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-Unsecured loan-Confirmation, financial statements and bank statements of creditors were produced-Addition is held to be not justified.

K.P. Manish Global Ingredients (P.) Ltd. v. (2021) 191 ITD 548 / 212 TTJ 375 / 203 DTR 1 /(2022) 96 ITR 657 (Chennai)(Trib.)

S. 68 : Cash credits-Bank account-Cash flow statement-Unexplained income-Peak credit-Directed to grant peak credit.

Renukaben Umedsinh Parmar (Smt.) v. ITO (2021) 191 ITD 672 / 87 ITR 707 (Surat)(Trib.)

S. 68 : Cash credits-Regular books of account maintained-Commission income cannot be assessed as unexplained cash credits. [S. 132]

Amitbhai Manubhai Kachadiya v. DCIT (2021) 191 ITD 759 (Surat) (Trib.)

S. 57 : Income from other sources-Deductions-Investment in firm-Dispute-Arbitral award-Interest was held to be allowable as deduction. [S. 56, 57(iii)]

Ashok Raitlal Miyani v. ITO (2021) 191 ITD 734 (SMC) (Mum.)(Trib.)

S. 56 : Income from other sources-Share premium-Business of trading-Discounted cash flow method (DCF)-Net asset value (NAV) method-Assessing Officer cannot adopt different method-Addition was deleted. [S. 56(2)(viib), Rule 11UA]

Town Essential (P.) Ltd. v. CIT (2021) 191 ITD 55 (Bang.) (Trib.)

S. 56 : Income from other sources-Share premium-Discounted Cash Flow (DCF)-Net valuation method (NAV)-Applicable in the assessment year 2013-14-Addition was set aside. [S. 56(2)(viib)]

UKN Hospitality (P.) Ltd. v. ITO (2021) 191 ITD 566 (Bang.)(Trib.)

S. 56 : Income from other sources-Purchase of immoveable property-Agreement value and stamp valuation was less than 10 per cent-Addition is held to be not justified-Amendment made in section 50C(1) by inserting third proviso by Finance Act, 2018, with effect from 1-4-2019 is curative in nature and same would apply retrospectively. [S. 50C(1), 56(2)(vii)(b)]

Joseph Mudaliar v. DCIT (2021) 191 ITD 719/ 214 TTJ 26/ 207 DTR 94 (Mum.)(Trib.)

S. 55A : Capital gains-Reference to valuation officer-Long term capital gains-Valuation as on 1-4-1981-Amendment to section 55A(a) inserted with effect from 1-7-2012 by Finance Act, 2012 providing for making reference by AO to DVO for determination of value of property sold by assessee was not applicable retrospectively. [S. 45, 50C, 55A(a)]

Virendra Natwarlal Jariwala v. DCIT (2021) 191 ITD 555 (Surat) (Trib.)

S. 54B : Capital gains-Land used for agricultural purposes-HUF-Ownership-Land registered in the name of co-parcener-Land purchased out of sale proceeds of sale of agricultural land of HUF-Exemption cannot be denied.[S. 45]

Babubhai Arjanbhai Kanani (HUF) v. DCIT (2021) 191 ITD 5 (Surat)(Trib.)

S. 54 : Capital gains-Profit on sale of property used for residence-Ownership of new property-New residential property was purchased in joint names of assessee, her daughter and son-Entitle to exemption. [S. 45]

ITO v. Rachna Arora (Smt.) (2021) 191 ITD 667 / 90 ITR 575 (Chd.)(Trib.)