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. 115JB : Book profit-Capital gains-Indexed cost of acquisition to be taken into account in calculating capital gains. [S. 45, 48, 112]

Best Trading and Agencies Ltd. v. Dy. CIT (2020) 428 ITR 52 / 275 Taxman 550/ ( 2021 ) 203 DTR 269/ 321 CTR 373 (Karn.)(HC)

S. 92C : Transfer pricing-Arm’s length price-Not a question of law to be considered by High Court-Remanding the matter in second round of appeals will be as if it was a shuttle game between the assessee and the Revenue Authorities-Tribunal is directed to decide the issue within six months from today. [S. 37(1), 254(1), 260A]

Madura Coats Pvt. Ltd. v Dy. CIT (2020) 428 ITR 273 / 199 DTR 228/ 320 CTR 543 (Mad.)(HC)

S. 92C : Transfer pricing-Arm’s length price-Direction by Dispute Resolution Panel-Writ Petition is not maintainable against such direction. [Art. 226]

Hyundai Motor India Ltd. v. Secretary, Income-Tax Department (2020) 428 ITR 545/195 DTR 260/ 317 CTR 603 /(2021) 276 Taxman 453 (Mad.)(HC)

S. 92C : Transfer pricing-Arm’s Length Price-CBDT Instruction No. 3 of 2003 Mandatory-Precedent. [S. 92CA]

PCIT v. Obulapuram Mining Company Pvt. Ltd. (2020) 428 ITR 322/ ( 2021) 199 DTR 223/ 319 CTR 700/ 278 Taxman 89 (Karn.)(HC)

S. 92C : Transfer pricing-Arm’s length price-Net margin method-Finding of fact-No question of law. [S. 94B, 260A]

PCIT v. Gulbrandsen Chemicals Pvt. Ltd. (2020) 428 ITR 407(2021 ) 202 DTR 249/ 321 CTR 791 (Guj.)(HC)

S. 57 : Income from other sources-Deductions-Fixed deposits- Interest payment for earning income is held to be deductible. [S. 56, 57(iii)]

Best Trading and Agencies Ltd. v. Dy.CIT (2020) 428 ITR 52 / 275 Taxman 550/ ( 2021 ) 203 DTR 269/ 321 CTR 373 (Karn.)(HC)

S. 54F : Capital gains-Investment in a residential house-Purchase or construction need not be made out of sale consideration for capital asset. [S. 45]

Moturi Lakshmi (Ms.) v. ITO (2020) 428 ITR 462 / 274 Taxman 286 / 194 DTR 417 (2021) 318 CTR 462 (Mad.)(HC)

S. 45 : Capital gains-Unabsorbed depreciation-Set off against long-term capital gains is permissible-Block of assets-Sale of land and building-Land and building valued separately-Held to be proper. [S. 2(11), 32(2), 71, 72, 73]

PCIT v. Gunnebo India Pvt. Ltd. (2020) 428 ITR 233 (Bom.)(HC)

S. 43(5) : Speculative transaction-Hedge against loss-Exporter of cotton entering into forward contracts-Loss Incurred-Not a loss in speculative transaction -Entitled to deduction of loss. [S. 28(i)]

CIT v. Celebrity Fashion Ltd. (2020) 428 ITR 470 (Mad.)(HC)

S. 40A(3) : Expenses or payments not deductible-Cash payments exceeding prescribed limits-Banking facilities available-No evidence of compelling circumstances justifying payments-Disallowance is justified. [R. 6DD]

Vaduganathan Talkies v. ITO (2020) 428 ITR 224 / 275 Taxman 599 (Mad.)(HC)