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. 36(1)(iii) : Interest on borrowed capital-Own interest free funds-Order of Tribunal deleting the disallowance is affirmed.[S.260A]

PCIT, Central v. Shapoorji Pallonji and Co. Ltd. (2024) 164 taxman.com 707 (Bom)(HC) Editorial : SLP of Revenue is dismissed, PCIT, Central v. Shapoorji Pallonji and Co. Ltd. (2024) 300 Taxman 182 (SC)

S. 36(1)(iii) : Interest on borrowed capital-Own interest free funds-Order of High Court affirming the order of the Tribunal is up held-SLP of Revenue is dismissed.[Art. 136]

PCIT, Central v. Shapoorji Pallonji and Co. Ltd. (2024) 300 Taxman 182 (SC) Editorial : PCIT, Central v. Shapoorji Pallonji and Co. Ltd. (2024) 164 taxman.com 707 (Bom)(HC)

S. 14A : Disallowance of expenditure-Exempt income-Disallowance made voluntarily was more than exempt income-No further disallowance can be made.[S. 260A, R.8D]

PCIT v. Coffee Day Enterprises Ltd. (2024) 165 taxxmann.com 328 (Karn)(HC) Editorial : SLP of Revenue is dismissed on account of delay in filing of SLP. PCIT v. Coffee Day Enterprises Ltd. (2024) 300 Taxman 357 (SC)

S. 14A : Disallowance of expenditure-Exempt income-Interest free funds-Presumed that investments were made out of interest-free fund-Disallowance cannot be made.[S. 260A,R.8D]

PCIT, Central v. Shapoorji Pallonji and Co. Ltd. (2024) 164 taxman.com 707 (Bom)(HC) Editorial : SLP of Revenue is dismissed, PCIT, Central v. Shapoorji Pallonji and Co. Ltd. (2024) 300 Taxman 182 (SC)

S. 14A : Disallowance of expenditure-Exempt income-Disallowance made voluntarily was more than exempt income-No further disallowance can be made-Delay of 340 days-SLP of Revenue is dismissed on account of delay in filing of SLP-Question of law, if any is kept open. [R.8D, Art. 136]

PCIT v. Coffee Day Enterprises Ltd. (2024) 300 Taxman 357 (SC) Editorial : PCIT v. Coffee Day Enterprises Ltd. (2024) 165 taxxmann.com 328 (Karn)(HC)

S. 14A : Disallowance of expenditure-Exempt income-Interest free funds-Presumed that investments were made out of interest-free fund-Disallowance cannot be made-Order of High Court is affirmed-SLP of Revenue is dismissed. [R. 8D, Art.136]

PCIT, Central v. Shapoorji Pallonji and Co. Ltd. (2024) 300 Taxman 182 (SC) Editorial : PCIT, Central v. Shapoorji Pallonji and Co. Ltd. (2024) 164 taxman.com 707 (Bom)(HC)

S. 14A : Disallowance of expenditure-Exempt income-Borrowed capitals-Investing in shares to earn income from dividend-Expenditure incurred on interest paid on borrowed funds is not allowable as deduction-SLP of assessee is dismissed [S.10(33), 36(1)(iii), Art. 136]

Mahesh K. Mehta v. Dy. CIT (2024) 300 Taxman 600/ 469 ITR 397 (SC) Editorial : Mahesh K. Mehta v. Dy. CIT (2024) 298 Taxman 238/471 ITR 237 (Bom.)(HC)

S. 11 : Property held for charitable purposes-Donations other charitable institutions-Out of accumulated income-Direction as part of corpus donations-Not hit by Explanation 2 to section 11(1) of the Act. [S.11(1), 11(2), 11(3), 11(3)(d), 260A]

CIT (E) v. Jamnalal Bajaj Foundation (2024) 300 Taxman 36 /468 ITR 723 (Delhi)(HC)

S. 10A : Free trade zone-Rental income-Sub lease of two units-Eligible for inclusion in profit as they were intimately connected with business of undertakings-SLP of Revenue is dismissed. [Art. 136]

PCIT v. Infosys Ltd. (2024) 300 Taxman 592 (SC) Editorial : PCIT v. Infosys Ltd(2023) 147 taxmann.com 520 (Karn)(HC)

S. 9(1)(vii) : Income deemed to accrue or arise in India-Fees for technical services-Software-Sub-contracted certain overseas subsidiary-Not liable to deduct tax at source-No substantial question of law. [S. 195, 201(1), 201(IA), 260A]

CIT v. Infosys Ltd (2023) 152 taxmann.com 530 (Karn)(HC) Editorial : SLP of Revenue is dismissed as there is gross delay of 296 days and also on merits, CIT(IT) v. Infosys Ltd. (2024) 300 Taxman 177 (SC)