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 — Accommodation entries — Entry provider in his statement not stating investor company one of concerns controlled by him — Assumption Of accommodation entries vitiated by fact -Addition unsustainable.
ITO v. Skyways Industrial Estate Co. P. Ltd. (2020)78 ITR 320 (Jaipur) (Trib)
S. 68 : Cash credits – Share application money — Nature and source satisfactorily explained —Addition is held to be not valid – Derivative loss – Matter remanded to the Assessing Officer .
Rosewood Buildwell P. Ltd. v. ITO (2020)78 ITR 592 (Delhi) (Trib)
S.68: Cash credits — Advance receipt from parties —Excess amount offered to tax in subsequent year — Advance receipt not taxable as cash credit.
Ultimate Flexipack Ltd. v Dy. CIT (2020)78 ITR 410 ( Delhi) (Trib)
S.68: Cash credits — Security deposits —Lack of full details of parties – Addition is held to be justified .
Carol Securities Pvt. Ltd. v Dy. CIT (2020)78 ITR 469 ( Delhi) (Trib)
S. 68 : Cash credits – Difference between form no 26AS and tax credit statement – Assessing Officer is directed to examine reconciliation statement .
Avaya India Pvt. Ltd. v Add. CIT (2020)78 ITR 305 ( Delhi) (Trib)
S. 54 : Capital gains – Profit on sale of property used for residence -Depositing entire sale proceeds in savings bank account- construction of house – Not depositing the amount in specified bank account – Technical breach —Entitled to exemption [ S.45, 54(2),54F ]
ACIT v .Justice T. S. Arunachalam (2020)78 ITR 290 ( Chennai ) (Trib)
S.45: Capital gains — Long-term capital gains —Land held for more than thirty-six months —Treatment given in books of account immaterial —Converting Stock-in-trade into capital asset-Gains assessable as long-term capital gains and not business income — Entitled to set off gains against brought forward long-term capital loss —Entitled to indexation [ S.2(42A), 74 ]
Rameshchandra Chhabildas Tamakuwala v. JCIT (2020)78 ITR 148 (Surat) (Trib)
S.43B: Deductions on actual payment – Service tax – Amount neither paid nor added in computation of income.
Rajesh Passi v .ITO (2020)78 ITR 221 ( Delhi ) (Trib)
S. 43(5) : Speculative transaction – Transactions in Derivatives in Futures and Options segments of National Stock Exchange — Marked to Market Loss — Not to be assessed speculative loss .
Darashaw and Co. Pvt. Ltd. v. Dy. CIT (2020)78 ITR 553 ( Mum) (Trib)
S. 40(a)(ia): Amounts not deductible – Deduction at source – Car lease rentals – Directed to furnish evidence that whether the payee had shown receipts as their income . [ S.37(1) ]
Avaya India Pvt. Ltd. v .Add. CIT (2020)78 ITR 305 ( Delhi) (Trib)