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. 201 : Deduction at source-Failure to deduct or pay-Date of tendering of cheque for payment of Government dues could be deemed to be date of payment of tax-Delay in remittance of said amount to Government account by Bank, no interest can be levied. [S. 201(IA)]
Oil and Natural Gas Corporation Ltd. v. DCIT (2019) 176 ITD 124 / 197 TTJ 137 (Mum.)(Trib.)
S. 115JB : Book profit–Change in deprecation rate–Reduction due to change in depreciation rate is different from diminution in value of assets and same is not hit by clause (i) of Explanation 1 to section 115JB-Self serving evaluation of useful life of depreciable assets leading to higher rate of depreciation and consequently resulting reduced tax burden for assessee was not bonafide, same would be a colourable device to evade tax- Matter remanded to Assessing Officer for verification. [S. 32]
DCIT v. Railtel Corpn. of India Ltd. (2018) 176 ITD 169 (Delhi) (Trib.)
S. 69 : Unexplained investments-Addition cannot be made in year under consideration in respect of investment in immovable property made in earlier year.
Preeti Singh.( Km.) v. ITO (2019) 176 ITD 137 / 179 DTR 325 (Delhi)(Trib.)
S. 68 : Cash credits-Share premium-Nature and source of share premium received is explained-Addition cannot be made as cash credits.
Jayneer infrapower & Multiventures (P.) Ltd. v. DCIT (2019) 176 ITD 15/200 TTJ 179 (Mum.)(Trib.)
S. 68 : Cash credits–Share application-High premium–Addition as unexplained cash credit is held to be justified.
Ayaana Comtrade (P.) Ltd. v. ITO (2019) 176 ITD 6 (Ahd.) (Trib.)
S. 56 : Income from other sources–Gift-Assesse was transferor and not recipient and shares in question were those of listed companies- provisions of section 56(2)(viia) would not apply. [S. 56(2)(viia)]
Jayneer infrapower & Multiventures (P.) Ltd. v. DCIT (2019) 176 ITD 15 / 200 TTJ 179(Mum.)(Trib.)
S. 56 : Income from other sources–Share premium-Amount received in excess of fair market value of shares – S. 56(2)(viib) which seeks to tax amount received in excess of fair market value of shares is applicable only from assessment year 2013-14. [S. 56(2)(viib), 68]
Jayneer infrapower & Multiventures (P.) Ltd. v. DCIT (2019) 176 ITD 15 / 200 TTJ 179(Mum.)(Trib.)
S. 56 : Income from other sources–Capital gains-Income chargeable under specific head cannot be assessed under residuary head as income from other sources. [S. 45, 47(iii)]
Jayneer infrapower & Multiventures (P.) Ltd. v. DCIT (2019) 176 ITD 15/ 200 TTJ 179 (Mum.)(Trib.)
S. 54F : Capital gains-Investment in a residential house-Belated construction or possession would not be a ground to deny claim of exemption-Two separate flats purchased by assessee had two separate entrances, treated as one residential house – Entitle to exemption. [S. 45]
ITO v. Saroj Rani Gupta (Smt.) (2019) 176 ITD 109 (Kol.)(Trib.)
S. 50 : Capital gains-Depreciable assets-Block of assets-Brought forward business loss and long term capital loss can be set off against short term capital gain computed under section 50 on sale of factory building being depreciable asset. [S. 72, 74]
ITO v. Smart Sensors & Transducers Ltd. (2019) 176 ITD 104 (Mum.)(Trib.)