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 – No Disallowance of expenses relating to dividend received from foreign companies taxable in India and offered to tax – Strategic investments or investments in subsidiary companies or group or associated companies in India or companies promoted by assessee — Includible in disallowance — Disallowance not to exceed exempt income [ R.8D(2)(iii) ]

Lakshmi Machine Works Ltd. v. Add. CIT (2020)78 ITR 398 (Chennai ) (Trib)

S. 14A : Disallowance of expenditure – Exempt income – Sufficient interest free funds – No disallowance could be made [ R.8D ]

Darashaw And Co. Pvt. Ltd. v. Dy. CIT (2020)78 ITR 553 ( Mum) (Trib)

S. 12A : Registration –Trust or institution- Education – Entitled to Registration [ S.2(15), 12AA ]

Wilsonia West End School Society v. CIT (2020)78 ITR 93 ( Delhi ) (Trib) Wilsonia Degree College Society v. CIT (2020)78 ITR 93 ( Delhi ) (Trib) Wilsonia College Society v. CIT (2020)78 ITR 93 ( Delhi ) (Trib)

S. 11 : Property held for charitable purposes – Application of income – Cost of acquisition of assets allowed as application of income —Cannot claim exemption on account of repayment of loan as application of income .

A. Shama Rao Foundation v. ACIT (2020)78 ITR 374 (Bang (Trib)

S. 4 : Charge of income-tax -Capital or revenue – Real estate development – Compensation for relinquishment of right to sue societies for breach of contract capital receipt not taxable as capital gains or business income [ S. 2(24) 28(i) , 45 ]

Popular Estate Management Ltd. v. Dy. CIT (2020)78 ITR 261 ( Ahd) (Trib)

S. 4 : Charge of income-tax – Capital or revenue – Interest subsidy – Technology upgradation fund scheme- Encourage capital investment by eligible unit in form of specified machinery- The AO is directed to verify issue of utilisation of amount of subsidy. [ S.28(i), 254(1) ]

Dy. CIT v. BSL Ltd. (2020)78 ITR 348/ 183 ITD 675 (Kol) (Trib)

S. 271A : Penalty – Failure to keep maintain – Retain books of accounts –Documents – Failure to produce books of account – Levy of penalty is held to be justified .[ S.44AA, 273B ]

Sanghamitra Pattnaik (Smt.) v. ITO (2020) 79 ITR 46 (SN) / 117 taxmann.com 179( Cuttack ) (Trib)

S. 271(1)(c) : Penalty – Concealment – Penalty initiated under both limbs – Penalty levied for concealment of income – Levy of penalty is held to be not valid .

Vimalaben B. Patel ( Smt.) v. ITO (2020) 79 ITR 25 (SN) (Pune ) (Trib)

S. 271(1)(c) : Penalty – Concealment – Disallowance of expenses -Amount debited in profit and loss account — Neither concealment of income nor furnishing inaccurate particulars of income — Penalty not warranted. [ S.14A , R.8D ]

Unique Ways Management Service P. Ltd. v. ACIT (2020)79 ITR 11(SN)( Indore) (Trib)

S. 271(1)(c) : Penalty – Concealment – Disallowance of expenses due to not deduction of tax at source – Disallowance of expenses on Corporate social responsibility expenses – Levy of penalty is held to be not valid .[ S. 37(1) ,40(a)(1), 40(a)(iii) ]

Frontier Business Systems P. Ltd. v ITO (2020) 79 ITR 34 (SN) ( Bang ) (Trib)