S. 14A : Disallowance of expenditure-Exempt income-Not earned any exempt income-No disallowance can be made. [R. 8D]
Dy. CIT v. Trinetra Super Retail Pvt. Ltd. (2021) 88 ITR 116 / 210 TTJ 350 (Mum.)(Trib.) Golf View Homes Ltd. v. ACIT (2021) 88 ITR 423 / 212 TTJ 472 / 207 DTR 199 (Bang.)(Trib.)
Digest of case laws
Online digest of latest case laws
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
Click here to download the pdf versions of the Digest of case laws S. 14A : Disallowance of expenditure-Exempt income-Interest-Expenditure not incurred-No disallowance cannot be made-Other Expenses at 0.5 Per Cent. of average value of investments – Only investments which earned exempt income to be considered for computing average value of investments. [R. 8D]
ACIT v. Investment Trust of India Ltd. (2021) 88 ITR 566/ 211 TTJ 777 / 203 DTR 289 (Chennai) (Trib.) Dy. CIT v. HFCL Infotel Ltd. (2021) 88 ITR 566/ 211 TTJ 777/ 203 DTR 289 (Chennai)(Trib.)S. 12AA : Procedure for registration-Trust or institution-Colleges and hospitals-cancellation of registration-CBI report-No independent enquiry-Creditworthiness of donors and genuineness of transaction was established-Cancellation of registration was quashed. [S. 2(15), 12AA(3), 32, 133(6), Madhya Pradesh Societies Registration Act, 1973, S. 2]
Chirayu Charitable Foundation v. PCIT (2021)88 ITR 451 (Indore) (Trib.)S. 11 : Property held for charitable purposes-Donation to another charitable trust-Objects of donor and done are not same-Cannot be allowed as application of income-Not entitle to exemption. [S. 11(1)(a), 12A, 12AA]
Nazareth Hospital Society v. Dy. CIT(E) (2021) 88 ITR 44 / 212 TTJ 951 (All.)(Trib.)S. 11 : Property held for charitable purposes-Non registration of trust does not render activities as non charitable advance to charitable object-Exemption cannot be denied-Diversion of fund-Only income which is violation of the provision can be taxed at maximum marginal rate and not whole income of the Trust. [S. 13(1)(c)]
ACIT(E) v. Mahendra Educational Trust (2021) 88 ITR 370 / 210 TTJ 350 / 200 DTR 81(Chennai)(Trib.)S. 10A : Free trade zone-Computation-Gross total income-Exclusion of Telecommunication expenses from export turnover proper.
Dy. CIT v. Altisource Business Solutions P. Ltd. (2021) 88 ITR 135 (Bang.)(Trib.)S. 44AB: Audit of accounts – Business – Profession – Remuneration received from Partnership Firm – Firm is separate legal entity – Remuneration and interest from partnership firm – Not to be included in gross receipt or turnover – Presumptive basis – No tax Audit is required ,if remuneration does not exceeds threshold limit for Tax Audit- Return cannot be treated as invalid for failure to get Tax Audit report .[ S. 2(13), 2(31)(iv) , 2(36), 44AD, 139(9), 264 ,271B, Art , 226 ]
Perizad Zorabian Irani v. PCIT ( 2022 ) 287 Taxman 406 /328 CTR 909/ 218 DTR 219/113 CCH 339 (Bom)(HC) www.itatonline .orgS. 271AAB : Penalty-Search initiated on or after Ist day of July 2012-Undisclosed income-Possession of undisclosed jewellery not undisclosed income-Penalty not leviable. [S. 132]
Shiv Bhagwan Gupta v. ACIT (2021) 87 ITR 93 / 211 TTJ 111 / 200 DTR 65 (SMC) (Pat.)(Trib.)S. 271(1)(c) : Penalty-Concealment-Not specifying the limb of section-Penalty proceedings is not sustainable. [S. 274]
Glory Lifesciences Pvt. Ltd. v. ACIT (2021) 87 ITR 48 (SN) (Delhi) (Trib.) Singh Consultancy Pvt. Ltd. v. ITO (2021) 87 ITR 60 (SN) (Delhi)(Trib.)/Opinder Singh Marwah v. ACIT (2021) 89 ITR 431 (Delhi) (Trib) (Trib)S. 271(1)(c) : Penalty-Concealment-Arm’s length price-Adjustment of transfer pricing-Disallowance of expenditure-Penalty not leviable.
ACIT v. IKEA Trading (India) P. Ltd. (2021) 87 ITR 12 (SN) (Delhi) (Trib.)