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 – Loans from directors or relatives – Permanent Account Number Details, Bank Statements, Confirmations And Copies Of Income-Tax Returns Of Lenders were furnished – No cash was deposited before issue of cheque – Addition is held to be not valid .
R. G. Consultants P. Ltd. v. Dy. CIT (2020) 78 ITR 37 (SN) ( Delhi ) (Trib)
S. 50C : Capital gains – Full value of consideration – Stamp valuation Assessing Officer to get valuation done through District Valuation Officer-Matter remanded [ S. 45 ,50C(2) ]
Nafisa Abizar Banatwala v. ITO (2020) 78 ITR 59 (SN)(Mum) (Trib)
S.45(5A): Capital gains- Joint development agreement -Area-Sharing agreement — Land owner required to pay tax on capital gains at time of entering into development agreement and giving possession of land to developer for construction — Consideration to landlord would be cost of construction to developer [ S.45 ]
ITO v. Pakki Prabhakar Rao And Others (2020) 78 ITR 52 ( SN) (Vishakha) (Trib)
S. 45(3) : Capital gains – Transfer of capital asset to firm –Capital contribution —Amount recorded in books of account of firm deemed to be full value of consideration — Deeming fiction provided in S. 50C cannot be extended to compute full value — One deeming section cannot be extended by importing another deeming section [ S.45, 48 50C]
ACIT v. Amartara P. Ltd. (2020) 78 ITR 46 (SN) (Mum) (Trib)
S.45: Capital gains — Long-term capital gains —Allotment letter – – Subsequent letter and premises ownership agreement — Improvement in rights which already created — Date of acquisition of right not date of registration but date of allotment letter — Holding of property more than 36 months — Assessable as long term capital gains – Entitled to Indexation benefit —Entitled to exemption on reinvestment in new flat [ S. 2(42A),54 , 54F ]
Raju Dayal Sahani v. ITO (2020) 78 ITR 35 ( SN) ( Mum) (Trib)
S. 45 : Capital gains – Long-term capital gains — Transfer of land — Fair market value —As on 1-4 1981 was directed to be adopted .
Catherene Thomas (Smt.) v . ACIT (2020) 78 ITR 18 (SN)( Cochin) (Trib)
S. 40A(3) :Expenses or payments not deductible – Cash payments exceeding prescribed limits – General remark that payment made in cash due to business exigencies is held to be not acceptable.[ R.6DD ]
Barnala Steel Industries Ltd. v JCIT (2020) 78 ITR 29(SN) (Delhi) (Trib)
S. 40(a)(ia): Amounts not deductible – Deduction at source – Professional fees-Recipient paying tax on payment made – Disallowance is held to be not justified .
Trans Freight Containers Ltd. v. Dy. CIT (2020) 78 ITR 5 (SN) (Mum) (Trib)
S. 40(a)(ia): Amounts not deductible – Deduction at source – Failure to deduct tax on interest paid on loan- Recipient had declared the interest in the return- The assessee is directed to substantiate that recipient has shown the interest in his return. [ S.194A, 201(IA) ]
Barnala Steel Industries Ltd. v JCIT (2020) 78 ITR 29(SN) (Delhi) (Trib)
S.37(1): Business expenditure — Defective goods – Addition based on presumptions and suspicions- Held to be not justified – Appeal – Commissioner (Appeals) -Power of enhancement- Enhancement of assessment had to be considered in the context of each issue raised in the appeal before the Commissioner (Appeals). [ S.251(2) ]
Shankar Gupta v. ITO (2020) 78 ITR 76 (SN) (Jaipur) (Trib)