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-Bank statement or identity of creditor is not sufficient to prove the creditworthiness of creditor-Confirmation and income tax return is not produced-Addition is held to be justified.

Siddharth Export v. ACIT (2019) 183 DTR 361 / 311 CTR 663 / (2020) 268 Taxman 121 (Delhi)(HC)

S. 68 : Cash credits–Advance received-Produced bank statements and other details produced–Discharged the burden-Deletion of addition as cash credits is held to be justified.

PCIT v. Skylark Build (2019) 180 DTR 266 (Bom.) (HC)

S. 68 : Cash credits–Genuineness of purchases could not be established – Addition as cash credit is held to be justified.

PCIT v. Wadhawan Designs (2019) 184 DTR 299/(2020) 313 CTR 173 (Delhi)(HC)

S. 54B : Capital gains-Land used for agricultural purposes–Sale of new asset of agricultural land within lock in period of three years– Withdrawal of exemption is held to be valid–Capital gains is chargeable to tax in the year in which transfer of asset is effected. [S. 45]

Hitesh Mansukhlal Bagdai v. ACIT (2019)419 ITR 276 (Guj) (HC)

S. 54 : Capital gains-Profit on sale of property used for residence- Additional cost of construction incurred within stipulated time though not deposited in capital gains account—Entitled to deduction. [S. 45, 54F, 264, Art.226]

Venkata Dilip Kumar (HUF) v. CIT (2019) 419 ITR 298/ (2020) 312 CTR 26/ 185 DTR 45/ 268 Taxman 111 (Mad.)(HC) .Editorial : Affirmed by division bench , CIT v. Venkata Dilip Kumar (2021)437 ITR 137 (Mad) (HC)

S. 45 : Capital gains–Transfer of land to developer-No Objection Certificate obtained in June 1994-Built-up area handed over in financial year relevant to AY. 2001-02-Transfer took place when agreement for development of land was approved-Cost of construction referred in the agreement is held to be reasonable-Developer providing rent free accommodation is not assessable as capital gains-Sale of land and residential house to developer-Construction of residential house by developer-Entitled to exemption. [S. 2(47)(v), 54, 54F, 269UL, Transfer of Property Act, 1882, S. 53A]

P. Madhusudhan v. ACIT (2019)419 ITR 194/(2020) 189 DTR 163 (Mad)(HC)

S. 44C : Non-residents-Head office expenditure-Entire expenditure was for purposes of head office-No restrictions in terms could be imposed-Order of Tribunal is affirmed. [S. 260A]

CIT v. Hongkong and Shanghai Banking Corpn. Ltd. (2019) 267 Taxman 502 / 111 taxmann.com 284 (Bom.)(HC) Editorial : SLP of revenue is dismissed as the tax effect involved of less than 2 crores, CIT v. Hongkong and Shanghai Banking Corpn. Ltd. (2019) 267 Taxman 501 (SC)

S. 44BB : Mineral oils–Computation-Unabsorbed depreciation-Carried forward from earlier year-Cannot be set off against while computing the profits and gains of eligible business u/s. 44BB of the Act. [S. 32(2)]

Boskalia International Dredging v. DIT(IT) (2019) 182 DTR 148/(2020) 313 CTR 360 (Bom.)(HC)

S. 43CA : Transfer of assets-other than capital assets-Full value of consideration-stock in trade-Agreement value–Stamp valuation-Provision introduced with effect from 1-4-2014 for deeming consideration received on sale of goods/assets on basis of stamp duty valuation would be applicable prospectively-Rejection of books of account is held to be not justified. [S.50C, 145]

PCIT v. Swananda Properties (P.) Ltd. (2019) 267 Taxman 429 (Bom.)(HC)

S. 43B : Certain deductions on actual payment –Bonus-Allowable as deduction in the year of payment.[ S.37(1) ]

CIT v. Apollo Tyres Ltd. (2019)419 ITR 100/(2020) 274 Taxman 258 (Ker.)(HC)