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 –Shell companies –Failure to produce lenders- Addition was held to be justified- Transaction was held to be non genuine .

Pavankumar M. Sanghvi v. ITO ( 2018) 404 ITR 601/301 CTR 265 / 163 DTR 209( Guj) (HC) Editorial: Order in Pavankumar M. Sanghvi v. ITO (2017) 165 ITD 260/ 187 TTJ 32 /152 DTR 201 / 59 ITR 189 ( SMC)(Ahd.)(Trib.) is affirmed/Editorial: SLP of assessee is dismissed Pavankumar M. Sanghvi v. ITO (2018) 258 taxman 160 (SC)

S. 68: Cash credits — Share application money — Merely on the basis of statement given by Directors of investing companies additions cannot be made when the assesse has provided all necessary evidences – Burden is on revenue to prove otherwise.

CIT v. Oriental International Co. P. Ltd. (2018) 401 ITR 83/ 301 CTR 145/ 162 DTR 170 (Delhi) (HC)

S. 68: Cash credits — Cash deposits were supported by registered sale deeds of flats sold and materials purchased was supported by duly signed Vouchers hence deletion was held to be justified .[ S. 69 ]

CIT v. Mohd. Sahid Prop. M/S. Azim Builders (2018) 402 ITR 110 (All) (HC)

S. 68: Cash credits — Gifts – Creditworthiness of donors was proved – Deletion of addition was held to be justified – Finding of fact [ S. 69A ]

CIT v. Latha Rajee Mathew. (2018) 402 ITR 78 (Mad)( HC)

S. 68:Cash credits — Gift — Failure to produce evidence of credit worthiness and genuineness of gifts addition as unexplained deposits was held to be justified .

Pandit Vijay Kant Sharma v. CIT (2018) 402 ITR 358/ 169 DTR 108/304 CTR 1012 (All) (HC)

S. 68: Cash credits –Not required to explain source of source -Confirmation letters , affidavits PAN no was filed, deletion of addition was held to be justified .

PCIT v. Veedhata Tower Pvt. Ltd.(2018) 403 ITR 415/ 166 DTR 218 / 302 CTR 490 (Bom)(HC) , www.itatonline.org

S. 56 : Income from other sources – Amount received at the time of retirement from partnership firm after surrendering her right, title and interest, same was said to be received for consideration and, thus, same could not be taxable in hands of the assessee , as capital gains or income from other sources . [ S. 2(47)(i) , 2(47)(ii), 4,45 , 56(2)(vi) ]

Vasumati Prafullachand Sanghavi (Smt.) v. DCIT (2018) 168 ITD 585/193 TTJ 101/ 169 DTR 227 (Pune) (Trib.)

S.56: Income from other sources- Interest income on fixed deposit is held to be assessable as income from other sources [ S.28(i) ]

Nilesh Janardan Thakur v. ITO (2018) 168 ITD 143 /192 TTJ 786 (Mum) (Trib.)

S. 56 : Income from other sources – Redeemable non-cumulative preference shares (RNCPS) cannot be excluded from ambit of section 56(2)(viib)- In case of issue of redeemable non-cumulative preference shares (RNCPS) at premium, conclusion of valuer that 10 per cent discount factor was appropriate, was to be upheld as it was based on proper comparable for bench marking [ S.56(2)(viib), Rule 11UA(c)(c), ]

Microfirm Capital (P.) Ltd. v. DCIT (2018) 168 ITD 301/62 ITR(T) 109/192 TTJ 431// 164 DTR 35 (Kol) (Trib.)

S.56: Income from other sources- Agricultural income –Consideration was not shown to avoid payment of stamp duty-Consideration was held to be assessable as income from other sources and not as agricultural income, however levy of concealment penalty was held to be not justified [ S. 271(1) (c ) ]

ACIT v. Mohinder Singh (Chd.)(Trib) www.itatonline.org Malkit Singh v. ITO (Chd.)(Trib) www.itatonline.org