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-Disallowance cannot exceed amount of exempt income. [R. 8D]

Addlife Investments (P.) Ltd. v. DCIT (2021) 187 ITD 591 / 201 DTR 145 (Ahd.)(Trib.)

S. 14A : Disallowance of expenditure-Exempt income-Share of loss from the firm-No disallowance can be made if no exempt income is earned. [R. 8D]

Kumar Properties and Real Estate P. Ltd. v. Dy.CIT (2021) 190 ITD 212 / 87 ITR 169 (SN)/ 212 TTJ 227/ 202 DTR 425 (Pune) (Trib.)

S. 14A : Disallowance of expenditure-Exempt income-No exempt income earned during year-No disallowance can be made. [R. 8D]

Dy. CIT v. Dee Development Engineers Ltd. (2021) 87 ITR 38 (SN) (Delhi)(Trib.)

S. 12AA : Procedure for registration-Trust or institution-Accumulation of income-Applied more than 85 per cent. of total income towards charitable purposes-Registration granted by commissioner validly in operation-Form filed requesting for carry forward of amount for utilization in subsequent years, request for carry forward of amount for utilization in subsequent years-Entitled to exemption. [S. 11, 12]

Dy. CIT v. Aligarh Development Authority (2021) 87 ITR 82 (SN) (Delhi)(Trib.)

S. 12AA : Procedure for registration-Trust or institution-Cancellation merely on ground that cut-off specified in the proviso to section 2(15) has exceeded in a particular year held as not sustainable. [S. (2(15), 12AA(3)]

Visakhapanam Port Trust v. CIT (2021) 87 ITR 27 (SN) (Vishakha)(Trib.)

S. 9(1)(vii) : Income deemed to accrue or arise in India-Fees for technical services-IT support services-Not chargeable to tax-DTAA-India-Swedish. [Art. 12]

Sandvik IT Services AB v. ACIT (2021) 187 ITD 872/ 214 TTJ 293/ 203 DTR 243 (Pune)(Trib.)

S. 9(1)(vi) : Income deemed to accrue or arise in India-Royalty-Satellite Telecommunication Services-Not to be assessed as royalty-liaison and coordination activities-Cannot be treated as permanent establishment-DTAA-India-UK. [S. 9(1)(i), Art. 13].

Inmarsat Global Ltd. v. DCIT (2021) 187 ITD 157 (Mum.)(Trib.)

S. 9(1)(i) : Income deemed to accrue or arise in India-Business connection-Providing information, reservations, transaction processing and related services to airlines, travel agencies and other travel related entities by utilizing a Computerized Reservation System (CRS)-15% of profit was attributable to India-DTAA-India-USA. [Art. 5]

DIT v. Travelport L.P. USA. (2021) 187 ITD 572 (Delhi)(Trib.)

S. 54F: Capital gains- Investment in a residential house – Sale of land -Allotment of flat as per an escrow document -Denial by builder – Assessing Officer taxing the value of flat as deemed consideration and denying the exemption – Since Assessee has performed his part of duty by disclosing the sale prior to its receipt , then it is deemed on the part of the AO to allow deduction on the same , despite the Dispute or delay in getting the flat – Entitle to exemption [ S. 45 , 133 (6) ]

Vinay Ramchandra Somani v. ACIT ( Mum) ( Trib) Shrilekha Vinay Somani (Smt) v .ACIT ( Mum) ( Trib)

Interpretation of Taxing statutes-Legislative powers-Challenges Discrimination or arbitrariness can be substantial or procedural-Such policy can be struck down. [Art. 14, S. 254(2A)]

Dy.CIT v. Pepsi Foods Ltd. (2021) 433 ITR 295 / 200 DTR 185 / 320 CTR 1/ 282 Taxman 10 (SC)