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, and other journals
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S. 69A : Unexplained money-Cash gifts-Weddings, Raksha Bandhan, Birthdays and Deepawali-Failure to produce supporting documents-Addition is justified-Pending assessment-The time for summary assessment under section 143(1) and for notice under section 143(2) of the Act had not lapsed, it was a case of pending assessment, which got merged with assessment under section 153A. [S.153A]

Karina Kunjana Kapoor (Smt.) v. Dy. CIT (2023)102 ITR 82 (SN)(Delhi) (Trib)

S. 69: Unexplained investments-Difference in Cost of Construction as per valuation Report-Books of account not rejected-Addition is not justified. [S. 142A(2)]

ITO v. Pritham & Prathik Hospitals (P) Ltd (2023) 221 TTJ 911/223 DTR 177 (Hyd)(Trib)

S. 68: Cash credits-Bogus purchases-Addition is justified-Not responded to summons-All goods purchased are returned. [S.44AB, 133(6)

ITO v. Solid Machinery Co. (P) Ltd. (2023) 221 TTJ 1006 / 143 293 (Mum) (Trib)

S.68 : Cash credits-Survey-Loose documents found in Survey-genuineness of share capital subscribers-Assessee must establish creditworthiness of subscribers. [S.133A]

ITO v. Pritham and Prathik Hospitals Pvt. Limited(2023) 221 TTJ 911/ 223 DTR 177 (Hyd)(Trib)

S.68: Cash credits-Demonetization-Sales-The treatment of cash deposit in the bank account during demonetization period as unexplained cash credit was not justifiable because the said amount was in the nature of cash sales duly recorded in audited books of accounts and such sales were made out of stock-in-trade and cash sales were duly supported by relevant bills. [S.115BBE, 143(3)]

ACIT v. Chandra Surana (2023) 221 TTJ 515/104 ITR 503 (Jaipur)(Trib)

S.68: Cash credits-Search and seizure-Addition is justified.[S.132, 153A]

ACIT v. Sunshine Infraestate (P). Ltd (2022) 139 60/(2023) 221 TTJ 919 (All) (Trib)

S. 56 : Income from other sources-Purchase of shares for consideration less than market value-Buy-Back of shares-Reduction of share capital-Does not amount to purchase or acquisition of any property-Addition is not justified.[S. 2(22)(d), 56(2)(viia), 115-O, R.11UA]

Dy. CIT v. Venture Lighting India Ltd(2022) 195 ITD 109/ (2023)102 ITR 354 (Chennai)(Trib)

S.54B: : Capital gains-Land used for agricultural purposes-AO made addition as per unexplained cash deposits-Deduction not available-Cash deposit in bank-Addition is justified.[S.45, 69]

Popat Manaji Rahinj (Through Legal Heir Mr. Datta Popat Rahinj) v. ITO (2023) 151 257 /221 DTR 433 (Pune) (Trib)

S. 50C : Capital gains-Full value of consideration-Stamp valuation-Reference to DVO-Assessing Officer ought to have referred the matter to the district valuation officer to get the market value of the property, applying a circle rate meant for commercial property-Addition deleted. [S.55A]

Rajesh Kumar Gupta v. ACIT (2023) 102 ITR 259 (Chd.)(Trib)

S.45: Capital gains-Business income-If during preceding years, returned income had been accepted as assessed income without reclassification of income then during the previous year under consideration income by way of capital gains cannot be reclassified into business income. [S.28(i)]

ACIT v. Chandravadan Desai (2023) 221 TTJ 658/221 DTR 359 (Kol) (Trib)