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-Share capital-Share premium-Loss making company-Genuineness of transaction is not proved-Addition is affirmed-Reassessment is affirmed. [S. 143(3) 147, 148]

ACIT v. Prasanna Purple Mobility Solutions P. Ltd. (2024)114 ITR 62(SN) (Pune)(Trib)

S. 68 : Cash credits-Income from undisclosed sources-Capital gains-Penny stock-Securities transaction tax-Payments through banking channels-DMAT account-Burden discharged transactions cannot be held to be bogus-Entitle to exemption. [S. 10(38) 45, 69]

Dy. CIT v. Pavankumar Bachhraj Chandan (2024)114 ITR 364 (Mum)(Trib)

S. 68 : Cash credits-Cash deposit-Demonetisation period-Sale of petrol, diesel and other petroleum products-Deletion of addition is affirmed. [S. 133(6)]

ITO v. Ashapura Petrochem Marketing P. Ltd. (2024) 114 ITR 599 (Ahd)(Trib)

S. 50 :Capital gains-Depreciable assets-Block of assets-Multiplex theatre-Sale of shop-Assessable as capital gain and not as business income-Owning-Operating. [S.28(i), 80IB(7A)]

PVS Multiplex (India) Ltd. v. ACIT (2024)114 ITR 27 (SN)(Delhi)(Trib)

S. 45 : Capital gains-Sale of shares-Mode of Computation-Non-Resident corporate entity-Sale of shares to another shareholder-Independent parties-Valuation report-Disregarding agreement value between assessee and other shareholder is not justified Section 50CA which was introduced by Finance Act, 2017 with effect from 2018-19 is inapplicable to year in question-Addition is not valid-Difference between income returned and that reflected in Form 26AS-Assessing Officer is directed to verify and reconcile. [S. 48, 50CA]

Smart Information Worldwide Inc. v. Dy. CIT (IT) (2024)114 ITR 33 (SN)(Chennai)(Trib)

S. 45 : Capital loss-Sale of shares-Related entity-Avoidance of tax-Sham transaction-Capital Loss-Transactions not colourable device-Disallowance of long-term, and short-term, capital loss is not justified-Carry forward and set off-Amalgamation-Entitled to manage its business affairs as it deems fit within legal framework-Loss is allowable. [S. 72, Companies Act, 2013,S.19]

Dy. CIT v. Welspun Steel Ltd. (2024)114 ITR 107 /229 TTJ 485 (Mum)(Trib)

S.43B: Deductions on actual payment-Statutory dues-Write-Back from taxable income-Provision offered to tax in earlier year and written back in subsequent year not taxable-Matter remanded for verification.

Hindalco Industries Ltd. v. Dy. CIT (2024)114 ITR 502 (Mum)(Trib)

S. 43A : Rate of exchange-Foreign currency-Business expenditure-Capital or revenue-External commercial borrowing loans-Loss on reinstatement of external commercial borrowing-Mere reinstatement of losses per Accounting Standards without actual payment or remittance-Addition cannot be made-Additional ground is admitted. [S.37(1), 254(1)]

Bando (India) P. Ltd. v. Dy. CIT (2024)114 ITR 275 /(2025) 233 TTJ 980 (Delhi)(Trib)

S. 40A(2): Expenses or payments not deductible-Excessive or unreasonable-Payment to related parties-Deletion is justified. [S.40A(2)(b)]

Intas Pharmaceuticals Ltd. v. ACIT (2024)114 ITR 434 (Ahd)(Trib)

S. 40A(2): Expenses or payments not deductible-Excessive or unreasonable-Service charges paid to group company-Common management services-Disallowance is deleted.

Hindalco Industries Ltd. v. Dy. CIT (2024)114 ITR 502 (Mum)(Trib)