Category: Income-Tax Act

Archive for the ‘Income-Tax Act’ Category


ACIT v. K. B. Developers (2021) 189 ITD 344 /(2022) 95 ITR 176 / 210 DTR 317 / 216 TTJ 68 (Kol.)(Trib.)

S. 28(i) : Business loss-Real estate business-Earnest money forfeited-Allowable as business loss-Commission paid to agent for purchase of plots of land-Transaction not materialise due to failure to pay full amount of consideration-Allowable as business loss. [S. 37(1)]

Electrosteel Castings Ltd. v. DCIT (2021)189 ITD 183 (Kol.)(Trib.)

S. 14A : Disallowance of expenditure-Exempt income-Not subjected to MAT adjustment-More non-interest bearing funds-No disallowance can be made-Only exempt income yielding investments have to be taken into consideration whilst computing administrative expenses. [S. 11JB, R. 8D(2)(iii)]

DLF Universal Ltd. v. Dy.CIT (2021) 88 ITR 33 (SN) (Delhi) (Trib.)

S. 14A : Disallowance of expenditure-Exempt income-Purpose for which the investment was made is not relevant for disallowance. [R. 8D]

Sarbat The Bhala Gurmat Mission Charitable Trust v. CIT (2021) 189 ITD 353 (Chd.)(Trib.)

S. 12AA : Procedure for registration-Trust or institution-Application of income outside India-Rejection of application is held to be not justified. [S. 11(1)(c), 12]

Dy. CIT(E) v. Paramount Charity Trust (2021) 88 ITR 26 (SN) (Ahd.)(Trib.)

S. 11 : Property held for charitable purposes-Principle of consistency-Exemption was allowed. [S. 2(15), 12A]

Dy. CIT(E) v. Nav Nirman Sewa Samiti (2021) 88 ITR 4 (SN) (Delhi)(Trib.)

S. 11 : Property held for charitable purposes-Depreciation-Carry forward of deficit-Depreciation allowed.[12A, 32, 70, 74]

S. Seethalakshmi v. ITO (2021) 189 ITD 684 (Chennai)(Trib.)

S. 10(2A) : Share income of partner- Firm-Share of profits to partner of firm-Addition is held to be not justified.

Suresh Dhulabhai Patel v. ITO (2021) 189 ITD 374 / 211 TTJ 41 (UO) (Surat)(Trib.)

S. 10(1) : Agricultural income-Agricultural land-Sold to non-agriculturist-Not capital asset-Not liable to be assessed as capital gains-Sold agricultural land and purchased another agricultural land and took possession-Entitle to deduction. [S. 2(14), 45, 54B]

Gemological Institute of America Inc. v. ACIT (IT) (2021) 189 ITD 254 / 88 ITR 505 / 211 TTJ 521 / 201 DTR 321 (Mum.)(Trib.)

S. 9(1)(vi) : Income deemed to accrue or arise in India-Royalty-Refund of amount-Cannot be taxed-DTAA-India-USA. [Art. 12]

Nayan Jayantilal Balu v. UOI (Bom)(HC) www.itatonline .org

S. 276C: Offences and prosecutions – Wilful attempt to evade tax – Bogus purchase – Estimate of 12.5 per cent of Bogus Purchase upheld by CIT(A) and ITAT – No penalty was levied -High Court held that prima facie ingredients of offenses are satisfied – Assessee has wilfully and intentionally evaded his tax liability- Writ petition to quash the prosecution was dismissed . [S. 148, 279(1), Art. 226 Code of Criminal Procedure, 1973, S. 482 ]