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-Share application money-Withdrawal from capital account of partner-Onus discharged-Addition was deleted.

Chhattisgarh Metaliks & Alloys (P)Ltd. v. ITO (2022) 220 TTJ 99 / 219 DTR 18 (Raipur)(Trib)

S. 68 : Cash credits-Unsecured loan-Voluntarily disclosing Rs. 22 crores before Settlement Commission-Amount laundered and re-introduced in garb of unsecured loan through bank account of creditor-Interest expenditure not allowable. [S. 37(1), 131, 132(4)]

SCC Investments v. ITO (2022) 98 ITR 38 (SN) (Raipur)(Trib.)

S. 68 : Cash credits-Long-term capital gains-Penny stocks–Price of little known shares increasing 56 times in 28 months-Denial of exemption is affirmed.[S. 10(38) 45, 131]

Sarika A. Sanap v. ACIT (2022) 98 ITR 44 (SN) (Pune) (Trib)

S. 68 : Cash credits-Agricultural income-Failure to produce evidence-Agricultural income was estimated of Rs. 5 lakhs and balance addition of Rs. 48 lakhs was confirmed. [S. 10(1)]

Ranganath Salke v. Add. CIT (2022) 98 ITR 21 (SN) (Pune)(Trib)

S. 68 : Cash credits-Investors declaring meagre income or not filing returns-Investments made through banking channels not sufficient-Additions was confirmed.

Nuland Infrastructure (P.) Ltd. v. ITO (2022) 98 ITR 28 (SN)(Hyd) (Trib)

S. 68 : Cash credits-Unexplained investment-Partner-Reconciliation was filed-Deletion of addition is justified.

Dy. CIT v. R. Geetha (Smt.) (2022) 98 ITR 50 (SN)(Chennai) (Trib)

S. 68 : Cash credits-Firm-Partner-Cash reflected in the ledger account of the firm-Deletion of addition is justified.

Dy. CIT v. Arun Singhania (2022) 98 ITR 12 (SN) (Raipur)(Trib)

S. 68 : Cash credits-Share application money-Net worth of lending investor is sufficient to explain its creditworthiness-Addition is not sustainable.

Combined Merchants P. Ltd. v. ITO (2022) 98 ITR 26 (SN)(Kok) (Trib)

S. 68 : Cash credits-Gift from Mother-In-Law-Identity of donor established-Addition is held to be not valid.

Aarthi Rathi (Ms.) v. ITO(IT) (2022) 98 ITR 16 (SN)(Hyd) (Trib)

S. 68 : Cash credits-Unexplained investments-Limited scrutiny assessment-Telescoping-Peak-Cash deposits in bank greater than turnover-Scrutiny restricted to verify deposits-Jurisdiction not exceeded-Assessee failing to substantiate with documentary evidence-Cash deposit treated as unexplained-Bank entries showing deposits and withdrawals-Assessing Officer directed to give benefit of telescoping. [S. 69]

Sanjeet Kanwar (Smt.) v. ITO (2022) 98 ITR 12 (Amritsar)(Trib)