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. 92C : Transfer pricing-Arm’s length price-Comparable-Foreign Associated enterprises-Tested party-Matter remanded back to TOP. [S. 260A]

Virtusa Consulting Services (P) Ltd. v. Dy. CIT (2021) 282 Taxman 95/ 208 DTR 386/( 2022) 325 CTR 307 (Mad.)(HC)

S. 92A : Transfer pricing-Associated enterprises-Arm’s length price-Arranged price-Deletion of addition was set aside-Tribunal’s order as regards the value of scrap sales and the levy of interest and the 5 per cent. of interest income taken as expenditure was up held. [S. 10B, 92A(1), 92CA(3)]

CIT v. Tweezerman (India) Pvt. Ltd. (2021) 437 ITR 80 / 208 DTR 295/ 323 CTR 781 (Mad.)(HC)

S. 80P : Co-operative societies-Interest on deposits-Entitle to deduction. [Kerala Societies Registration Act, 1860, S. 2(19)]

PCIT v. Ettumanoor Service Co-Operative Bank Ltd. (2021) 437 ITR 305 (Ker.)(HC)

S. 80P : Co-operative societies-Entitle to deduction-Matter remanded.

PCIT v. Ponkunnam Service Co-Operative Bank Ltd. (2021)437 ITR 195 (Ker) (HC)

S. 80IB(10) : Housing projects-Open terrace of building not to be included for computation of built-up area-Time limit for completion of project-Date of approval of building plan and not date of lay-out-Completion Certificate issued by local panchayat would satisfy the requirement-Entitled to deduction. [S. 80IB(10)(b)]

CIT v. Shanmugham Muthu Palaniappan (2021) 437 ITR 276 (Mad.) (HC)

S. 80IA : Industrial undertakings-Infrastructure development-software technology park-Lease rentals-Assessable as business income-Eligible for deduction. [S. 28(i)]

CIT v. Rishabh Infopark (P) Ltd. (2021) 282 Taxman 143 (Mad.)(HC)

S. 80IA : Industrial undertakings-Infrastructure development-Splitting up or Reconstruction of existing business-Previously used-Generation and distribution of electricity-Leasing windmills-Lease does not amount to transfer-Entitle to deduction. [S. 80IA(3)]

Sundaram Non-Conventional Energy Systems Ltd. v. ACIT (2021)438 ITR 124 (Mad.)(HC)

S. 54F : Capital gains-Investment in a residential house-Relevant is date of acquisition of property and not on date of payment-It is not necessary that same sale consideration should be used for construction of a new house property-Allowed exemption.-Interpretation of taxing statutes- Beneficial provision -Interpreted liberally . [S. 45]

M. George Joseph v. Dy. CIT (2021) 282 Taxman 386 / 206 DTR 51 / 322 CTR 563 / ( 2022) 440 ITR 589 (Karn.)(HC)

S. 54 : Capital gains-Profit on sale of property used for residence-Additional cost-On appeal to division bench from order of single judge-Appeal became infructuous. [S. 48, Art. 226]

CIT v. Venkata Dilip Kumar (2021) 437 ITR 137 (Mad.)(HC) Editorial : Decision of single judge in Venkata Dilip Kumar v. CIT (2019) 419 ITR 298 (Mad) (HC), affirmed.

S. 48 : Capital gains-Computation-Compensation paid to lessee to vacate land-Allowable as deduction. [S. 45]

Trimm Exports (P.) Ltd. v. Dy.CIT (2021) 282 Taxman 392 / 204 DTR 393/ 322 CTR 212 (Karn.)(HC)