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. 28(i) : Business income-Capital gains-288 transactions– Assessable as business income and not short term capital gains. [S. 45]

Rajeev Choudhary (Dr.) v. ACIT (2019) 267 Taxman 618 (MP)(HC)

S. 14A : Disallowance of expenditure-Exempt income–Tribunal is justified in restricting the disallowance of 5% of exempt income-Rule 8D would not be applicable retrospectively. [R. 8D]

PCIT v Reliance Natural Resources Ltd. (2019) 267 Taxman 644 (Bom.)(HC)/Editorial : SLP of Revenue dismissed , PCIT v. Reliance Natural Resources Ltd. (2022) 286 Taxman 435 (SC)

S. 12AA : Procedure for registration–Trust or institution-Delay in filing form No 10-CIT(E ) is held to be not justified in rejecting the form no 10 filed belatedly–Delay was condoned–Matter remanded to CIT( E ) grant the registration as per the law. [S. 11(2) 119(2b), 147, 148, Art. 226]

Coimbatore Muslim Relief Fund v. DIT (E) (209) 267 Taxman 399 / ( 2020) 185 DTR 364(Mad.)(HC)

S. 12AA : Procedure for registration–Trust or institution-Trust formed for distribution of pensionary benefits-Payment of pension is statutory obligation and not charity-Not entitled to registration-Review petition is dismissed.[S.2(15), Code Of Civil Procedure, 1908,O. XL VII R. 1.

GCDA Employees Pension Fund Trust v. CIT (2019) 419 ITR 343/ (2020) 188 DTR 175/ 316 CTR 377/ 269 Taxman 502 (Ker.)(HC)

S. 12AA : Procedure for registration–Trust or institution-Deemed registration-Tribunal allowing the registration to Trust-Held to be valid. [S. 254(1)]

CIT(E) v. Gettwell Health and Education Samiti (2019) 419 ITR 353 (Raj.)(HC) Editorial : SLP is granted to the revenue , CIT(E) v. Gettwell Health And Education Samiti (2022) 284 Taxman 363 (SC)

S. 12A : Registration–Trust or institution-Charitable purpose-Statutory body constituted with object of promoting development of urban areas-A Charitable institution entitled to registration. [S. 2(15), 11, Karnataka Urban Development Authorities Act, 1987. S.65]

CIT v. Hubli Dharwad Urban Development Authority (2019) 419 ITR 29 / 269 Taxman 533/ 193 DTR 358/ 317 CTR 824 (Karn.)(HC)

S. 11 : Property held for charitable purposes-Company set up for prevention of pollution-Preservation of environment is an object of general public utility-Entitle to exemption. [S.2(15), 12A, Companies Act, S.25]

CIT v. Naroda Enviro Projects Ltd. (2019) 419 ITR 482/ (2020) 190 DTR 228/ 317 CTR 33 (Guj.)(HC)

S. 10(23C) : Educational institution-Substance over form to be considered-Matter remanded back to the Chief CIT with a direction to examine the entire financials and to take decision on merits in accordance with law. [S. 10(23C )(vi), 12, Art.226]

PKD Trust v. ITO (2019) 181 DTR 23/311 CTR 657 (Mad.)(HC)

S. 9(1)(vi) : Income deemed to accrue or arise in India–Royalty– Payment made for use of software-Not royalty-DTAA-India-USA-United Kingdom. [S. 195, Art. 12]

GE India Industrial (P) Ltd. v. PCIT ( 2019) 267 Taxman 398/ 111 taxmann.com 165 (Delhi)(HC) Editorial: SLP is granted to the revenue, PCIT v.GE India Industrial (P) Ltd ( 2019) 267 Taxman 166 (SC)

S. 9(1)(vi) : Income deemed to accrue or arise in India–Royalty– Payment made to supplying drawings, designs etc–Before commencement of production-Not royalty-Not liable to deduct tax at source DTAA-India-Austria. [S. 195]

Majestic Auto Ltd v CIT ( 2019) 267 Taxman 252 ( P& H) (HC) (Editorial: Order in Dy.CIT v Majestic Auto Ltd (1994) 51 ITD 313 (Chd.) (Trib.) is reversed.)