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. 132B : Application of seized or requisitioned assets – High court could not direct release of gold in favour of the alleged owner when appeal before the CIT(A) was pending.[S.250, Art .226 ]

New Lakshmi Jewellers v. PCIT (2021) 431 ITR 570/318 CTR 713 / 278 Taxman 403/200 DTR 264(Bom) (HC)

S. 92C : Transfer pricing – Arm’s length price – Rejection of comparables is a finding of fact- Appellate Tribunal – Decision of High Court is available – Remad is not justified – Additional evidence is produced -Remand is justified . [ S.92B, 254(1) ]

Microsoft India (R&D) Pvt. Ltd. v. DCIT (2021) 431 ITR 483 /197 DTR 409 / 318 CTR 654 / 2023) 153 taxmann.com 199 (Delhi) (HC)/ Editorial ,SLP of Revenue dismissed ,PCIT v. Microsoft India (R&D) (P.) Ltd ( 2023) 294 Taxman 342 ( SC)/ PCIT v. Microsoft India (R And D) Pvt. Ltd. (2024) 464 ITR 587 (SC)

S. 68: Cash credits – Opening stock accepted in scrutiny – Sales made from opening stock cannot be treated as bogus. [S. 56, 133A]

PCIT v. Akshit Kumar (2021) 197 DTR 121 /318 CTR 26 / 277 Taxman 423 (Delhi) (HC)

S. 57 : Income from other sources – Deductions –AO is not justified in disallowing claim for deduction u/s 57(iii) for interest paid when Assessee given names of lenders, loans were availed through banking channels and interest paid was allowed as deduction from year to year – Matter remanded to AO.[ S.57(iii) ]

Rajendra Kumar Jain .v. ITO (2020) 120 taxmann.com 293 / (2021) 277 Taxman 236 (Mad) (HC)

S.56 : Income from other sources – Property received without consideration or for consideration less than its fair market value — Issue of bonus shares by capitalization of reserves does not result in inflow of any funds or property and is not assessable under section 56(2)(vii)(c)[ S.56 (2)(vii)(c)]

PCIT v. Dr. Ranjan Pai (2021) 431 ITR 250/197 DTR 314/ 318 CTR 603/ 278 Taxman 138 (Karn) (HC)

S. 40(a)(ia) : Amounts not deductible – Deduction at source – Handling charges paid to persons for in turn paying multiple labourers – TDS provisions not applicable – matter remanded back to CIT(A) for re-examining evidence which he refused to accept .

C.S. Raghoji (Bellary) v. DCIT (2020) 119 taxmann.com 143 /(2021) 277 Taxman 61 (Karn)(HC)

S. 32 : Depreciation – Asset put to use for less than 180 days – additional depreciation of 10% allowed in the year and balance 10% would be allowed in the subsequent year [S. 32(1)(iia)]

CIT v. Aztec Auto (P.) Ltd (2020) 119 taxmann.com 215 /(2021) 277 Taxman 273 (Mad.)(HC)

S. 32: Depreciation – Granted in ealier years and latter years – Order set aside for fresh consideration

Ponni Sugars (Erode) Ltd. (2021) 197 DTR 133 / 318 CTR 676 (Mad) (HC)

S. 12AA : Procedure for registration –Trust or institution-Amendment in section 12AA applicable with effect from AY 2011-12 – retrospective cancellation of registration of trust with effect from AY 2010-11 is without jurisdiction. [S. 2(15)]

Thanthi Trust v. DIT (2020) 196 DTR 57/ 121 taxmann.com 119 (2021) 318 CTR 403 (Mad) (HC) Editorial : SLP granted to the revenue , DIT ( E) v. Thanthi Trust ( 2021 ) 281 taxman 216 ( SC)

S. 12AA : Procedure for registration – Trust or institution – Assessee deemed to have abandoned or waived off their claim made in first application on filing second fresh application – Commissioner justified in granting registration taking into consideration second application and not retrospective registration basis first application .[ From No.10A ]

Carmel Educational and Charitable Trust .v. ITO (2020) 121 taxmann.com 278 / (2021) 277 Taxman 165 (Mad) (HC)