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. 32 : Depreciation – ATM can be regarded as computer – Eligible depreciation at rate of 60 % .

CIT v. NCR Corporation (P.) Ltd. (2020) 274 Taxman 139 / 193 DTR 66 (Karn)(HC)

S : 32: Depreciation – Intangible asset – Firm succeeded by Company – Revaluation of assets – Assessee is entitle to depreciation on actual cost incurred by it – 5th proviso will apply only in the year of succession and not in subsequent years and also in respect of over all quantum of depreciation in the year of succession – Order of Appellate Tribunal was quashed [ S.32 (1)(ii), 47(xiii) ]

Padmini Products (P.) Ltd. v. Dy. CIT (2020) 195 DTR 1 / 317 CTR 369 / (2021) 277 Taxman 22 (Karn.)(HC) .Editorial : Notice issued in SLP filed by the revenue ,Dy. CIT v. Padmini Products (P) Ltd. (2021) 283 Taxman 177 (SC)

S. 69A : Unexplained money – Search and seizure – Noting in diary of third party – Seized in the course of search – Without any corroborative evidence and had no authenticity, no additions could be made .[ S. 132 (4A) , 292C ]

Harmohinder Kaur. (Smt.) v. DCIT ( 2020) 204 TTJ 1 (UO) / (2021) 187 ITD 289 (Amritsar) (Trib.)

S. 68 : Cash credits – Penny stock – Accomodation entries – Sale of shares – Capital gains – Exemption – Addition cannot be made on presumption – Entitle to exemption – When no incriminating material was not found in the course of search , no addition can be made – Estimation of commission was also deleted . [ S.10 (38) 45 , 69C , 132 ,133(6), 153A]

Mahendra B.Mittal ( HUF) v .Dy CIT ( 2020) 203 TTJ 288 ( Mum) ( Trib) Mahendra Balakrishna Mittal v Dy CIT ( 2020) 203 TTJ 288 ( Mum) ( Trib) Pooja Mahendra Mittal ( Smt ) v. Dy CIT ( 2020) 203 TTJ 288 ( Mum) ( Trib) Vijayrattan Balakridhna Mittal v. Dy CIT ( 2020) 203 TTJ 288 ( Mum) ( Trib)

S. 263 : Commissioner – Revision of orders prejudicial to revenue – Penalty dropped by Assessing Officer on consideration of replies – Revision order directing the Assessing Officer to initiate penalty proceedings was quashed [ S. 132(4), 153A, 153C, 271AAB ]

D.S.Patil v .PCIT (Bang ) ( Trib) www.itatonline.org

S.43B: Deductions on actual payment – Employee’s contribution -paid before due date of filing of return –Allowable as deduction – Binding Precedent – Faceless assessment -Order of Jurisdictional High Court – binding on AO situated within territorial jurisdiction and respective first appellate authority. [ S. 2 (24)(x), 36 (1)(va), 139 (1), 143 (3) ]

Mahadev Cold Storage v. JAO ( 2021 ) 190 ITD 273/ 212 TTJ 801/ 205 DTR 145 ( 2021 ) 190 ITD 273/ 212 TTJ 801/ 205 DTR 145 (Agra ) ( Trib) www.itatonline .org Vinod Thanwerdas v. JAO ( 2021 ) 190 ITD 273/ 212 TTJ 801/ 205 DTR 145 (Agra ) ( Trib) www.itatonline .org

S. 263 : Commissioner – Revision of orders prejudicial to revenue -Loss on account of sale of shares – Mere non-mentioning of reasons for allowing said claim of assessee by Assessing Officer would not make assessment order erroneous so as to invoke revision jurisdiction- Unabsorbed depreciation – Sale of land -Difference between stamp value and actual consideration received – Addition is justified – loss on sale of vehicle – Remanded to Assessing Officer . [ S.28 (i),50, 50C , 72, 143 (3) ,170 ]

Yerram Venkata Subba Reddy.v. ACIT ( 2020) 196 DTR 41 / 208 TTJ 885/ (2021) 187 ITD 22 (Hyd) (Trib.)

S. 40(a)(i) : Amounts not deductible – Deduction at source -Non-resident –Advertisement expenses – Expenditure not claimed as deduction – No disallowance can be made- Matter remanded . [ S .30 to 38, 195 ]

Interactive Avenues (P.) Ltd. v. DCIT ( 2020) 196 DTR 249// 208 TTJ 945 (2021) 187 ITD 463 (Mum) (Trib.)

S. 12AA : Procedure for registration –Trust or institution- Charitable objects- Registration cannot be denied on ground that no activities had been carried out by Trust [ S. 2(15), 11, 12A ]

South India Club. v .CIT ( 2020) 194 DTR 320 / 207 TTJ 844/ (2021) 187 ITD 492 (Delhi) (Trib.)

S. 50C : Capital gains – Full value of consideration – Stamp valuation – Sale consideration more than District level committee rate – Addition is held to be not justified .[ S.45 ] S. 50C : Capital gains – Full value of consideration – Stamp valuation – Sale consideration more than District level committee rate – Addition is held to be not justified .[ S.45 ]

Om Prakash Agarwal. v. DCIT ( 2020) 194 DTR 199/ 207 TTJ 121 / (2021) 187 ITD 499 (Jaipur) (Trib.)