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. 69C : Income from undisclosed sources—Bogus purchases—Hawala dealers-12.5 Per ent. of purchases to be brought to tax which is embedded in purchases.[S. 37(1)]

Shantilal B. Parekh v. ITO (2019) 70 ITR 193 (Mum.)(Trib.)

S. 69C : Unexplained expenditure–House hold expenses–Joint family- Addition is retracted to 50% of the expenditure.

Ashwin S. Mehta v. ACIT (2019) 70 ITR 234 (Mum.)(Trib.)

S. 69C : Unexplained expenditure-Volkar committee report- Denied incurring and expenditure-Allegation of paying Kickbacks for participating in oil for food programme- Burden is on revenue–Merely on the basis of Volkar committee report- Addition is held to be not justified.

Flex Engineering Ltd. v. DCIT (2019) 70 ITR 417 (Delhi)(Trib.)

S. 69B : Amounts of investments not fully disclosed in books of account–Purchase of land-No evidence to show that the under consideration was paid–No additions can be made on presumptions.

Janapriya Engineers Syndicate Ltd. v. ITO (2019) 70 ITR 370 (Hyd.)(Trib.)/CIT v. Engineers Reddy Homes (P) Ltd ( 2019) 70 ITR 370 (Hyd) ( Trib)

S. 69A : Unexplained money-Capital gain-Penny stock-Sale of share-Bogus entries-Information from investigation wing-Addition is held to be justified. [S. 10(38), 45, Indian Evidence Act. S. 102]

Pooja Ajmani v. ITO (2019) 177 ITD 127/ 200 TTJ 231 / 178 DTR 377(SMC) (Delhi)(Trib.)

S. 68 : Cash credits–Donations received was offered as income in income and expenditure account–Addition cannot be made as cash credits.

ACIT v. Shree Shiv Vankeshawar Educational & Social Welfare Trust. (2019) 177 ITD 184 /181 DTR 314(Delhi) (Trib.)

S. 68 : Cash credits-Share capital-Meagre income–Failure to establish from documentary evidence creditworthiness for making such huge investments and genuineness of transactions-Addition is held to be justified. [S. 133(6)]

ITO v. Synergy Finlease (P.) Ltd. (2019) 177 ITD 160 / 178 DTR 145(Delhi) (Trib.)

S. 68 : Cash credits-Share premium-Share premium collected over and above premium worked out in Valuation Certificate submitted to RBI, in view of fact that as per Notification No. FEMA/203/2010-RB, dated 7-4-2010-There is no bar on collecting higher amount as share premium-Addition cannot be made– Amendment is applicable from the AY.2013-14- Even otherwise, the amendment will not apply to the investor which is a SEBI registered Venture Capital Fund.

DCIT v. Varsity Education Management (P.) Ltd. (2019) 177 ITD 44 (Mum.)(Trib.)

S. 68 : Cash credits-Presumptive taxation-Non-maintenance of books of account-Addition cannot be made as cash credits. [S. 44AA(2)(iv)]

Indrani Devi v. CIT (2019) 70 ITR 42 (Patna) (Trib.)

S. 68 : Cash credits-Loan–Depositors have filed affidavits, Bank statements, balance-sheets, Income-Tax Return Acknowledgements, Permanent Account Number Details, loan confirmation etc. – Burden discharged – Addition is held to be not justified.

ITO v. Jyoti Saraf (Smt.) (2019) 70 ITR 52 (Kol.)(Trib.)