Year: 2019

Archive for 2019


PCIT v. GVK Jaipur Expressway Ltd. (2018) 100 taxmann.com 95 / 259 Taxman 430 (Raj.)(HC) Editorial: SLP of revenue is dismissed; PCIT v. GVK Jaipur Expressway Ltd. (2018) 259 Taxman 429 (SC)

S. 32 : Depreciation–Public roads treated as building and allowed depreciation-Optical fibres used exclusively for computer configuration were part of computer system and thus eligible for higher rate of depreciation.

PCIT v. E City Real Estate (P.) Ltd. (2018) 100 taxman 93 / 259 Taxman 410 (Bom.)(HC) Editorial : SLP is granted to the revenue ;PCIT v. E City Real Estate (P.) Ltd. (2018) 259 Taxman 409 (SC)

S. 28(i) : Business income-Income from house property- Construction of shopping malls-Commercially exploit property by way of complex commercial activities and, it was not a case of letting out property simplicitor-Rental income is assessable as business income. [S. 22]

PCIT v. International Biotech Park Ltd. (2018) 259 Taxman 14 (Bom.)(HC)

S. 28(i) : Business income–Sub lease of property–Assessable as business income and not as income for other sources. [S. 56]

CIT (E) v. Ambala Public Educational Society (2018) 259 Taxman 575 (P&H)(HC) Editorial: SLP of revenue is dismissed CIT (E) v. Ambala Public Educational Society ( 2020) 269 Taxman 200 (SC)

S. 12A : Registration–Trust or institution-Registration cannot be denied merely on ground that secretary of society was getting lease rent for land given to society for running school or his wife who had requisite qualification was teaching in school and was being paid salary. [S. 13]

Sri Sai Educational Trust v. CIT(E) (2019) 259 Taxman 472 (Mad.)(HC)

S. 10(23C) : Educational institution–Mere spending a meagre amount, out of total income derived by trust, towards distribution of clothes to relatives of students-Exemption cannot be denied. [S.10(23C)(iiiad), 12A, 12AA]

DIT(IT) v. Board of Control for Cricket in Sri Lanka (2018) 259 Taxman 6 (Cal.)(HC)

S. 9(1)(i) : Income deemed to accrue or arise in India-Business connection–Representative assessee-Representative assessee not only represents an income which has directly arisen or accrued in India but also that which has indirectly arisen or accrued in this country, through a business connection-International Cricket Council chose India, Pakistan and Sri Lanka to co-host World Cup 1996 – Order of Tribunal is seta side. [S. 5(1), (5(2), 160, 161, 163, 194E, 201(1)]

DIT v. TVS Motors Co. Ltd. (2018) 259 Taxman 140/ ( 2019) 176 DTR 137/ 417 ITR 607/ 308 CTR 143 (Mad.)(HC)

S. 9(1)(i) : Income deemed to accrue or arise in India-Business connection–development of Basic engine-design a new 3 valve cylinder head for improvement of fuel efficiency, performance and meeting Indian emission standard–Payment is not royalty -DTAA-India–Australia. [S.9(1)(vi), Art. 6(2)]

National Insurance Company Ltd. v. Indra Devi (2018) 259 Taxman 579 (HP)(HC)

S. 4 : Charge of income-tax–Capital or revenue-Compensation awarded under Motor Vehicles Act or Employees’ Compensation Act in lieu of death of a person or bodily injury suffered in a vehicular accident, is a damage and not an income and cannot be treated as taxable income- Not liable to deduct tax at source on compensation and interest accrued thereon. [S. 194A]

The Chamber of Tax Consultants v. CBDT ( Bom)(HC), www.itatonline.org

S. 251 : Appeal – Commissioner (Appeals) – Power of enhancement – Action plan -The CBDT should reconsider the direction in the Central Action Plan of offering incentives to Commissioner (Appeals) to enhance assessments and levy penalty- From the action plan, it is not clear as to the utility of the norms set which the Commissioner (Appeals) has to achieve- If the purpose of setting of norms is to evaluate the performance of the Commissioner (Appeals) there would be all the more reason why the above quoted portion of the action plan be reconsidered by the CBDT.[ S.119 , 250 ]

Kannammal (Mrs.) v. ITO ( 2019) 413 ITR 390/ 263 Taxman 309 / 178 DTR 321/ 311 CTR 361(Mad)(HC), www.itatonline.org Jayanthi Seeman v. PCIT ( 2019) 413 ITR 390 (Mad)(HC), www.itatonline.org

S. 226 : Collection and recovery Stay of demand- The CBDT’s Circulars & Instructions are in the nature of guidelines & cannot substitute or override the basic tenets – The AO is required to assist a taxpayer in every reasonable way-.Even if the assessee has not specifically invoked the three parameters for grant of stay, it is incumbent upon the AO to do so & pass a speaking order.[ S.220(3) , 220 (6) ]