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. 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.)

S. 9(1)(vii) : Income deemed to accrue or arise in India-Fees for technical services-Employees of Non-Resident assessee deputed to manage affairs of its associated enterprise in India and provide technical Knowledge-Employees continuing to make social security contributions in their country and their salaries distributed to their bank accounts-There-Revenue received by assessee by way of reimbursement constitutes fees for included services-DTAA-India-USA. [Art. 7]

Teradata Operations Inc. v. Dy. CIT (2020) 82 ITR 338 (Delhi)(Trib.)

S. 2(22)(e) : Deemed dividend-Current account transactions outside purview of deemed dividend-Rule of consistency is followed.

Exotica Housing and Infrastructure Co. Pvt. Ltd. v. ITO (2020) 82 ITR 46 / 207 TTJ 992 (Delhi)(Trib.)

S.132: Search and Seizure – Firm – Person actively involved in the activities of the firm – Search is held to be valid – Order of Tribunal is affirmed . [ S.40A(3), 68 )

CIT v. Chekkattu Chitty Funds (2020) 113 taxmann.com 604 (Ker) (HC) Editorial: SLP of assessee dismissed , Chekkattu Chitty Funds v. CIT (2020) 113 taxmann.com 606 / 269 Taxman 373 (SC)

S. 147: Reassessment – Anonymous donations -Appeal pending on similar issue in another issue- Notice not to be quashed – Order of High Court remanding the matter was affirmed [ S. 115BBC , 148 ]

Shri Saibaba Sansthan Trust (Shirdi) v. UOI ( 2020) 114 taxmann.com 489 / 270 Taxman 197 / 316 CTR 587 (SC) Editorial : Order of High Court is affirmed Shri Saibaba Sansthan Trust (Shirdi) v.UOI (2018) 100 taxmann.com 77/ 168 DTR 364/ 304 CTR 444 (Bom)(HC)

S. 147 : Reassessment – After the expiry of four years- Block assessment- Addition deleted by CIT (A) – Notice to reassess the same is held to be not valid [ S. 132, 148 ,158BC , Art , 226 ]

Audhut Timblo v. ACIT (2020) 420 ITR 62 / 196 DTR 335 (Bom) (HC)

S. 271(1)(c) : Penalty – Concealment – Quantum addition challenged in appeal to High Court –Substantial question of law – Debatable – Levy of penalty is held to be not justified [ S.260A

PCIT v. Harsh International Pvt. Ltd. (2021) 431 ITR 118 (Delhi)(HC)

S. 264 :Commissioner – Revision of other orders – Rejection of application on ground of bar of limitation – Failure to decide revised capital gains- Matter remanded to decide the issue on section 50C [ S. 50C, 54 , Art , 226 ]

Prabhudas Veljibhai Chaudhari v. PCIT (2021) 431 ITR 246 (Guj)(HC)

S. 263 : Commissioner – Revision of orders prejudicial to revenue -Assessing Officer taking one of two possible views on issue — Order not erroneous — Commissioner cannot set aside order .[ S.80IA, form 10CCB ]

Sutures India Pvt. Ltd. v. CIT (2021) 431 ITR 332 / 278 Taxman 112(Karn)(HC)

S. 263 : Commissioner – Revision of orders prejudicial to revenue – Deduction granted on a wrong view of the Law —Revision is held to be justified [ S.10A ]

Harman Connected Services Corporation India Pvt. Ltd. v. CIT. (2021) 431 ITR 401/ 198 DTR 144/ 319 CTR 24 (Karn)(HC)