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. 80DD: Medical treatment of dependent – Observations – Disability – Jeevan Aadhar – Amount of annuity under the policy is to be released only after the death of the person assured – Purpose is to secure the future of the person suffering from disability, after the death of the parent/guardian – Provision is valid in law – Considering the several difficult situations where the handicapped person may need the payment on annuity or lumpsum basis even during the life time of their parents/guardians, it is for the legislature to take care of theses aspects and to provide suitable provision by making necessary amendments in S.80DD. [Constitution of India Art. 14, 32]
Ravi Agarwal v. UOI (2019) 410 ITR 399 / 173 DTR 194 / 306 CTR 177 / 260 Taxman 352 (SC)
S.32 : Depreciation – Prior to 1.4.1999 – Intangible assets – Acquisition of trademarks, copyright and know-how of erstwhile firm – Held, intellectual property rights such as trademarks, copyrights and know-how constitute “plant” for purposes of depreciation – The department is not entitled to rewrite the terms of a commercial agreement. [S. 35A, 35AB, 43(3)]
Mangalore Ganesh Beedi Works v. CIT (2015) 378 ITR 640 / 280 CTR 521 / 126 DTR 233 (SC)
S. 10(37): Capital gains – Agricultural land – Deduction at source – Acquisition of immoveable property – Payment of compensation on agreed terms in respect of the land acquired is entitled for exemption. [S.148 ,194LA, Land Acquisition Act, 1894, S.6]
UOI v. Infopark Kerala (2017) 154 DTR 99/ 247 Taxman 219/ 297 CTR 219 (SC)
S. 4: Charge of income tax – Hindu undivided family – Inheritance – Hindu undivided family ceases to exist without male presence – Inherited property taxable in individual hands.
CIT v. (Smt.) Sandhya Rani Dutta (2001) 248 ITR 201 / 115 Taxman 369 /166 CTR 208 (SC)
S.4: Charge of income-tax – Diversion of income by overriding title or application of Income. [ Indian Income-tax Act, 1922, S.3 ]
CIT v. Sitaldas Tirthaldas (1961) 41 ITR 367 (SC)
S. 281B: Provisional attachment- Recovery-Stock Exchange Card—Stock Exchange Rules clearly indicate that on right of nomination vesting in the Stock Exchange under the rules, that right belongs to Exchange absolutely— The membership right is not the property of assessee – Cannot be attached . [ S.226(3) , The Stock Exchange, Ahmedabad ]
Stock Exchange Ahmedabad v. ACIT (2001) 248 ITR 209/115 Taxman 471/186 CTR 285 (SC)
S. 276C : Offences and prosecutions – Wilful attempt to evade tax – When Concealment penalty is deleted on merits – Automatic cancellation of prosecution.[ S. 271(1) (c ) , 278B Indian Penal Code 1860 , 34, 120B ,193, 196, 420 , Criminal Procedure Code , 1973, 397 , 401 ]
K. C. Builders v. ACIT (2004) 265 ITR 562 / 135 Taxman 461 / 186 CTR 721 / 179 Taxation 418 (SC)
S.276: Offences and prosecutions—Pendency of appeal before Tribunal – Stay of prosecution proceedings under the Income Tax Act 1961 during the pendency of assessment proceedings before authorities was held to be justified. [S. S.277, 278B; Constitution of India, Art. 226, Code of Criminal Procedure , 1973S .482 ].
CIT v. Bhupen Champak Lal Dalal (2001) 248 ITR 830/116 Taxman 746/167 CTR 283 (SC)
S.275: Penalty – Concealment – Limitation – Appeal – Supreme Court – Questions of law raised first time – Matter set aside to Tribunal [ [S. 254(1) ,261, 271(1)(a), 271(1)(c), 271D]
CIT v. Jhabua Power Ltd. (2013) 262 CTR 277/217 Taxman 399 (SC)/(2015) 13 SCC 443
S.271(1)(c): Penalty -Concealment of particulars of income – inaccurate particulars of income- Making of claim which is not sustainable in law – Claim made in the return cannot be held to be furnishing inaccurate particulars [S. 14A, 143 ].
CIT v. Reliance Petroproducts (P) Ltd. (2010) 322 ITR 158/36 DTR 449/189 Taxman 322/230 CTR 320 (2011) 220 Taxation 278 (SC)