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 – Long term capital gain- Sale of shares- investor in many years – Addition is held to be not justified . [ S. 10(38) ]

Anoop Jain. v. ACIT (2020) 181 ITD 218 /186 DTR 57/ 203 TTJ 552 (Delhi) (Trib.)

S. 68 : Cash credits –Loan form penny stock company– Matter remanded to the AO for verification whether SEBI has taken any action against alleged Company which has given loan to the assessee. [ S.115BBE ]

Rajbir Kaur (Smt.) . v. ITO (2020) 181 ITD 67 (Chd) (Trib.)

S. 68 : Cash credits – Accommodation entries – Tax Avoidance- Bogus short term capital loss- Addition is held to be justified .[ S.45 ]

Sanjay Kaul. v. ITO (2020) 181 ITD 146 / 206 TTJ 176 /82 ITR 441 / 191 DTR 60 (Delhi) (Trib.) Editorial : Affirmed in Sanjay Kaul v. PCIT ( 2020) 427 ITR 63/ 274 Taxman 301/ 119 taxmann.com 470/193 DTR 57/ 316 CTR 337

S.56: Income from other sources- Immovable property is considered to be transferred on date of execution of registered document and not on date of delivery of possession- Rectification of mistake – Tribunal has no power of review . [ S.56(2) (vii) (b), 254(2) ]

Sujauddian kasimsab Sayyed. v ITO (2020) 181 ITD 564 (Mum) (Trib.)

S. 56 : Income from other sources- Family settlement – Release deed Property from his brothers on account of Family Settlement- No commercial transaction addition cannot be as income from other sources [ S.56(2) (vii) (b) ]

Govind Kumar, Khemka. v. ACIT (2020) 181 ITD 586 / 193 DTR 341/ 207 TTJ 393 (Delhi) (Trib.)

S. 56 : Income from other sources – Sale of shares to non-resident – Valuation of shares- Share premium in excess of value of shares as determined under rule 11UA cannot be assessed as income of the assesseee. [ S.56(2) (viib) ,R.11UA ]

Clearview Healthcare (P.) Ltd. v. ITO (2020) 181 ITD 141/ 185 DTR 369 77 ITR 39 (S.N.)/ 203 TTJ 349 (Delhi) (Trib)

S.56: Income from other sources – Market value of shares -Share premium- Discount cash flow method (DCF ) –Valuation by merchant banker – Revenue authorities cannot evaluate accuracy of valuation at time of assessment-Addition was deleted .[ 56(2)(viib) , R.IIUA ]

Vodafone M-Pesa Ltd . v. DCIT (2020) 181 ITD 242 (Mum) (Trib.)

S.54F : Capital gains- Investment in a residential house -Two bungalows located adjacent to each other and used as one residential unit – Entitle to exemption [ S. 45 ]

Mohammadanif Sultanali Pradhan. v. DCIT (2020) 181 ITD 238 / 194 DTR 348 / 207 TTJ 1128 (Ahd) (Trib.)

S. 47(xiv) : Capital gains – Transaction not regarded as transfer – Sole proprietary concern succeeded by a company – Full value of consideration received on sale were same figure, no capital gains had accrued or were received- Capital gains cannot be levied- Provisions of section 56(2)(vii)(c) are not applicable when subject matter of transfer is immovable property. [ S.45 56(2)(vii) (c ) Rule 11U ]

Ravi Jalan. v. DCIT (2020) 181 ITD 284 / 193 DTR 175/ 207 TTJ 38(Kol) (Trib.)

S.45: Capital gains- Sale of shares – STT paid – Sale of shares through a registered share broker in a recognised stock exchange – Addition cannot be made as cash credits – Entitle to exemption [ S.10(38) 68 ]

Swati Luthra v. ITO (2019) 76 ITR 432 / (2020) 181 ITD 603 (Delhi) (Trib.)