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-Investments in Indian companies which did not yielded exempt dividend income-Excluded while computing disallowance. [R. 8D(2)(iii)]

Pentamedia Graphics Ltd. v. DCIT (2020) 80 ITR 555/185 ITD 45/190 DTR 391/205 TTJ 892 (Chennai)(Trib.)

S. 14A : Disallowance of expenditure-Exempt income-Recording of satisfaction-suo motu disallowance-Satisfaction cannot be on the basis of mechanism of Rule 8D itself. [S. 14A(2), R. 8D]

Tata Industries Ltd. v. DCIT (2020) 185 ITD 215 (Mum.) (Trib.)

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

DCIT v. Cornerstone Property Investment (P.) Ltd. (2020) 185 ITD 202 (Bang.)(Trib.)

S. 14A : Disallowance of expenditure-Exempt income-Own funds exceed amount of investment-Interest expense incurred cannot be disallowed. [R. 8D]

K. B. Mehta Construction (P.) Ltd. v. DCIT (2020) 185 ITD 81 (Ahd.)(Trib.)

S. 14A : Disallowance of expenditure-Exempt income-Disallowance cannot be more than exempt income. [S. 10(34), R. 8D]

Kundan Rice Mills Ltd. v. ACIT (2020) 83 ITR 466 / 185 ITD 765 (Delhi)(Trib.)

S. 12AA : Procedure for registration-Trust or institution-Voluntary contributions received by assessee-society for a specific purpose cannot be regarded as income. [S. 2 (24)(iia)]

ITO(E) v. Hosanna Ministries (2020) 185 ITD 144 (Vishakha)(Trib.)

S. 12AA : Procedure for registration-Trust or institution-Salary, vehicle rent to specified persons-Matter remanded for reconsideration. [S.13 (1)(c), 13(3)]

Yash Shikshan Sansthan Evam Gramin Vikas Samiti v. CIT (2020) 185 ITD 340 (Indore)(Trib.)

S. 12AA : Procedure for registration-Trust or institution-Failure to deduct tax at source-Salary of staff partly in cash partly by cheque-Denial of registration is held to be not valid. [S.12A]

Nav Bharat Shiksha Samiti v. CIT (2020) 185 ITD 591 / 187 DTR 1 / 204 TTJ 1 (Delhi)(Trib.)

S. 11 : Property held for charitable purposes-Society constituted by Ministry of Textiles, Government of India to promote handloom sector-Exhibitions in different parts of country for display and sale of handloom fabrics/cloth manufactured by handloom weavers and handloom society-Motive was to provide a platform for handloom weavers-Not carrying on any business, trade or commerce-Eligible for benefit. [S. 2(15)]

ITO v. Association of Corporation & Apex Societies of Handlooms. (2020) 185 ITD 63 (Delhi)(Trib.)

S. 11 : Property held for charitable purposes-Non-profit entity-Contract of construction of a museum by RBI-Commercial activities-Not eligible for exemption. [S. 2(15)]

Creative Museum Designers v. ITO (2020) 185 ITD 137 / (2021) 198 DTR 87 / 209 TTJ 943 (Kol.)(Trib.)