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-Capital asset-Agricultural land-If agricultural land does not fall in definition of capital asset, difference between district level committee value and sales consideration cannot be brought to tax-Matter remanded. [S. 2(14)(iii), 56(2)(vii)(b)]

Prem Chand Jain v. ACIT (2020) 183 ITD 372/ 82 ITR 522/ 194 DTR 37/207 TTJ 629 (Jaipur)(Trib.)

S. 56 : Income from other sources-Notional interest-Security deposit-Only incomes falling under deeming provisions explicitly mentioned in Act can be brought to tax-Burden on revenue-Addition was deleted. [S. 4, 22]

Harvansh Chawla v. ACIT (2020) 82 ITR 160 (Delhi)(Trib.)

S. 56 : Income from other sources-Valuation of shares-Premium on shares-If assessee can substantiate higher value than the Valuation as per Rules higher value should be considered-Matter remanded. [S. 56(2)(viib), R. 11UA]

Abhinav International P. Ltd. v. Dy.CIT (2020) 82 ITR 258 (Delhi)(Trib.)

S. 54F : Capital gains-Investment in a residential house-Purchase of land under four deeds and one land by different sale deed-Merged to single plot-construction of house-Eligible for exemption for entire investment. [S. 45]

Rohan Agarwal v. ACIT (2020)82 ITR 39 (Jaipur)(Trib.)

S. 45 : Capital gains-Relative occupying a Flat on licence basis-Flat Sold after demise of occupier-Amounts received by assessee as consideration for not interfering in possession of transfer-Not chargeable to tax as capital gains-No transfer of tenancy rights. [S. 48]

Yogini Mohit Sahita v. ITO (2020)82 ITR 15 / 208 TTJ 741 / (2021) 197 DTR 388 (SMC) (Mum.)(Trib.)

S. 43B : Deductions on actual payment-Contribution towards provision for pension fund-Allowable-Provision for leave encashment-Disallowance confirmed. [S. 43B(f)]

Dy. CIT v. Punjab National Bank (2020) 82 ITR 95 (Delhi)(Trib.)

S. 40(a)(ia) : Amounts not deductible-Deduction at source-Failure to deduct tax at source-Disallowance is restricted to thirty percent.

Kendrapara Co-Operative Bank Ltd. v. ACIT (2020) 82 ITR 188 (Cuttack)(Trib.)

S. 40(a)(ia) : Amounts not deductible-Deduction at source-Payment of gateway charges and other bank charges-Matter remanded to the Assessing Office.

MakeMy Trip (India) Pvt. Ltd. v. Dy. CIT (2020) 82 ITR 71 (Delhi) (Trib.)

S. 40(a)(ia) : Amounts not deductible-Deduction at source-Shipping expenses in nature of freight-Agent acting on behalf of Non-Resident ship owner or Charterer-Not required to deduct tax at source. [S. 172, 194C, 195]

Suresh Khatri v. ITO (2020) 82 ITR 29 (Luck.)(Trib.)

S. 37(1) : Business expenditure-Books of account not rejected-No Ad hoc disallowance can be made.

Suresh Khatri v. ITO (2020) 82 ITR 29 (Luck.)(Trib.)