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. 37(1) : Business expenditure-expenditure incurred on affixing adhesive stamps on conveyance deed-held, it is revenue expenditure-provision for warranty-provision for present obligation due to past event-not a contingent liability-expenditure allowed-Depreciation on goodwill and customer contracts-held in nature of intangible assets, therefore eligible for depreciation [ S. 32. ]

Demag Delaval Industries Turbomachinery (P.) Ltd v. ACIT(2021) 186 ITD 228 (Mum) (Trib)

S. 36(1)(iii): Interest on borrowed capital –Interest free advances made-availability of sufficient own funds- addition deleted by the Tribunal-delay in payment to the account of Provident Fund-disallowance upheld-delay in pronouncement of order by the Tribunal-90 days period should exclude at least the lockdown period. [ S.254 (1), ITAT R. 34(5)]

Balaji Electrical Insulators (P) Ltd.v. Dy. CIT (2021) 186 ITD 1 (Ahd.) (Trib)

S. 14A : Disallowance of expenditure – Exempt income – Ad-hoc disallowance – Deleted.[R.8D ]

Triveni Engineering & Industries Ltd. v. ACI (2020) 118 taxmann.com 301/ (2021) 186 ITD 353 (Delhi (Delhi)(Trib.)

S. 10AA : Special economic zones –Transfer pricing voluntary adjustments – Entite to deduction in enhanced income [ S.92C ]

Dy. CIT v. EYBGS India (P.) Ltd (2021)186 ITD 765 (Bang) (Trib)

S. 9(1)(vi) : Income deemed to accrue or arise in India – Royalty – Singapore tax resident providing bandwidth services – Cannot be taxed as royalty as Indo-Singapore DTAA does not include transmission by satellite, cable, optic fiber or similar technology in the definition of ‘Royalty’- DTAA -India – Singapore [ Art. 12 (3)]

Telstra Singapore Pte Ltd. v. Dy. CIT (IT)-(2021) 186 ITD 440/ 123 taxmann.com 124 (Delhi ) ( Trib.)

S. 4 :Charge of income-tax – Assessee a Federation of co-operative societies received contribution from its members towards co-operative education fund – Assessee had no discretion to spend amount received – the contribution could not be treated as income of assessee.[ S.80P(2)(a)(i)]

Karnataka State Co-operative federation Ltd. v. ACIT (2021) 186 ITD 750 (Bang) (Trib)

S. 4: Charge of income-tax – Reimbursement of Software payments – Licence obtained from third parties –Not royalty – Not taxable [ S.9(1)(vii)]

SCAHygiene Products AB v. Dy. CIT (IT) (2021) 187 ITD 419/ 209 TTJ 545 / 123 taxmann.com 152/ 85 ITR 607/197 DTR 401 (Mum) (Trib)

S. 254(1) : Appellate Tribunal – Duties- Free trade zone – Grounds not adjudicated on merits – Matter remanded [S. 10A , 260A ]

Ntt Data Global Delivery Services Ltd. v. ACIT (2021) 123 taxmann.com 226/ 277 Taxman 143 (Karn) (HC)

S. 254(1) : Appellate Tribunal – Duties- Property held for charitable purposes – Purchase of gold bullion – Tribunal has not dealt with the contention of assessee- Matter remanded to Tribunal[ S. 11,m13 (1)(d) (iia) ]

Sri Venkkaliamman Educational and Charitable Trust .v. DCIT (2020) 122 taxmann.com 81 / (2021) 277 Taxman 257 (Mad) (HC)

S. 276C : Offences and prosecutions – Wilful attempt to evade tax – False statement – Verification – Abetment – Only the concerned AO can file a complaint against the accused unless some strong incriminating material is found in the course of search/survey on a third party- Complaint filed by Director of Income-Tax — not justified — Prosecution not valid [S. 133A,136,277,278 ,279, Code of Criminal Procedure, 1973 , S.195, Indian Evidence Act, 1872 , S.65B, Indian Penal Code, 1860 , S.193 ,196 ]

Karti P. Chidambaram v. Dy. DIT (Inv) (2021) 431 ITR 261/ 197 DTR 33 / 318 CTR 113 / 122 taxmann.com 146 (Mad) (HC) Srinidhi Karti Chidambaram( Smt.) . v. Dy. DIT (Inv) (2021) 431 ITR 261 / 197 DTR 33 / 318 CTR 113 / 122 taxmann.com 146 (Mad)(HC).Editorial: Notice issued in SLP filed by Revenue , DCIT v. Karti P. Chidambaram. (2022) 289 Taxman 294 (SC)