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 – Remission or cessation of trading liability -Introduction of Gold Bars in to business – Nether assessable as business income or cessation of liability [ S.41(1) ]

Deepak Garg v. ITO (2020) 78 ITR 40 (SN) (Delhi ) (Trib)

S. 24 : Income from house property – Deductions – Interest on borrowed capital — Part of self-owned house property let to unmarried son and daughter —No evidence that arrangement not genuine — Loss on account of interest to be adjusted against rental income —Interest on entire property not allowable as rental income part of house property. [ S.24(1)(b) ]

Md. Hussain Habib Pathan v. Asst. CIT (2020) 78 ITR 63(SN))/ ( 2021) 186 ITD 373 (Mum) (Trib)

S. 15 : Salaries – Director- Assessable on accrual basis and not on receipt basis — Salary shown in form 26 AS filed by company alone to be taxed — Assessing Officer is directed to examine factual aspect [Companies Act, 1956, Schedule XIII ]

Dy. CIT v .Villoo Zareer Morawala Patel (Smt.) (2020) 78 ITR 17 (SN) (Bang) (Trib))

S. 14A : Disallowance of expenditure – Exempt income -— Investments not generating any income — Disallowance of interest on borrowed funds uilised for making investments cannot be made .[ R.8D ]

ACIT v. Amartara P. Ltd. (2020) 78 ITR 46 (SN) (Mum) (Trib)

S. 12AA : Procedure for registration –Trust or institution- Education — Yoga – Entitle to registration [ S.2(15) 11 ]

Sanjhi Sikhiya Foundation v. CIT(E) (2020) 78 ITR 31(SN) ( Amritsar) (Trib)

S. 11 : Property held for charitable purposes – Donations – If disclosure of income in hands of assessee as corpus fund and income applied for charitable purposes and assessee has due registration- Addition cannot be made as cash credits . [ S.12A, 68 ]

Sneha Trust for Charity and Education v. ACIT (2020) 78 ITR 25 (SMC) (SN)( Cochin) (Trib)

S. 11 : Property held for charitable purposes – Accumulation of income – Details of purposes for which income accumulated need not be specified in Form 10- Investor protection fund Trust — No prohibition in law that trust qualified under Sections 11 to 13 could not claim exemption. [ S.11(2) ,13(3), Form No. 10 ]

National Stock Exchange Investor Protection Fund Trust v. Dy. CIT (E) (2020) 78 ITR 12 (SN) (Mum) (Trib)

S. 6(1) : Residence in India – Individual -Period of stay in India -Staying in India for 151 days – Salary received for period in respect of services rendered abroad – Not taxable in India- DTAA -India – Australia- [ S.15 , Art .15 ]

Paul Xavier Antonysamy v. ITO (2020) 183 ITD /453/ 78 ITR 48 (SN) (Chennai) (Trib)

S. 4 : Charge of income-tax -Capital or revenue -Mesne profits — Income from house property – Compensation for wrongful possession by its erstwhile tenant -Capital receipt [ S. 22, 25AA, 25B ]

Trans Freight Containers Ltd. v. Dy. CIT (2020) 78 ITR 5 (SN) (Mum) (Trib)

Wealth -tax Act, 1957

S. 21AA: Assessment – Association of persons – Members’ Club — No business or profession carried on by social members’ Club- Surplus assets to be divided equally amongst members — Members’ shares determinate at that date —Club not chargeable to Wealth-Tax. [ S.2(31) 3(1) ]

Bangalore Club v. CWT (2020) 427 ITR 260/ 316 CTR 622/ 193 DTR 441/ 275 Taxman 480 (SC )