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. 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.)
S. 55A : Capital gains – Reference to valuation officer -Only where Assessing Officer of opinion that Valuation of Registered Valuer Less than fair market value of property—Amendment to S.55A is not retrospectively applicable.[S. 45]
Balu Vitthal Kharate v. ITO (2019) 70 ITR 315 (Pune)(Trib.)
S. 54F : Capital gains-Investment in a residential house-Not depositing unutilised amount of capital gains in capital gains Scheme Account by date of filing of return—Not entitled to exemption.[S. 45]
Sameer Vithalrao Ghanwat v. ITO (2019) 70 ITR 341 (Pune)(Trib.)
S. 54EC : Capital gains-Investment in bonds-Investment of Rs. 50 lakhs each in two different financial years within a period of six months from date of transfer of capital asset- Eligible for exemption. [S. 45]
ACIT v. Akshay Sobti (2019) 177 ITD 92 (Delhi)(Trib.)
S. 54EC : Capital gains-Investment in bonds-Chartered Accountant firm-Capital gains from sale of its client relationships and goodwill pertaining to its business of internal audit and risk consultancy (IARC) practice-Investment in specified bonds- Eligible to exemption. [S. 2(14), 28(va), 45, 55(2)(a)(ii)]
J.C. Bhalla & Co. v. ACIT (2019) 177 ITD 1 182 DTR 195 (Delhi)(Trib.)