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. 50C : Capital gains-Full value of consideration-Stamp valuation-Option deposit-Option agreement for sale of twenty (20) flats in its residential project with its group entity-Addition on sale of those flats to third parties to sales value declared were unjustified. [S. 28(i)]

K. Raheja (P.) Ltd. v. DCIT (2022) 196 ITD 607 (Mum.)(Trib.)

S. 48 : Capital gains-Computation-Debentures of company-Bonus debentures-Reinvested-Reinvested out of dividend would be considered as cost of acquisition of debentures. [S. 2(22)]

JP Morgan Funds v. DCIT(IT) (2022) 196 ITD 114 / 219 TTJ 364 / 217 DTR 225 (Mum.)(Trib.)

S. 43B : Deductions on actual payment-Leave encashment-constitutional validity of section 43B(f) had been upheld by Supreme Court-Disallowance is up held. [S. 43B(f)]

Everest Industries Ltd. v. DCIT (2022) 196 ITD 563 (Mum.)(Trib.)

S. 43B : Deductions on actual payment-Business of micro-financing-Acquired loan from three banks-Interest was not paid before due date of filing of return-Disallowance is held to be justified. [S. 43B(e), 139(1)]

Spandana Sphoorty Financial Ltd. v. DCIT (2022) 196 ITD 217 / 217 TTJ 837 / 214 DTR 121 (Hyd.)(Trib.)

S. 41(1) : Profits chargeable to tax-Remission or cessation of trading liability-Sundry creditors-Burden is on Revenue-Order of CIT(A) is affirmed.

Infrastructure Logistics (P.) Ltd. v. JCIT (2022) 196 ITD 153/(2023) 223 TTJ 341 (Panaji)(Trib.)

S. 41(1) : Profits chargeable to tax-Remission or cessation of trading liability-Hived off its hire purchase and leasing business to a special purpose vehicle (SPV)-Assigned corresponding receivables together with bank liabilities to SPV at book-Liable to repay-Not chargeable to tax-Bank claimed as bad debt-No outstanding due from Bank in the books of account-Addition cannot be made. [S. 145]

India Cements Capital Ltd. v. ACIT (2022) 196 ITD 127 / 220 TTJ 990 / (2023) 221 DTR 28 (Chennai)(Trib.)

S. 40A(3) : Expenses or payments not deductible-Cash payments exceeding prescribed limits-Civil contractor-Material purchase and labour payments-Payment in excess of Rs. 20,000-Failure to prove exception-Disallowance is justified. [S. 263, R. 6DD]

ACIT v. Bajrang Bahadur Singh (2022) 196 ITD 686 / 220 TTJ 19 (UO) (Varanasi)(Trib.)

S. 40A(2) : Expenses or payments not deductible-Excessive or unreasonable-Addition was deleted by CIT(A) in earlier year-Revenue has not challenged the order of earlier year-Addition was deleted. [S. 254(1)

Niche Health Options (P.) Ltd. v. (2022) 196 ITD 6 (Mum.)(Trib.)

S. 40(a)(ia) : Amounts not deductible-Deduction at source-Contribution to Turf Authorities of India for conducting an event-Meet expenditure-Not liable to deduct tax at source-Subsidies to promote horse racing-Failure to mention which section of TDS provision is applicable-Addition was deleted.

Mysore Race Club Ltd. v. ACIT (2022) 196 ITD 140 (Bang.)(Trib.)

S. 40(a)(i) : Amounts not deductible-Deduction at source-Non-resident-Advertisement services-Payment to Irish company-No Permanent Establishment in India-Not liable to deduct tax at source-DTAA-India-Irish. [S. 9(1)(i), 195, Art. 7]

ACIT v. Lenskart Solution (P.) Ltd. (2022) 196 ITD 297 (Delhi) (Trib.)