Category: Income-Tax Act

Archive for the ‘Income-Tax Act’ Category


CIT. v. Narendra R. Thappetta (2020) 428 ITR 485 / 275 Taxman 40/ 204 DTR 249 (Karn.)(HC)

S. 10A : Free trade zone-On back office work and preparation of applications for patent in U. S. A.-Entitle to exemption.

Bihar State Text Book Publishing Corporation v. CIT (2020) 428 ITR 143 / 317 CTR 354/ 121 taxmann.com 173 / 195 DTR 134/ (2021) 276 Taxman 173 (Pat.)(HC)

S. 10(23C) : Educational Institution-Surplus utilized for educational purposes-Entitled to exemption-Revenue should have withdrawn the petition when identical issue was decided in favour of assessee in earlier year. [S. 10(23C)(iiiab), 254(1)]

DIT(IT) v. Jeans Knit Pvt. Ltd. (2020) 428 ITR 285/317 CTR 1/194 DTR 265 / 119 taxmann.com 305(Karn.)(HC)

S. 9(1)(vii) : Income deemed to accrue or arise in India-Fees for technical services-Export of garments-Inspecting garments, ensuring quality and export- Income received by non-resident not taxable in India-DTAA -India -Hong Kong [S. 260A, Art , 12 ]

CIT v. Voltech Projects Pvt. Ltd. (2020) 428 ITR 270 (Mad.)(HC)

S. 4 : Charge of income-tax-Accrual of income-Mercantile System of accounting-Retention money on contract-Cannot be included as income. [S. 5, 145]

Areva T & D India Ltd. v. CIT (2020) 428 ITR 1/317 CTR 633/195 DTR 361 (Mad.)(HC) Editorial: SLP is granted to the revenue , CIT v. Areva T & D India Ltd ( 2021 ) 281 Taxman 217 ( SC) , Finance Act, 2021 inserted , Explanation 3.—For the purposes of this clause, “transfer” shall have the meaning assigned to it in clause (47)

S. 2(42C) : Slump sale-Capital gains-Exchange Assets transferred to subsidiary Company in accordance with scheme approved by High Court – No slump sale for purposes of capital gains tax. [S. 45, 50, 50B, Sale of Goods Act, 1930, S 2(10), Transfer of Property Act, 1882, S.54, 118, Companies Act, 1956, 391, 394]

CIT v. T. Abdul Wahid and Co. (2020) 428 ITR 456 / 275 Taxman 101 / ( 2021 ) 199 DTR 515(Mad.)(HC)

S. 2(22)(e) : Dividend-Deemed dividend-Not a share holder of lender company–Loan not assessable as deemed dividend.

ICDS Ltd v. CIT ( 2020) 10 SCC 529 Editorial. Order in CIT v. ICDS Ltd , ITA No. 353 of 2001 dt 18 -9 2007 ( Kran) (HC) is reversed .

Interpretation -Natural Justice – Audi Alteram Partem – Right of hearing – Cross -Examination – Matter remanded to first Appellate Authority .[IT Act , 1961 , S. 226 (3) ]

Empire Holdings Ltd v. Dy.CIT ( 2019) 112 taxmann.com 319 ( Chennai) (Trib)

S. 2(22)(e):Deemed dividend – Loans and advances to subsidiary – Not established the business purposes – Addition as deemed dividend is held to be valid – Reassessment is also held to be valid [ S. 147 , 148 ]

ACIT v. Jasubhai Engineering (P) Ltd ( 2020) 184 ITD 388/ 118 taxmann.com 430 (Mum) ( Trib)

S. 2(22)(e):Deemed dividend –Redeemable debenture – Addition cannot be made as deemed dividend – Advance for purchase of machinery – In the course of business addition cannot be made as deemed dividend – Intercorporate deposit – Repaid before end of relevant year – Addition as deemed dividend is held to be justified

ITO v. Yashovardhan Tyagi ( 2020) 184 ITD 461 / 116 taxmann.com 899( Delhi) ( Trib)

S. 2(22)(e):Deemed dividend – Business transaction – Common directors – Advance in the course of business as commercial transactions – Addition cannot be made as deemed dividend