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. 68 : Cash credits–Share application money-Cash was deposited before issue of cheque-Genuineness of transaction is not established –Addition is held to be justified.

Badrinath Steels P. Ltd. v. ITO (2020) 77 ITR 465 (SN) (Hyd.)(Trib.)

S. 56 : Income from other sources-Estimation of business income and also making separate addition as income form other sources – Held to be not valid. [S. 28 (i)]

ACIT v. Nadella Venkata Nageswara Rao (2020) 77 ITR 94 (SN) (Vishakha)(Trib.)

S. 56 : Income from other sources-Deeming income from receipt of immovable property without consideration-Not applicable to a purchase transaction of immovable property prior to amendment for which full consideration is paid-Registration at a later date-Amended provision is not applicable. [S. 56(2)(viib)]

Bajrang Lal Naredi v. ITO (2020) 77 ITR 91 (SN) / 203 TTJ 925 / 187 DTR 49 (Ranchi)(Trib.)

S. 54F : Capital gains-Investment in a residential house-Date of transfer of land was date of joint development agreement and on this date no flats owned by assessee-Bar does not apply. Acquisition of new residential house can be more than one-More than one unit of residential house eligible for exemption. [S. 45]

Prathap Kumar N. v. CIT (2020) 77 ITR 66 (SN) (Bang.)(Trib.)

S. 54 : Capital gains-Profit on sale of property used for residence-No requirement that construction of house should have been completed within specified time-Matter remanded for verification. [S. 45]

Rakesh Kumar Kalra v. ITO (2020) 77 ITR 36 (SN) (Delhi)(Trib.)

S. 54 : Capital gains-Profit on sale of property used for residence-Purchase of residential house-Land purchased admeasuring 4973.125 square Feet-Building constructed of 150 square feet-only 25 per cent. of total plot area to be considered as land appurtenant thereto. [S. 45]

Maduranthagam Selvaraj Ravi v. Dy. CIT (2020) 77 ITR 6 (SN) (Chennai)(Trib.)

S. 48 : Capital gains–Computation–Cost of acquisition-Accrued-Value of equity share capital-All other items of balance-sheet other than equity capital and free reserve be considered in net asset value of equity shares-Capitalisation of interest cost-Not part of cost of acquisition. [S. 45, 50C, 50D, 55(2)(aa), 56(2)(x)]

Neelu Analjit Singh (Mrs.) v. Add.CIT (2020) 77 ITR 220/ 189 DTR 163/ 204 TTJ 540 (Delhi)(Trib.)

S. 45 : Capital gains–Business income–Selling three flats and parking lot-Flats appearing in the balance sheet as investments–Assessable as capital gains and not as business income.[S. 28 (i)]

Haresh Khiamal Nanwani v. ACIT (2020)77 ITR 24 (SN) (Mum.) (Trib.)

S. 43B : Deductions on actual payment-Employees’ contribution to provident fund and employees’ state insurance fund-Payment was made before due date of filing of return–Entitle to deduction. [S. 139(1)]

Arihant Constructions v. ACIT (2020)77 ITR 171 (Vishakha)(Trib.)

S. 40A(3) : Expenses or payments not deductible-Cash payments exceeding prescribed limits–Cash paid for labour charges and purchases-Business in a remote area-Disallowance is held to be not valid-Machine hire charges–less than Rs. 20000 per day–AO is directed to verify and decide. [S. 40(a)(ia)]

Debjyoti Dutta v. ITO (2020)77 ITR 17(SN) (Cuttack)(Trib.)