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. 145A : Method of accounting – Valuation of stock- Excise duty- Not added to purchases, sales or valuation of inventories – Valuation of closing stock, excise duty had rightly been excluded from value of closing stock of finished goods at end of accounting period.

ACIT v. U.P. Asbestos Ltd. (2019) 176 ITD 518/ 200 TTJ 886/ 180 DTR 305 (Luck)(Trib.)

S. 68 : Cash credits-Books of account-Sale of shares-long term capital gains–Bank statement is not books of account-Addition cannot be made without giving an opportunity of cross examination–Addition is deleted. [S. 2(12A), 44AA]

Vinesh Maheswari v. ITO (2019) 176 ITD 576 (Delhi)(Trib.)

S. 37(1) : Business expenditure–Construction business- Accounting Standard-2- Justified in debiting all expenses to work-in-progress except expenses related to administration, selling, marketing, etc. [S. 145]

Macrotech Construction (P.) Ltd. v. ACIT (2019) 176 ITD 530 (Mum.)(Trib.)

S. 37(1) : Business expenditure-Asset management company– Date of approval given by SEBI was to be regarded as date on which assessee set up its business and was ready to commence said business- Expenses incurred for purpose of business after said date of approval were eligible for deduction. [S. 3, Regulation 21 of the SEBI (Mutual Fund) Regulations, 1996]

DCIT v. PPFAS Asset Management (P.) Ltd. (2019) 176 ITD 541 (Mum.)(Trib.)

S. 12AA : Procedure for registration–Trust or institution- Possibility of misuse of donations-Approval u/s 80G cannot be denied. [S. 80G ]

Adesh Foundation (Regd.) v. CIT (2019) 176 ITD 506/199 TTJ 105/ 177 DTR 153 (Asr.)(Trib.)

Precedent—Appeal–Merger–Dismissal of appeal on ground of low tax effect-High Court order does not merge in order of Supreme Court.

CIT v. Poonjar Service Co-Operative Bank Ltd. (2019) 414 ITR 67 (FB) (Ker.) (HC)/Mavilayi Service Co -Operative Bank Ltd v. CIT ( 2019) 309 CTR 121 / 179 DTR 65( FB) (Ker) (HC) PCIT v. Vazhappally Service Co -Operative Bank Ltd ( 2019) 309 CTR 121 /179 DTR 65( FB) (Ker) (HC)

S. 245D : Settlement Commission–Full and true disclosure-Surrender of income in the course of search- Retraction after two years- Application for settlement showing undisclosed income much lower figure–Report of revenue was not considered- Settlement Commission determining the income higher than the disclosed income–Order of Settlement Commission was quashed. [S. 132(4), 245C, 245D(4)]

CIT v. Om Prakash Jakhotia (2019) 414 ITR 176/ 179 DTR 1 / 309 CTR 499/ 265 Taxman 110 (Delhi)(HC)/ Editorial: SLP of assessee is dsmissed, Om Prakash Jakhotia v. PCT (2019) 418 TR 18 (St) (SC)

S. 245D : Settlement Commission–Restoration of matter to Settlement Commission by High Court-Computation of period of 18 months-Period taken by assessee in pursuing remedy before Court and period during which order stayed to be excluded. [S. 245D(4A)]

Akshar Builders. V. PCIT (2019) 414 ITR 34 (Guj.)(HC)

S. 226 : Collection and recovery-Stay-Pendency of appeal before CIT(A)-Non speaking order-Garnishe notices to Banks was quashed and attachment of Bank account was lifted. [S. 226(3)]

Oren Hydrocarbons Pvt. Ltd. v. ACIT (2019) 414 ITR 52 (Mad.)(HC)

S. 80P : Co-operative societies–Co–Operative Bank-Assessee must substantiate that its main object of incorporation continues to be fulfilled In relevant assessment year-Benefit is not allowable solely on basis of certificate of registration-Assessee is not entitled to deduction if it ceases to be of specified class of society in any year even if it was eligible for initial years. [S. 80P(4)]

CIT v. Poonjar Service Co-Operative Bank Ltd. (2019) 414 ITR 67 (FB) (Ker.) (HC)/Mavilayi Service Co -Operative Bank Ltd v. CIT ( 2019) 414 ITR 67/ 309 CTR 121 ( FB) (Ker) (HC) PCIT v. Vazhappally Service Co -Operative Bank Ltd ( 2019) 309 CTR 121 ( FB) (Ker) (HC) Editorial: ITO v. Ettumanoor Service Co- Operative Bank Ltd.( 20160 52 ITR 132 ( SN) ( Cochin) (Trib) ITO v. Sahyadri Cohin- Co-Operative Credit Society Ltd ( 2017) 60 ITR 135 (Cochin) ( Trib) is reversed .Editorial: SLP is granted to the assessee Mavilayi Service Co -Operative Bank Ltd v. CIT ( 2019) 418 ITR 12 (St) (SC)