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. 28(i) : Business income-Civil contractor-Transfer of development rights-Income earned from project assessable as business income-Estimation of 10% of gross receipts is held to be justified-When income is estimated specific disallowance u/s. 40A(3) cannot be made-The transfer definition cannot be applied to on transfer development rights which is a business asset-Income taxable on performing certain obligations [S. 2(47)(v), 40A(3), Transfer of Property Act, 1882, S.53A]
ITO v. Abdul Kayum Ahmed Mohd. Tamboli (2020) 82 ITR 419 (Mum.)(Trib.)
S. 28(i) : Business income-Ancillary objects-Financial services-Assessable as business income. [S. 37(1), 57(3)]
ACIT v. Sunstar Hotels and Estates Pvt. Ltd. (2020) 82 ITR 437 (Chennai)(Trib.)
S. 14A : Disallowance of expenditure-Exempt income-Shares held as stock in trade-Disallowance is held to be not justified. [R. 8D]
Dy. CIT v. Punjab National Bank (2020) 82 ITR 95 (Delhi)(Trib.)
S. 14A : Disallowance of expenditure-Exempt income-No exempt income-Disallowance cannot be made. [R. 8D]
MakeMy Trip (India) Pvt. Ltd. v. Dy. CIT (2020) 82 ITR 71 (Delhi) (Trib.)
S. 14A : Disallowance of expenditure-Exempt income-Investments held as Stock In Trade cannot be subject matter of disallowance-Strategic investments yielding exempt income alone to be considered for purpose of working of disallowance. [R. 8D(2)(iii)].
HDFC Bank Ltd. v. ACIT (2020) 82 ITR 533 (Mum.)(Trib.)
S. 14A : Disallowance of expenditure-Exempt income-Investment was made in earlier year-No interest expenditure was claimed-Matter remanded to the AO for fresh consideration. [R. 8D]
S. Annamalai (BHUF) v. ITO (2020)82 ITR 68 (Chennai)(Trib.)
S. 14A : Disallowance of expenditure-Exempt income-Investment made in earlier years-Disallowance to be restricted to extent of funds invested. [R. 8D]
Abhinav International P. Ltd. v. Dy.CIT (2020) 82 ITR 258 (Delhi)(Trib.)
S. 12AA : Procedure for registration-Trust or institution-Running Educational Institutions imparting engineering courses-Recognised by All India Council for technical Education and Establishing Polytechnic College-Genuineness established-Eligible for grant of Registration-Grant of approval u/s. 80G only after satisfying conditions. [S.2(15), 80G]
Kalyan Educational Society v. CIT (2020) 82 ITR 1/194 DTR 49/207 TTJ 505 (Kol.)(Trib.)
S. 11 : Property held for charitable purposes-Object of promoting growth of Automobile Industry In India and also to improve and protect environment-Entitled to exemption-Corpus fund-Amount transferred is not application of income-Foreign grants-Pending for approval-Characterisation of receipt as taxable income only at time of appropriation and not at time of receipt-Not income of assessee-No quantum additions-Penalty not leviable. [S. 2(15), 12, 12A, 271 (1)(c), Foreign Contribution (Regulation) Act of 2010, S.11 (1)]
Society for Indian Automobile Manufacturers v. ITO (E) (2020)82 ITR 279 (Delhi)(Trib.)
S. 11 : Property held for charitable purposes-Corpus donations-Capital receipt-Market rent-Rent received far more than valuation of Municipal Corporation of Delhi-Rent increased to 10% every three years as per Delhi Rent Control Act, 1958-Exemption cannot be denied. [S. 11(1)(d), 13(2)(b), 13(3)]
Hamdard National Foundation (India) v. ACIT (E) (2020) 82 ITR 164 (Delhi)(Trib.)