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. 68 : Cash credits-Advance against sale of land-Creditworthiness not in doubt-Flaw in the document cannot justify the addition-Order of Tribunal deleting the addition is affirmed.[S.260A]

Pr. CIT v. Nucleus Steel (P.) Ltd. (2025) 303 Taxman 58 (Delhi)(HC)

S. 56 : Income from other sources-Interest on Government grants-Assessable as income from other sources-Delay of 364 days-SLP of assessee is dismissed on ground of delay [Art. 136]

Bihar Police Building Construction Corpn. (P.) Ltd. v. Pr. Chief CIT (2025) 303 Taxman 335 (SC)Editorial : Bihar Police Building Construction Corpn. (P.) Ltd. v. Pr. Chief CIT(2023) 157 taxmann.com 495 (Patna)(HC)

S. 45 : Capital gains-Development agreement with a builder for constructing residential flats on a sharing basis-Transfer-[S. 2(47)(v), Transfer of Property Act, 1882, S.53A]

Shantha Vidyasagar Annam (Smt.) v. ITO (2025) 303 Taxman 348 (Telangana)(HC)

S.43B: Deductions on actual payment-Converted interest due to equity shares-Tantamount payment-Entitled to deduction.

Frontier Information Tech Ltd. v. Dy. CIT (2025) 303 Taxman 378 /343 CTR 143/ 245 DTR 457 (Telnagana)(HC)

S.43B: Deductions on actual payment-Provision for leave salary-Not allowable as deduction.[S.43(f)]

Tamil Nadu Small Industries Corporation Ltd. v. ACIT (2025) 303 Taxman 129 (Mad.)(HC)

S.43B: Deductions on actual payment-Leave encashment-Liability to pay leave encashment was neither accrued nor paid during relevant accounting year but in year 2004 to 2016-Not allowable as dedcution. [S. 43B(f), 139(1), 260A]

H.P. State Civil Supplies Corporation Ltd. v. ACIT (2025) 303 Taxman 306 (HP)(HC)

S. 43B : Deductions on actual payment-liability on account of electricity duty payable-Set off against allotment of equity shares-Amount discharge of liability-No disallowance can be made. [S. 37(1), 260A]

CIT v. Haryana Vidyut Prasaran Nigam Ltd. (2025) 303 Taxman 134 (P&H)(HC)

S. 43(5) : Speculative transaction-Trade in derivatives-Recognised stock exchange-Business loss-Allowed to be set off against profits and gains of business-Order of Tribunal is affirmed. [S. 72, 73, 260A]

PCIT v. Dewa Projects (P.) Ltd. (2025) 303 Taxman 387 (Ker.)(HC)

S. 37(1) : Business expenditure-Contribution to its employees under Provident Funds-No disallowance can be made on the ground that it was not made to reccignised Provident Fund [S. 260A, Providents Funds Act, 1925]

CIT v. Haryana Vidyut Prasaran Nigam Ltd. (2025) 303 Taxman 134 (P&H)(HC)

S. 32 : Depreciation-Unabsorbed depreciation-Allowed to be carried forward and set off after a period of eight years from assessment year 1997-98, without any limit. [S.32(2)]

Tamil Nadu Small Industries Corporation Ltd. v. ACIT (2025) 303 Taxman 129 (Mad.)(HC)