S.45 : Capital gains—Computation-Revaluation of assets— Transferred to firm – For the purpose of computing capital gains value of assets recorded in books of the firm on date of transfer would be deemed to be full value of consideration received as a result of transfer Valuation of assets cannot be entertained in appeal. [S. 45,260A]
CIT v. DR. D. Ramamurthy. (2019) 410 ITR 236 / 102 Taxman.com 330/ 261 Taxman 435 (Mad) (HC) Editorial: SLP of revenue is dismissed; CIT v. DR. D. Ramamurthy. (2018) 408 ITR 18 (St.)/( 2019) 261 Taxman 560 (SC)
Digest of case laws
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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
Click here to download the pdf versions of the Digest of case laws S. 45 : Capital gains- Business income-No distinction can be made whether borrowed money or own funds–Circular is binding on department -Consistency must be followed -Surplus from sale of shares is assessable as capital gains and not as business income. [S. 28(i)]
CIT v. Hardik Bharat Patel. (2019) 410 ITR 202 /260 taxman 294(Bom.)(HC),Editorail : SLP of revenue is dimissed , as withdrawn due to low tax effect, PCIT v. Hardik Bharat Patel ( 2020 ) 269 Taxman 562 (SC)S. 37(1) : Business expenditure—Commission—No evidence of services rendered -Disallowance is held to be justified. [S. 133(6),260A]
Alpasso Industries Pvt. Ltd. v. ITO (2019) 410 ITR 212/ 261 Taxman 442 (Delhi)(HC)S. 36(1)(vii) : Bad debt—Non-rural banks written off—Held to be allowable as deduction-Deductible. [S. 36(1)(viia)]
Dhanalakshmi Bank Ltd. v. CIT (2019) 410 ITR 280 / 261 Taxman 521/ 177 DTR 48/ 308 CTR 484(Ker.) (HC)S. 35D : Amortisation of preliminary expenses-Bank extending financial services is an industrial undertaking—Entitled to benefit. [S. 37(1)]
Dhanalakshmi Bank Ltd. v. CIT (2019) 410 ITR 280/ 261 Taxman 521/ 177 DTR 48/ 308 CTR 484 (Ker.)(HC)S. 28(1): Business loss–Futures and options-Allowable as business loss. [S. 37(1)]
CIT v. Hardik Bharat Patel. (2019) 410 ITR 202/ 260 Taxman 294 (Bom.)(HC), Editorail : SLP of revenue is dimissed , as withdrawn due to low tax effect, PCIT v. Hardik Bharat Patel ( 2020 ) 269 Taxman 562 (SC)S. 14A : Disallowance of expenditure-Exempt income–Provision is applicable only from the year 2007 -98 onwards.
Dhanalakshmi Bank Ltd. v. CIT (2019) 410 ITR 280/ 261 Taxman 521 /177 DTR 48/ 308 CTR 484(Ker.)(HC)Prohibition of Benami Property Transactions Act, 1988 S.2(9):
Benami transaction- Advance salary -Allegation of amount was advanced to bring demonetised money in to circulation – Order attaching the bank account was set aside – The authorities have failed to discharge the burden. [ S. 2(5),3,24, 46, PMLA ,2002 , S. 2(u) ]
S. 276C : Offences and prosecutions – Wilful attempt to evade tax –Penalty appeal is admitted by High Court-When the Appeal is admitted on substantial questions of law, there is no justification for the DCIT to threaten the assessee with prosecution- Even if such prosecution is launched, the same shall not proceed till the pendency of the appeal.[ S. 260A, 271(1)(c)]
Deepak Fertilizer and Petrochemicals Corporation Ltd. v. ACIT (Bom.)(HC), www.itatonline.org Editorial. Also refer Suresh Company Pvt Ltd v PCIT ( ITA No 738 of 2016 , Notice of motion 84 of 2019 dt 25-1-2019 ) (Bom.) (HC)S. 263 : Commissioner–Revision of orders prejudicial to revenue– Debenture redemption reserve- Original Assessment u/s 143(3) dt. 30-12-2011–Reassessment u/s 143(3) r.w.s 147 dt 28-12-2016–Revision order dt. 26-3-2018-Revision is barred by limitation. [S. 115JB]
Housing Development and Infrastructure Ltd v. PCIT (Mum.) (Trib.)(UR)