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-Non-Resident-Contract for development of gas fields-Construction activity continued in India for a period of six months only-No Permanent Establishment in India-DTAA-India-Cyprus. [Art. 5(a)(g)]
Bellsea Ltd. v. DIT (IT) (2020) 182 ITD 420 (Delhi)(Trib.)
S. 4 : Charge of income-tax-Hindu undivided family-Capital gain-Individual or HUF-Remanded for fresh decision. [S. 139(5)]
Dr. K.R. Rajashekar Reddy v. DCIT (2020) 182 ITD 121 (Bang.) (Trib.)
S. 10A : Free trade zone – Splitting up or reconstruction – Three units at different locations – Approval from Authority of Software Technology Park of India ( STPI) -Entitle to deduction .
PCIT v .IGate Computer Systems Ltd ( 2020) 114 taxmann. 680 ( Bom) (HC)
S. 10A : Free trade zone – Splitting up or reconstruction – Purchase of new computers -Not owning the land – Site development of software programme – Eligible exemption.
CIT v. L & T Valdel Engineering (P.) Ltd (2020) 119 taxmann.com 443 / 275 Taxman 115 ( Karn) (HC)
S. 194J : Deduction at source – Fees for professional or technical services -Provision of third party administrator services to insured — Service providers have to deduct tax from payments made to Hospitals – Circular No. 8 Of 2009, dated 24-11-2009 (2009) 319 ITR (St.) 22) is not valid to extent it provides for penalty for infraction of Section 194J [ S.119(1), 271C , 273B, Art . 226 ]
TTK Healthcare TPA Pvt Ltd (No. 1) v. Dy CIT(TDS)( 2020) 195 DTR 209/ 317 CTR 684/ (2021) 430 ITR 134 (Karn)( HC)
S. 245D : Settlement Commission – Offer of small portion of disputed amount voluntarily — Justified in accepting the offer .[ S.245D(4), Art, 226 ]
PCIT v. Akshat Shah( 2020) 193 DTR 77/ 316 CTR 817 / (2021) 430 (Guj)(HC)
S. 32: Depreciation — Actual cost — Purchase of second-hand Windmill —Disallowance of depreciation is held to be justified .[ 43(1), Expln. 3, 143(3), 147 ]
V. Sabitamani v. ACIT(2020) 194 DTR 301/ 317 CTR 463 / (2021)430 ITR 490 (Mad)(HC)
S.147:Reassessment —Failure to furnish reasons recorded by Assessing Officer — Furnishing the recorded reasons when the matter was pending before Appellate Tribunal-Tribunal remanding the matter – Order of Tribunal remanding matter and subsequent assessment and demand notice set aside [ S.148 , 254(1) ]
New Era Shipping Ltd. v. CIT ( 2020) 196 DTR 137/(2021) 430 ITR 431 / 318 CTR 400 (Bom) (HC)
S. 10B: Export oriented undertakings – Loss -Set off -Export oriented units -Deduction cannot be thrust- Entitled to set off losses from export oriented units against profits of domestic tariff area unit[ S.(10B(6)(ii), 70, 72, 74 ]
Karle International Pvt Ltd. v. ACIT ( 2020) 196 DTR 473/ 274 Taxman 461 /(2021)430 ITR 74/ 318 CTR 478 (Karn)(HC) . Editorial : SLP of revenue is dismissed , ACIT v. Karle International (P) Ltd. (2021) 283 Taxman 97 (SC)