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. 56 : Income from other sources-Purchase of property for consideration less than stamp duty value-Agreement executed on 31-3-2013-Addition is not valid. [S. 56(2)(vii)(b)(ii)]

Rajib Rathindra Saha v. ITO (IT) (2022)95 ITR 216 (Mum) (Trib)

S. 56 : Income from other sources-Purchase consideration and stamp valuation-Remand report-Deletion of addition is held to be justified. [S. 56(2) (vii)(b)]

ITO v. Hiteshbhai Bhikhabhai Sutariya (2022) 96 ITR 57 (SN) (Surat) (Trib.)

S. 56 : Income from other sources-Interest on enhanced compensation for compulsory acquisition of land-Method of accounting-Taxable in year of receipt irrespective of system of accounts followed-Considering hardship 50 Per Cent. deduction allowed [S. 56(2)(viii), 57(iv), 145A]

Gunwant Kaur v. CIT (2022) 96 ITR 21 (SN) (Amritsar) (Trib)

S. 56 : Income from other sources-Shares issued-Non-Resident-Provision is not applicable. [S. 2(24)(xvi), 56(2)(viib)]

Raw Pressery (P) Ltd. (2022) 220 TTJ 26 / 143 taxmann.com 158 (Mum)(Trib)

S. 56 : Income from other sources-Issues of shares in excess of fair market value-Consideration received by Venture Capital Undertaking-Exception-Conditions prescribed satisfied-Premium of issue of shares not taxable. [S. 10(23FB), 56(2)(Viib), Securities and Exchange Board of India (Venture Capital Funds) Regulations, 1996, S. 2(n)].

Bigfoot Retail Solution Pvt. Ltd v. ACIT (2022)97 ITR 73 (SN) (Delhi) (Trib)

S. 56 : Income from other sources-Share premium-The additional shares of the assessee-company were issued and allotted on a pro rata basis to the existing shareholders-Addition is not justified. [S. 56(2)(viib)]

Chhattisgarh Metaliks & Alloys (P)Ltd. v. ITO (2022) 220 TTJ 99 / 219 DTR 18 (Raipur)(Trib)

S. 56 : Income from other sources-Purchase of land for consideration less than value adopted for stamp value-Details not produced-Addition is confirmed. [S. 56(2)(vii)(b)]

Pavan Anil Bakeri v. Dy. CIT (2022) 98 ITR 71 (SN)(Ahd) (Trib)

S. 56 : Income from other sources-Purchase of land-less than stamp duty value-Not producing details of share-Difference between stamp duty and purchase value rightly added to income. [S. 56 (2)(vii)(b)]

Pavan Anil Bakeri v. Dy. CIT (2022)98 ITR 71 (SN) (Ahd) (Trib)

S. 55 : Capital gains-Cost of improvement-Cost of acquisition-FMV as on 1-4-1981-Land situated in more appropriate location as compared to sale instance considered by DVO-FMV at Rs 607 per square meter for indexed cost of acquisition.[S. 45]

Dharmendra B. Patel v. Dy. CIT (2022)98 ITR 268 (Surat) (Trib)

S. 54F : Capital gains-Investment in a residential house-Sale of agricultural land and two flats-Purchase of plot for construction-Not entitle to exemption. [S. 45]

Bhag Chand Jain Through L/R Vikrant Kumar Jam v. Dy. CIT (2022) 220 DTR 129 / 220 TTJ 1139 / (2023)199 ITD 241 / 147 taxmann.com 170 (Jabalpur)(Trib)