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. 92C : Transfer pricing – Arm’s length price -Selection of comparables —Exclusion of dissimilarities of function is held to be justified- Appellate Tribunal- Additional evidence -Tribunal directed to examine issue of asessee’s involvement in activity of software development considering additional evidence produced .[ S.254(1)

PCIT v. Equant Solutions India Pvt. Ltd (2019) 106 CCH 0722 / (2020)421 ITR 655 (P&H)(HC) PCIT v .Orange Business Services India Solutions Pvt. Ltd (2020)421 ITR 655 (P&H)(HC) Orange Business Services India Solutions Pvt. Ltd. v. Dy. CIT (2020)421 ITR 655 (P&H)(HC)

S. 80P : Co-operative societies – Entitle to deduction – Reassessment notice is held to be not valid . [ S.2(19) , 147, 148, Constitution of India , Art , 226 , Karnataka Co-Operative Societies Act, 1959, S. 2(D-2) ]

Swabhimani Souharda Credit Co-Operative Ltd v. GOI (2020)421 ITR 670 / 107 CCH 0442 (Karn) (HC) Karnataka State Souharda Federal Co-Operative Limited v. GOI (2020)421 ITR 670 (Karn) (HC)

S. 80IA :Industrial undertakings – Generation of Power- Captive Consumption — Valuation of profits to be taken at rate distribution companies allowed to supply electricity to consumers.

CIT (LTU) v. Reliance Industries Ltd. (2019) 104 CCH 0730 / (2020) 421 ITR 686 (Bom) (HC) Editorial: SLP is granted to the revenue CIT v. Reliance Industries Ltd. [2019] 418 ITR 13 (st) (SC)

S. 80IA :Industrial undertakings – Business income -Income from other sources – Interest on deposit of margin money and interest on belated payments by customers is assessable as business profits – Entitle to deduction . [ S.28(i) , 56 ]

Avm Cine Products v. Dy. CIT (2020)421 ITR 431 (Mad)(HC)

S. 80HHC : Export business – Supporting manufacturer – Certificate by main exporter and report of Chartered Accountant is mandatory- Failure to comply the same deduction is not available. [ S.80HHC(IA) ]

Parwaz Food Packer (PFP) v. Dy. CIT (2019) 107 CCH 0419 / (2020) 421 ITR 377 (Mad)(HC) Editorial : SLP of the assessee is dismissed , Parwaz Food Packer (PFP) v. Dy. CIT [2020] 421 ITR (St.) 14 ( SC)

S. 80G : Donation – Charitable Trust – Charitable Trust should be registered under Section 12A for availing the benefit .[ S.(2(15), 11, 12A, 12AA ]

CIT (E) v. Shree Tapeshwar Hanumaji Bajrang Charity Trust (2020)421 ITR 358 /189 DTR 237 /314 CTR 622 (Guj) (HC)

S. 69 :Unexplained investments -Income from undisclosed sources — Addition is held to be not justified merely on the basis of statement made by partner before Custom authorities . [ Customs Act, 1962, S. 108 ]

PCIT v. Nageshwar Enterprises (2020)421 ITR 388/ 107 CCH 0418/ 277 Taxman 86 (Guj)(HC)

S.37(1): Business expenditure —Method of accounting – Accrual of income – Real income- Provision for revision of pay by Government committee —Liability is not contingent — Provision is held to be deductible. [ S.145 ]

Housing and Urban Development Corporation Ltd. v Add. CIT (2020) 421 ITR 599 /189 DTR 211/ 314 CTR 583/ 270 Taxman 101 (Delhi)(HC)

S.37(1): Business expenditure — Payment to consultant – Statement made in the course of search was retracted – Disallowance is held to be not justified .[ S.132(4) ]

CIT (LTU) v. Reliance Industries Ltd. (2019) 104 CCH 0730 / (2020) 421 ITR 686 (Bom) (HC) Editorial: SLP is granted to the revenue CIT v. Reliance Industries Ltd. [2019] 418 ITR 13 (st) (SC)

S. 11 : Property held for charitable purposes – Imparting spiritual education through lectures and congregation and on television channels – Established a temple to Hindu gods and goddesses for the general public [ S.2(15) 12A. 13(1)(c) (ii) ]

CIT v. Bhagwan Shree Laxmi Narain (2019) 106 CCH 0176 / (2020) 421 ITR 476 (Delhi)(HC)