Category: Income-Tax Act

Archive for the ‘Income-Tax Act’ Category


CIT v. Mandavi Builders (2022) 443 ITR 235 / 284 Taxman 371 (SC)

S. 80IB(10) : Housing projects-Transactions entered into with buyers of flats before introduction of clauses (e) and (f) of section 80IB(10)-Eligible for deduction-Amendment with effect from April 1, 2010 has no application for AY. 2010-2011.

PCIT v. PNB Metlife India Insurance Company Ltd. (2022) 443 ITR 415 / 209 DTR 383 / 324 CTR 506 (Karn.)(HC)

S. 44 : Insurance business-Life insurance Business-Section 44 read with Rule 2 of Part A of First Schedule is applicable and not Rule 5 of Part B.

CIT v. Core Emballage Ltd. (2022) 443 ITR 157/ 215 DTR 313/ 327 CTR 327 (Guj.)(HC)

S. 43B : Deductions on actual payment-Interest-The payment of interest had been made by issue of fully paid up shares to ICICI-Ltd-Disallowance of interest is not justified. [S. 260A]

PTL Enterprises Ltd. v. Dy. CIT (2022) 443 ITR 260 / 326 CTR 858 / 286 Taxman 564 (SC) Editorial : Decision in PTL Enterprises Ltd. v. Dy.CIT (2021) 439 ITR 365 / (2022) 212 DTR 404 / 326 CTR 282/ 286 Taxman 169 (Ker.)(HC) affirmed.

S. 37(1) : Business expenditure-Fines-Penalty-Not compensatory in nature-Not allowable as deduction. [Kerala General Sales tax Act, 1963, S. 45A]

Wipro Finance Ltd. v. CIT (2022) 443 ITR 250 / 212 DTR 269/287 Taxman 155 (SC) Editorial: Decision in CIT v. Wipro Finance Ltd. (2010) 325 ITR 672 (Kran.)(HC) reversed.

S. 37(1) : Business expenditure-Capital or revenue-Leasing business-Foreign currency loan-Finance Indian enterprises in acquisition of Plant, Machinery and equipment-Enterprises In Acquisition of Plant, Machinery And Equipment-Loss due to fluctuation in foreign exchange rates-Allowable as revenue expenditure. [S. 32, R.115]

Wipro Finance Ltd. v. CIT (2022) 443 ITR 250 / 212 DTR 269 (SC) Editorial : Decision in CIT v. Wipro Finance Ltd. (2010) 325 ITR 672 (Kran.)(HC) reversed.

S. 37(1) : Business expenditure-Capital or revenue-Leasing business-Foreign currency loan-Finance Indian enterprises in acquisition of Plant, Machinery and equipment-Enterprises In Acquisition of Plant, Machinery And Equipment-Loss due to fluctuation in foreign exchange rates-Allowable as revenue expenditure. [S. 32, R.115]

PTL Enterprises Ltd. v. Dy. CIT (2022) 443 ITR 260 / 326 CTR 858 / 286 Taxman 564 (SC) Editorial: Decision in PTL Enterprises Ltd. v Dy. CIT (2021) 439 ITR 365/(2022) 212 DTR 404 / 326 CTR 282/ 286 Taxman 169 (Ker)(HC) affirmed.

S. 28(i) : Business income-Income from lease-Exploitation of property and not exploitation of business assets-Assessable as income from other sources-Quality loss-No business carried on-Not allowable as deduction. [S. 2(14), 56]

CIT(E) v. Hamdard National Foundation (India) (2022) 443 ITR 348 / 212 DTR 38 / 325 CTR 626 / 286 Taxman 441 (Delhi)(HC)

S. 13 : Denial of exemption-Trust or institution-Benefit of specified persons-Valuation of rent-Burden to prove inadequacy of rent is on Department-Rent received exceeded valuation adopted by Municipal Corporation for purpose of levying house tax-Merely relying upon the opinion as to rent from property broker firms and websites additions cannot be made-Order of Tribunal is affirmed-Res Judicata-Rule of consistency is followed. [S. 11, 12, 13(2)(b), 13(3)]

Creative Museum Designers v. ITO(E) (2022) 443 ITR 173 / 211 DTR 361 / 326 CTR 122 (Cal.)(HC)

S. 11 : Property held for charitable purposes-Education-Dissemination of knowledge through Museum or Science Parks constitutes education-Entitled to exemption. [S. 2(15), Companies Act, 1956, S. 25]

Prajatantra Prachar Samity v. CIT (2022) 443 ITR 15 / 213 DTR 440 / 326 CTR 569 / 287 Taxman 667 (SC)

S. 11 : Property held for charitable purposes-Method of accounting-Tribunal calling for information and affidavit filed in response by assessee-Affidavit not referred to by Tribunal or by High Court-Orders of Tribunal and High Court set aside and matters remitted to Tribunal for consideration afresh. [S. 254(1), 256(2), 260A]