Author: ksalegal

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CIT v. Essar Teleholdings Ltd ( 2018) 401 ITR 445 / 162 DTR 225/ 300 CTR 561 / 253 Taxman 321 (SC) Editorial: CIT v. Firestone International P. LTD. ( 2015) 378 TR 558 ( Bom) (HC ) and CIT v. Essar Teleholdings Ltd ( Bom) (HC) is affirmed

S. 14A : Disallowance of expenditure – Exempt income –Rule 8D cannot be held to be applicable retrospectively and cannot be applicable to pending assessments [ R.8D ]

Maxopp Investment Ltd. v. CIT ( 2018) 402 ITR 640/ 164 DTR 1 /254 Taxman 325 (SC) PCIT v. State Bank of Patiala ( 2018) 402 ITR 640/ 164 DTR 1/254 Taxman 325 (SC) Editorial: Maxopp Investment Ltd v CIT ( 2012) 347 ITR 272 ( Delhi) (HC) is affirmed , Decision of special Bench in ITO v. Daga Capital Management ( 2009) 312 ITR (AT) 1 ( Mum) (SB) is referred

S. 14A : Disallowance of expenditure – Exempt income – Stock in trade – Controlling interest – Principle of apportionment-Only that expenditure which is “in relation to” earning dividends can be disallowed- AO has to record proper satisfaction on why the claim of the assessee as to the quantum of suo moto disallowance is not correct . [ R.8D ]

IIM Foundation v.ADIT (E) (2018) 61 ITR 186 (Delhi) (Trib)

S. 13 : Denial of exemption-Trust or institution-Investment restrictions -High rate of profit margin- Hefty salary to related trustees, scholarship in foreign currency , use of luxury cars without maintaining the log book , denial of exemption was held to be justified – Donation to another trust was held to be application of income [ S. (2(15) , 11, 12, 13 ]

Winsome Foundation v. CIT (2018) 168 ITD 575/ 192 TTJ 756/ 164 DTR 241 (Chd) (Trib.)

S. 12AA : Procedure for registration –Trust or institution-Application of income – Funds were diverted to non charitable purposes hence cancellation of registration was held to be valid [ S.11, 12A ]

Trisha Welfare Society. v. CIT (E) (2018) 168 ITD 207 (Agra) (Trib.)

S. 12AA : Procedure for registration –Trust or institution- Impart education in the field of nursing is entitle to registration [ S .2(15) ]

Orissa Cricket Association v. CIT (2018) 61 ITR 675 (Ctk) (Trib)

S.12AA: Procedure for registration- Trust or institution Promotion of State Cricket – Entitle to registration [ S.2(15) , 12A ]

CIT v. Chaudhary Son Pal Singh. (2018) 401 ITR 509 (All) (HC)

S. 12AA : Procedure for registration –Trust or institution-
Alleged misuse of funds is not a ground for refusing registration [ S.11, 12A]

CIT v. Dawoodi Bohra Masjid. (2018) 402 ITR 29 / 163 DTR 257 / 301 CTR 268 (Guj) (HC)

S. 12AA : Procedure for registration –Trust or institution-Rejection of application for failure to produce Trust deed was held to be not justified , when the assessee was registered under State Wakf Board R. 17A ]

CIT v. Shri Mahavir Jain Society (Regd.) (2018) 402 ITR 301 / 302 CTR 497 /166 DTR 198(P&H)( HC)

S. 12AA : Procedure for registration –Trust or institution-Genuineness of activities of the asessee was not doubted hence refusal of registration was held to be not justified [ S. 12A ]

Punjab Educational Society v. ITO (2018) 168 ITD 109/ 61 ITR 622 (Asr) (Trib.)

S. 12A : Registration –Trust or institution- Excess of income over expenditure, which was transferred to its reserve and surplus account cannot be assessed as income -First proviso to section 12A(2) inserted by Finance (No. 2) Act, 2014 with effect from 1-10-2014, has to be applied retrospectively. [ S. 2(15), 10(23C)(vi), 11(5) ]