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. 69B : Amounts of investments not fully disclosed in books of account-Search-Gold bullion-Received though will-Deletion of addition by CIT(A) is affirmed. [S. 132(4),153A]
ACIT v. Gaurav Kumar Agrawal (2023) 37 NYPTTJ 1321 / (2024) 168 taxmann.com 260/ 228 TTJ 675 (Raipur)(Trib)
S. 69B : Amounts of investments not fully disclosed in books of account-Alleged on money-Land-Agreement to sale-Agreement is not acted upon-Opportunity of cross examination is not granted-Addition is deleted-Reassessment-Incorrect facts-Reassessment is quashed. [S. 133A, 147, 148]
ACIT v. Bhavnaben Bhovanbhai Rangani (Smt) (2023) 37 NYPTTJ 1535 /(2024) 162 taxmann.com 392 / 228 TTJ 21 (Rajkot)(Trib) Maulesh Dayabhai Ukani v. ACIT ((2023) 37 NYPTTJ 1535 /(2024) 162 taxmann.com 392 / 228 TTJ 21 (Rajkot)(Trib)
S. 69A : Unexplained money-Undisclosed income-Search-Loose sheets-Dumb documents-On money-No reference of the assesseee in the alleged documents seized-Provisions of S. 132(4A) and 292C cannot be applicable-Addition cannot be made on the basis of suspicion and surmise.[S. 132A, 153A, 292C]
ACIT v. Vibgyor Net Connections (2024) 228 TTJ 1 / 234 DTR 257 / 38 NYPTTJ 81 (Chennai) (Trib)
S. 68 : Cash credits-Voluntary Disclosure of Income Scheme, 1997-Payment of tax was made beyond time prescribed-Investment in earlier years-Addition is deleted. [VDIS, 1997]
T.R. Pachamuthu v. ACIT (2024) 165 taxmann.com 178/ 228 TTJ 760 / 236 DTR 7 / 38 NYPTTJ 231 (Chennai) (Trib)
S. 68 : Cash credits-Cash deposits in bank-Demonetization-period-Distinction between cash credits and cash receipts towards sales-Trade advances-Subsequently converted in to sales-Cash receipts recorded in the books of account-Assessing Officer has not disputed the sales-Cash balance in the books as on 8 th November 2016 is higher than the cash deposited in the Bank-Not pointed out any discrepancy in purchases or stock-in-trade-Purchases and sales have been accepted by GST Authorities-Need not obtain confirmation-Law does not mandate-Rule 114B, for compliance of KYC norms in respect of sales exceeding Rs. 2lkhs is became mandatory w.e. f. 4th May 2023 under the Prevention of Money Laundering Act, 2002-Order of CIT(A) deleting the addition is affirmed. [S.115BBE, 131(1), 133(6)]
ITO v. Sahana Jewellery Exports (P) Ltd. (2023) 157 taxmann.com 680/ 37 NYPTTJ 1721 / (2024) 228 TTJ 942 (Chennai) (Trib)
S. 68 : Cash credits-Shares-Capital gain-Exemption-Transferred to Demat account-Amalgamated-Penny stock-Accommodation entry-Sunrise Asian Ltd-Cross examination not provided-Order of CIT(A) deleting the addition is affirmed.[S.10(38), 45, 69C]
ITO v. Hemant Gokhru (2024) 165 taxmann.com 173 / 228 TTJ 697 / 237 DTR 17 / 38 NYPTTJ 102 (Jodhpur)(Trib)
S. 68: Cash credit-Abnormal profit of 92 percent from sub-contracts of Government construction projects-CIT(A) failure to examine the details of works contract-Matter remanded to the Assessing Officer to examine of the genuineness of the payments received by the assessee and decide accordingly. [S. 143(3)]
DCIT v. Lepl Projects Ltd. (2024) 159 taxmann.com 709 /228 TTJ 633 / 38 NYPTTJ 276 (Hyd) (Trib)
S. 68 : Cash credits-Share capital-Non-resident-Mauritius based holding company-Proviso does not apply to non-resident company-Proved identity and genuineness by filing the bank account statement of itself and the certificate of incorporation-Order of CIT(A) deleting the addition is affirmed.
Cleartrip (P) Ltd v. DCIT (2023) 37 NYPTTJ 1373 / 156 taxmann.com 552 / (2024) 228 TTJ 178 / 235 DTR 129 (Mum) (Trib)
S. 68 : Cash credits-Share application money-Survey-Statement on oath-Retraction-Produced documents of all investors-Merely on the basis of statement addition is not valid-Reassessment-After the expiry of four years-Reassessment on the basis of statement in the course of survey is valid.[S.133A, 147, 148]
ACIT v. Jagannathdas Harichandmal Jewellers (P) Ltd (2023) 37 NYPTTJ 1512 /(2024) 167 taxmann.com 17 / 228 TTJ 68 (Raipur)(Trib)
S. 68 : Cash credits-Loan-Genuineness is proved-TDS deducted-Addition is deleted.
Aman Exports International v. Dy.CIT(2024) 228 TTJ 26 (UO) (Jaipur)(Trib)