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-Income from undisclosed sources-Notice returned unserved with the remarks “Not found” or “Left”-Payments were though account payee cheques-tax was deducted at source-Addition is not justified. [S. 133(6)]

Dy. CIT v. Global Wool Alliance Pvt. Ltd. (2022)100 ITR 12 (SN) (Kol.) (Trib.)

S. 68 : Cash credits-Share capital-Share premium-Deletion of addition is affirmed.

Dy. CIT v. BDR Builders & Developers (P) Ltd. (2022) 220 TTJ 921 / (2023) 221 DTR 394/199 ITD 757 (Delhi)(Trib)

S. 68 : Cash Credits-Cash deposit into bank account-Demonetization period-Source explained-Advance from customers-Sales bills raised-Recorded in the books of account-Books of account not rejected-Addition was deleted. [S. 145]

R.S. Diamonds v. ACIT (2022) 98 ITR 505 /(2023) 198 ITD 344 (SMC) (Mum.)(Trib.)

S. 68 : Cash credits-Capital gains-Penny stock-Accommodation entries-Information from Investigation wing of Kolkata-Global securities Ltd-STT paid-Shares acquired through private placement mechanism-Shares sold through the registered broker of the stock exchange-Denial of exemption is not valid-Addition cannot be made as cash credit-Reassessment was quashed. [S. 10(38), 45, 69C, 133A 147, 148]

Muktaben Nishantbhai Patel (Smt) v. ITO (2022) 217 TTJ 895 / 214 DTR 209 (Surat)(Trib) Nishant Kantilal Patel v. ITO (2022) 217 TTJ 895 / 214 DTR 209 (Surat)(Trib)

S. 68 : Cash credits-Unexplained income-Commission agent-Explanation provided by assessee and agent valid-Addition was deleted.

Sunil Kanhaiyalal Gidwani v. ACIT (2022) 216 TTJ 54 (UO) / 140 taxmann.com 21 (SMC) (Pune)(Trib)

S. 68 : Cash credits-Share capital-Share premium-Burden discharged-Addition was deleted. [S. 10(38), 45]

ACIT v. Enrich Agro Food Products (P.) Ltd. (2022)217 TTJ 815/214 DTR 147/ 141 taxmann.com 309 (Delhi)(Trib.)

S. 68 : Cash credits-Capital gains-long term capital gains-Bogus long-term capital gains leads to tax evasion and is prohibited-Ex parte order Addition confirmed as cash credits. [S. 10(38), 45]

Dineshkumar R. Tulsyan (HUF) v. ITO (2022) 220 TTJ 1094 (Pune)(Trib) Sumanadevi D. Tulsyan (Smt) v. ITO (2022) 220 TTJ 1094 (Pune)(Trib) Editorial : Appeals pending for admission before Bombay High Court. Dineshkumar R. Tulsyan (HUF) v. ITO (Lodging No. ITAXAl/ 13980 /2023 dt. 23-5-2023), Sumanadevi D. Tulsyan (Smt) v. ITO (Lodging No. ITAXAl/ 13974/2023 dt. 23-5-2023)

S. 68 : Cash credits-Capital gains-long term capital gains-Penny stock-Documentary evidence furnished-Copies of contract notes, DEMAT account-Onus discharged-Addition was deleted-Exemption was allowed. [S. 10(38), 45]

Jatinder Kumar Jain v. ITO (2022) 97 ITR 403 (Chd.)(Trib.)

S. 68 : Cash credits-Unsecured Loan-Sister concern-Addition was not valid.

Rajhans Construction (P)Ltd. v. ACIT (2022) 216 TTJ 59 (UO) / 140 taxmann.com 370 (Surat)(Trib)

S. 68 : Cash credits-Trade advance-Outstanding for more than three years-Classified as unsecured loan-Confirmation/ledger extract from creditor filed-Creditor was active company as per MCA website-Unsecured loan offered to tax u/s. 41(1) in subsequent year-Same loan cannot be treated as income for impugned year. [S. 41(1)]

Popular Foundations (P) Ltd. v. ACIT (2022) 209 DTR 18 / 215 TTJ 260 (Chennai)(Trib)