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S. 68 : Cash credits-Bank deposits-Funds withdrawn from bank four months ago for purchase of a property but due to non-materialised of property transaction, money was re-deposited in bank account, addition cannot be as cash credits.

Baljit Singh. V. ITO (2019) 178 ITD 12 (Chd.)(Trib.)

S. 56 : Income from other sources–Shares issued at premium-DCF method-Commercial expediency has to be seen from point of view of businessman – Addition is held to be not justified. [R. 11UA(2)]

Cinestaan Entertainment (P) Ltd. v. ITO (2019) 180 DTR 65 / 200 TTJ 459 ( Delhi)(Trib.) Editorial : Affirmed in PCIT v. Cinestaan Entertainment Pvt. Ltd. (2021) 433 ITR 82/ 199 DTR 345/ 320 CTR 381 (Delhi) (HC)

S. 56 : Income from other sources-Interest income–Bank deposits-Assessable as income from other sources and not as income from business [S. 28(i)]

Global Entropolis (Vizag)(P.) Ltd. v. ACIT (2019) 178 ITD 179/ 202 TTJ 384/ 183 DTR 297 (Bang.)(Trib.)

S. 56 : Income from other sources-Share Premium-Share application money received from non-residents-Provisions of S.56(2)(viib) is not applicable – Additions cannot be made as cash credits. [S. 56(2)(viib), 68]

Edulink (P.) Ltd. v. ITO (2019) 178 ITD 174 (Bang.)(Trib. )

S. 56 : Income from other sources-Bonus shares-Provisions of S. 56(2)(vii)(c) would not apply to bonus shares. [S. 56(2)(vii)(c)]

DCIT v. Mamta Bhandari. (Smt.) (2019) 178 ITD 89 (Delhi)(Trib.)

S. 56 : Income from other sources – Capital or revenue-Amount received for relinquishing secretaryship of educational society cannot be treated as a capital receipt-Assessable as income from other sources. [S. 4, 45]

H. S. Ramchandra Rao v. CIT ( 2019) 419 ITR 480/ 311 CTR 945 / 184 DTR 305/( 2020) 269 Taxman 372 SC) www.itatonline.org Editorial : Order in CIT v. Ramachandra Rao (2011) 330 ITR 322 (Karn.) (HC) is affirmed)

S. 54 : Capital gains-Profit on sale of property used for residence–Short term–Long term-Date of acquisition-Date of allotment letter and not conveyance deed-Entitle to exemption. [S.2(29A), 2(29B), 2(42A), 2(42B), 45, 54F]

Bhawna Sharma (Smt.) v. DY. CIT (IT) (2019) 75 ITR 7 (SN) (Delhi) (Trib.)

S. 50C : Capital gains-Full value of consideration-Stamp valuation-Purchase of property-Applicable to seller and not purchaser-Unaccounted income invested in the purchase of property.[S. 56(2)(x), 132, 153C]

Dy.CIT v. Sutlej Agro Products Ltd. (2019) 70 ITR 33 (SN) (Delhi)(Trib.)

S. 50C : Capital gains-Full value of consideration-Stamp valuation–Lease hold rights–Stamp valuation is not applicable-Addition is held to be not valid. [S. 45]

Ara properties P. Ltd v. Dy. CIT (2019)75 ITR 12 (SN) (Kol.) Trib)

S. 50C : Capital gains-Full value of consideration-Stamp valuation–Value determined by registering authority–AO is bound to make a reference to Valuation Officer before adopting, without objection raised by the assessee-Matter remanded to the AO to refer the matter to Valuation Officer for determination of market value. [S. 45]

Ara properties P. Ltd v. Dy. CIT (2019)75 ITR 12 (SN) (Kol.)(Trib.)