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.14A : Disallowance of expenditure-Exempt income-Schedule bank-Stock in trade-Investment in shares and securities-Shares and securities are held as stock in trade-No disallowance can be made-Common funds-Non interest bearing funds more than the investment-There is no statutory provision which obligated the assessee to maintain separate accounts which might justify proportionate disallowance-Proportionate disallowance of expenses cannot be made. [R. 8D]

South Indian Bank Ltd v. CIT (2021) 438 ITR 1 / 205 DTR 337 / 322 CTR 465 / 283 Taxman 178(SC) Catholic Syrian Bank Ltd. v. CIT(2021) 438 ITR 1 / 205 DTR 33 / 322 CTR 465 (SC) Federal Bank Ltd. v. Dy. CIT (2021) 438 ITR 1 / 205 DTR 337 / 322 CTR 465 (SC)

S. 12AB : Procedure for fresh registration-Charitable Trust-Show cause notice for cancellation of registration-New procedure with effect from 1-4-2021-Application on 4-5-2021-Show cause notice dated 10-8-2021-Lack of jurisdiction-Writ is maintainable-Show cause notice was kept in abeyance till order passed on application as per new procedure. [S. 12A, Art, 226]

S. R. Trust v. PCIT (2021) 438 ITR 511 / 208 DTR 329/ 323 CTR 1051/( 2022) 285 Taxman 162 (Mad.)(HC)

S. 12AA : Procedure for registration-Trust or institution-Survey-Donation received by way of cheque was returned to donors by cash-Cancellation registration and 80G exemption was held to be justified. [S.80G (v), 133A]

CIT (E) v. Batanagar Education and Research Trust (2021) 282 Taxman 1 (SC) Editorial : Batanagar Education and Research Trust v. CIT (E) (2021)129 Taxman.com 29 (Cal) (HC), set aside.

S. 12AA : Procedure for registration-Trust or institution-Educational institution-Excess of income over expenditure-Registration cannot be denied. [S. 2(15)]

CIT v. Angels Educational Trust (2021) 282 Taxman 450/ 208 DTR 134/(2022) 440 ITR 449/(2022) 326 CTR 223 (Mad.) (HC)

S. 11 : Property held for charitable purposes-Capital asset-Application of income-Depreciation allowable. [S. 12A, 32]

Mazdoor Welfare Trust v. Dy. CIT (E) (2021) 282 Taxman 146 (Mad.) (HC)

S. 11 : Property held for charitable purposes-Cost of purchase was treated as application of income-Entitle to depreciation. [S. 32]

CIT v. Kongunadu Arts & Science (2021) 282 Taxman 158 (Mad.)(HC)

S. 10A : Free trade zone-Foreign exchange-Software development and consultancy-Technical services-Eligible for exemption-Matter remanded to the Assessing Officer.

Cherrytec Interlisolve Ltd. v. ACIT (2021) 282 Taxman 86 (Mad.) (HC)

S. 10(46) : Body or Authority-Specified income-Modification in application-Directed to process the application. [S. 10)(23C)(iv) 293C, Art. 226]

Telangana State Pollution Control Board, Hyderabad v. CBDT (2021) 439 ITR 744/ 282 Taxman 364 / 204 DTR 257/ 322 CTR 83 (Telangana)(HC)/Andhra Pradesh Pollution Control Board v. CBDT (2021) 439 ITR 744/ 282 Taxman 364/ 204 DTR 257/ 322 CTR 83 (Telangana) (HC) (Telangana) (HC)

S. 10(46) : Body or Authority-Specified income-Standardized manner prescribed by Central Board of Direct Taxes-Directed to file fresh application. [Art. 226]

Assam Building and other Construction Workers Welfare Board v. UOI (2021) 438 ITR 14 / 205 DTR 106 / 322 CTR 436/ 283 Taxman 211 (Gauhati)(HC)

S. 10(26B) : Income of Body Corporation established or wholly financed by Central or State Government for promoting interests of Scheduled castes or Scheduled Tribes-Government of India owned company in Lakshadweep Union Territory-Entitle for exemption. [S. 10, Companies Act, 1956]

PCIT v. Lakshadweep Development Corporation Ltd. (2021) 438 ITR 342 / 323 CTR 818/ 208 DTR 59 /(2022) 285 Taxman 291 (Ker.)(HC)