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. 64 : Clubbing of income – Spouse – Rent paid to wife – Investment in the House property by wife from her own source and loan from Bank – Source of fund established clubbing provision do not apply – There is no legal bar for paying house rent to wife [ S. 10(13A), 24, 64(1)(ii) ]
Abhay Kumar Mittal v.DCIT ( 2022) BCAJ- April – P. 31 ( Delhi)( Trib)
S. 56 : Income from other sources – Flat booked under construction was not constructed – Alternative flat was allotted in another building which was under construction- Difference between stamp duty value of the alternative flat and the consideration is not chargeable to tax u/s 56(2)(vii ) of the Act . [ S. 2(27), 54, 56(2)(vii) ]
ITO v. Sanika Avadhoot (Mrs ) ( 2022) BCAJ -August -P. 66 ( Mum)( Trib)
S. 56 : Income from other sources – Joint venture agreement – Shares issued to resident venture and non- resident venture at a differential price – DCF method – Valuation given by expert cannot be rejected – Addition is not valid [ S. 56(2)(viib) , R.11UA ]
DCIT v. Mais India Medical Devices (P)( Ltd ( 2022) 195 ITD 94 ( Delhi ) ( Trib)
S. 56 : Income from other sources -Bonus shares – Provisions of section 56(2)(vii)(c) were not applicable to bonus shares [ S. 56(2)(vii)( c) ]
JCIT v. Bhanu Chopra (2022) 140 taxmann.com 194 (Delhi) ( Trib)
S. 56 : Income from other sources – Advance received for purchase of property – Cannot be held as without consideration – Deletion of addition is held to be justified [ S. 56(2)(vi) , 68 ]
ITO v. Hajeebu Venkata Seeta ( 2022) BCAJ – March -P. 39( Hyd )( Trib)
S. 54 : Capital gains – Profit on sale of property used for residence – Date of possession should be taken as the date of purchase and not the date of registration [ S. 45 ]
Raj Easow v.ITO ( 2022)) BCAJ – April – P. 30 ( Mum) ( Trib)
S.43CA: Transfer of assets- other than capital assets- Full value of consideration- stock in trade-Agreement value – Stamp valuation – Allotment letter – Where allotment letters are issued and part payments are received prior to Ist April , 2013 – Provision of section 43CA does not apply – Difference less than 5% – Provision does not apply . [ S.50C ]
Spenta Enterprises v .PCIT ( 2022) BCAJ -March – P. 39 (Mum)( Trib)
S. 32 : Depreciation -Non- compete fee – Intangible assets – Right in personam and not right in rem – Not entitle to depreciation [ S. 32(1)(ii) ]
Sagar Ratna Restaurants Pvt Ltd v . ACIT ( 2022)( 2022) 195 ITD 88 ( Delhi)( Trib)
S. 32 : Depreciation -Non- compete fee – Intangible assets – Right in personam and not right in rem – Not entitle to depreciation [ S. 32(1)(ii) ]
Sagar Ratna Restaurants Pvt Ltd v . ACIT ( 2022) 195 ITD 88 / BCAJ – July -P. 79 ( Delhi)( Trib)
S. 24 : Income from house property – Deductions – Rent of furniture and fixtures etc- 30% deduction allowable as deduction- Reimbursement of member’s share of contribution for repairing the entire society building is held to be not taxable as it has no income element . [ S.4, 22, 24(a)]
Lewis Family Trust v.ITO ( 2022) BCAJ- February -P. 39 ( Mum)( Trib)