Category: Income-Tax Act

Archive for the ‘Income-Tax Act’ Category


Gujarat Mineral Development Corporation Ltd. v ACIT (2020) 81 ITR 57 (SN) ( Ahd) (Trib)

S. 14A : Disallowance of expenditure – Exempt income – Only Investments which yielded exempt income during relevant period to be considered for computing average value of investment [ R.8D ]

Gujarat Guardian Ltd. v Dy. CIT (2020) 81 ITR 61 (SN) ( Delhi) (Trib)

S. 14A : Disallowance of expenditure – Exempt income – Not recording dissatisfaction with the working of disallowances given by the Assessee- No disallowance can be made – Industrial undertaking – Matter remanded to the Assessing Officer .[ R.8D 80IA(4)(iv) ]

HCL Foundation v CIT(E) (2020) 81 ITR 7 (SN) (Delhi) (Trib)

S. 12A : Registration –Trust or institution- Charitable purpose –
Changes in objects clause — No communication form the commissioner – Tribunal directed the CIT(E ) to take into account the amended object which were amended prior to 01.04.2018, examine its genuineness and its compliance with respect to section 2(15) of the Act .[ S. 2(15 ) 11, 12AA, 80G ]

Dr. D. John Ponnudurai Educational Trust v. Add. DIT (2020) 81 ITR 69 (SN) ( Chennai) (Trib)

S. 11 : Property held for charitable purposes – Cash withdrawals- Directed to pass a speaking order [ S.2(15) 13 (1) ( c) ]

Confederation of Indian Textile Industry v. ITO (E) (2020)81 ITR 12 (SN) (Mum) (Trib)

S. 11 : Property held for charitable purposes – Non-profit organisation — Fee received entitle for exemption-Principle of mutuality not claimed – The Assessing Officer cannot thrust upon the mutuality . [ S.2(15 ) 12A, 13 ]

R.K. Garg v. UOI ( 1981) 4 SCC 675 / 1981 AIR 2138 (SC) / 1982 SCR (1) 947 /(1982 ) 133 ITR 329 (SC)

Special Bearer Bonds (Immunities & Exemptions) Ordinance, 1981( 1981) 127 ITR 55 (St)
Special Bearer Bonds ( Immunities and Exemption ) Act , 1981 ( 1981) 129 ITR 30 (St)
S.3 : Immunities – Enacted retrospectively—Legislative power conferred on the President under Article 123—Is co-extensive with power of Parliament to make laws—Constitutional validity—Legislative intent behind enactment of the Bearer Bonds Act, 1981 is to combat menacing problem of black money— Classification between holders of black money and others made by the impugned Act is practical, real, intelligible and not arbitrary and irrational limited in scope— Bearer Bonds Act, 1981 accordingly is not violative of Art. 14 of Constitution. [ Constitution of India , Art , 14 , 123 ]

UOI v. M.V. Valliappan (1999) 238 ITR 1027/105 Taxman 605/155 CTR 193 (SC)

S. 171 : Partition – Assessment – Hindu undivided family – Provision that partial partitions after 31-12-78, not to be recognised for income tax and wealth tax purposes – Provision within legislative competence of Parliament – Not ultra vires charging section – Cut-off date not discriminatory. [Wealth-tax Act, 1957, S. 20A. Constitution of India, art. 14; Sch VII, List I, item 82]

Ravi Agarwal v. UOI (2019) 410 ITR 399 / 173 DTR 194 / 306 CTR 177 / 260 Taxman 352 (SC)

S. 80DD: Medical treatment of dependent – Observations – Disability – Jeevan Aadhar – Amount of annuity under the policy is to be released only after the death of the person assured – Purpose is to secure the future of the person suffering from disability, after the death of the parent/guardian – Provision is valid in law – Considering the several difficult situations where the handicapped person may need the payment on annuity or lumpsum basis even during the life time of their parents/guardians, it is for the legislature to take care of theses aspects and to provide suitable provision by making necessary amendments in S.80DD. [Constitution of India Art. 14, 32]

Mangalore Ganesh Beedi Works v. CIT (2015) 378 ITR 640 / 280 CTR 521 / 126 DTR 233 (SC)

S.32 : Depreciation – Prior to 1.4.1999 – Intangible assets – Acquisition of trademarks, copyright and know-how of erstwhile firm – Held, intellectual property rights such as trademarks, copyrights and know-how constitute “plant” for purposes of depreciation – The department is not entitled to rewrite the terms of a commercial agreement. [S. 35A, 35AB, 43(3)]

UOI v. Infopark Kerala (2017) 154 DTR 99/ 247 Taxman 219/ 297 CTR 219 (SC)

S. 10(37): Capital gains – Agricultural land – Deduction at source – Acquisition of immoveable property – Payment of compensation on agreed terms in respect of the land acquired is entitled for exemption. [S.148 ,194LA, Land Acquisition Act, 1894, S.6]