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. 56 : Income from other sources-Individual-Natural living individuals-Donation received by discretionary Trust-Assessable as income from other sources. [S. 2(24)(xv), 2(31)(v), 56(2)(vii)]
CIT v. Shriram Ownership Trust (2021) 430 ITR 356/197 DTR 153/ 318 CTR 233 (Mad.)(HC)
S. 45 : Capital gains-Transfer of shares to subsidiary in Mauritius- Transfer of Shares from subsidiary to Private Equity Fund incorporated in Cayman Islands-Transactions are not genuine-High Court has the power to find out if transactions are genuine.
PCIT v. Redington (India) Ltd. (2021) 430 ITR 298 (Mad.)(HC)
S. 45 : Capital gains-Agricultural land- Barren land-Sold to developer with in short period after purchase-Land not agricultural- Gains not exempt from tax. [S. 2(14)(iii), 10(1) Bombay Tenancy and Agricultural Lands Act, 1948, S. 63]
CIT v. GRK Reddy and Sons (HUF) (2021) 430 ITR 283/ 277 Taxman 127 / 201 CTR 61(Mad.)(HC)
S. 44AD : Presumptive taxation-Individual partner of firm engaged in eligible business- Remuneration and interest could not be treated as gross receipts- Not entitled to benefit. [S. 28(v), 44AD(2)]
Anandkumar v. CIT (2021) 430 ITR 391/ 199 DTR 289/ 319 CTR 484/278 Taxman 342 (Mad.)(HC)
S. 40A(3) : Expenses or payments not deductible-Cash payments exceeding prescribed limits- Issue remanded to CIT(A). [S. 40(a)(ia), 254(1)]
R. Venugopal v. Dy. CIT (2021) 430 ITR 471 (Mad.)(HC)
S. 40(a)(i) : Amounts not deductible-Deduction at source-Non-resident-Purchase of intellectual property-Depreciation is not an expenditure-No disallowance can be made for failure to deduct tax at source . [S. 32, 37(1), 40(a)(ia)]
PCIT v. Tally Solutions Pvt. Ltd. (2021) 430 ITR 527 (Karn.)(HC)
S. 37(1) : Business expenditure-Discount on employees Stock Option Plan-Allowable as deduction. [Companies Act, 1956, S. 2(15A)]
CIT (LTU) v. Biocon Ltd. (2021) 430 ITR 151 / 276 Taxman 1 197 DTR 209/ 318 CTR 728 (Karn.)( HC)
S. 37(1) : Business expenditure-Real estate business-Provision made in account for security deposit-Amount forfeited due to breach of contract-Neither allowable as business expenditure nor as bad debt. [S. 36(1)(vii)]
Allu Arvind Babu (No. 2) v. ACIT (NO. 2) (2021) 430 ITR 183 / 197 DTR 93/318 CTR 102 (Mad.)(HC)
S. 37(1) : Business expenditure-Capital or revenue-Expenditure on acquisition of technical know-how-Enduring benefit-Not allowable as revenue expenditure.
Telco Construction Co. Ltd. v. ACIT (2021) 430 ITR 22 / 277 Taxman 137 (Karn.)(HC)
S. 37(1) : Business expenditure-Take over business-Scheme for voluntary retirement of employees-Allowable as business expenditure. [S. 10(10C)]
CIT v. G. E. Medical Systems (I.) (P.) Ltd. (2021) 430 ITR 494 / 197 DTR 449 / 277 Taxman 315 (Karn.)( HC)