S. 14A : Disallowance of expenditure – Exempt income –Satisfaction to be recorded by the Assessing Officer ,it cannot be substituted by recorded satisfaction of Commissioner of Income tax ( Appeals) [ S. 251, R.8D ]
Arnav Gruh Ltd. v. DCIT (2018) 168 ITD 518 (Mum) (Trib.)
Digest of case laws
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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. 14A : Disallowance of expenditure – Exempt income –Rule 8D cannot be held to be applicable retrospectively and cannot be applicable to pending assessments [ R.8D ]
CIT v. Essar Teleholdings Ltd ( 2018) 401 ITR 445 / 162 DTR 225/ 300 CTR 561 / 253 Taxman 321 (SC) Editorial: CIT v. Firestone International P. LTD. ( 2015) 378 TR 558 ( Bom) (HC ) and CIT v. Essar Teleholdings Ltd ( Bom) (HC) is affirmedS. 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 referredS. 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)