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-Cash deposited-Agricultural income-Addition is not valid. [S. 148]

P. Prabhu v. ACIT (2022) 197 ITD 821 (Chennai)(Trib.)

S. 68 : Cash credits-Limited scrutiny-Large investment in property-Wrong mention of the PAN-Addition for purchases as cash credits cannot be made. [S. 143(3)]

ITO v. Bhavin Mukeshbhai Patel. (2022) 197 ITD 751 (Ahd.) (Trib.)

S. 68 : Cash credits-Gift of jewellery from grandmother-Gift received in kind-No cash or cheque-Addition cannot be made as cash credits-Affidavit of grandmother was filed-No occasion for gift to be proved-Exempt from the provisions of section 56(2)(vii) of the Act. [S. 56 (2)(vii]

Jyoti R. Raut (Mrs.) v. DCIT (2022) 197 ITD 552 (Mum.)(Trib.)

S. 68 : Cash credits-Cash deposit-Matter remanded to the Assessing Officer to decide fresh.

Vardhman Shipping (P.) Ltd. v. (2022) 197 ITD 250 / 98 ITR 3 (SN) (Ahd.)(Trib.)

S. 56 : Income from other sources-Valuation of converted compulsory convertible preference shares (CCPS) into equity shares-Shares at premium-Matter remanded for readjudication. [S. 56(2)(viib), R. 11UA]

S.A. Metro Plots (P.) Ltd. v. ITO (2022) 197 ITD 816 (Chennai) (Trib.)

S. 56 : Income from other sources-Valuation of shares-Book value of liability shown in balance sheet has to be reduced for purpose of valuation and determination of FMV of unquoted equity shares. [Rule, 11UA]

ITO v. Mystical Infaratech (P.) Ltd. (2022) 197 ITD 794 (Mum.) (Trib.)

S. 56 : Income from other sources-Buying back of shares-Holding company-Capital redemption reserve-Addition cannot be made when the shares are brought back from holding company. [S. 56(2)(viia)]

VITP (P.) Ltd. v. DCIT (2022) 197 ITD 395 (Hyd.)(Trib.)

S. 54F : Capital gains-Investment in a residential house-Construction of building-Structure not fit for residential house-Constructed to exploit for the purpose of Hostel-Not eligible for exemption. [S. 45]

Gundala Sarvottam Rao v. ITO (2022) 197 ITD 374 (Hyd.)(Trib.)

S. 54F : Capital gains-Investment in a residential house-Owned two residential property-Denial of exemption is justified. [S. 45]

Atul Govindji Shroff v. DCIT (2022) 197 ITD 366 /(2023) 223 TTJ 512 (Ahd.)(Trib.)

S. 54F : Capital gains-Investment in a residential house-Exemption claimed under wrong section-Surrender of tenancy rights-Claimed exemption under section 54 instead of section 54F-Entitled to claim exemption under section 54F without filing revised return. [S. 45, 54, 139]

ITO v. Armine Hamied Khan (Mrs) (2022) 197 ITD 110 /2023) 221 TTJ 653/ 222 DTR 233 (Mum.)(Trib.)