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)(i) : Income deemed to accrue or arise in India-Business connection-Wholly owned subsidiary in India-Entering into subscription agreement with various travel agents, it could be regarded as assessee’s fixed PE in India-DTAA-India-Singapore. [Art. 5, 8]

Sabre Asia Pacific Pte. Ltd. v. DCIT (2020) 183 ITD 832 (Mum.)(Trib.)

S. 9(1)(i) : Income deemed to accrue or arise in India-Business connection-Dependent Agent-Arm’s length remuneration-DTAA-India-UK. [Art. 7]

OT Africa Line Ltd. v. DIT(IT) (2020) 183 ITD 159/192 DTR 241 / 206 TTJ 716 (Mum.)(Trib.)

S. 5 : Scope of total income-Sale of property-Amount represented outstanding receivable from buyer in respect of property sold in earlier assessment year-Addition is held to be not valid. [S. 145]

Supreme Build Cap (P.) Ltd. ACIT (2020) 183 ITD 728 (Delhi)(Trib.)

S. 5 : Scope of total income-Accrual income-Retention money-Taxable in the year of receipt. [S. 115JB, 145]

DCIT v. EMC Ltd. (2020) 183 ITD 380/ (2021) 209 TTJ 518 (Kol.)(Trib.)

S. 2(24)(iv) : Income-Value of benefit or perquisite-Family arrangement-Lifting corporate veil-Benefit from receipt of shares-Sham and bogus-lifting corporate veil, without providing any cogent reasons could not have commented on said transaction as sham and bogus and by doing this he had overstepped provisions of Act and commented on third party assessee (beneficiary) which was not permissible.

Glebe Trading (P.) Ltd. v. ITO (2020) 183 ITD 166 (Delhi)(Trib.)

S. 2(22)(e) : Deemed dividend-Share holder-10% share holdings-Transfer of shares before advancement of loan-Addition cannot be made as deemed dividend.

ACIT v. Gurdeep Singh (2020) 183 ITD 317 / 117 taxmann.com 451 / 206 TTJ 872 / 80 ITR 14 (SN) (Chd.)(Trib.)

S. 2(14)(iii) : Capital asset-Agricultural land-Valuation-Matter remanded to the Assessing Officer with a direction to find out as to whether agricultural land fell within meaning of capital asset. [S. 56(2)(vii)(b)].

Prem Chand Jain v. ACIT (2020) 82 ITR 522 / 183 ITD 372 / 194 DTR 37 / 207 TTJ 629 (Jaipur)(Trib.)

S. 271(1)(c) : Penalty-Concealment-Long term capital gains-Sale of land-Failure to discloses-Information through AIR-Explanation was not bonafide-Levy of penalty is held to be justified-Question of defects in the notice was not allowed to be raised first time before the High Court. [S. 143(2), 260A, 274]

Gangotri Textiles Ltd. v. Dy. CIT (2021) 276 Taxman 356 (Mad.)(HC) Editorial : SLP of assessee rejected , Gangotri Textiles Ltd. v. Dy. CIT ( 2022) 443 ITR 360( St)(SC) / [2022] 286 Taxman 357 (SC)

S. 263 : Commissioner-Revision of orders prejudicial to revenue-Banking company-lapsed demand drafts, gift cheques etc-General Reserve-Write back allowed as business loss-Revision is held to be not valid. [S. 28(i)]

CIT LTU v. Canara Bank (2021) 276 Taxman 280/197 DTR 219/ 318 CTR 80 (Karn.)(HC)

S. 261 : Appeal-Supreme Court-Decision of Jurisdictional High Court is binding though the SLP is pending before Supreme Court-Low tax effect-SLP filed by the revenue is dismissed as withdrawn due to low tax effect. [S. 14A, R.8D]

CIT v. Enercon India Ltd. (2021) 276 Taxman 88 (SC)