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. 80IC : Special category States – Scrap – Sale of scrap is part of business income – Eligible for deduction .

Isolloyd Engineering Technologies Ltd v DCIT ( 2020) BCAJ- October -P. 37 ( Delhi ) (Trib)

S. 69C: Unexplained expenditure – Bogus purchases — source of purchase not outside books of account and corresponding sales not disputed — Books of account not rejected – Only profit element can be added – Reassessment is held to be valid [ S.37 , 143(3) 147 , 148 ]

Belmarks Metal Works v. ITO (2020) 80 ITR 699 ( Delhi) (Trib)

S. 69 :Unexplained investments – Search and seizure – Construction activities – Retraction of statement – Addition is held to be not valid[ [S.69A 132(4) ]

Satya Narayan Choudhary v. A CIT (2020) 80 ITR 95( Jodh) (Trib)

S.68: Cash credits —Long-term capital gains – Sale of shares —Penny stock – Purchases in physical form – Dematerialised subsequently — Addition is held to be justified [ S.10 (38) 45 ]

Bhagwatiben Vinodkumar Surani v .ITO (2020) 80 ITR 341) (Ahd) (Trib)

S.68: Cash credits – Family settlement – Source of receipt accepted —Addition is held to be not justified .

G. Ashok Reddy v .ITO (2020) 80 ITR 550 ( Hyd) (Trib)

S.54F : Capital gains- Investment in a residential house -Purchased within two years from the date of transfer of original asset —Entitled to exemption [ S. 45 ]

Rajiv Madhok v. ACIT (2020)80 ITR 427 184 ITD 378 ( Delhi) (Trib)

S.54F : Capital gains- Investment in a residential house – Failure to deposit unutilised portion of consideration in capital gains scheme — Procedural requirement — Benefit cannot be denied [ S.45 , 54(2)]

Kasi Viswanathan Ramanathan v. ITO (2020) 80 ITR 461 ( Chennai )(Trib)

S. 54 : Capital gains – Profit on sale of property used for residence –
As on date of transfer of original asset – Not owning more than one residential house — Capital gains deposited in capital gains savings account — Completion of construction within two years from date of sale of original asset —Entitled to exemption[ S.45, 54F ]

Sunil Malhotra v. ACIT (2020) 80 ITR 372 ( Delhi) (Trib)

S. 54 : Capital gains – Profit on sale of property used for residence -New property acquired in Son’s name —Exemption cannot be denied [ S.45 ]

Bhagwan Swaroop Pathak v. ITO (2020) 80 ITR 89( Delhi) (Trib)

S. 50C : Capital gains – Full value of consideration – Stamp valuation – Assessable – With effect from 1-10-2009 prospective in nature- Deemed sale consideration of Rs. 1.56 crores could not be invoked. [ S.45 , 48 ]

Alka Jain (Smt.) v. ACIT (2020) 80 ITR 464 ( Delhi) (Trib)