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. 43(1) : Actual cost-Depreciation-Subsidy-Subsidy received from Government-Proviso and Explanation 10 to Section 43(1) by Finance (No. 2) Act, 1998-Not retrospective in operation-Matter remanded for verification. [S. 32]

Kinfra Export Promotion Industrial Parks Ltd. v. JCIT (2022) 444 ITR 608/ 215 DTR 233/ 287 Taxman 353 / 327 CTR 198 (Ker.)(HC)

S. 32 : Depreciation-Motor Vehicles-Additional depreciation-Charitable Trust-Operating buses to transport students to Schools-Not entitled to additional depreciation. [S. 11, 12A, ITR 1962, Appx. I, Item III-2(ii)]

Ebenezer International Foundation v. ACIT (2022) 444 ITR 547 / 285 Taxman 52/ 210 DTR 28 (Ker.)(HC)

S. 22 : Income from house property-Lease of immovable property Lease agreement as owner of immovable property and not as owner of a business asset-Income assessable as income from house property.

Travancore Sugars and Chemicals Ltd. v. CIT (2022) 444 ITR 371 / 212 DTR 385 / 326 CTR 137 / 286 Taxman 657 (FB) (Ker.)(HC)

S. 12AA : Procedure for registration-Trust or institution-Corpus donation of funds to another charitable trust-In One Accounting Year-Registration could not be cancelled. [S. 2(15), 11]

CIT(E) v. Nawal Kishore Kejriwal Charity Trust (2022) 444 ITR 532/ 214 DTR 276 / 327 CTR 453(Cal.)(HC)

S. 11 : Property held for charitable purposes-Voluntary contributions towards corpus fund used for purchase of land-Allowable as application of income. [S. 11(1)((d)]

CIT(E) v. Om Prakash Jindal Gramin Jan Kalyan Sansthan (2022) 444 ITR 498 /287 Taxman 303 (Delhi)(HC)

S. 4 : Charge of income-tax-Capital or revenue-Compensation received on account of failure of performance guarantee-Matter remanded to Tribunal. [S. 254(1)]

Essel Mining and Industries Ltd. v. PCIT (2022) 444 ITR 576 / 209 DTR 180/ 324 CTR 124 (Cal)(HC)

Prohibition of Benami Property Transactions Act, 1988.

S. 32 :Qualification for appointment of chairperson and Members of Appellate Tribunal- Constitution Of Appellate Tribunal – Independence of Judiciary — Qualification of Judicial Member — Requirement that he could be a Member of Indian Legal Service or one had held post of additional Secretary or equivalent post in that service — Provision not valid. [ Art , 226 ]

V. Vasanthakumar v. UOI (2022) 444 ITR 677 (Mad)(HC

Benami Transactions (Prohibition) Amendment Act, 2016

S.2(a): Benami Property Transactions — Amendment of Act in 2016 Provisions are substantive — Not applicable with retrospective effect – Interpretation of taxing statutes —Rule against retrospectivity . [ S. 2(9)(A) (2(9)(C), Art , 20, 226 ]

Nexus Feeds Ltd v. ACIT (2022) 444 ITR 261 (Telangana) (HC),Editorial: ACIT v. Nexus Feeds Ltd (2023)453 ITR 459 (SC), Affirmed, SLP of Revenue dismissed ,

Direct Taxes Vivad Se Vishwas Act, 2020.

S. 2(1)(a): Appellant – Declaration processed and Form 3 issued To Assessee -Rejection of declaration -Not valid —State cannot claim benefit of its own mistake. [S. 4 , Art , 226 ]

PCIT v. Asish Kumar Ghosh (2022) 444 ITR 398/ 214 DTR 257/326 CTR 841 (Cal)(HC)

Bengal Agricultural Income-tax Act, 1944

S. 34:Method of computation -Agricultural Income -tax -Appeal dismissed – Alternative remedy – Writ is not maintainable [ West Bengal Taxation Tribunal Act, 1987, Art , 226 ]

B. D. Tea Estates Pvt. Ltd. v State of West Bengal (2022) 444 ITR 504 (Cal)(HC))