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-No income earned by assessee during the relevant AY-No disallowance can be made. [R. 8D].

Tata Sky Ltd. v. ACIT (2020) 195 DTR 177 / 208 TTJ 194 (Mum.)(Trib.)

S. 13 : Denial of exemption-Trust or institution-Investment restrictions-Only upto the violation of the provisions-Exemption cannot be denied. [S. 11, 12, 13(3), 164(2)]

DCIT(E) v. Central Academy Jodhpur Education Society (2020) 208 TTJ 545 (Jaipur)(Trib.)

S. 12AA : Procedure for registration-Trust or institution-Objectives of trust are not under question-Non filing of return-Not a ground for cancelling registration. [S. 12A, 80G(5)(vi), 139(4A)]

Kai Shri Mahadevrao Maykude Dnyanvikas Prabhodhini Trust v. CIT(E) (2020) 194 DTR 353 / 208 TTJ 296 (Pune)(Trib.)

S. 11 : Property held for charitable purposes-Educational institution-Additional evidence admitted-Matter remanded to the Assessing Officer for re-examination. [S. 2(15), 10(23C)(iiiab)]

Institute of Chemical Technology v. ITO (2020) 203 TTJ 590 (Mum.)(Trib.)

S. 11 : Property held for charitable purposes-Holding exhibition-Trust having surplus in one year did not change character of trust to business or profit making entity-Entitle to exemption. [S. 2(15)]

Credai-Pune Metro v. ITO (2020) 207 TTJ 1028 (Pune)(Trib.)

S. 11 : Property held for charitable purposes-Non filing of audit report online-The requirement is directory not mandatory-exemption u/s. 11 is allowed. [S. 12A, 154, Form No. 10B]

ITO v. Society for Education Conscietisation Awareness & Training (2020) 190 DTR 370 / 205 TTJ 981 (Jodhpur) (Trib.)

S. 11 : Property held for charitable purposes-Voluntary contributions-Transaction with related party at arm’s length-Exemption cannot be denied. [S. 2(15), 12, 13(2)(g)]

Dy.CIT v. Shri Ramdoot Prasad Sewa Samiti Trust (2020) 189 DTR 323 / 205 TTJ 435 (Jaipur)(Trib.)

S. 9(1)(i) : Income deemed to accrue or arise in India-Business connection-No Permanent Establishment during relevant assessment year for activities relating from which Assessee had earned revenue-could not be taxed as business profit carried out through PE in India-Appeal Allowed-DTAA-India-Spain. [S. 90, Art. 13(4)]

Idiada Automotive Technology v. Dy.CIT (2020) 206 TTJ 114 (Delhi)(Trib.)

S. 9(1)(i) : Income deemed to accrue or arise in India-Business connection-Indian representative office and the bank itself are one unit-They are taxed only once-DTAA-India-German. [S. 2(31), 253, Art.7, 11]

DZ Bank AG-India Representative v. Dy.CIT (2020) 196 DTR 209 / 208 TTJ 1081 (Mum.)(Trib.)

S. 9(1)(i) : Income deemed to accrue or arise in India-Business connection-Shipping business-Invocation of article 24 of India-Singapore DTAA not justified-Exemption under article 8 is allowed-DTAA-India-Singapore. [S. 44B, 172, Art. 8, 24, Singapore Income-tax Act, S 13F]

Bengal Tiger Line PTE Ltd. v. Dy.CIT (2020) 196 DTR 305 / 208 TTJ 1125 (2021) 188 ITD 397 (Pune)(Trib.)