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-Bank deposits-Addition as cash credits delted-Income estimates at 2% of total deposits.

PCIT v. Shitalben Saurabh Vora (2021) 133 taxmann.com 441 (Guj.)(HC) Editorial : Notice is issued in SLP filed by revenue; PCIT v. Shitalben Saurabh Vora. (2022) 285 Taxman 549 (SC)

S. 45(3) : Capital gains-Transfer of capital asset to firm-Firm-Partner-Tranfer at book value-Revaluation of asset by firm-Tranfer of land to partnership firm only agreed value agreed between partners at which asset is transferred by a partner to firm has to be considered-Addition cannot be made on notional basis. [S. 10(2A), 147, 148]

PCIT v. Orchid Griha Nirman Pvt. Ltd. (2022) 285 Taxman 368 (Cal.)(HC) Editorial : Order of ITAT, in ITO v. Orchid Nirman (P) (Ltd.) (2016) 161 ITD 818 (Kol.)(Trib.), affirmed.

S. 40(a)(ia) : Amounts not deductible-Deduction at source-Commission on sale oof lottery tickets-Amount transferred to retailers-Agents-No obligation to deduct tax while transferring incentives to retail vendors. [S. 194G, 194H]

PCIT v. Usha Murugan (2022) 285 Taxman 122 / 213 DTR 172 / 326 CTR 614 (Ker.)(HC)/PCIT v. Meenakshy Enterprises ( 2022) 285 Taxman 122/ 213 DTR 172/ 326 CTR 614 ( Ker)(HC)

S. 40(a)(ia) : Amounts not deductible-Deduction at source-PAN of transporrters are reported in form no 26Q-No disallowance can be made for failure to deduct tax at source-Discount to customers not rent-Failure to deduct tax at source-No disallowance can be made. [S. 194C(6), 194C(7), 194I Form No. 26Q]

PCIT v. Asian Mills (P.) Ltd. (2022) 285 Taxman 422 (Guj.)(HC)

S. 40(a)(ia) : Amounts not deductible-Deduction at source-Bank charges-Bank guarantee commission-Fee charged by bank-Not liable to deduct tax at source. [S. 194H]

CIT (TDS) v. ITD Cementation India Ltd. (2022) 285 Taxman 379 (Cal.)(HC)

S. 37(1) : Business expenditure-Provident fund, contribution to unrecognized provident funds-Allowable as deduction. [S. 36(1)(iv), 40A(9)]

CIT v. Tamilnadu Maritime Board(2021) 131 taxmann.com 250 (Mad.)(HC) Editorial : Notice issued in SLP filed against order of High Court, CIT v. Tamilnadu Maritime Board. (2022) 285 Taxman 283 (SC)

S. 37(1) : Business expenditure-Contractual liability-Expatriate cost-Matter remanded.

AMD Far East Ltd. v. Jt. DIT(IT) (2022) 285 Taxman 332 (Karn.)(HC)

S. 32 : Depreciation-Unabsorbed depreciation-Period of carry forward-In view of amended section 32(2) by Finance Act, 2001 with effect from 1-4-2002, unabsorbed depreciation of assessment year 1997-98 could be allowed to be carried forward and set-off after a period of 8 years. [S. 32(2)]

PCIT v. JCT Ltd. (2022) 285 Taxman 510 (Cal.)(HC)

S. 32 : Depreciation-Extraction and processing of iron ore amounts to production-Entitled for additional depreciation. [S. 32(1)(iia), 32A]

PCIT v. Dhansar Engineering Co. (P.) Ltd. (2022) 285 Taxman 404 (Cal.)(HC)

S. 32 : Depreciation-Generation of electricity-Entitled for additional depreciation. [S. 32(1)(iia)]

PCIT v. Damodar Valley Corporation (2022) 285 Taxman 236 (Cal.)(HC)