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. 54 : Capital gains-Profit on sale of property used for residence-Amount utilised for construction of new house-Exemption is allowable even if construction was not complete. [S. 45]
DCIT v. Bagalur Krishnaiah Shetty Vijay Shanker. (2025) 210 ITD 20 (Bang) (Trib.)
S. 48 : Capital gains-Mode of Computation-Cost inflation index-Foreign asset is held and sold outside India-Indexation-Shares held in foreign countries-Resident company-Second proviso to section 48, which grants indexation benefit, does not distinguish between assets held in India and held in foreign countries-Eligible for Indexation.[S. 45]
DCIT v. Aarav Fragrances and Flavors (P.) Ltd(2025)210 ITD 369 (Mum (Trib.)
S. 45 : Capital gains-Capital loss-Indexation-Business income-Land was held for more than five years without carrying out any development activity-Sale of land is assessable as capital gains and not as business income.[S. 28(i)]
DCIT v. Kruti Lalitkumar Jain. (2025) 210 ITD 344 (Pune) (Trib.)
S. 43(6) : Written down value-Block of assets-Depreciation-Stamp valuation-Assessing Officer could not have substituted sale consideration received by stamp duty valuation of property while computing WDV for claiming depreciation on block of assets. [S. 2(11), 32, 50]
3A Composites India (P.) Ltd. v. ACIT (2025) 210 ITD 272 (Mum) (Trib.)
S. 41(1) : Profits chargeable to tax-Remission or cessation of trading liability-Sundry Creditors-Balance sheet-Discrepancy in confirmation and balance sheet-Addition is deleted.
Golden Moment (P.) Ltd. v. ACIT (2025) 210 ITD 484 (Delhi)(Trib.)
S. 41(1) : Profits chargeable to tax-Remission or cessation of trading liability-Sundry creditors-Outstanding for more than three years-Written back as income in the Assessment year 2017-18-Addition is deleted.
DCIT v. United Drilling Tools Ltd. (2025) 210 ITD 632 (Delhi) (Trib.)
S. 40(a)(i) : Amounts not deductible-Deduction at source-Non-resident-Royalty-Freight charges-Not royalty-Not liable to deduct tax at source-No disallowance can be made-DTAA-India-Korea.[S.9(1)(vi), 195, Art. 12]
DCIT v. Doosan Power Systems India (P.) Ltd. (2025) 210 ITD 99 (Chennai) (Trib.)
S.37(1): Business expenditure-Club membership fees-Allowable as business expenditure.
DCIT v. ICICI Bank Ltd. (2025)210 ITD 643 (Mum) (Trib.)
S.37(1): Business expenditure-Consultancy fee-Future expansion-Allowable as business expenditure.
DBS Bank Ltd. v. DCIT (2025)210 ITD 448(Mum)(Trib.)
S.37(1): Business expenditure-Ad hoc disallowance-Supporting documents-Matter remanded back to the Assessing Officer.
3A Composites India (P.) Ltd. v. ACIT (2025) 210 ITD 272 (Mum) (Trib.)