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. 80GGB : Contribution-Companies-Political parties-Returned income was loss-If the assessed income is positive the claim has to be allowed after verification.

Vedanta Ltd. v. ACIT (2020) 84 ITR 84 (Delhi)(Trib.)

S. 73 : Losses in speculation business-Futures and options derivative transactions-Deriving 69 Per Cent. of its gross total income from various heads-Explanation is not applicable-Business loss and can be set off against other business income-Derivatives carried out in recognised Stock Exchange through registered stock broker-Transaction not deemed to be speculative transaction-Eligible to be set off-Apportionment of expenditure is directed to be followed. [S. 28(i), 43(5)(d)]

Megha Property Developers Ltd. v. ITO (2020) 84 ITR 406 (Mum.) (Trib.).

S. 69 : Income from undisclosed sources-Bogus purchases-Books of account not rejected-Deletion of addition is affirmed. [S. 133A, 144]

Dy.CIT v. Garg Acrylics Ltd. (2020) 84 ITR 537 (Delhi)(Trib.)

S. 68 : Cash credits-Advance paid for acquisition of Lands through mediator-Refund of money-Addition cannot be made as cash credits.

Dr. P. Visweswara Rao v. ITO (2020) 84 ITR 423 (Vishakha)(Trib.)

S. 68 : Cash credits-Share capital-Identity, creditworthiness and genuineness established-Addition deleted-Enhancement by CIT (A) was quashed. [S. 131, 251(2)]

Matarani Vintrade Pvt. Ltd. v. ITO (2020) 84 ITR 432 (Kol.)(Trib.)

S. 68 : Cash credits-Issue of shares at premium-Based on share valuation-Identity and creditworthiness is established-Addition is held to be not valid. [S. 133(6)]

Dy.CIT v. Garg Acrylics Ltd. (2020) 84 ITR 537 (Delhi)(Trib.)

S. 56 : Income from other sources-Real estate developer-Stock in trade-Capital asset-Consideration less than stamp valuation-Addition cannot be made. [S. 2(14), 56(2)(vii)(b)]

CIT v. Ashok Agarwal (HUF) (2020) 84 ITR 54 / 207 TTJ 608 (Jaipur)(Trib.)

S. 54F : Capital gains-Investment in a residential house-Ex parte order-Farmer and Senior citizen-Matter remanded. [S. 254(1)]

Pyare Lal Saini v. ITO (2020) 84 ITR 428 (Jaipur)(Trib.)

S. 54 : Capital gains-Profit on sale of property used for residence-Two residential units modified to one-Entitle to exemption. [S. 45]

Vijay Kumar Wanchoo v. ITO (2020) 84 ITR 268 / (2021) 187 ITD 283 (Delhi)(Trib.)

S. 40A(2) : Expenses or payments not deductible-Excessive or unreasonable-Interest free funds-Advance of loan-No disallowance can be made.

CIT v. Ashok Agarwal (HUF) (2020) 84 ITR 54 / 207 TTJ 608 (Jaipur)(Trib.)