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. 9(1)(v) : Income deemed to accrue or arise in India-Interest-Foreign Institutional Investor-Foreign currency loans and debt securities-Exempt from tax-DTAA-India-Mauritius. [Art. 11(3)(c)]

DCIT (IT) v. HSBC Bank (Mauritius) Ltd. (2020) 84 ITR 360 / 185 ITD 452 (Mum.)(Trib.)

S. 9(1)(i) : Income deemed to accrue or arise in India-Business connection-Sole distributor of cars in India-Principal-to-Principal basis-DTAA-India-German. [Art. 5]

AUDI AG v. DCIT (IT) (2020) 185 ITD 149 (Mum.)(Trib.)

S. 9(1)(i) : Income deemed to accrue or arise in India-Business connection-Independent personal services-Two foreign scientists for Independent scientific services-No fixed PE in India nor had they stayed in India for 183 days or more-Not liable to deduct tax at source-DTAA-India-Switzerland. [Art. 12(5) (b), 14, 15]

Poddar Pigments Ltd. v. ACIT (2020) 185 ITD 463 (Delhi)(Trib.)

S. 5 : Scope of total income-Real estate business-Income which has not accrued cannot be taxed-Addition was deleted. [S. 145]

Shivsagar Builders (P.) Ltd. v. ACIT (2020) 185 ITD 684 (Delhi) (Trib.)

S. 4 : Charge of income-tax-Capital or revenue-Refundable security and membership fee-Capital receipt.

Landbase India Ltd. v. ACIT (2020) 80 ITR 580 / 185 ITD 40 (Delhi)(Trib.)

S. 271A : Penalty-Failure to keep maintain-Retain books of accounts-Documents-Income exceeded prescribed limit-Levy of penalty is up held. [S. 44AA]

Sanghamitra Pattnaik. (Smt.) v. ITO (2020) 184 ITD 647 / 206 TTJ 35 (UR) / 79 ITR 46 (SN) (Cuttack)(Trib.)

S. 271(1)(c) : Penalty-Concealment-Arbitration award-dredging contract-Annexed a Note in ITR based on relevant DTAA that said amount was not taxable in India-Levy of penalty is held to be not justified-DTAA-India-Netherland-In computing time limitation for pronouncement of order by Tribunal, nation wide COVID 19 lockdown period was to be excluded. [S. 28(i), 255, ITAT R, 34, Art. 5, 7]

Van Oord Dredging and Marine Contractors BV v. ADIT (2020) 184 ITD 750 / 191 DTR 276 / 206 TTJ 386 (Mum.)(Trib.)

S. 263 : Commissioner-Revision of orders prejudicial to revenue-Losses-Set off of one head against income from another-There is no provision in section 115BBD to eliminate dividend income received from specified foreign company before setting off of loss-Revision proceeding is quashed. [S. 71, 115BBD]

Tata Motors Ltd. v. DCIT (2020) 184 ITD 680 / 208 TTJ 486 (Mum.) (Trib.)

S. 263 : Commissioner-Revision of orders prejudicial to revenue-Specified domestic transactions– When clause (i) of section 92BA has been omitted by Finance Act, 2017 with effect from 01-04-2017, without any saving clause of General Clauses Act, it would be treated as said clause never existed in Statute Book-Revision is held to be bad in law. [S. 92BA]

Raipur Steel Casting India (P.) Ltd. v. PCIT (2020) 184 ITD 86 / 208 TTJ 450 (Kol.)(Trib)/Srinath Ji Furnishing ( P) Ltd v.PCIT (2020) 184 ITD 86 /208 TTJ 450 (Kol.) (Trib)

S. 255 : Appellate Tribunal-Reference to Special Bench-Interest-Paid by subsidiary-Matter referred to Larger Bench to examine connotations of expression ‘paid’ appearing in article 11 as in various decisions of Tribunal, there was no discussion about connotations of expression ‘paid’ and these decisions simply proceed on basis that since expression ‘paid’ is used in article 11(1) of India Cyprus tax treaty, taxability of interest can only be on cash basis-DTAA-India-Cyprus. [Art. 11(1)]

Ampacet Cyprus Ltd. v. DCIT (2020) 184 ITD 743 / 195 DTR 289 / 208 TTJ 653 (Mum.)(Trib.)