT (2021) 191 ITD 55 (Bang.) (Trib.)

S. 56 : Income from other sources-Share premium-Discounted Cash Flow (DCF)-Net valuation method (NAV)-Applicable in the assessment year 2013-14-Addition was set aside. [S. 56(2)(viib)]

UKN Hospitality (P.) Ltd. v. ITO (2021) 191 ITD 566 (Bang.)(Trib.)

S. 56 : Income from other sources-Purchase of immoveable property-Agreement value and stamp valuation was less than 10 per cent-Addition is held to be not justified-Amendment made in section 50C(1) by inserting third proviso by Finance Act, 2018, with effect from 1-4-2019 is curative in nature and same would apply retrospectively. [S. 50C(1), 56(2)(vii)(b)]

Joseph Mudaliar v. DCIT (2021) 191 ITD 719/ 214 TTJ 26/ 207 DTR 94 (Mum.)(Trib.)