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.37(1): Business expenditure – Entry tax – e-challan containing all relevant details including name of assessee, impugned disallowance was to be deleted, matter was set aside for verification.

ACIT v. Safe Decore (P.) Ltd. (2018) 169 ITD 328 /165 DTR 339 /193 TTJ 898(Jaipur) (Trib.)

S.37(1): Business expenditure –Damages -Expenses on repair of goods returned back on account of low quality was held to be allowable as business expenditure.

EPCOS India (P.) Ltd. v. ITO (2018) 169 ITD 541/ 65 ITR 20 (SN) (Kol) (Trib.)

S.40(a)(ia):Amounts not deductible – Deduction at source –Handling charges paid to shipping agents of non-resident shipping companies was held to be not liable to deduct tax at source, and also the department had already granted exemption certificate to non-resident ship owners . [ S.194C ]

ACIT v. Safe Decore (P.) Ltd. (2018) 169 ITD 328/165 DTR 339 /193 TTJ 898 (Jaipur) (Trib.)

S.40(a)(ia):Amounts not deductible – Deduction at source Commission paid to foreign agents abroad for rendering services in their respective countries is not taxable in India hence not liable to deduct tax at source–DTAA-India -Hong Kong- Art.7 OECD Model tax Convention. [ S. 9(1)(i), 195 ]

Bengal Tea & Fabrics Ltd. v. DCIT (2018) 169 ITD 665 (Kol) (Trib.)

S. 50C : Capital gains – Full value of consideration – Stamp valuation – Agreement to sell for property was entered on September 1966 though registered on 29-11-2010, stamp valuation on the date of registration cannot be applied as the provision of S.50C was not in the statute when the agreement to sell for property was entered . [ S.45, 48 ]

Hari Mohan Das Tandon (HUF) v. PCIT (2018) 169 ITD 639 (All) (Trib.)

S.56:Income from other sources – Unquoted equity shares -Discounted cash flow method – Net asset value method – Option to adopt the method of valuation is with assessee- When no defect is found in valuation of shares arrived on basis of discounted cash flow method addition made by the AO on basis of net asset value method was to be set aside. [ S.56(2)(vii)(b), R. 11UA ]

ACIT v. Safe Decore (P.) Ltd. (2018) 169 ITD 328/165 DTR 339/193 TTJ 898 (Jaipur) (Trib.)

S. 57 : Income from other sources – Deductions -Failure to establish the nexus between interest earned on fixed deposits and the expenditure incurred , claim of deduction was held to be not allowable [ S. 56 , 57(iii) ]

Poona Club Ltd. v. ACIT (2018) 169 ITD 557 (Pune) (Trib.)

S.68:Cash credits -Deposit of sale consideration of agricultural land in savings bank account can not be assessed as cash credits . [ S.2(14)(iii) ]

ITO v. Kulwinder Singh. (2018) 169 ITD 577 / 192 TTJ 61 / 163 DTR 23 (SMC)(Chd) (Trib.)

S. 69A : Unexplained money -Agricultural land – Sale agreement was not doubted, deletion of addition was held to be justified .

ITO v. Jagdev Singh. (2018) 169 ITD 334 (Chd) (Trib.)

S. 80P : Co-operative societies -Reginal Bank -As per the overriding provisions contained in S.22 of Regional Rural Bank Act , 1976 , the deduction is available. [ S.80P(2)(a)(i) ]

Baroda Uttar Pradesh Gramin Bank. v. DCIT (2018) 169 ITD 656 (All ) (Trib.)