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. 37(1) : Business expenditure-Interest on securities-Securities held as stock in trade-Order of High Court is affirmed-SLP of Revenue is dismissed.[S. 28(i), Art. 136]

CIT v. State Bank of India (2024) 297 Taxman 6/ 463 ITR 701 (SC) Editorial: CIT v. State Bank of India(2023) 292 Taxman 38/ 445 ITR 122 (Telangana)(HC)

S. 37(1) : Business expenditure-Interest-Directed to file paper book-Failure to file the paper book within specified time of 15 days, High Court dismissed the appeal-On SLP delay in filing of paper book is condoned-Directed the High Court to decide the appeal on merits along with other connected appeals. [S. 260A, Art. 136]

Herbicides India Ltd. v. ACIT (2024) 297 Taxman 389/338 CTR 755 (SC) Editorial : Herbicides India Ltd. v. ACIT (Raj)(HC) (DBMRA 303-2014 dt. 25-2-2015, DBCR 25-2015, DBMRA dt. 26-4 2017)

S. 37(1) : Business expenditure-Corporate social responsibility-Expenses towards contribution/donation to educational institutions, trust, local bodies for discharging its corporate social responsibility-Order of High Court is affirmed-SLP is granted to the Revenue. [Art. 136]

PCIT v. Gujarat Narmada Valley Fertilizers & Chemicals Ltd. (2024) 297 Taxman 400 (SC) Editorial: PCIT v. Gujarat Narmada Valley Fertilizers & Chemicals Ltd (2020) 121 taxmann.com 82/ 422 ITR 164 (Guj)(HC)

S. 37(1) : Business expenditure-Capital or revenue-Licence-Capital asset-Amortisation of expenditure-Licence to operate telecommunication services-One-time entry fee and licence fee based on percentage of annual gross revenue earned-Both payments capital in nature and to be amortised-Intangible asset capital in nature-Review petition is dismissed. [S. 35ABB, The Telegraph Act, 1885, S, 4(1), 8, 20, 20A and 21]

Bharti Hexacom Ltd. v. CIT (2024) 297 Taxman 368/337 CTR 254 (SC) Editorial : Review petition dismissed, CIT v. Bharti Hexacom Ltd(2023) 155 taxmann.com 322/ 458 ITR 593 /335 CTR 1 (SC)

S. 22 : Income from house property-Notional income-Constitutional validity-Notice is issued to Attorney General of India.[S. 23(5)(1), Art. 226]

Rabbani S. Khan v. Dy. CIT (2024) 297 Taxman 295 (Bom.)(HC)

S. 14A : Disallowance of expenditure-Exempt income-Disallowance cannot exceed exempt income.[R.8D]

PCIT v. Devata Tradelink Ltd. (2024) 297 Taxman 86 (Delhi) (HC) Dy. CIT v. Jite Shipyard Ltd. (2024) 297 Taxman 476 (Delhi)(HC)

S. 11 : Property held for charitable purposes-Form No 10 was filed in the course of assessment proceedings-Amendments in the Act went unnoticed-Delay in filing the Form No 10B is condoned. [S. 10(23A),12A, Art. 226]

Bar Council of India v. CIT (E) (2024) 297 Taxman 247/ 466 ITR 780 (Delhi)(HC)

S. 11 : Property held for charitable purposes-Reassessment-Accumulation of income-Filed revised form-Assessee could not be precluded from filing a revised Form No. 10 during reassessment proceedings.[S.11(2) 12A,143(1), 147, 148, Form No.10, Rule 17]

CIT (E) v. Canara Bank Relief and Welfare Society (2024) 297 Taxman 153 (Delhi)(HC)

S. 11 : Property held for charitable purposes-Construction activities under State PWD department-2.5 per cent supervision charges-Matter is remanded to Assessing Officer for determination of commercial activity and considering the benefit of section 12A. [S. 2(15), 12A]

Nirmithi Kendra v. Dy. CIT (E) (2024) 297 Taxman 382/ 336 CTR 743 (SC) Editorial : Nirmithi Kendra v. Dy. CIT (E) (2022) 141 taxmann.com 495 (Ker)(HC), set aside.

S. 9(1)(vii) : Income deemed to accrue or arise in India-Fees for technical services-Non-Resident-Marketing services-No Permanent Establishment in India-Not taxable-Not liable to deduct tax at source-DTAA-India-USA-SLP of Revenue is dismissed. [S. 201, Art. 12(4), Art. 136]

CIT v. Ad2pro Media Solutions (P.) Ltd. (2024) 297 Taxman 226 (SC) Editorial : CIT (IT). v. Ad2pro Media Solutions Pvt. Ltd. (2023)455 ITR 648 /148 taxmann.com 226(Karn)(HC)/ SLP dismissed, CIT v. Ad2pro Media Solutions (P.) Ltd. (2023) 157 taxmann.com 205/ 296 Taxman 569 (SC)