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. 115JB : Book profit-Agricultural income-Revenue derived from land-Profits from sale of agricultural land-Cannot be excluded from book profits. [S. 2(IA), 2(14)(iii), 10(1), 45]

Krish Homes Pvt. Ltd. v. ITO (2020) 421 ITR 105/ 193 DTR 165/ 316 CTR 443 (Raj.)(HC) Editorial : SLP of the assessee is dismissed Krish Homes Pvt. Ltd. v. ITO (2020) 420 ITR 2 (St) (SC)

S. 115JB : Book profit-Provision for bad and doubtful debt- Ascertained liability-No addition can be made.

CIT (LTU) v. ACC Ltd.( 2019) 112 taxmann.com 402 / (2020) 269 Taxman 15 (Bom.)(HC) Editorial: SLP of revenue is dismissed; CIT (LTU) v. ACC Ltd. (2020) 269 Taxman 14 (SC)

S. 92C : Transfer pricing-Arm’s length price-Loan syndication fee received from associated enterprise-Tribunal remitting matter to AO-Not erroneous.[S. 254(1), 260A]

CIT v. RBS Financial Services (India) Pvt. Ltd. (2020) 421 ITR 1 (Bom.)(HC )

S. 80P : Co-operative societies-Interest received from another Co-operative bank-Deduction allowed on gross interest in earlier years-Department has not challenged the decision of the Tribunal in another assesee-Department is not entitled to challenge its correctness in case of another assessee without good reason. [S. 80P(2)(d)]

Surat Vankar Sahakari Sangh Ltd. v. ACIT (2020) 421 ITR 134 (Guj.)(HC)

S. 80HHC : Export business-Business profits-Receipts by way of reassortment charges and labour commission-Cannot be excluded from business profits for purpose of computation of business profits- Prior to amendment with effect from April 1, 1992.

Seven Stars v. DCIT (2020) 421 ITR 16 (Bom.)(HC)

S. 80G : Donation-In absence of any evidence on record showing that funds of assessee trust were being utilised for private purposes-AO is, not justified in refusing to grant approval under S.80G(5)(vi) of the Act. [S. 12AA]

CIT (E) v. Seth Vinod Kumar Somani Charitable Trust. (2020) 113 taxmann.com 142 / 269 Taxman 60 (P & H) (HC) Editorial : SLP of the revenue is dismissed; CIT (E) v. Seth Vinod Kumar Somani Charitable Trust. (2020) 269 Taxman 59 (SC)

S. 80 : Return for losses-Claim for carry forward of loss- Return filed in old form-Filed revised form after due date-Entitle to carry forward the loss. [S. 139(1), 139 (3)]

CIT v. Zila Sahkari Bank (P.) Ltd (2019) 112 taxmann.com 403/ 269 Taxman 56 (All.)(HC). Editorial : SLP of revenue is dismissed; CIT v. Zila Sahkari Bank (P.) Ltd. (2020) 269 Taxman 55 (SC)

S. 69A : Unexplained money-Failure to explain the source of cash deposit in the bank account-Addition is held to be justified.

Shashi Garg v. PCIT (2020) 423 ITR 150 / 113 taxmann.com 92 / 269 Taxman 27 (Delhi)(HC) Editorial : SLP of assessee is dismissed; Shashi Garg v. P CIT (2020) 269 Taxman 26 (SC)

S. 54B : Capital gains-Land used for agricultural purposes- Sale of land to builder- Order of the AO is set aside. [S. 45, 264, Art. 226]

S. Sundaramurthy v. PCIT (2020) 269 Taxman 107 (Mad.)(HC)

S. 45 : Capital gains-Transfer-Permission to builder to start advertising, selling, construction on land-Licence to builder not amounting to possession of asset-Memorandum of compromise in 2003 under which agreement confirmed, and receipt by assessee of part of agreed sale consideration confirmed-Gains arose in previous year in which memorandum of compromise entered into, and taxable in that assessment year. [S. 2(47)(v), 2(47)(vi), Transfer of Property Act, 1882, S.53A]

Seshasayee Steels P. Ltd. v. ACIT (2020) 421 ITR 46 / 313 CTR 375/ 187 DTR 241/ 275 Taxman 187(SC) Editorial : Decision in Seshasayee Steels P. Ltd. v Asst. CIT ( 2020) 421 ITR 46 (Mad) (HC) affirmed. Tax Case (Al) No. 461 of 2011 dt 25 -1 2012)