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.45(2): Capital gains- Conversion of assets in to stock in trade -Agricultural land converted in to residential plots as stock in trade and sold capital gain is to be computed as per S.45(2) of the Act.[ S.45 ]

Mahaveer Yadav v. ITO (2018) 169 ITD 717 (Jaipur) (Trib.)

S.45: Capital gains- Development agreement – Assessee has handed over possession of plot to developer therefore there was transfer and liable to capital gains tax- As per the agreement has parted with only 50 percent of property ,only 50 percent can be taxed . As regards provision S.45(5A) being substantive provision introduced by the Finance Act , 2017 cannot be applied to the development agreement entered in to earlier-Reassessment was also held to be valid . [ S.2(47)(v), 45(5A),147 ]

K.Vijay Lakshmi, Hyderabad. v. ACIT (2018) 169 ITD 597 (SMC)(Hyd) (Trib.) Adinarayana Reddy Kummeta. v. ACIT (2018) 169 ITD 683( SMC) (Hyd) (Trib.)

S.45: Capital gains- Business income –Land -Sale consideration received in respect of property received on dissolution of partnership of firm of his father was held to be assessable as capital gain and not as business income [ S. 2(14),28(i) ]

Balkrishna P. Wadhwan. v. DCIT (2018) 169 ITD 693 (Mum) (Trib.)

S.28(i): Business income- Income from house property – Shipping agency and warehousing – Activities of the assessee involve more than letting therefore assessable as income from business and not as income from house property-New tangible material hence reassessment is bad in law [ S. 22, 147, 148 ]

Tulsi Shipping ( P) Ltd v. ITO ( 2018) 169 ITD 629 ( Mum) ( Trib)

S. 23 : Income from house property – Annual value – Interest free refundable deposit from tenants- Addition cannot be made in respect of notional interest on refundable deposits. [ S.23(1)(b) ]

ITO v. Altitus Management Advisors (P.) Ltd. (2018) 169 ITD 702 (Mum) ( Trib.)

S.24: Income from house property- Leasing -Interest paid on borrowed loan which was utilised for acquiring property is held to be allowable deduction [ S.24(b) ]

ITO v. Altitus Management Advisors (P.) Ltd. (2018) 169 ITD 702 (Mum) ( Trib.)

S.22: Income from house property -Property leasing – Contributions received from tenants towards sinking fund cannot be assessed as rental income.

ITO v. Altitus Management Advisors (P.) Ltd. (2018) 169 ITD 702 (Mum) ( Trib.)

S. 12AA : Procedure for registration –Trust or institution-Private University, engaged in imparting education, is eligible for registration . [S.2(15) ]

Indus University. v. ACIT (2018) 169 ITD 609 (Ahd) (Trib.)

S.4: Income chargeable to tax – Hindu undivided family (HUF) -Father died intestate – Property inherited as per S.8 of the Hindu Succession Act is assessable in his individual capacity and not as Karta of HUF [ Hindu Succession Act 1956, S.8 ]

Mahaveer Yadav v. ITO (2018) 169 ITD 717 (Jaipur) (Trib.)

S. 12AA : Procedure for registration –Trust or institution-Registration cannot be denied only on the ground that the Trust was formed by company for complying corporate social responsibility requirement [ S.11, 80G ]

Nanak Chand Jain Charitable Trust. v. CIT (2018) 169 ITD 534 (Delhi) (Trib.)