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. 45 : Capital gains-Conversion of asset into stock-in-trade-Land converted in to stock in trade-Capital gains was to be computed upto date of conversion into stock-in-trade and for period thereafter sales realization of stock-in-trade over fair market value of land was to be assessed as business income. [S. 28(i), 45(2)]

Futuristic Diagnostic Imaging Centre (P.) Ltd. v. ITO (2022) 194 ITD 532 (Bang.)(Trib.)

S. 45 : Capital gains-immovable property-Agreement to sell-transfer-Possession was not given-Not liable to capital gains tax. [S. 2(47)]

Godha Realtors (P.) Ltd. v. ACIT (2022) 194 ITD 31 (Bang.)(Trib.)

S. 43B : Deductions on actual payment-Provident Fund contributions-Employee’s share of contribution is made on or before due date for furnishing return of income under section 139(1), assessee would be entitled to claim deduction-Explanatory memorandum to Finance Act, 2021 proposing amendment in section 36(1)(va) as well as section 43B is applicable prospectively with effect from 1-4-2021. [S. 36(1)(va), 139]

Ramachandra Naveen v. ADIT (2022) 194 ITD 434 (Bang.) (Trib.)/ Abdul Hassan Risvi v. ACIT (2022) 220 TTJ 813/ 220 DTR 313 (Chennai )( Trib)/GSD Constructions Indore (P) Ltd. .v. Dy. CIT ( 2022) 217 TTJ 33 (UO) / 141 taxmann.com 69 ( Indore ) (Trib)/Aroon Facilitation Management Service(P) Ltd. v Dy. CIT (2022) 215 TTJ 722 (SMC) (Delhi)(Trib)/Vinko Auto Industries Ltd. v. Dy. CIT (2022) 209 DTR 201/215 TTJ 405 (Asr) (Trib) / Dy. CIT v .G4S Facility Services (India) Pvt. Ltd. (2022) 99 ITR 206 (Delhi)( Trib) /Neev Infrastructure Pvt. Ltd. v. A CIT (2022)97 ITR 38 (Trib) (SN) (Mum) ( Trib ) /ACIT v .New Saravana Stores Brahmandamai (2022)95 ITR 7 (SN)(Chennai ) ( Trib) /Electrical India & ors v. ACIT (2022) 220 TTJ 813/ 220 DTR 313 (Chennai )( Trib)/.Electrical India & ors v. ACIT (2022) 220 TTJ 813/ 220 DTR 313 (Chennai )( Trib) / Kalpesh Synthetics(P) Ltd. v. Dy. CIT ( 2022) 213 DTR 217 / 217 TTJ 513 / 137 taxmann.com 475 / 96 ITR 690 / 195 ITD 142 (Mum)(Trib)/ Arihant Automobiles. v. ITO (2022) 194 ITD 509 (Jabalpur) (Trib.) Shree Shyam Designs (P.) Ltd. v. ADIT (2022) 194 ITD 528 (Bang.)(Trib.) Kanthi Agency Networks. v. ADIT (2022) 194 ITD 581 (Bang.) (Trib.) Paramjeet Singh. v. DCIT (2022) 194 ITD 685 (Chandigarh) (Trib.) Punjab Bevel Gears Ltd. v. DCIT (2022) 194 ITD 756 (Delhi) (Trib.) Raj Kumar v. ITD CPC, (2022) 194 ITD 802 (Delhi)(Trib.)

S. 43B : Deductions on actual payment-Employees’ contribution of PF and ESI before due date of filing return-Entitled to deduction. [S. 36(1)(va), 139(1)]

Environs Management (Bangalore) (P.) Ltd. v. ITO (2022) 194 ITD 67 (Bang.)(Trib.)

S. 43(5) : Speculative transaction-Trading in derivatives-Hedging contract with its bankers to minimize possible fluctuation in foreign currency-Not speculation loss-Allowable as business or business expenditure. [S. 28(i), 37(1)]

DCIT v. Kunnam Granite Works (2022) 194 ITD 238 (Chennai) (Trib.)

S. 40A(3) : Expenses or payments not deductible-Cash payments exceeding prescribed limits-Payment was made by way of legal tender i.e. Indian currency, said payments were covered by exception contemplated in rule 6DD(b)-Disallowance is not valid [R.6DD(b)] and, therefore, same could not be disallowed under section 40A(3).

DCIT v. Vinod Arora (2022) 194 ITD 605 (Amritsar)(Trib.)

S. 40(a)(ii) : Amounts not deductible-Rates or tax-Education cess cannot be equated as tax or surcharge-Allowable as business.

Security Printing & Minting Corporation of India Ltd. v. ACIT (2022) 194 ITD 641 (Delhi)(Trib.)

S. 40(a)(ia) : Amounts not deductible-Deduction at source-Contractors/sub-contractors Custom House agent, to shipping companies/CFS agents-Failure to deduct tax at source-Disallowance is valid. [S. 194C]

Shri Shanmugar Services v. ITO (2022) 194 ITD 747 (Chennai) (Trib.)

S. 40(a)(ia) : Amounts not deductible-Deduction at source-Tax deducted by applying wrong provision of the Act-Lower rate-No disallowance can be made. [S. 201(1), 201(IA)]

M.V.A. Seetharama Raju v. DCIT (2022) 194 ITD 359 / 97 ITR 714 (Chennai)(Trib.)

S. 40(a)(ia) : Amounts not deductible-Deduction at source-Interest on Bank loans-Interest paid on bank loans is not liable to TDS deduction and hence disallowance is not called for-Matter remanded for verification. [S. 37(1)]

TUV Rheinland NIFE Academy (P.) Ltd. v. ACIT (2022) 194 ITD 78 (Bang.)(Trib.)