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. 12A : Registration–Trust or institution-Corporate Social Responsibility–Denial of registration is held to be not justified.

Roundglass Foundation v. CIT(E) (2020) 77 ITR 288 (Chd.)(Trib.)

S. 11 : Property held for charitable purposes-Trust-Beneficiaries a group of individuals-Does not mean association of persons-Assessee to be treated an individual. [S. 2(31)(v), 12A]

Saraswat Hitwardhak v. ITO (2020) 77 ITR 89 (SN) (Mum.)(Trib.)

S. 11 : Property held for charitable purposes–Corpus fund-letter from Donor–Additional evidence admitted and matter remanded to the AO for decide a fresh–fixed asset not claimed depreciation in earlier years-Allowable as application of income. [S. 11(1)(d), 11(6), 32]

Shivapur Shikshana Samiti v. ITO(E) (2020) 77 ITR 42 (SN) (Bang.)(Trib.)

S. 11 : Property held for charitable purposes-Computation of income-Depreciation-Provision barring allowance of depreciation on asset whose acquisition treated as application of income-Prospective-Entitled to depreciation for earlier years-Provision for bad and doubtful debts and bad debts-Provision restricting allowance to debts written off applicable only prospectively-Provision reasonably made for loss or outgoing, can be deducted from income if there is apprehension that debt might become bad-Losses arising on sale of assets to be considered while computing income. [S.2 (15), 11(6), 32, 28 to 44, 45 to 48]

ACIT(E) v. Indraprastha Cancer Society and Research Center (2020) 77 ITR 27 (SN) (Delhi)(Trib.)

S. 10A : Free trade zone-Special economic zones-Conversion of Export processing zone unit into special economic zone unit-Exemption cannot be denied.

Classic Linens International P. Ltd. v. Dy.CIT (2020) 77 ITR 1 (Chennai)(Trib.)

S. 10 (23C) : Educational institution-Not doing any activity other than education nor hospital run for commercial purpose or any purpose other than teaching-Withdrawal of exemption is not justified-Notice is signed by the AO which was approved by the CIT and which was corrected by him in his own hand writing Notice signed by the AO on behalf of the CIT is held to be valid-Revision notice is valid. [S. 10(23C(vi), 12AA, 263, 292BB]

Singhania University v. CIT(E) (2020) 77 ITR 501 / 184 ITD 487/ ( 2021 210 TTJ 161 (Jaipur)(Trib.)

S. 10(13A) : House rent allowance-Qualifying amount-Ten Per Cent. of Salary-Performance bonus-Does not form part of salary for purpose of S.10(13A) Entitled to allowance at ten Per cent. of salary excluding performance bonus. [R. 2A]

Sudip Rungta v. Dy.CIT (2020) 77 ITR 63 (SN) (Kol.)(Trib.)

S. 2(42A) : Short-term capital asset-Shares of unlisted company– Holding shares for more than 12 months and transferring them prior to 31-03 2014 to be treated as long term capital gains-Holding Shares for more than 12 months and transferring them prior to 31-3-2014-Entitled to benefit of shorter period of holding-Gains to be Treated as long-term. [S. 2(29A), 2(29B), 45]

Neelu Analjit Singh (Mrs.) v. Add.CIT (2020) 77 ITR 220/ 189 DTR 163/ 204 TTJ 540 (Delhi)(Trib.)

S. 263 : Commissioner – Revision of orders prejudicial to revenue – No loss to revenue – Assessment after detailed inquiry – Revision is held to be not valid [ S. 45(2), 143(3) ]

PCIT v . Rakesh Kumar Agarwal ( 2020) BCAJ -March – P. 54 ( Bom) (HC)

S. 268A : Appeal-Monetary limit-Less than Rs 1 crore-Appeal is dismissed. [S. 260A]

PCIT v. Mangal Tirth Estates Ltd. (2020) 269 Taxman 80 (Mad.)(HC)