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. 55A : Capital gains-Reference to valuation officer-Long term capital gains-Valuation as on 1-4-1981-Amendment to section 55A(a) inserted with effect from 1-7-2012 by Finance Act, 2012 providing for making reference by AO to DVO for determination of value of property sold by assessee was not applicable retrospectively. [S. 45, 50C, 55A(a)]

Virendra Natwarlal Jariwala v. DCIT (2021) 191 ITD 555 (Surat) (Trib.)

S. 54B : Capital gains-Land used for agricultural purposes-HUF-Ownership-Land registered in the name of co-parcener-Land purchased out of sale proceeds of sale of agricultural land of HUF-Exemption cannot be denied.[S. 45]

Babubhai Arjanbhai Kanani (HUF) v. DCIT (2021) 191 ITD 5 (Surat)(Trib.)

S. 54 : Capital gains-Profit on sale of property used for residence-Ownership of new property-New residential property was purchased in joint names of assessee, her daughter and son-Entitle to exemption. [S. 45]

ITO v. Rachna Arora (Smt.) (2021) 191 ITD 667 / 90 ITR 575 (Chd.)(Trib.)

S. 48 : Capital gains-Computation-Cost of acquisition-Indexation cost-Joint Development agreement-Accounting treatment in books of account cannot determine the taxability under income-tax Act-Indexed cost of acquisition-Indexation was allowed till the taxable event of capital gains and not till the date of entering in to development agreement with developer-Provision of section 45(2) cannot be applicable to the assessee who is not a developer. [S 45, 45(2), 145]

Global Health (P.) Ltd. v. DCIT (2021) 191 ITD 279 (Delhi)(Trib.)

S. 48 : Capital gains-Computation-Assignment of rights-No consideration was received from lessor-Not taxable as capital gains. [S. 45]

InterGlobe Aviation Ltd. (IndiGo) v. ACIT (2021) 191 ITD 1/(2022) 216 TTJ 265 / 95 ITR 586/ 211 DTR 233(SB) (Delhi)(Trib.)

S. 45(5A) : Capital gains-Joint development agreement-Ready reckoner value-Actual consideration-Fair market value-Value of consideration shown as per agreement has to be accepted-Provision of section 45(5A)) cannot be made applicable for the Assessment year 2015-16. [S. 45, 48, 50C]

Amit Vishnu Pashankar v. DCIT (2021) 191 ITD 576 (Pune) (Trib.)

S. 45 : Capital gains-Land dealings-Stock in trade-Shown as investment for seven years-Assessable as capital gains and not as business income. [S. 2(13), 28(i)]

JCIT v. Adrus Estate and Properties LLP. (2021) 191 ITD 166 / 213 TTJ 1 (UO) (Pune)(Trib.)

S. 43(6) : Written down value-Block of assets-Waiver of loan-Asset purchased in earlier year-Written back from capital reserve-No adjustment can be made. [S. 2(11), 2(24)(xviii), 32, 41(1), 43 (1)]

Shapers India (P.) Ltd. v. DCIT (2021) 191 ITD 700/ 214 TTJ 238 / 206 DTR 303 (Pune) (Trib.)

S. 41(1) : Profits chargeable to tax-Remission or cessation of trading liability-Presumptive taxation-Remission of income tax liability of employees borne by assessee pertaining to earlier years-Not chargeable to tax-Claimed deduction and allowed-The income would be chargeable to tax-Matter remanded. [S.44BB(2)]

Dolphin Drilling Ltd. v. DCIT (IT) (2021) 191 ITD 181 / 204 DTR 209 / 212 TTJ 662 (Dehradun)(Trib.)

S. 41(1) : Profits chargeable to tax-Remission or cessation of trading liability-Sundry creditors-Not claimed as deduction in earlier years-Addition cannot be made.

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