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. 22 : Income from house property-Co-owner-Joint owenership-Annual letting value-No specification of their respective shares in deed-Mere signing of instrument of conveyance by an individual does not raise any presumption of income being assessed in hands of such individual-Order of Tribunal affirming the Annual letting value at 8 per cent of cost of property was deleted. [S. 23(1)(a), 26,27, 260A]
Shivani Madan (Smt) v. PCIT (2025) 303 Taxman 571 (Delhi)(HC) Editorial : Order in Shivani Madan (Smt) v. ACIT (2023) 200 ITD 198 (Delhi)(Trib), reversed.
S. 13 : Denial of exemption-Trust or institution-Investment restrictions-Invested funds in shares of joint venture companies-Not entitle to claim exemption-Only income from such an investment made in violation of section 13(1)(d) was liable to tax and not entire income accrued to assessee.[S. 2(15),11(5) 13(1)(d)]
A.P. State Civil Supplies Corporation Ltd. v. ITO (2025) 303 Taxman 176 /343 CTR 394 / 247 DTR 106 (Telangana)(HC)
S. 11 : Property held for charitable purposes-Organic farming research-relief of poor-Eligible for exemption-Order of Tribunal is set aside. [S. 2(15) 12A, 260A, Companies Act,2013, S.8.]
Biowin Agro Research v. ITO(E) (2025) 303 Taxman 540 (Ker.)(HC) Editorial : Order of Cochin Bench in Biowin Agro Research v. ITO(E)(ITA Nos 2 and 3 of 2022 dt. 25-4-2023 is set aside.
S. 9(1)(i) : Income deemed to accrue or arise in India-Business connection-Liaison Office-Non-Resident company-Did not finalize and transact a business deal and activities-Liaison Office could not be said to be preparatory or auxiliary in nature, LO did not constitute Permanent Establishment of assessee-MIPL was not performing additional function, in absence of material, it could not be taken as dependent agency PE to assessee, a non-resident company-Delay of 569 days-SLP of Revenue is dismissed on account of delay as well as on merits-DTAA-India-Japan. [art. 5, Art. 136]
CIT v. Mitsui and Co (2025) 303 Taxman 331 (SC) Editorial : CIT (IT) v. Mitsui & Co. (2025) 170 taxmann.com 827 (Delhi)(HC)
S. 4 : Charge of income-tax-Foreign ECB loan for purpose of acquisition of a capital asset-Construction period-Temporarily parked ECB loan in FDRs-Interet income is allowed to be capitalised-Not assessable as income from other sources-SLP of Revenue is dismissed. [S.56]
PCIT v. Triumph Realty (P.) Ltd. (2025) 303 Taxman 108 (SC) Editorial : PCIT v. Triumph Realty (P.) Ltd. (2025) 170 taxmann.com 286 (Delhi)(HC)
S. 149 : Reassessment – Time barring – First proviso – Faceless regime – Jurisdiction of AO – Notice held barred by limitation and without jurisdiction. [S. 80IA, 133A, 143(3), 148, 148A(b), 148A(d), 151A, Art .226 ]
Shree Cement Ltd. v. ACIT & Ors. (Raj.)(HC) [2025:RJ-JP:29991-DB ] www.itatonline .org .
S. 149 : Reassessment – Time barring – First proviso – Notice issued beyond six years – Fifth proviso not applicable – Notice quashed. [S. 147 ,148, 148A(b), 148A(d) ]
Babu Hasan Shaikh v. ITO (2025) (Mum)(Trib) www.itatonline.org
S. 147 : Reassessment – Long-term capital gains – Addition on issue forming reasons for reopening deleted by CIT(A) – Reassessment held invalid.[S. 68, 69, 10(38), Expl. 3 to S. 147, 148 , 255(4)]
Mahesh Kumar v. ITO (2025) (TM) (Delhi)(Trib) www.itatonline.org
S. 250 : Appeal – Commissioner (Appeals) – Procedure – Second order passed in same appeal – Faceless regime – Cost of Rs .10,000 was imposed on Department.[ ITAT Rules, 1963, R. 32A(2) ]
Karnataka Sangha v. ITO (E)-1(4), Mumbai (Mum)(Trib) www.itatonline.org
S. 68 : Cash credits – Long term capital gain – Penny stock – Sale of shares – Turbo Tech Engineering Ltd – Kappac Pharma Ltd – Acquired at Rs 12 and sold at Rs 720 per share – Abnormal price rise – General investigation report – Cash purchase and late dematerialisation – No cogent evidence of genuine transaction – Addition upheld. [S. 10(38), 115BBE, 131, 133(6) ]
Chitra Avdhesh Mehta (Smt) . v. ITO (SMC) (Mum)(Trib)www.itatonline .org