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. 43CA : Transfer of assets-other than capital assets-Full value of consideration-stock in trade-Agreement value-Stamp valuation-First proviso to section 43CA inserted by Finance Act, 2020 with effect from 1-4-2021 is applicable retrospectively-Difference recorded between sale value of flats sold by assessee and stamp value of such flats was within 10 per cent margin-Addition is deleted. [S.50C]

Sai Bhargavanath Infra v. ACIT (2022) 197 ITD 496 (Pune) (Trib.)

S. 43B : Deductions on actual payment-Developer-External Development Charges-External Development Charges (EDC) to HUDA authority-Not a tax/duty/cess/fee, hence, does not attract provisions of section 43B-Allowable as deduction [S. 37(1), 145]

Vipul Ltd. v. DCIT (2022) 197 ITD 556 (Delhi)(Trib.)

S. 43B : Deductions on actual payment-GST liability-Directly shown in balance sheet-Failure to pay before filing of return u/s. 139(1)-Disallowance is justified. [S. 139(1), 145A]

Husna Parveen (Smt.) v. CIT (2022) 197 ITD 134 (Varanasi) (Trib.)

S. 43(5) : Speculative transaction-Derivative transactions-Futures and options transactions in recognized stock exchange through SEBI registered share broker-Loss allowable as business loss. [S. 43(5)(d), 73]

DCIT v. Blue Berry Trading Co. (P.) Ltd. (2022) 197 ITD 401 (Mum.)(Trib.)

S. 40A(3) : Expenses or payments not deductible-Cash payments exceeding prescribed limits-Wrongly shown by tax auditor in the report-Expenditure was not claimed as deduction-Addition is not valid. [S. 28(i)]

DCIT v. AYG Realty Ltd. (2022) 197 ITD 448 (Mum.)(Trib.)

S. 40(a)(ii) : Amounts not deductible-Rates or tax-Education cess is not allowable as deduction. [S. 37 (1)]

Cypress Semiconductor Technology India (P.) Ltd. v. DCIT (2022) 197 ITD 31 (Bang.)(Trib.)

S. 40(a)(ia) : Amounts not deductible-Deduction at source-Contractors/sub-contractors-Payments to Making charges-Manufacturing of gold and silver jewellery-Wastage left with goldsmiths-Not liable to deduct tax at source. [S. 194C]

P. R. Gold and Silver Craft v. PCIT (2022) 197 ITD 672 / (2023) 102 ITR 362 (Chennai)(Trib.)

S. 40(a)(ia) : Amounts not deductible-Deduction at source-Rent paid to various parties-Less than Rs. 1,20,000 to each party-Remanded to the Assessing Officer for verification. [S. 194I]

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

S. 40(a)(i) : Amounts not deductible-Deduction at source-Non-resident-Legal services-Matter remanded-DTAA-India-UK. [S. 9(1)(i), 9(1)(vii), 195, Art. 7]

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

S. 37(1) : Business expenditure-Amount paid to Life Insurance Corporation of India by a company-Group gratuity scheme-Not approved by Commissioner-Allowable as deduction.

Kwality Zippers (P.) Ltd. v. DCIT (2022) 197 ITD 762 (Luck) (Trib.)