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. 23 : Income from house property-Annual value–Arrears of rent – Arrears of rent accruing in a prior years, not received in those years, could not be assessed in a subsequent year when same were received as income from house property-Arrears of rent attributable to preceding years cannot be brought to tax under the head income from other sources-Provision of section 25B inserted by Finance Act, 2000 with effect from 1-4-2001 would apply prospectively. [S. 22, 25B, 56]

CIT v. Punalur Paper Mills Ltd. (2020) 268 Taxman 47 (Ker.) (HC)

S. 14A : Disallowance of expenditure-Exempt income-Recording of satisfaction-AO has not recorded the satisfaction how the disallowance made by the Assessee is not correct–Deletion of disallowance by the Tribunal is affirmed. [R. 8D]

PCIT v. Keshav Power Ltd (2019) 112 taxmann.com 323 / (2020) 268 Taxman 332 (Delhi) (HC) Editorial: SLP of revenue is dismissed as the tax effect is less than Rs. 2 crores PCIT v. Keshav Power Ltd (2020) 266 Taxman 331 (SC)

S. 14A : Disallowance of expenditure-Exempt income-In the absence of any exempt income, disallowance is not permissible. [R. 8D]

PCIT v. Dish TV India Ltd (Bom.)(HC) (UR).

S. 12AA : Procedure for registration–Trust or institution- Charitable purpose-Cancellation of registration is held to be not valid- Orders made by the CIT and ITAT are quashed and the registration held by the GIDC is ordered to be revived. [S. 2(15), 11, 12A]

Goa Industrial Development Corporation v. CIT (2020)421 ITR 676 /187 DTR 175/ 313 CTR 589 / 271 Taxman 58 (Bom.)(HC)

S. 10(23AAA) : Funds established for welfare of employees-No renewal was required once a Pension fund set up by assessee approved by concerned authority. [S.10(25), 12A]

CIT v. United India Insurance Company Employees Pension Fund. (2020) 268 Taxman 13 / 186 DTR 217 / 313 CTR 65(Mad.)(HC)

S. 4 : Charge of income-tax–Capital or revenue–Business of accepting deposits from members and lending the same to non members-Waiver of deposit–Waiver of principal component of deposits and debentures–Capital receipts. [S. 28(i)]

Manipal Sowbhagya Nidhi Ltd. v. Dy.CIT (2019) 112 Taxman.com 325 / (2020) 268 Taxman 330 (Karn.)(HC) Editorial: SLP of revenue is dismissed Dy CIT v Manipal Sowbhagya Nidhi Ltd (2020) 268 Taxman 329 (SC)

Central Goods and Services Tax Act, 2017/ Gujarat Goods an Services Act , 2017 .
GST – Search & Seizure- The action of the GST authorities of camping in the assessee’s home for 8 days and placing him under house arrest is illegal & a blatant abuse of powers. It has shocked the conscience of the court.

Paresh Nathalal Chauhan v. State of Gujrat (2020) 79 GST105 /77 GSTR 89; MANU /GJ /3478/2019 (Guj)(HC), www.itatonline.org

Appeal – Supreme Court -Condonation of delay- The special leave petition has been filed after a delay of 387 days with further delay of 302 days in refiling- This is one more case which we have defined as “Certificate Cases” – Administration directed to hold an inquiry into the aspect as to who is responsible for such inordinate delay and take suitable action against the officers concerned [ .Limitation Act ,1963, S.5 ]

Administrator, Jammu Municipality & Anr. v. Swarn Theatre and Ors. MANU/SCOR/04882/2020 (SC); www.itatonline.org

S. 254(1): Appellate Tribunal- Duties- Relying on the case laws not cited by both the parties- Not dealing with the case law cited by the representative of the assessee- Matter remanded to the Tribunal to pass the fresh order . [ S.80IB (10) ]

Bhavya Construction Co. v. ACIT (Bom)(HC), www.itatonline.org

S. 253 : Appellate Tribunal – Condonation of delay of 318 days- Delay “Useless advice” by a professional to not file appeal and to instead file a Cross Objection if Revenue filed the appeal cannot help the assessee because there was always going to be a chance that Revenue might not file appeal- Delay is not condoned .[ S.253(3), 254(1) ]

Boutique Hotel India (P) Ltd. v. ACIT ( 2020) 180 ITD 817 /187 DTR 353 / 204 TTJ 525 (Delhi)(Trib), www. Itatonline.org