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. 80IB(10) : Housing projects- Built -up area – Proportionate deduction can be granted -Method of accounting – Project Completion method can be adopted. [ S.133A ]

CIT v. S. N. Builders and Developers (2021) 431 ITR 241 / 279 Taxman 347(Karn)(HC)

S. 80IB(10) : Housing projects- Completion of project – Certificate of Registered Certified Architect Sufficient Karnataka Municipal Corporations Act, 1976, S. 310. ]

PCIT v . Majestic Developers (2021) 431 ITR 49 (SC)

S. 80IA :Industrial undertakings –Electricity undertaking — Expenditure on renovation and modernisation of existing lines — More than 50% of book value – Entitle to deduction [ S.80IA (4)]

Bangalore Electricity Supply Company Ltd. v. Dy. CIT (2021) 431 ITR 606 / 201 DTR 401/ (2022 ) 328 CTR 601 (Karn) (HC) Editorial : Notice issued in SLP filed by the revenue , Dy.CIT v. Bangalore Electricity Supply Company Ltd ( 2021 ) 283 Taxman 190 ( SC)

S. 68 : Cash credits -Sale of shares – Long term capital gains – 4849. 2 percent jump in share price within two years – Identity of creditors and genuineness of transaction proved — Deletion of addition is held to be justified . [ S.10 (38), 45 ]

PCIT v. Krishna Devi (Smt.) (2021) 431 ITR 361/ 198 DTR 177/ 319 CTR 168 279 Taxman 148(Delhi)(HC) PCIT v.Hardev Sahai Gupta (Garg) (2021) 431 ITR 361 / 198 DTR 177/ 319 CTR 168/ 279 Taxman 148 (Delhi)(HC) PCIT v. Bindu Garg (Smt.) (2021) 431 ITR 361 / 198 DTR 177/ 319 CTR 168/ 279 Taxman 148 (Delhi)(HC) .Editorial: Notice issued in SLP filed by Revenue , PCIT v. Krishna Devi (2022) 287 Taxman 91 / 114 CCH 184 (SC)

S. 48 : Capital gains – Computation – Diversion by overriding title — Sale proceeds paid to mortgagee — Not entitled to deduction.[ S.45 ]

TMTT . A. H. Zubaida Ummal v. ITO (2021) 431 ITR 112 (Mad) (HC)

S. 45 : Capital gains – Purchase and sale of shares – Not assessable as business income [ S.28 (i), 88E ]

PCIT v. Gujarat Fluorochemicals Ltd. (2021) 431 ITR 160 (Guj) (HC)

S. 44BB : Mineral oils – Computation -Providing off shore seismic data acquisition and processing services to ONGC in Bombay High — Payment to non-resident companies – Not royalty – Taxable under section 44BB .[ S.9(1)(vi)]

Seabird Exploration Fz Llc, In Re (2021) 431 ITR 503 / 198 DTR 313/ 319 CTR 225 (AAR)

S. 43(5) : Speculative transaction -Transaction supported by time stamped contract notes issued by stock broker — Not speculative . [ S.43(5)(d) ]

PCIT v. Diamond Securities Pvt. Ltd. (2021) 431 ITR 201 (MP) (HC)

S. 40A(2): Expenses or payments not deductible – Excessive or unreasonable -Remuneration to director- Matter remanded to CIT (A)

CIT v. Fibres and Fabrics International Pvt. Ltd. (2021) 431 ITR 339/ 278 Taxman 204/ 206 DTR 196 (Karn) (HC)

S. 37(1) : Business expenditure – Service tax paid to Government through not recovered allowable as business expenditure – Difference between invoiced amounts and foreign exchange rate fluctuation declared as income – Allowable as bad debt- Liquidated damages claimed whether revenue or capital – Dismissal of claim – Question is academic [ S.36(1)(vii), 36(2), 43B, 115JB, 245R ]

North American Coal Corporation India Pvt. Ltd., In Re (2021) 431 ITR 53 (AAR)