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. 36(1)(iii) :Interest on borrowed capital – Allowable as deduction though capitalised in the books of account .[ S. 43(1)Ex.8 ,145 ]

CIT v . Zuari Industries Ltd ( 2020) 420 ITR 323 / 185 DTR 281/ 312 CTR 416( Bom) (HC)

S.28(i): Income from business – Income from house property – Exploitation of property commercially by way of complex commercial activities – Rental income is to be taxable as income from business – Not as Income from House Property. [ S.22 ]

PCIT v. City Centre Mall Nashik Pvt. Ltd ( 2020) 424 ITR 85/ 121 taxmann.com 87 ( Bom) (HC)

S. 14A : Disallowance of expenditure – Exempt income – Rule 8D is not applicable to assessments prior to AY. 2008 -09 [ R.8D ]

PCIT v. Bank of India ( Bom) (HC) (UR)

S. 14A : Disallowance of expenditure – Exempt income – When there is no exempt income declared during the year no disallowance can be made .[ R.8D(2) (ii) ]

PCIT v .Morgan Stanley India Securities P Ltd ( Bom) (HC) (UR)

S. 14A : Disallowance of expenditure – Exempt income – When there is no exempt income declared during the year no disallowance can be made .[ R.8D(2) (ii) ]

PCIT v Khoinoor Project Pvt Ltd ( 2020) 425 ITR 700 / (2021) 276 Taxman 180 ( Bom) (HC)

S. 12A : Registration –Trust or institution- Amount collected by the assessee as donation from the students was within the permissible limit of 15% – Denial of exemption is held to be not valid [ S.11, 12AA(3), 13(1)(d) ]

PCIT v Shikshan Prasarak Mandali ( Bom) (HC) (UR)

S. 11 : Property held for charitable purposes – Income applied for the object of the Trust -Promotion of sports, games and providing recreation facilities to the public at large and to the members in particular and therefore receipts on account of compensation from decorator against gymkhana function, miscellaneous income and compensation from caterer (restaurant) cannot be construed as activities in the nature of trade, commerce or business for the purpose of the proviso to S. 2(15) of the Act- Capital expenditure allowed as application of income – Depreciation is allowable [ S.2(15), 12 , 13, 32 ]

CIT ( E ) v. Matunga Gymkhana (2020) 189 DTR 392/ 314 CTR 818( Bom) (HC)

S. 11 : Property held for charitable purposes – Carry forward of deficit – Allowed to be set off against income of the subsequent year . [ S. 12,32 , 72 ]

CIT ( E ) v Rustomjee Kerawalla Foundation ( Bom) (HC) (UR)

S. 10A : Free trade zone – Deduction to be computed before adjusting business loss or Depreciation [ S. 10B, 70, 71, 72 , 74,80IA(5), 80IA(6) ]

PCIT v Aesseal India Pvt Ltd ( Bom) (HC) (UR)

GST – Powers – S. 83 of the SGST Act, 2017.
Writ applicant seeks to challenge the action of blockage of the input tax, provisional attachment of the stock of goods, provisional attachment of its Bank Accounts in exercise of powers under Section 83 of the SGST Act, 2017.

Valerius Industries v. UOI ( 2019) AIFTP Times – October -P 7 (Guj) (HC)