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. 35 : Scientific research expenditure-Expenses of units which was entitle for deduction under section 10B-Entitle for deduction. [S. 10B, 35(2AB)]

Biocon Ltd. v. Dy. CIT (2021) 133 taxmann.com149 (Karn.)(HC) Editorial : Notice issued in SLP filed by the revenue, Dy. CIT v. Biocon Ltd. (2022) 284 Taxman 376 (SC)

S. 32 : Depreciation-Firm succeeded by company-Intangible assets-Successor assessee-company was entitled to claim depreciation on actual cost incurred by it with reference to such intangible assets. [S. 35(2(AB), 47(xiii)]

Dy. CIT v. Padmini Products (P.) Ltd. (2021) 133 taxmmann.com 174 (Karn.)(HC) Editorial : Notice is issued in SLP filed by the revenue ; Dy. CIT v. Padmini Products (P.) Ltd. (2022) 284 Taxman 374 (SC)

S. 32 : Depreciation-Increased cost of plant and machinery-Foreign Exchange rate fluctuations-Allowable.

Ispat Alloys Ltd. v. Dy. CIT (2022) 284 Taxman 542 (Orissa)(HC)

S. 12AA : Procedure for registration-Trust or institution-Cancellation of registration retrospectively-Making donation outside India-Cancellation of registration was held to be not valid-Order of Tribunal is affirmed. [S. 11, 12A]

CIT(E) v. Govardhan Foundation (2022) 284 Taxman 545 /(2022) 213 DTR 44/ 326 CTR 443 Cal.)(HC)

S. 11 : Property held for charitable purposes-Expenses incurred earlier years-Adjusted to income of subsequent year-Income to be determined on the basis of commercial principle-To be considered as application of income. [S. 10(34), 11(1)(a), 11(1)(d)]

CIT(E) v. Kantilal Jaikishandas Choksi Charitable Trust (2021) 133 Taxman.com 217 (Guj.)(HC) Editorial : SLP of revenue is dismissed, CIT(E) v. Kantilal Jaikishandas Choksi Charitable Trust (2022) 284 Taxman 445 (SC)

S. 11 : Property held for charitable purposes-Charitable objects-Membership and connectivity charges incidental to main object-Entitle to exemption. [S. 2(15), 12A]

CIT(E) v. National Internet Exchange of India (2021) 133 taxmann.com 376 (Delhi)(HC) Editorial : SLP is granted to the revenue, CIT(E) v. National Internet Exchange of India (2022) 284 Taxman 524(SC)

S. 4 : Charge of income-tax-Interest from short term deposits (STDs)-Open letter of Credit for procuring Plant and Machineries-Capital receipts-Reduced from cost of capital assets. [S. 28(1), 56] 

Neelachal Ispat Nigam Ltd. v. ACIT (2022) 284 Taxman 527 (Orissa)(HC)

Prohibition of Benami Property Transactions Act, 1988

S. 24 : Notice and attachment of property- Benami transaction – Gold and cash belong to spouse – Beneficial owner – Provisional attachment is held to be permissible- Petitioner has to respond to notices with supporting evidences . [ S. 24(4)(a)(i) ]

K.Nagarajan v. Adjudication Authority (2022) 284 Taxman 237 (Mad.)(HC)

Chartered Accountants Act, 1949

S. 22 :Professional and other misconduct – Recommendations made by Council were not supported by independent reasons and High Court had accepted recommendations of Council without applying its own logic to this aspect of matter, matter was to be remanded to Council to reconsider matter afresh after granting appellant an opportunity of being heard [ S. 21 ]

D. K. Agrawal v. Council of the ICAI (2022) 284 Taxman 1 (SC)

S. 147 : Reassessment –With in four years-Change of opinion – Payment to related parties – Incentives to senior employees – Difference in VAT return and Turnover as per profit and loss account -Reconciliation – Questions asked in the course of original assessment proceedings – No discussion in the assessment order – Reassessment notice was quashed. [ S. 40A(2)(b) , 148 , Art , 226 ]

Maharashtra Oil Extraction Private Limited v. Dy.CIT (2022) 287 Taxman 465 / 114 CCH 315 ( Bom) (HC) www.itatonline .org