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. 69 :Unexplained investments -Foreign Bank deposits – Information was received from Central Board of Direct Taxes that assessee was beneficiary of a trust in foreign Country, having account in LGT Bank, Liechtenstein, Germany -Addition was held to be justified .

Ambrish Manoj Dhupelia. v. DCIT (2018 ) 168 ITD 407 ( SMC) (Mum) (Trib.)

S. 68 : Cash credits -Share application money —Failure by AO to make inquiry on documentary evidence produced by assessee, deletion of addition was held to be justified [ S. 133(6),153A ]

Prabhatam Investment Pvt. Ltd. v. ACIT (2018) 61 ITR 352 (Delhi) (Trib) Prabhatam Buildtech Ltd. v. ACIT (2018) 61 ITR 352 (Delhi) (Trib) Prabhatam Build well Pvt. Ltd. v. ACIT (2018) 61 ITR 352 (Delhi) (Trib)

S. 68: Cash credits- Share application money – Addition cannot be made as cash credits unless the AO does not make any investigation on the documentary evidence filed by the assessee or asking for production of the investors .[ S. 131 ]

ACIT v. TRN Energy Pvt. Ltd.( Delhi)(Trib) ; www.itatonline.org

S. 68: Cash credits- Share premium can be assessed as undisclosed income if directors are allotted the shares at par and other at premium without any justification .Addition was held to be justified .Issue of second notice for reassessment was held to be valid [ S.69, 147, 148 ]

Cornerstone Property Investments Pvt. Ltd. v. ITO ( 2018) 193 TTJ 58/( 2019) 70 ITR 693 (Bang)(Trib) , www.itatonline.org

S. 68 : Cash credits –Share capital-Share holders did not respond to summons can not be the basis to treat the share capital as bogus .[S.133(6)]

Umbrella Project Pvt. Ltd. v. ITO (Delhi)(Trib) , www.itatonline.org

S. 68: Cash credits –Share capital- Shell companies – Accommodation entries were routed through shell companies hence addition was held to be justified .[ S. 131,133(6) ]

Shaan Construction P. Ltd. v. ITO(Delhi)(Trib) , www.itatonline.org

S. 68: Cash credits- Long term capital gains- Evidence of contract and payment through Banks- Addition cannot be made solely on the basis that late recording in Demat Pass book- Order of Tribunal set aside [ S.45 ]

Amita Bansal (Ms.) v. CIT (2018) 400 ITR 324 (All) (HC)

S. 68 : Cash credits – Firm or AOP – ntry pertaining to first day of business – No scope for assuming that income was generated – No addition can be made- Provided PAN/GIR and income tax return of members sufficient to establish the creditworthiness and also discharge the onus .

CIT v. Lal Mohar (2017) 252 Taxman 401/ (2018) 409 ITR 95(All.)(HC)/CIT v. Rajendra Kumar ( (2017) 252 Taxman 401// (2018) 409 ITR 95 (All. )(HC) Editorial: SLP of revenue is dismissed , CIT v. Lal Mohar ( 2018) 409 ITR 2( St)

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 –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)