This document lists recent legal landmarks from various tax authorities and courts. It summarizes 6 cases: 1) The Gujarat HC ruled that an AO cannot make an addition to income simply by disagreeing with the circle rate valuation for a property sale without examining evidence. 2) The Punjab and Haryana HC ruled that land within a specified distance of a municipality in Haryana was urban land for capital gains purposes. 3) The Mumbai ITAT ruled that loan repayments are an application of income, not diversion, so cannot be deducted from business income. 4) The Gujarat HC ruled that an assessee could claim a small-scale industry deduction for investment in plant and machinery

1. VOLUME NO.: LLAT/738 OF 2016-17 DATE: 29 April 2014
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Dear Client,
We have pleasure in listing below some of the recent legal landmarks.
SrNo Authority Section/Rules RATIO(S)
Citation /Subject CASE(NAME OF ASSESSEE)
1.1 GUJ HC 143 ITA
AO without examining about circle rates fixed by Sub-Registrar for purpose of stamp
duty valuation could not make addition to As income by merely taking a view that
shops were sold below their cost of construction.
1.2 40TM484 Assessment
Shanti Enterprise
2.1 P&H HC 2(14) 45 ITA
Since land was within specified distance from municipality in Haryana State though
land fell in Punjab land was urban land within meaning of section 2(14) and liable to
capital gains.
2.2 40TM485 Capital gain
Smt. Anjana Sehgal
3.1 MUM ITAT 4 28(i) 22 ITA
Loan repayment was application of income and not diversion of income therefore
such loan amount could be claimed neither as a deduction from business income nor
as revenue expenditure.
3.2 40TM486 Business income
Swan Energy Ltd
4.1 GUJ HC 80-IB ITA
As investment in plant and machinery after excluding cost of gas fire equipment did
not exceed Rs. one crore it was to be treated as small scale industry and therefore
claim for deduction was to be allowed.
4.2 40TM487 Deduction
Refoil Earth (P.) Ltd
5.1 DEL ITAT 154 143 ITA
Where A himself has committed any mistake in return of income same cannot be
rectified by AO under section 154.
5.2 40TM489 Rectification
Pawan Kumar Aggrawal
6.1 ALLBD HC 143 ITA
Assessment order passed under section 143(3) was invalid without serving notice to
A within stipulated period of time.
6.2 40TM490 Assessment
Pradeep Kumar Gupta