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. 69A : Unexplained investment-Jewellery-Weight of jewellery allowed as per instruction No 1916, dt. 11-5-1994 need not be explained-Addition cannot be made-Over and above the quantity of the jewellery has been explained, no addition can be made.

Ram Prakash Mahawar v. DCIT (2020) 182 ITD 55 (Jaipur) (Trib.)

S. 68 : Cash credits-Share capital-Mere submission of name and address of creditor, income tax returns, balance sheet/statement of affairs of creditor and bank statement of creditor is not sufficient.

Shantananda Steels (P.) Ltd. v. ITO (2020) 182 ITD 434 / 195 DTR 417 / 208 TTJ 672 (Chennai)(Trib.)

S. 68 : Cash credits-Cash deposited-Bank-Sale of Agricultural land-Gift-Failed to show the creditworthiness-Addition is held to be justified-Enhancement without giving an opportunity of hearing is held to be bad in law. [S. 251]

Jagdish Prasad Sharma v. ITO (2020)182 ITD 246 (Delhi) (Trib.)

S. 64 : Clubbing of income-Spouse-Wife invested gifted amount in business of Futures and Options (F&O)-Loss incurred by wife is Liable to be clubbed in hands of assessee for the purpose of set off. [S. 64 (1)(iv)]

Uday Gopal Bhaskarwar v. ACIT (2020) 182 ITD 216/ 186 DTR 65/ 203 TTJ 776 (Pune)(Trib.)

S. 56 : Income from other sources-Compensation from Tenant for not letting out two units without the consent-Assessable as income from other sources and not as income from house property. [S. 22, 23]

Redwood IT Services (P.) Ltd. v. ITO (2020) 182 ITD 1 (Mum.) (Trib.)

S. 50C : Capital gains-Full value of consideration-Stamp valuation-Lease hold rights-99 years lease-Provision is not applicable-Addition is deleted. [S. 45, 48, Wealth-tax Act, 1957, S. 5(1)(xxxii)]

Ritz Suppliers (P.) Ltd. v. ITO (2020) 182 ITD 227 / 187 DTR 175 / 204 TTJ 383 (SMC) (Kol.)(Trib.)

S. 45 : Capital gains-Foreign Institutional Investor (FII)-Income deemed to accrue or arise in India-Status of beneficiaries or constituents of tax transparent entities is relevant for purpose of determining treaty protection to trustee in representative capacity-Capital gains, on sale of shares in hands of assessee and investors, it represents as trustee, were treaty protected from taxation in India. DTAA-India Netherlands. [S. 9(1)(i), Art. 13]

ING Bewaar Maatschappij I BV v. DCIT (IT) (2019) 202 TTJ 1049/ 184 DTR 321 / (2020) 182 ITD 529 (Mum.)(Trib.)

S. 44BB : Mineral oils-Computation-Royalty-Substance of contract-Matter remanded-DTAA-India-Singapore. [S. 9(1)(vi), Art. 5, 12]

Maritime Vanguard Pte. Ltd. v. ACIT (IT) (2020) 182 ITD 339 (Mum.)(Trib.)

S. 40A(3) : Expenses or payments not deductible-Cash payments exceeding prescribed limits-No banking facility was available at quarry site-Disallowance is held to be not justified-Cash expenditure-Disallowance is restricted to 5% of cash expenditure exceeding Rs. 20,000. [R. 6DD]

Kempsz Trading (P.) Ltd. v. DCIT (2020) 182 ITD 236 (Bang.) (Trib.)

S. 40(a)(i) : Amounts not deductible-Deduction at source-Non-resident-Testing charges-Not liable to deduct tax at source-Services rendered outside India-Reimbursement expenses-No disallowance could be made-Amendment by Finance Act, 2014, restricting disallowance to 30 per cent of amount paid on which tax had not been deducted at source, will have no retrospective operation-OECD Model Tax Convention, Art 12. [S. 9(1)(vii), 40(a)(i), 195]

SGS India (P.) Ltd. v. ACIT (2020) 182 ITD 498 (Mum.)(Trib.)