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. 14A : Disallowance of expenditure-Exempt income-Own funds exceeded amount of investment in shares-No disallowance can be made. [R. 8D]

Gujarat State Energy Generation Ltd. v. ACIT (2020) 183 ITD 590 (Ahd.)(Trib.)

S. 14A : Disallowance of expenditure-Exempt income-Disallowance under Rule 8D(2)(iii) is to be done by taking into account dividend bearing securities only. [S. 10(34), R.8D(2)(iii)]

Pricewaterhouse Coopers (P.) Ltd. v. ACIT (2020) 183 ITD 354 (Kol.)(Trib.)

S. 14A : Disallowance of expenditure-Exempt income-Short term borrowings-Equity shares held as stock in trade-portion of interest expenses related to earning of exempt dividend income had to be disallowed-Matter remanded-Method of valuation-Stock in trade-Matter remanded. [RR. 8D]

ACIT v. PNB Gilts Ltd. (2020) 81 ITR 224/183 ITD 111 (Delhi)(Trib.)

S. 14A : Disallowance of expenditure-Exempt income-Investment from interest free own funds-No disallowance can be made. [R. 8D(2)(ii)]

ACIT v. PNB Gilts Ltd. (2020) 81 ITR 224 / 183 ITD 111 (Delhi) (Trib.)

S. 12AA : Procedure for registration-Trust or institution-Advocate welfare fund trustee committee-Charitable in nature-Entitle to registration. [S. 2(15), 80G]

Advocate Welfare Fund Trustee Committee v. CIT (2020) 183 ITD 407 (Delhi)(Trib.)

S. 12AA : Procedure for registration-Trust or institution-Visakhapatnam Metro Region Development Authority-Cancellation of registration is held to be not justified. [S.2(15), Andhra Pradesh Urban Areas (Development) Act, 1975, S.19]

Visakhapatnam Metropolitan Region Development Authority v. CIT(OSD) (2020) 183 ITD 121 (Vishakha)(Trib.)

S. 12AA : Procedure for registration-Trust or institution-Engaged in safeguarding rights, privileges and interest of advocates-Purpose being advancement of general public utility-Entitled for registration and exemption under section 80G of the Act. [S. 2(15), 10(23), 80G]

Bar Council of Delhi v. CIT(E) (2020) 84 ITR 181 / 183 ITD 852 (Delhi)(Trib.)

S. 11 : Property held for charitable purposes-Primary objective was to administer payment settlement system for larger benefit of general public and not to run clearing system in a commercial manner or on a commercial basis, assessee’s activities were charitable-Exemption cannot be denied. [S. 2(15), 12, 13(3), Companies Act, 1956, S. 25]

National Payments Corporation of India v. DCIT (2020) 183 ITD 412 / 192 DTR 161 / 206 TTJ 681 (Mum.)(Trib.)

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.)