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-Search-Reference to DVO-DDIT (Inv)-DDIT did not have power to make reference to DVO-Power was acquired only on 1-4-2017 by virtue of Finance Act, 2017 under section 132(9B)-Order of Tribunal deleting the addition was affirmed. [S. 132, 132(9B)]

PCIT v. Narula Educational Trust (2023) 292 Taxman 456 (Cal.)(HC)

S. 68 : Cash credits-Failure to produce the farmers from whom the loan was taken-Direction of the Tribunal is not complied with-Order of Tribunal confirming the addition is affirmed. [S. 254((1), 260A]

Unideep Food Processing (P.) Ltd. v. ITAT (2023) 457 ITR 552 / 292 Taxman 213/ 331 CTR 345/ 223 DTR 485 (Orissa)(HC)

S. 68 : Cash credits-Share capital-Statement during search-Statement was retracted-Order of Tribunal deleting the addition was affirmed. [S. 132(4), 260A]

PCIT v. Golden Goenka Fincorp Ltd. (2023) 292 Taxman 159 (Cal.)(HC)

S. 68 : Cash credits-Loan for purchase of land-Explained the source-Remand report was obtained-Order of Tribunal deleting the addition is affirmed. [S. 133A, 260A]

PCIT v. Neotech Education Foundation (2023)458 ITR 150 / 292 Taxman 199 (Guj.)(HC)

S. 68 : Cash credits-Sale of shares-Capital gains-Penny stock-Finding of investigation wing-Exemption-Sham transaction-transactions were done through recognized stock exchange-There was no evidence that assessee had paid cash in return of receipt through cheque-Order of Tribunal deleting the addition was affirmed. [S. 10(38), 45, 69C]

PCIT v. Sandipkumar Parsottambhai Patel (2023) 457 ITR 368 / 292 Taxman 579 (Guj.)(HC) Editorial : Order of Tribunal in Sandipkumar Parsottambhai Patel v. ACIT (2022) 137 taxmann.com 373 (Surat)(Trib. (ITA Nos 8 &9 (STR) of 2019 dt.29-11-2021 is affirmed.

S. 45 : Capital gains-Memorandum of understanding dated 16-6-2007 agreeing to sell their shares-Substantial consideration was received-Share certificates were not delivered to transferees-Transfer of shares shall take place only after registration by Registrar of company-Order of Tribunal deleting the addition was affirmed. [Companies Act, 1956, S. 29]

PCIT v. Poornima Shailendra Babu (Smt.) (2023) 292 Taxman 340 / 335 CTR 208 (Karn.)(HC)/PCIT v. Shailendra Babu (2023) 292 Taxman 340 / 335 CTR 208 (Karn.)(HC)

S. 44AD : Presumptive basis-Civil construction-Best judgement-Books of account not audited-Estimation at 4% is held to be justified. [S. 44AB, 144]

CIT v. Srinivasan Devendran (2023) 292 Taxman 350 (Mad.)(HC)

S. 37(1) : Business expenditure-Legal entity-business of providing technological and personnel support to food processing and dairy industry-Deploy skillful personnel and after 7-7-2008-Expenditure allowable as revenue expenditure-Order of Tribunal is affirmed.

PCIT v. Danone (India) (P.) Ltd. (2023) 292 Taxman 585 [P & H (HC)]

S. 37(1) : Business expenditure-Electricity charges-Allowable as deduction.

CIT v. Tube Investments of India Ltd. (2023) 292 Taxman 465 (SC) CIT v. Tube Investments of India (P.) Ltd. (2023) 292 Taxman 546 (SC) Editorial : CIT v. Tube Investments of India Ltd (2022) 446 ITR 676/ 288 Taxman 524 (Mad)(HC)

S. 32 : Depreciation-Earth moving vehicles-Business of hire-Entitle depreciation at 30%. [S. 263]

CIT v. Bothra Shipping Services (2023) 292 Taxman 447 (Cal.)(HC)