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 – School – Exemption – For delay in filing form Nom 10B denial of exemption is not justified – Petitioner is directed to file an application before the CBDT within a period of three weeks from today, and CBDT shall pass an appropriate order in terms of direction No.1 above within a period of four weeks from the date of receipt of such application with due intimation to the petitioner [ S. 2(15) , 12, 119 (2)(b) , Form No 10B , Art , 226]

Little Angels Education Society v. UOI (2021) 434 ITR 423/320 CTR 331 / 200 DTR 289 / 280 Taxman 4 ( Bom) (HC) www.itatonline.org/C.F. Andrews Education Society v. UOI (2021)434 ITR 423/ 320 CTR 331 / 200 DTR 289 / 280 Taxman 4 ( Bom) (HC) www.itatonline.org

Prohibition of Benami Property Transactions Act, 1988

S.4. Prohibition of the right to recover property held Benami – It was imperative for Single Judge to weigh evidence to conclusively decide that plaintiff could not succeed in their claim that defendant No. 1 was holding suit premises in a fiduciary capacity for benefit of family members. matter was to be remanded back [S. 3(b) 4(1) 4(3)(b), Order VII, Rule11 of the Code of Civil Procedure, 1908 ]

Neeru Dhir v. Kamal Kishore Dhir (2021) 276 Taxman 265 (Delhi)(HC)

S. 263 : Commissioner – Revision of orders prejudicial to revenue -Transfer pricing -Failure to provide draft assessment order – Direction to pass fresh assessment order- -Void ab initio -Revision is held to be not valid . [ S.92CA, 144C ]

Cigabyte Technology (India) (P) Ltd v. CIT( 2020) 195 DTR 337/ 317 CTR 585/ ( 2021) 276 Taxman 104 ( Goa Bench) ( Bom) (HC)

S.143(3): Assessment -Unexplained money –Alternative remedy is available – Writ is not maintainable . [ S.69A ,142(1), Art , 226 ]

Narasimman Padmavathy v. ITO( 2020) 196 DTR 365/ (2021) 431 ITR 374/ 276 Taxman 352 / 318 CTR 472 (Mad.)(HC)

S. 68 : Cash credits – Payments for purchases – Deletion of addition is held to be justified .

CIT v. Mukhtar Minerals (P.) Ltd( 2020)) 195 DTR 393 / (2021) 432 ITR 152/ 321 CTR 30 276 Taxman 218 (Bom.)(HC)

S. 54G : Capital gains – Shifting of industrial undertaking from urban area – Sale of magazine and as per scheme of Explosive Act, 1884 a magazine would be equivalent to a godown and qualify to be a place used for purpose of business of an industrial undertaking- Eligible to claim deduction on sale of godown in an urban area.[ S.45, Explosive Act, 1884 ]

PCIT v. Standard Fireworks ( P ) Ltd (2020) 122 taxmann.com 91 (Mad.)( HC) Editorial : SLP of revenue is dismissed ( 2021) PCIT v. Standard Fireworks ( P ) Ltd ( 2021 276 Taxman 190 (SC)

S. 43A : Rate of exchange – Foreign currency – loan availed for acquisition of fixed assets- Depreciation is held to be allowable on such adjustment- No exempt income – No disallowance can be made [ S. 14A,32, R.8D ]

CIT v. Continuum Wind Energy (India) (P.) Ltd. (2021) 430 ITR 52 / 276 Taxman 286 (Mad.)(HC)

S. 12AA : Procedure for registration –Trust or institution- Charitable purpose – Imparting financial education/awareness to investor in field of investments- Rejection of registration is held to be not valid . [S. 2(15 ) , Companies Act , 1956 , S. 25 ]

Investor Financial Education Academy v. ITO(E) ( 2020) 196 DTR 1 / (2021) 276 Taxman 57 / 318 CTR 353 (Mad.)(HC)

S. 5 : Scope of total income – Accrual of income – Advance on discounting of bills – Method of accounting – Not taxable as income of the relevant year [ S. 4, 145 ]

Karur Vysya Bank Ltd. v. Add.CIT( 2020) 196 DTR 168 / (2021) 276 Taxman 463 / 318 CTR 94 (Mad.)(HC)

S. 4 : Filing of declaration and particulars to be furnished-Settlement of Disputes-Ex parte order set aside to the Tribunal-Assessee Bound By Undertaking Given To File Application Under Vivad Se Vishwas Scheme. [IT Act, S. 253, 254(1)

Kalra Papers Pvt. Ltd. v. ITO (2021) 430 ITR 291/ 279 Taxman 194/ 204 DTR 146/ 321 CTR 524 (Delhi)(HC)