Category: Income-Tax Act

Archive for the ‘Income-Tax Act’ Category


New Okhla Industrial Development Authority v. UOI (2024)468 ITR 195 (Delhi)(HC)

S.10(46):Body or Authority-Specified income-Commercial Activity-Granting loan-Agent of State Government to support to support development activities-Entitled to exemption-The order rejecting exemption under section 10(46) was quashed-The Revenue was directed to process the application for exemption made by the assessee. [S.2(15), 10(20A), 119, Art. 226]

Shaheed Nand Kumar Patel Vishwavidyalaya v. CIT (E) (2024)468 ITR 334 / 167 taxmann.com 138/341 CTR 170/242 DTR 289 (Chhattisgarh)(HC)

S. 10 (23C): Educational institution-Commissioner (E) and Tribunal failed to examine objects and record finding with respect to education or educational activities of assessee-Matter remanded. [S. 10(23C)(iii), 260A]

CIT (IT) v. Gracemac Corporation Golf View Corporate (2024) 301 Taxman 172 / 468 ITR 1 (SC) Editorial : CIT (IT) v. Gracemac Corporation Golf View Corporate (2022] 287 Taxman 197 / (2023) 456 ITR 124 (Delhi)(HC)

S. 9(1)(vi) : Income deemed to accrue or arise in India-Royalty-Computer software — Payments for licensing of software products-Resale of computer software-Not taxable as royalty-DTAA-India-USA-SLP of Revenue is dismissed. [Art. 12, Art. 136]

Jose Thomas, Etc. v. PCIT (2024)468 ITR 108 / 301 Taxman 170 (SC) Editorial : PCIT v. Grancy Babu (2024) 298 Taxman 722 / 471 ITR 377 (Ker)(HC)

S. 4 : Charge of income-tax-Consideration received for relinquishment of trustee ship-Not capital in nature-Assessable as income-SLP of Assessee is dismissed. [S. 45, 132, Art. 136]

PCIT v. Triumph Realty Pvt. Ltd. (2024)468 ITR 109 (SC) Editorial : PCIT v Triumph Realty Pvt. Ltd (2023) 450 ITR 274 (Delhi)(HC),PCIT v. Triumph Realty Pvt. Ltd. (No. 1) (2023) 450 ITR 271 (Delhi)(HC)

S. 4 : Charge of income-tax-Capital or revenue Receipt-Preoperative expenditure pending capitalization-Interest Earned from fixed deposits of unutilised foreign external commercial borrowing loans during period of construction-Interest capitalised in the books of account-Capital receipt-SLP of revenue is dismissed due to failure to explain satisfactorily condonation of delay of 699 days in filing SLP. [S. 28(i), 56, 145,Art. 136]

Buckeye Trust v.PCIT ( Bang )(Trib) www.itatonline.org . Editorial : Honourable Tribunal by order sheet dt .7 th Jan 2025 , suo -moto recalled the order u/s 254(2) of the Act , which reads as under “ On suo -moto perusal at the order dated 30 -12 -2024 in ITA No.1051 / Bang /2024 , it is found that there are certain inadvertent errors in the order, therefore , as per the provisions of section 254( 2) of the Act , the above order is recalled in its entirety and fixed for hearing afresh on 19 -2 -2025 . Notice be issued to both parties .” (Prakash Chand Yadav ( Judicial Member ) Prashant Maharishi ( Vice -President ) ( Dt. 7 – Jan-2025 . )

S. 56 : Income from other sources -Discretionary trust -Property -Interest from partnership firm and shares from unlisted company -Trust for the benefit of relatives of settler -Power with the trustees to add any persons or class of persons or charity as beneficiaries – Revision order on the ground that the Trust is not wholly benefit of beneficiaries – Amount of Rs 669 crores received by the Trust is assessable under Section 56(2)(x) of the Act – Tribunal held that the interest in firm falls in category of shares -Benefit is not restricted to the benefit of relatives of the settler -Amount received is chargeable to tax under section 56(2)(x) – Revision order is affirmed on law and merit. [ S. 56(2) (viid) , 56(2)(x) ,263 Indian Trust Act , 1882 ]

Infantry Security and Facilities through, proprietor Tukaram M. Surayawanshi v. ITO ( Bom)( HC) www.itatonline.org .

S. 254(2): Appellate Tribunal-Rectification of mistake apparent from the record – Review – Statutory dues like the Provident Fund and Employees State Insurance -Payments were made before due date of filing of return – Allowed by the Tribunal – Corporation – Not deposited before due date of respective Acts – Delay of 92 days in filing miscellaneous application- Tribunal allowed the miscellaneous application of the Revenue of the basis of Subsequent Judgement of Supreme Court in Checkmate Services Private Limited v. CIT (2022) 448 ITR 518 /290 Taxman 19 ( SC) – On writ against the order of the Tribunal allowing the miscellaneous application of the Revenue is quashed and set aside – Tribunal cannot review the order based on the subsequent decision of Supreme Court – Tribunal has no power to condone the delay in filing the miscellaneous application. [ S. 2(24)(x),36(1)(va ) 43B ,139(1), Art. 226 , Civil Procedure Code , 1908 , Order XLVII, Rule 1 . ]

Crompton Greaves Ltd. v. ACIT [2015] 229 Taxman 545 / 275 CTR 49 (Bom) ( HC)

S.147: Reassessment – After the expiry of four years – Amalgamation- Set off of loss – Book profit -Change of opinion – No failure to disclose material facts – Reassessment notice and order disposing the objection is quashed .[ S.115JA , 143(3) , 148 , Art . 226 ]

M.N. Navale (Bigger HUF) v. Somnath M. Wajale, Dy.CIT [2015] 57 taxmann.com 5 (Bom)( HC)

S. 132 : Search and seizure – Seizure of Jewellery – Release of seized assets -Bank guarantee – Matter pending for final adjudication- Belong to HUF or Karta – Directed to release the jewellery on furnishing of Bank Guarantee . [ Art . 226 ]

Goa Cricket Association v. PCIT [2020] 113 taxmann.com 287 (Bom)(HC) .

Direct Tax Dispute Resolution Scheme, 2016 , Finance Act, 2016

S. 204 : Time and manner of payment – Failure to deposit the tax beyond control of the assessee- Assessee was incapacitated from reasons beyond its control and power, writ of mandamus were to be issued that BCCI should pay tax and interest on behalf of assessee within 180 days .[ Art. 226 ]