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-Income from undisclosed source-claim that cash deposited was out of cash withdrawals-No document to substantiate claim-Link not established-Addition is justified.

Zakir Ali Yarbali Khan v. ITO (2023)101 ITR 35 (SN)(Mum) (Trib)

S. 68 : Cash credits-Burden of proof-Share Application money and share premium-Availability of sufficient funds-Statements of directors recorded, confirmed decision of the board to invest in assessee-Burden of proof of assessee to prove identity and creditworthiness discharged-AO is not making any inquiry or finding any discrepancy in evidence-Proviso requiring assessee to prove source of credits not applicable-Additions is not justified.

Toplink Developers Consultancy Pvt. Ltd. v.ITO (2023)101 ITR 24 (SN) (Kol.)(Trib.)

S. 68 : Cash credits-On money received for sale of units in housing projects-Improbable to make profits upto 50%-properties sold not high end-On money element added at 50% of booked price very high-Additions to be restricted to 15%.-Order to be not treated as precedent.

Padmavati Housing Corporation v. Dy. CIT (2023)101 ITR 62 (SN) (Ahd) (Trib)

S. 68 : Cash credits-Burden of proof-Receipts of sums of deposits, receipts of sums refunded furnished by the assessee-Details not untrue-Burden discharged-Addition is not justified. [S.292C]

Godwin Construction Pvt. Ltd. v. ACIT (2023)101 ITR 74 (SN) (Delhi) (Trib)

S. 57 : Income from other sources-Deductions-Purchase of land for construction of hotel building-Capitalisation of project and preoperative expenses pending-FDs receipts purchased for letter of credit and bank guarantees given to various suppliers-Interest income not income from other sources-AO to consider interest as part of capital receipt and to be deducted from cost of project. [S. 56, 57(ii)]

Vatika Hotels P. Ltd. v. Asst. CIT (2023)101 ITR 21/199 ITD 741 (Delhi) (Trib)

S. 57 : Income from other sources-Deductions-Premature encashment of Fixed Deposit-Loss on interest-No expenditure incurred to earn interest income-Deduction disallowed-No evidence that loan taken from third party with whom deposit placed had connection with earning of any interest.[S. 56, 57(iii)]

Jatinder Kumar Suri v. Dy. CIT (IT) (2023)101 ITR 47 (SN) (Delhi) (Trib)

S. 55A : Capital gains-Reference to Valuation Officer-Calculation without referring to D.V.O.-On the basis of own assumption-Ought to have referred to D.V.O.-Order set aside-Matter remanded and referred to D.V.O. for considering cost of acquisition. [S.55(2) (b)]

Savitri Devi (Smt.) v. ITO (2023)101 ITR 34 (Amritsar) (Trib)

S. 54F : Capital gains-Investment in a residential house-Exemption-Sale of immoveable property and purchase of a residential house-Harmonious construction-Proviso cannot be construe to defeat intent-Restriction on ownership-Houses outside of India cannot be considered.[S. 45]

Maries Joseph (Smt.) v. Dy. CIT (IT) (2023)101 ITR 629//199 ITD 631 / 221 TTJ 607 (Cochin) (Trib)

S. 54B : Capital gains-Land used for agricultural purposes-Land sold for residential purposes as per sale deed-Land recorded as agricultural land as per revenue record-Assessee, not applied for change of land-AO failed to enquire whole land in survey number converted to non-agricultural purpose or land falling to share of assessee-CIT(A) is directed to allow additional evidence-Matter Remanded. [S. 2(14) (iii), R. 46A]

Vipin Kumar v. ITO (2023)101 ITR 68 (SN) (Delhi)(Trib)

S. 50C : Capital gains-Full value of consideration-Stamp valuation-Reference to D.V.O.-Value in report of D.V.O. lower-Report submitted after assessment order-CIT(A) ought to have considered the value of the report. [S. 45, 48]

Puran Pradhan v. ITO (2023)101 ITR 266 (Kol.)(Trib.)