Category: Income-Tax Act

Archive for the ‘Income-Tax Act’ Category


PCIT v. Hybrid Financial Services Ltd. (2020) 426 ITR 358 /(2021) 276 Taxman 73 (Bom)(HC)

S. 36(1)(vii) :Bad debt -Law after 1-4-1989 — Not necessary to establish or prove that debt has become irrecoverable — Recording of debt as bad debt in books of account is sufficient. [ S.28(i)]

B. Nanji and Co. v. Dy. CIT (2020)425 ITR 286 / 194 DTR 390/ 317 CTR 203(Guj)(HC)

S. 36(1)(iii) :Interest on borrowed capital – Real estate business- Amount borrowed to purchase shares to expand business- Controlling interest – Interest allowable as deduction [ S. 37(1) , 57(iii) ]

Afonso Real Estate Developers v .CIT (2020) 425 ITR 153 / 271 Taxman 40(Panaji) (Bom)(HC)

S.28(i): Business income -Capital gains —Object of firm is to purchase and sell land -Profit from purchase and sale of land assessable as business income.[ S.45 ]

PCIT v. Kohinoor Project Pvt. Ltd. (2020)425 ITR 700 / (2021) 276 Taxman 180 (Bom)(HC)

S. 14A : Disallowance of expenditure – Exempt income – No claim by assessee of exempt income — No disallowance can be made [ R.8D (2)(ii) ]

Tamil Nadu Leather Tanners Exporters Importers Association v. Dy. DIT(E) (2020)425 ITR 63 (Mad)(HC)

S. 12AA : Procedure for registration –Trust or institution- Activity of import and distribution of raw material- Matter remanded to the Appellate Tribunal [ S. 2(15) 11,254(1) ]

CIT (E) v. Addor Foundation (2020) 425 ITR 516/ 188 DTR 92/ 315 CTR 101/ 273 Taxman 455 (Guj) (HC)

S. 12AA : Procedure for registration –Trust or institution-Application not disposed of within six months — Registration cannot be deemed to be granted —interpretation of taxing statutes — Literal Interpretation- Meaning of deemed [ S.12AA(2) ]

CIT (E) v. Mumbai Metropolitan Region Development Authority (2020)425 ITR 166 / 193 DTR 347// 317 CTR 518/ 270 Taxman 21 (Bom)(HC)

S. 12AA : Procedure for registration –Trust or institution- Charitable purpose- Trust would be hit by proviso to Section 2(15) cannot be the ground for cancellation of registration [ S.2(15) 12AA(3) ]

DIT(E) v. St. Ann’s Education Society (2020) 425 ITR 642 / 315 CTR 596/ 272 Taxman 251 ( Karn) (HC)

S. 12A : Registration –Trust or institution- Order granting o rejecting of application to be passed within 6 Months — Application Filed On 17-9-1999 decided on 31-10-2001 beyond period of six months —Registration shall be deemed to have taken effect after six months from date of filing application — Grant of registration does not ipso facto entitle to exemption . [ S.2(15) 11, 12A ]

CIT(E) v. Association of third party Administrators (2020) 426 ITR 108 /313 CTR 2 / 269 Taxman 579 (Delhi)(HC)

S. 12AA : Procedure for registration –Trust or institution-
Association of third party administrators — Dominant purpose of Institution Charitable — Ancillary purposes not charitable —Entitled to registration [ S.(2(15) ]

DIT ( E) v. Foundation of Ophthalmic and Optometry Research Education Centre (2020)426 ITR 340 /187 DTR 169/ 313 CTR 369 / 272 Taxman 7 (SC) Ananda Social and Educational Trust v. CIT (2020)426 ITR 340 /187 DTR 169/ 313 CTR 369 / 272 Taxman 7 (SC)

S. 12AA : Procedure for registration –Trust or institution-Charitable purpose —Objects of Trust and activities are in furtherance of objects -Newly formed trust – Registration cannot be refused on the ground that no activities were carried on – Remand of matter for fresh disposal of matter – Order of High Court is affirmed . [ S.2 (15) 11(1)(d) 12A, 13 ]