This Digest of case laws is prepared by KSA Legal and AIFTP from judgements reported in BCAJ, CTR, DTR, ITD, ITR, ITR (Trib), Chamber's Journal, SOT, Taxman, TTJ, BCAJ, ACAJ, www.itatonline.org and other journals
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S. 37(1) : Business expenditure-Loss on account of fluctuations in rate of Foreign exchange-Deductible.

PCIT. v. United Spirits Ltd. (2022) 442 ITR 451 / 284 Taxman 568 (Karn.)(HC) PCIT v. Mcdowell and Co. Ltd. (2022) 442 ITR 451 284 Taxman 568 (Karn.)(HC)

S. 36(1)(vii) : Bad debt-Required to debit profit and loss account and also to simultaneously reduce loans of debtors in balance sheet-Matter remanded. [S. 254(1)]

PCIT. v. United Spirits Ltd (2022) 284 Taxman 568 / 442 ITR 451 (Karn.)(HC) PCIT v. Mcdowell and Co. Ltd. (2022) 284 Taxman 568 / 442 ITR 451 (Karn.)(HC)

S. 11 : Property held for charitable purposes-Trust not registered-Corpus fund in form of voluntary contributions made with specific direction-Liable to tax as income-Equity and taxation cannot co-exist. [S. 2(24)(iia), 11(1)(d), 12A, 12AA, 56(2)(v)]

Rasipuram Rotary Club Trust v. ITO (2022)442 ITR 185 (Mad.) (HC) Rasipuram Kannda Sainigar Samuga Pradama Sangam Educational Trust v. ITO (2022) 442 ITR 185 (Mad.)(HC)

S. 10(5) : Travel concession or assistance-Exemption confined to amount of Air economy fare by shortest route by National carrier-Exemption not available in respect of travel to Foreign country as part of journey to destination in India. [S. 133A, 182, 201(1), 201(1A), R. 2B]

State Bank of India v. ACIT (TDS) (2022) 442 ITR 363 (Karn.)(HC)

S. 68 : Cash Credits – Penny Stock –Capital gains – Shares with increased value of about 2823% -Genuineness of price hike to be established – Onus on the assessee- Order of Tribunal is reversed – Addition as cash credit is affirmed – Revision is held to be valid . [S. 10(38], 45, 263 ]

PCIT v. Swati Bajaj and Ors ( 2022) 446 ITR 56 /288 Taxman 403 / 216 DTR 25/ 327 CTR 496( Cal )( HC) www.itatonline .org Editorial : Refer Udit Kalra v.ITO( Delhi) (HC) (2019)) 176 DTR 249/ 308 CTR 50 ( Delhi) (HC)/CIT v. Shyam R.Pawar ( 2015) 229 Taxman 256 ( Bom)( HC)

S. 281 : Certain transfers to be void-Priority of debt-Mortgage executed prior to initiation of action by department-Matter to be investigated by Tax Recover Officer. [S. 226, Rule, 11, Schedule II Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, Recovery of Debts and Bankruptcy Act, 1993]

State Bank of India v. TRO (2022) 441 ITR 516 (Mad.)(HC)

S. 276C : Offences and prosecutions-Wilful attempt to evade tax-Survey-Capital gains-Penalty deleted-Prosecution quashed. [S. 45, 54B, 54F, 148, 271(1)(c), 277]

H. Ameerdeen v. ITO (2022) 441 ITR 604 / 210 DTR 201 / 326 CTR 554 / 286 Taxman 313 (Mad.)(HC)

S. 271(1)(c) : Penalty-Concealment-Depreciation-levy of penalty is not justified. [S. 32, 8HHC]

PCIT v. Intas Pharma Ltd. (2022) 441 ITR 141 (Guj.)(HC)

S. 260A : Appeal-High Court-Observation that certain grounds are not pressed-Directed to file rectification application before the Income-tax Appellate Tribunal. [S. 254(1), 254(2)]

Betoking Ltd. v. CIT(IT) (2022) 441 ITR 46 (Delhi)(HC)

S. 254(2) : Appellate Tribunal-Rectification of mistake apparent from the record-Penny stock-Monetary limits for appeals by department-Appeal not filed in terms of Special order of Board-Dismissal of appeal due to low tax effect-Order of Tribunal is affirmed-Writ of revenue is dismissed. [Art. 226]

PCIT v. Harish Keshavlal Patel (2022) 441 ITR 431 (Guj.)(HC)