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. 56 : Income from other sources-Builder-Holding of amount for future settlement-Not assessable as income from other sources. [S. 4, 5, 28 (1)]

Caprihans India Ltd. v. Dy. CIT (2020) 203 TTJ 450 (Mum.)(Trib.)

S. 54B : Capital gains-Land used for agricultural purposes-Exemption not allowed as the assessee is not owner of property sold-No computation of capital gain in assessee’s hands-Matter remanded to verify the extinguishment of rights in the property and to assessee the capital gains. [S. 45]

Shivaram Rakhmaj Bankar v. Dy. CIT (2020) 195 DTR 297 / 207 TTJ 771 (Pune)(Trib.)

S. 54 : Capital gains-Profit on sale of property used for residence-Assessee sold two house properties and purchased one property with the proceeds of both-Entitle to exemption. [S. 45]

ACIT v. Sabir Mazhar Ali (2020) 196 DTR 254 / 208 TTJ 949 (Mum.)(Trib.)

S. 48 : Capital gains-Computation-Sale of ancestral property-capital gain shall be calculated by taking amount received towards extinguishment of his right in the property-Matter remanded. [S. 45]

Sitaram Rakhmaj Bankar v. Dy. CIT (2020) 195 DTR 297 / 207 TTJ 771 (Pune)(Trib.)

S. 43B : Deductions on actual payment-Not claimed any deduction on account of service tax payable-Disallowance is held to be not justified.

DCIT v. Alstom India Ltd. (2020) 207 TTJ 932 (Mum.)(Trib.) Alston Projects (India) Ltd. v. ITO (2020) 207 TTJ 932 (Mum.)(Trib.)

S. 43B : Deductions on actual payment-Service tax-Neither included this amount of service tax in the turnover/revenue receipts-nor claimed as deduction in the profit and loss account-No disallowance can be made.

Den Futuristic Cable Networks Pvt. Ltd. v. ITO (2020) 206 TTJ 7 (UO) (Jaipur)(Trib.)

S. 41(1) : Profits chargeable to tax-Remission or cessation of trading liability-Not commenced business-Not trading liability-Nothing to show the liabilities ceased to exist.

Brahma Steyr Tractors Ltd. v. ITO (2020) 203 TTJ 33 (Chd.)(Trib.)

S. 41(1) : Profits chargeable to tax-Remission or cessation of trading liability-Premature payment-Sales tax-Not remission or cessation of Government liability-Provision for bad debt-Not claimed as deduction written back-Addition is not valid.

Caprihans India Ltd. v. Dy. CIT (2020) 203 TTJ 450 (Mum.)(Trib.)

S. 40A(3) : Expenses or payments not deductible-Cash payments exceeding prescribed limits-No compelling circumstances brought on record-Disallowance is held to be justified.

Grand Lilly Motels Ltd. v. ACIT (2020) 203 TTJ 30 (UO) (Amritsar) (Trib.)

S. 40(a)(ia) : Amounts not deductible-Deduction at source-Payment to Tribal persons-Payments are not chargeable to tax-No disallowance can be made. [S. 10(26), 194C, 194I]

Komorrah Limestone Mining Company Ltd. v. ACIT (2020) 203 TTJ 518 (Gauhati)(Trib.)