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.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.)

S. 115U : Venture capital companies – Venture capital Funds – long term capital gains on purchase and sale of units of Venture capital fund which has suffered Securities Transaction tax is exempt from tax. [ S. 10(23FB),(10(38) ]

Gopal Srinivasan v. DCIT (2018) 169 ITD 589 /165 DTR 345/ 193 TTJ 968 (Chennai) (Trib.)

S. 194H : Deduction at source – Commission or brokerage -Cash discount given to customers for purchasing in bulk quantity cannot be termed as commission hence not liable to deduct tax at source .

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

S. 201 : Deduction at source – Failure to deduct or pay -Short deduction of tax at source was rectified and in appellate proceedings and paid the tax with interest, assessee cannot be treated as assessee in default .[ S.194C, 201(1), 201(IA]

Executive Engineer Construction v. DCIT (2018) 169 ITD 340 (Agra) (Trib.)