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. 69C : Unexplained expenditure-Ad-hoc addition of sundry creditors-20 percent of purchases-Discrepancies in balance sheet was reconciled-Addition is not valid. [S. 145]

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

S. 69A : Unexplained money-Hospital-Demonetization-Sale of medicine and cash in hand-Direction of commissioner to increase declared book profit by 4 per cent of total amount deposited by assessee-Addition is deleted. [S. 145.]

DCIT v. M.C. Hospital (2022) 197 ITD 706 (Chennai)(Trib.)

S. 69A : Unexplained money-Immoveable property-Survey Draft sale deed-Not signed-Application filed by developer before Settlement Commission admitting to have invested certain amount of unaccounted income was not provided for confrontation-Addition is deleted. [S. 133A, 148]

Rajvee Tractors (P.) Ltd. v. ACIT (2022) 98 ITR 459 / 197 ITD 442 / (2023) 222 TTJ 778/ 225 DTR 121 (Ahd.)(Trib.)

S. 69A : Unexplained money-Deposit-Sale proceeds of book and donation-Matter remanded for reverification. [S. 147, 148]

Central Institute of Higher Tibetan Studies v. ITO (2022) 197 ITD 310 / 98 ITR 29 (SN) (Varanasi)(Trib.)

S. 69 : Unexplained investments-Investment in purchase of house-Addition restricted to Rs. 1,81,700 only. [S. 144, 147, 148]

Anuradha Pandey v. ITO (2022) 197 ITD 168 (SMC) (Varanasi) (Trib.)

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.)