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. 4 : Charge of income-tax -Mutual concerns –Surplus earned was spent for common benefit of members of for carrying on objects of the Club – Principle of mutuality is applicable and surplus cannot be brought to tax .
ITO v. Gymkhana Club. (2018) 168 ITD 64/ 167 DTR 113/ 192 TTJ 571 (Chd) (Trib.)
S. 4 : Charge of income-tax – Interest on amount of sundry debtors outstanding cannot be charged on accrual basis [ S. 145 ]
DCIT v. Narayani Ispat Pvt. Ltd. (2018) 61 ITR 371 (Kolk) (Trib)
S.2(14)(iii) : Capital asset – Agricultural land -Capital gains- Business income- Sale of agricultural land purchased on good price and purchasing the land of higher volumes at different places cannot be regarded as trader- Entitle to exemption. [ S. 2(14) , 28(i)]
Shailesh Gangaram Ramani. v. ITO (2018) 168 ITD 446 (Rajkot) (Trib.)
S. 2(22)(e) Deemed dividend-Beneficial owner – Prima facie, CIT v. Ankitech pvt Ltd ( 2012) 340 ITR 14 ( Delhi)( HC) and CIT v. Madhur Housing and development company ( 2018) 401 ITR 152 (SC) , is wrongly decided and should be reconsidered by larger bench.
National Travel Service v. CIT ( 2018) 401 ITR 154 / 162 DTR 201 / 300 CTR 582 / 253 Taxman 243 (SC) CIT v. Mahavir Inductomelt ( P) Ltd ( 2018) 401 ITR 154/ 162 DTR 201/ 300 CTR 582 (SC)
S. 2(22)(e):Deemed dividend -loans from two companies addition cannot be made as deemed dividend [ S. 260A ]
CIT v. Gladder Ceramics Ltd. (2018) 401 ITR 205 (Guj) (HC)
S. 4 Income Chargeable to charge to tax-Panama Papers-PIL was Dismissed
Manohar Lal Sharma v. CBI ( 2018) 252 Taxman 22 (SC)
S.40(a)(i):Amounts not deductible deduction at source- Payments made by assessee not in nature of royalty either under domestic law or under DTAA–No disallowance can be made. [S.195]
CIT v. Geo Connect Ltd. (2017) 54 ITR 481 (Delhi)(Trib.)
S. 28(i) : Business loss-Chit fund business-If a subscriber incurs loss in subscribing to chit fund to raise funds to use them in his business or for business purpose, such a loss is an allowable deduction.
Kamal Raheja v. ITO (2017) 162 ITD 55 / 183 TTJ 538 / 145 DTR 225 (SMC)(Luck)(Trib.)
S. 9(1)(vii) : Income deemed to accrue or arise in India-Fees for technical services-Fees paid with respect to a ‘contract of work’ does not constitute “fees for technical services” and consequently the assessee is not liable to deduct TDS.[S. 195, 201]
ITO v. Emami Paper Mills Ltd. (Kol.)(Trib.); www.itatonline.org