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. 9(1)(vi) : Income deemed to accrue or arise in India-Royalty-Sale of software-No specific finding with regard to licence agreement-Matter remanded.

Nice Systems Technologies Inc. v. JCIT (2021) 90 ITR 19 (SN) (Bang.)(Trib.)

S. 9(1)(vii) : Income deemed to accrue or arise in India-Fees for technical services-Payments for services relating to Hotel Management-Not taxable as fees for technical services-DTAA India-USA. [Art. 7, 12]

ACIT (IT) v. Starwood (M) International Inc. (2021) 90 ITR 9 (SN) (Delhi)(Trib.) Westin Hotel Management LP (2021) 90 ITR 9 (SN)(Delhi)(Trib.)

S. 9(1)(vii) : Income deemed to accrue or arise in India-Fees for technical services-Intermediary services-No technology made available-Not fees for technical services-Not taxable in India-Sale of equipment and payments carried outside India-Income attributable to Permanent Establishment is not taxable-DTAA-India-Sweden. [S. 9(1)(i), Art. 12]

Bombardier Transportation Sweden AB v. Dy. CIT(IT) (2021) 90 ITR 405 / 199 DTR 108 / 209 TTJ 804 (Delhi)(Trib.)

S. 4 : Charge of income-tax-Foreign currency-Convertible bonds-Buy back of foreign currency bonds at discounted price-Foreign currency convertible bond proceeds were utilized for setting up a new manufacturing facility or expansion of manufacturing facility-Discount is capital receipt. [S. 28(i)]

Paramount Communications Ltd. v. Dy.CIT (2021) 90 ITR 20 (Delhi)(Trib.)

S. 2(22)(e) : Deemed dividend-Not shareholder of company which had advanced loan to assessee-Loan cannot be treated as deemed dividend.

Perfecta Lifestyle v. ITO (2021) 90 ITR 689 (Bang.)(Trib.)

S. 40 (a)(iib) :Amounts not deductible- Fee- Tax – Gallonge fee , licence fee and shop rental (KIST ) with respect to EL-9 and E.L -I licence granted will fall with in the purview of section and hence disallowable -Surcharge on Sales tax and turnover tax is not fee or charge hence not disallowable – Interpretation of taxing statutes – Same statute using different terms and expressions – Must be taken to refer to distinct and different things . [ S. 37(1)), Kerala Abkari Act, 1077 (M.E.) S. 18 , Kerala Foreign Liquor Rules , 1953 , R. 15A ]

Kerala State Beverages Manufacturing and Marketing Corporation Ltd. v. ACIT (2022) 440 ITR 492 / 209 DTR 257/ 324 CTR 209 / 286 Taxman 1(SC) Editorial , review petition is dismissed ,ACIT v. Kerala State Beverages Manufacturing and Marketing Corporation Ltd (2023) 291 Taxman 357 (SC) Editorial : Decision of Kerala High Court partly affirmed and partly reversed . ( 2022) 440 ITR 496 (SC)

Wealth tax Act, 1957.

S. 2(ea): Asset – Land under acquisition by Government – Not includible .

Yudhishthira Kapur v. ACWT (2021)90 ITR 90 (SN)(Delhi) (Trib)

Wealth tax Act, 1957.

S. 2(e)(a): Assets – Stock in trade -Entries in books of account not relevant to decide nature of asset –Lands held as stock in trade – Not liable to be assessed as assets liable to be wealth -tax Act . [ S. 17 ]

D. Jayaraman v. ACWT (2021)90 ITR 81 (SN)(Chennai) (Trib)

S. 271D : Penalty-Takes or accepts any loan or deposit-Whatsapp messages-Employee and promoter of group-Receipt of cash not proved-Penalty cannot be levied. [S. 269SS]

Ekta Housing Pvt. Ltd. v. Dy. CIT (2021) 89 ITR 56 (Mum.)(Trib.)

S. 271(1)(c) : Penalty for furnishing inaccurate particulars of income-Assessee intimated Assessing Officer well in advance of inadvertence of including receipt-Assessing Officer did not specify in notice whether notice is issued for concealing income or furnishing inaccurate particulars. [S. 143(2)]

FCI Asia Pte Ltd. vs. DCIT (2021) 212 TTJ 9 (UO) (Delhi)(Trib.)