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. 80IA :Industrial undertakings – Infrastructure development- Inland Container Depots (ICDs) are Inland Ports and income earned out of these Depots are eligible for deduction. However, the actual computation is to be made in accordance with the different Notifications issued by the Customs department with regard to different ICDs located at different places [ S.80IA(4) ]

CIT v. Container Corporation of India Ltd.( 2018) 404 ITR 397 / 165 DTR 353/302 CTR 221/ 255 Taxman 334 (SC) , www.itatonline.org/CIT v. A.L. Logistics ( P) Ltd ( 2018) 165 DTR 353/302 CTR 221/ 255 Taxman 334 (SC) , www.itatonline.org CIT v. Continental Ware Housing Corporation ( 2018) 165 DTR 353/302 CTR 221 / 255 Taxman 334 (SC) , www.itatonline.org

S. 80HHC : Export business –Supporting manufacturer – Question whether supporting manufacturer who receives export incentives in the form of duty draw back (DDB), Duty Entitlement Pass Book (DEPB) etc. is entitled for deduction u/s 80HHC is referred to the larger Bench

CIT v. Carpet India ( 2018)405 ITR 469/ 165 DTR 233 / 302 CTR 183/ 255 Taxman 438 (SC) , www.itatonline.org

S.40(a)(ia):Amounts not deductible – Deduction at source- The amendment made by the Finance Act, 2010 in Section 40(a)(ia) of the IT Act is retrospective in nature . i.e .from the date of insertion of the said provision w.e.f AY. 2005 -06

CIT v. Calcutta Export Company ( 2018) 404 ITR 654/165 DTR 321 /302 CTR 201 / 255 Taxman 293 (SC) , www.itatonline.org/CIT v. Rajendra Kumar ( 2018) 165 DTR 321/302 CTR 201/ 255 Taxman 293 (SC) , www.itatonline.org CIT v. Harish Chand Ahuja ( 2018) 165 DTR 321/302 CTR 201/ 255 Taxman 293 (SC) , www.itatonline.org

S. 28(iv) : Business income- Waiver of loan-Remission or cessation of trading liability –Loan waiver cannot be assessed as cessation of liability , if the assessee has not claimed any deduction u/s 36(1)(iii) of the Act qua the payment of interests in any previous year and S.28(iv) does not apply if the receipts are in the nature of cash or money [ S. 4,36(1)(iii),41(1) ]

CIT v. Mahindra and Mahindra Ltd( 2018)404 ITR 1 / 165 DTR 337 /302 CTR 213 / 255 Taxman 305 (SC) , www.itatonline.org /CIT v. Dholgiri Industries (P) Ltd ( 2018) 404 ITR 1/ 165 DTR 337/302 CTR 213/ 255 Taxman 305 (SC) , www.itatonline.org CIT v.Jindal Equipments Leasing & Consultancy Services Ltd ( 2018) 404 ITR 1/ 165 DTR 337/302 CTR 213/ 255 Taxman 305 (SC) , www.itatonline.org CIT v. Ramaniyam Homes (P) Ltd ( 2018) 404 ITR 1/ 165 DTR 337 (SC)/ 302 CTR 213/ 255 Taxman 305 www.itatonline.orgEditorial: Mahindra and Mahindra Ltd v. CIT ( 2003) 261 ITR 501 ( Bom) (HC) is affirmed

S. 35AB :Know-how –Acquiring know how means acquiring on ownership basis or on lease deduction can not be allowed as revenue expenditure [ S.37(1) ]

Standard Batteries Ltd. v. CIT ( 2018) 166 DTR 289 (Bom)(HC) , www.itatonline.org

S. 10A : Free trade zone – Profits of business- Export turnover –Total turn over – Export turnover is the numerator whereas the total turnover is the denominator in the formula for computing profit from exports. Software development charges are to be excluded while working out the deduction admissible on the ground that such charges are relatable towards expenses incurred on providing technical services outside India. [ S.80HHC. 80HHE )

CIT v. HCL Technologies Ltd( 2018) 404 ITR 719/ 165 DTR 305/302 CTR 191/255 Taxman 313 (SC) , www.itatonline.org/CIT v. Aditi Technologies (P) Ltd (2018) 165 DTR 305//302 CTR 191/255 Taxman 313 (SC) , www.itatonline.org

S. 253 : Appellate Tribunal -Order passed in remand proceedings as per direction of Tribunal , appeal lies before CIT(A) and not before Tribunal [ S. 144C, 246A ]

Tevapharm India (P.) Ltd. v. ACIT (2018) 169 ITD 619 (Delhi) (Trib.)

S. 201 : Deduction at source – Failure to deduct or pay -Limitation of two years prior to amendment , by Finance (No. 2) Act, 2014, with effect from 1-10-2014 and seven years thereafter [ S. 201(3) ]

Vodafone Cellular Ltd. v. DCIT (2018) 169 ITD 675 (Pune) (Trib.)

S. 144C : Reference to dispute resolution panel -AO has to adhere to mandatory requirement of the section- Even in remand proceedings the Assessing Officer has to first a draft assessment order before passing a final assessment order- Appeal before the Tribunal is held to be not maintainable . [ S.92C , 246A, 253 ]

STevapharm India (P.) Ltd. v. ACIT (2018) 169 ITD 619 (Delhi) (Trib.)

S.143(2): Assessment -Notice -Order is held to be bad in law as the notice u/s 143(2) was not served with in one year of filing of return .[S.143(3) ]

ITO v. NVS Builders (P.) Ltd. (2018) 169 ITD 679 (Delhi) (Trib.)