S. 80P: Co-operative Society —Interest earned from scheduled bank — Not deductible — Net interest from deposits with scheduled bank to be excluded from deduction -Interest earned from Co-operative bank or society— Deduction allowable on net interest- Receipt by society from its members towards form fee — Attributable to and arising from Assessee’s day-to-day activities — Deductible-Standard deduction allowable . [ S.80P(2)(a), 80P(2)(c), 80P(2) (d) ]
Balasinor Vikas Co-Operative Credit Society Ltd. v. DCIT (2020) 78 ITR 15 (SN)(Ahd) (Trib) Shri Jalaram Mahila Co-Operative Credit Society Ltd. v. DCIT (2020) 78 ITR 15 (SN)(Ahd) (Trib) Anand Catholic Co-Operative Credit Society Ltd. v. DCIT (2020) 78 ITR 15 (SN)(Ahd) (Trib)
Digest of case laws
Online digest of latest case laws
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
Click here to download the pdf versions of the Digest of case laws S. 69 : Unexplained investments – Undisclosed cash — Money changer — Business requirements — Cash bundles carrying tag of another bank — Common practice — Cash books written day-to-day basis but in practice always a time gap between book entries — No defect pointed out by Assessing Officer in books of account of assessee — addition on basis of suspicion and surmises not justified.
R. G. Consultants P. Ltd. v. DCIT (2020) 78 ITR 37 (SN)(Delhi) (Trib)S. 68 : Cash credits — Unsecured loans — Lenders either directors or relatives of directors of Assessee — Assessee furnishing PAN, bank statements, confirmations and copies of income-tax returns of lenders — None of lenders were entry providers — No cash deposited in lenders’ account prior to issuing cheques — Assessee not purchasing cheque by paying cash — Addition unsustainable.
R. G. Consultants P. Ltd. v. DCIT (2020) 78 ITR 37 (SN)(Delhi) (Trib)S. 45(3) : Capital gains – Transfer of capital asset to firm – Transfer of capital asset by Partner to Firm as capital contribution – Amount recorded in books of account of Firm deemed to be full value of consideration – One deeming provision cannot be extended by importing another deeming provision [S. 48 , 50C].
ACIT v. Amartara P. Ltd. (2020) 78 ITR 46 (SN) (Mum)(Trib)S.45: Capital gains — Long-term capital gains — Transfer of land — Reference to Valuation officer — FMV as proposed by AO to be adopted for purposes of computation of capital gains [ S.48, 49 ]
Catherene Thomas (Smt.) v. ACIT (2020) 78 ITR 18 (SN)(Cochin) (Trib)S. 40A(3) : Expenses or payments not deductible — Cash payments exceeding specified limit — Assessee taking different stands before AO and CIT(A) – General remark that payment made in cash due to business exigencies not acceptable — Disallowance is held to be justified
Barnala Steel Industries Ltd. v. JCIT (2020) 78 ITR 29 (SN) (Delhi) (Trib)S. 37(1) : Business expenditure — Expenses prohibited by law — Grants — Assessee receiving grants on annual basis and grants used in accordance with directions of Government — AO allowing salary expenses in preceding year — AO should not have taken a different stand in current year — Salary paid to all old employees who worked for Assessee and expenses genuine — Expenses wholly and exclusively for purpose of business, hence expenses are deductible.
Addl CIT v. National Research Development Corporation (2020) 78 ITR 56 (SN)(Delhi)(Trib)S.37(1): Business expenditure – adhoc addition on account of weight and rate difference – No evidence to establish basis of arriving the amount debited in P&L Account — Addition justified.
Barnala Steel Industries Ltd. v. JCIT (2020) 78 ITR 29 (SN) (Delhi) (Trib)S. 32 : Depreciation — Cost of construction of office Block – Compensation paid for easement rights not accepted by Tribunal in earlier years — High Court admitting Assessee’s appeal against Tribunal not a reason to take a view in favour of Assessee — Assessee not entitled to depreciation.
AVM Productions v. ACIT (2020) 78 ITR 42 (SN) (Chennai) (Trib)S. 32 : Depreciation – Capital or Revenue expenditure — Expenditure on leasehold premises – Nature of expenditure to be examined before applying provision relating to ownership of asset
Century Link Technologies India Pvt. Ltd. v. DCIT (2020) 78 ITR 71 (SN) (Bang) (Trib)