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-Captive service provider-Depreciation-Transfer pricing officer to exclude depreciation from cost and Comparables. [S. 32, R 10B(1)(e)]
PCIT v. Novell Software Development (India) Pvt. Ltd. (2021)434 ITR 154/ 202 DTR 370/ 278 Taxman 390 / 321 CTR 458(Karn.) (HC)
S. 80IB(10) : Housing projects-Owner of land outsourcing the construction work-Entitled to deduction.
CIT v. Sri Lakshmi Brick Industries (2021) 434 ITR 213 (Mad.)(HC)
S. 45 : Capital gains Buy-back of shares by Indian subsidiary from German holding company-Liable to tax-Final liability would be lesser of that under normal provisions and under section 115JB-Subsidiary liable to deduct tax at source on payment on buy-back. [S. 46A, 47(iv), 47A, 49,115JB, 195]
PQR GMBH, IN RE (2021) 434 ITR 382 / 280 Taxman 205 (AAR)
S. 45 : Capital gains-Transaction of sale of shares not liable to tax-Motive of tax avoidance not relevant so long as act within the frame work of law-Transaction not with intent to avid tax-DTAA-India-Mauritius. [S. 245R(2), Art. 13(4)]
Becton Dickinson (Mauritius) Ltd., In Re (2021) 434 ITR 180 (AAR)
S. 40(a)(ia) : Amounts not deductible-Deduction at source-Transport charges-Amendment inserted by the Finance Act, 2010 is applicable to earlier years-No disallowance can be made. [S. 139(1)]
CIT v. Western Agencies (Madras) Pvt. Ltd. (2021) 434 ITR 613/ 280 Taxman 308 (Mad.)(HC)
S. 32 : Depreciation-Property acquired in exchange of extinguishment of tenancy rights-Depreciation allowable-Non-Compete fee-Depreciation allowable on principle of consistency.
CIT(LTU) v. Areva T & D India Ltd. (2021)434 ITR 604 (Mad.)(HC)
S. 28(iv) : Business income-Value of any benefit or perquisites-Converted in to money or not-Amalgamation-Excess of net consideration over value of companies taken over-Not assessable as income. [S. 4]
CIT(LTU) v. Areva T & D India Ltd. (2021) 434 ITR 604 (Mad.)(HC)
S. 10A : Free trade zone-Interest charges attributable to delivery of computer software-Excluded from export turnover-Deducted from total turnover-New unit-Entitle to deduction-Brought forward losses and unabsorbed depreciation-Deduction to be allowed before adjusting brought forward losses and unabsorbed depreciation. [S. 10A(2)(i), 10A(2)(ii)]
CIT v. SRA Systems Ltd. (2021) 434 ITR 656 (Mad.)(HC)