S. 14A : Disallowance of expenditure – Exempt income – Stock in trade – Controlling interest – Principle of apportionment-Only that expenditure which is “in relation to” earning dividends can be disallowed- AO has to record proper satisfaction on why the claim of the assessee as to the quantum of suo moto disallowance is not correct . [ R.8D ]
Maxopp Investment Ltd. v. CIT ( 2018) 402 ITR 640/ 164 DTR 1 /254 Taxman 325 (SC) PCIT v. State Bank of Patiala ( 2018) 402 ITR 640/ 164 DTR 1/254 Taxman 325 (SC) Editorial: Maxopp Investment Ltd v CIT ( 2012) 347 ITR 272 ( Delhi) (HC) is affirmed , Decision of special Bench in ITO v. Daga Capital Management ( 2009) 312 ITR (AT) 1 ( Mum) (SB) is referred
Digest of case laws
Online digest of latest case laws
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
Click here to download the pdf versions of the Digest of case laws S. 13 : Denial of exemption-Trust or institution-Investment restrictions -High rate of profit margin- Hefty salary to related trustees, scholarship in foreign currency , use of luxury cars without maintaining the log book , denial of exemption was held to be justified – Donation to another trust was held to be application of income [ S. (2(15) , 11, 12, 13 ]
IIM Foundation v.ADIT (E) (2018) 61 ITR 186 (Delhi) (Trib)S. 12AA : Procedure for registration –Trust or institution-Application of income – Funds were diverted to non charitable purposes hence cancellation of registration was held to be valid [ S.11, 12A ]
Winsome Foundation v. CIT (2018) 168 ITD 575/ 192 TTJ 756/ 164 DTR 241 (Chd) (Trib.)S. 12AA : Procedure for registration –Trust or institution- Impart education in the field of nursing is entitle to registration [ S .2(15) ]
Trisha Welfare Society. v. CIT (E) (2018) 168 ITD 207 (Agra) (Trib.)S.12AA: Procedure for registration- Trust or institution Promotion of State Cricket – Entitle to registration [ S.2(15) , 12A ]
Orissa Cricket Association v. CIT (2018) 61 ITR 675 (Ctk) (Trib)S. 12AA : Procedure for registration –Trust or institution-
Alleged misuse of funds is not a ground for refusing registration [ S.11, 12A]
S. 12AA : Procedure for registration –Trust or institution-Rejection of application for failure to produce Trust deed was held to be not justified , when the assessee was registered under State Wakf Board R. 17A ]
CIT v. Dawoodi Bohra Masjid. (2018) 402 ITR 29 / 163 DTR 257 / 301 CTR 268 (Guj) (HC)S. 12AA : Procedure for registration –Trust or institution-Genuineness of activities of the asessee was not doubted hence refusal of registration was held to be not justified [ S. 12A ]
CIT v. Shri Mahavir Jain Society (Regd.) (2018) 402 ITR 301 / 302 CTR 497 /166 DTR 198(P&H)( HC)S. 12A : Registration –Trust or institution- Excess of income over expenditure, which was transferred to its reserve and surplus account cannot be assessed as income -First proviso to section 12A(2) inserted by Finance (No. 2) Act, 2014 with effect from 1-10-2014, has to be applied retrospectively. [ S. 2(15), 10(23C)(vi), 11(5) ]
Punjab Educational Society v. ITO (2018) 168 ITD 109/ 61 ITR 622 (Asr) (Trib.)S. 12A : Registration –Trust or institution- Registration can not be refused on the ground of non –production of books of accounts . [ S. 2(15), 11]
Vidyadayani Shiksha Samiti v. CIT( 2018) 161 DTR 265/ 191 TTJ 355 / 62 ITR 487 (Delhi)(Trib)