Category: Tax Laws

Archive for the ‘Tax Laws’ Category


CIT v. Shree Shyam Mandir Committee. (2018) 400 ITR 466 (Raj) (HC)

S. 12A : Registration –Trust or institution- Appeal before CIT(A) is continuation of original assessment proceedings —.Proviso to S.12A(2) is declaratory and will have and has retrospective effect [ S. 11]

Norka Roots. v. CIT (2018) 401 ITR 224 (Ker) (HC)

S. 12A : Registration –Trust or institution- Though the object is charitable the assesse has not carried out any charitable activity of general public utility by utilising the funds which are meant for charitable purpose hence not entitle to exemption .[ S. 2(15) ]

Industrial Infrastructure Development Corporation ( Gwalior)M.P. Ltd. v. CIT ( 2018)403 ITR 1/ 163 DTR 49 / 301 CTR 153/ 253 Taxman 480 (SC)

S. 12A : Registration –Trust or institution- Charitable purpose- The CIT has no power to cancel/withdraw/recall the registration certificate granted u/s 12A until express power to do so was granted by s. 12AA(3), till 1-10-2014. S. 21 of the General Clauses Act cannot be applied to support the order of cancellation of the registration certificate [General clauses Act, S. 21]

DIT v. Fortune Society For Development And Promotion Of International Business. (2018) 61 ITR 284 (Delhi) (Trib)

S. 11 : Property held for charitable purposes – Charitable purpose -Mere passing book entries cannot be considered as held to be f—Depreciation- [ S. 2(15, 12, 32 ]

ITO v. Kalinga Cultural Trust. (2018) 61 ITR 24 (Hyd) (Trib)

S. 11 : Property held for charitable purposes – letting out function hall cannot be considered as commercial activity -Exemption is entitle-No disallowance can be made for failure deduct tax at source when the income of the assessee was held to be exempt .[ S. 2(15) , 12A, 12AA, 40(a)(ia) ]

ACIT (E) v. Scholars Education Trust of India. (2018) 168 ITD 183 (Jaipur) (Trib.)

S. 11 : Property held for charitable purposes – Capital or revenue Development fund along with tuition fee in a single receipt of fees from students was held to be revenue receipts and cannot be held to be capital receipt [ S. 4, 12A ]

CIT v. Institute of Development and Research in Banking Technology. (2018) 400 ITR 66/ 165 DTR 104 (T & AP) (HC) Editorial: Institute for Development and Research in Banking Technology v. ADIT ( E ) ( 2015) 42 ITR 219 ( Hyd) (Trib) is affirmed

S. 11 : Property held for charitable purposes – Society registered at the instance of the Reserve Bank of India for the purpose of assisting banks and financial institutions, for the improvement of their performance is held to be charitable in nature [ S. 2(15) ,13(8)] .

PCIT v. Asahi Songwon Colors Ltd. (2018) 400 ITR 138 (Guj) (HC)

S. 10B: Export oriented undertakings –Exchange fluctuation gains on export business is entitle to deduction.

Nishant Export v. ACIT (2018) 401 ITR 401/ 168 DTR 157 / 303 CTR 624 (Ker) (HC)

S. 10B: Export oriented undertakings – Manufacture or processing — Garbling pepper to make it edible — No new product emerges — Not entitled to deduction .

Approva Systems Pvt. Ltd. v. DCIT ( 2019) 73 ITR 219/ 180 DTR 438 (Pune)(Trib) , www.itatonline.org

S. 10A : Free trade zone – If the assessee suo motu makes the adjustment and offers higher income, S. 10A/10B deduction cannot be denied. Also, as such notional income is not “export turnover”, the condition in s. 10A/10B that foreign exchange must be brought to India does not apply [ S. 10B, 92CA]