Year: 2019

Archive for 2019


PCIT v. Tulip Hospitality Service Ltd. (2019) 261 Taxman 16/( 2019) 411 ITR 595 (Bom.)(HC)

S. 28(i) : Business income–Royalty-Addition cannot be made in respect of which no services were rendered.

PCIT v. Caraf Builders & Constructions (P.) Ltd. (2019) 261 Taxman 47 (Delhi) (HC)

S. 14A : Disallowance of expenditure-Exempt income-Disallowance cannot exceed exempt income of relevant year- Instead of taking into account total investment, investment attributable to dividend was required to be adopted an thereafter disallowance was to be arrived. [R. 8D]

CIT(E) v. Audyogik Shikshan Mandal (2019) 261 Taxman 12 (Bom.)(HC) Editorial : Audyogik Shikshan Mandal v. ITO (2015) 156 ITD 1 (TM) (Pune)(Trib.) is affirmed.

S. 13 : Denial of exemption-Trust or institution-Investment restrictions – Funds utilised for purchase of car in name of its trustee-Denial of exemption should be limited only to amount which was diverted in violation of S. 13(2)(b) of the Act. [S. 11, 132 (2)(b)]

CIT v. Earnet India ( 2019) 101 taxmnn.com 59 / 260 Taxman 245 (Delhi)(HC) Editorial: SLP is granted to the revenue, CIT v. Earnet India (2019) 260 Taxman 244 (SC)

S. 12AA : Procedure for registration –Trust or institution- Advance the computer communication in India with a view to promote rapid national wide development of sector and to promote the technological growth of the country by holding video conferencing facilities, conferences work shop etc, is charitable in nature – Entitle to registration. [S. 2 (15), 11]

CIT v. Bholaram Education Society ( 2018) 100 taxmann.com 508 / (2019) 260 Taxman 369 (Guj.) (HC) Editorial : SLP of revenue is dismissed CIT v. Bholaram Education Society (2019) 260 Taxman 368 (SC)

S. 11 : Property held for charitable purposes-Rent paid to trustees for using land and building–Fair market value-Rent paid to Trustees was not excessive considering the fair market value of the property – Exemption could not be denied. [S. 12, 13(3)]

CIT v. Bharat Hotels Ltd ( 2019) 410 ITR 417 ( Delhi) (HC)

S. 43B : Deductions on actual payment – Employees Sate Insurance and provident fund dues paid beyond prescribed period – Not allowable as deduction .[ S.2 (24)(x), 36 (1)(va) ]

CIT v. Bharat Hotels Ltd ( 2019) 410 ITR 417 (Delhi) (HC)

S. 36(1)(iii) :Interest on borrowed capital – Capital or revenue -Prior to 2003 ,interest on capital borrowed for the purpose of capital expenditure is deductible .[ S.37(1)]

CIT v. Bharat Hotels Ltd ( 2019) 410 ITR 417 (Delhi) (HC)

S. 2(22)(e):Deemed dividend- Share holder – Substantial business is money lending – Loan not assessable as deemed dividend .

Srinidhi Karti Chidambaram & Ors v. PCIT ( 2018) 172 DTR 113 /305 CTR 689 /( 2019) 411 ITR 1( Mad) (HC)

Interpretation of taxing statues – Literal interpreatations- Black Money (Undisclosed Foreign Income and Assets ) and Imposition of tax Act , 2015 .

State Bank of India v. ACIT (2019) 174 ITD 551/ 197 TTJ 989 (Jaipur)(Trib.)

S. 271C : Penalty-Failure to deduct at source-leave travel concession- Foreign travel–Bona fide belief that there was no bar on travel to a foreign destination during course of travel to a place in India -Levy of penalty is held to be not justified. [S. 10(5), 192, 273B]