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. 71 : Set off of loss-One head against income from another-Set-off loss against under the head salaries-Not permissible-Depreciation loss is allowed to subsequent year. [S. 32, 71(2A) 72]
Harbans Singh Bawa v. ACIT (2020) 183 ITD 682/194 DTR 127/207 TTJ 804 (Mum.)(Trib.)
S. 68 : Cash credits-Shares at high premium-Genuineness of transaction and identity and creditworthiness of share applicants were proved-Addition is held to be not justified-Income from other sources-Provisions of section 56(2)(viib) inserted by Finance Act, 2012 with effect from 1-4-2013 to examine justification of share premium would apply prospectively from assessment year 2013-14. [S.56(2)(viib)]
ITO v. Singhal General Traders (P.) Ltd. (2020) 183 ITD 397 (Mum.)(Trib.)
S. 56 : Income from other sources-Non-resident-Additional evidence filed first time before Appellate Tribunal-Matter remanded. [S. 6, 56(2)(viib), 254(1)]
Antariksh Softtech (P.) Ltd. v. ITO (2020) 183 ITD 577/192 DTR 145/206 TTJ 612 (Bang.)(Trib.)
S. 56 : Income from other sources-Shares allotted in lieu of purchase consideration for an acquired asset-May adopt either NAV method or DCF method-Assessing Officer can determine fresh valuation but cannot change method of valuation opted by Assessee. [S. 56 (2)(viib), Rule 11UA(2)(b)]
Flutura Business Solutions (P.) Ltd. v. ITO (2020) 183 ITD 446/80 ITR 33 (SN) / 207 TTJ 257 (Bang.)(Trib.)
S. 54F : Capital gains-Investment in a residential house-No evidence to show that investment in house property-Denial of exemption is held to be valid-Reassessment is held to be valid [S. 45, 147, 148]
Arpit Khairari v. ITO (2020) 183 ITD 737 (Jaipur)(Trib.)
S. 50B : Capital gains-Slump sale-Windmills-Separate undertaking-Sale along with liabilities-Capital gains to be computed as capital slump sale. [S. 2(19), 2(42C), 45, 50, 80IA]
ACIT v. Devi Sea Foods Ltd. (2020) 183 ITD 341 /191 DTR 1/206 TTJ 503 (Vishakha)(Trib.)
S. 48 : Capital gains-Cost of improvement-Development expenses incurred on land before its sale was required to put property in saleable condition would be allowable-Transfer of land along with wells, baories, road, boundary wall etc. as these were attached to land, proportionate cost of these structures against full value of consideration in terms of sale deed so executed would be allowable-Legal expenses incurred for filing of two court cases in respect of invalid sale deeds-Not allowable as deduction. [S. 45]
ACIT v. Ijyaraj Singh. (2020) 183 ITD 237 /207 TTJ 953 (Jaipur) (Trib.)
S. 45 : Capital gains-Sale of shares-Long term capital gains-Purchase and sale of shares through security broker by online portal and, Securities transaction tax was also paid-Addition cannot be made as cash credits-Denial of exemption is not justified-Reassessment is held to be valid. [S. 10(38), 68, 147, 148]
Suresh Kumar Agarwal v. ACIT (2020) 183 ITD 463 (Delhi) (Trib.)
S. 45 : Capital gains-Relinquishing rights to claim specific performance by conveyance in respect to an immovable property-Assessable as capital gains and not as income from other sources [S. 2(14), 2(47), 56]
Chandrashekar Naganagouda Patil v. DCIT (2020) 183 ITD 457/194 DTR 249/207 TTJ 762 (Bang.)(Trib.)
S. 45 : Capital gains-Transfer-Sale deed executed-Sale transaction could not materialise-Posted cheque issues dishonoured-Not liable to capital gain tax. [S. 2(47)(v)]
ACIT v. Ijyaraj Singh. (2020) 183 ITD 237 /207 TTJ 953 (Jaipur) (Trib.)