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. 11 : Property held for charitable purposes-Donations-Capitation fees-Assessing Officer had not carried out any independent investigation or examination of persons-Matter remanded.

MAC Charities v. ACIT (E) (2024)114 ITR 17 (SN)(Chennai)(Trib)

S. 11 : Property held for charitable purposes-Accumulation of income-Utilised for capital expenditure-Failure to verify the submission-Section 11(6) which was introduced in the statute with effect from April 1, 2015, is clarificatory in nature-Matter remanded to the Assessing Officer to verify the claim. [S.11(2), 11(6)]

Gujarat Safety Council v. ITO (2024)114 ITR 70 (SN) (Ahd)(Trib)

S. 10A : Free trade zone-Foreign currency expenditure from export turnover-Refund-Interest on refund-Disallowance of expenditure-Exempt income-Interest-Matter remanded-Matter remanded. [S. 14A, 234D]

Virtusa Consulting Services P. Ltd. v.  Dy. CIT (2024)114 ITR 386 (Chennai)(Trib)

S. 10 (23C): Educational institution-Accumulation of funds-Disallowance cannot be made under section 13 of the Act-Entitle to exemption. [S. 10(23C)(iv), 11, 12A, 13(1)(c)]

ITO (E) v. The Theosophical Society (2024)114 ITR 282 (Chennai)(Trib)

S. 10 (23C): Educational institution-Merger of three trusts-Multiple objects-Not solely for purpose of education-Not entitle to exemption. [S.10(23C)(vi)]

Parul Arogya Seva Mandal Trust v. CIT (E) (2024)114 ITR 287 (Ahd)(Trib)

S. 4 : Charge of income-tax-Capital or revenue-Sales tax subsidy-Additional ground is admitted-Matter remanded-Exempted income-Disallowance-Matter remanded. [S. 28(1), 254(1)]

ACIT v. Jindal Poly Films Ltd. (2024)114 ITR 72 (SN)(Delhi)(Trib)

S. 4 : Charge of income-tax-Capital or revenue-Sale of hotel asset Adjusted against capital work-in-progress-Not business income-No violation of Rule 46A-Commissioner (Appeals) is justified in deleting addition. [S. 28(1), R.46A]

ACIT v. Balaji Hotels and Enterprises Ltd. (2024)114 ITR 213 /229 TTJ 567/239 DTR 189 (Chennai)(Trib)

80IB (10) : Housing projects- – Slum Rehabilitation Authority (SRA) Projects – CBDT circular – Notification- Claim u/s.80IB (10) would be allowable even the approval was granted before 01/04/2004 and commencement certificate after 01- 4-2004- Circulars and notifications cannot override the provisions of the Act. -Notification No. 1/2011 dated 5-1-2011 restricting the eligibility of section 80IB(10) to SRA project on or after 1-4-2004 and before 31-3-2008 is inconsistent to the proviso to clauses (a) and (b).) [ S.80IB(10)(a) , 80IB(10) (b), 119, 254( 1) ]

Bhavya Construction CO. v. ACIT (Mum)(Trib.) wwwitatonline .org. Bhavya Construction CO. v. ACIT (Mum)(Trib.) wwwitatonline .org.

250: Appeal – Commissioner (Appeals) – Procedure – Delay in disposal – Faceless Appeal – Central Action Plan – Held that the NFAC would endeavour to implement the said remedial measures in all earnest- Writ petition filed seeking time-bound disposal – Direction issued to dispose of appeal within eight weeks. [S.246A, Art.226]

Suparshva Swabs (I) v. NFAC (Delhi)(HC)www.itatonline.org

S.37(1): Business expenditure – Community development expenditure – Street lights on the road , ambulance for meeting medical emergencies , developing public garden – The concept of business is not static and over a period of time , it would include within its fold the care and concern for the society at large which would result in a good will being created in its favour leading to better business – Allowable as business expenditure .

CIT v. Nicholas Piramil ( India )( Ltd ( Bom)( HC ) www.itatonline .org