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-Professional fees-Statement of the recipient during search-Affidavit filed-Subsequent statement-Failure to provide opportunity of cross examination-Allowable as deduction. [S. 132(4)]

CIT v. Jindal Steel and Power Ltd (2023) 335 CTR 1017/. (2024)460 ITR 162/ 297 Taxman 253 (SC) CIT v. Reliance Industries Ltd ( 2023) 335 CTR 1017/. (2024)460 ITR 162/ 297 Taxman 253 (SC) Editorial : Decision of the Bombay High Court in CIT LTU v. Reliance Industries Ltd ( 2020) 421 ITR 686 ( Bom)( HC) affirmed./CIT v. Jindal Steel & Power Ltd. [2009] 180 Taxman 543 (Punj. & Har.)( HC)

S. 36(1)(iv) : Contribution towards a recognized provident fund-Contribution being neither towards an initial contribution nor towards an ordinary annual contribution, ceiling fixed of 27 per cent under rules 87 and 88 would not apply-Order of Tribunal is affirmed.. [R. 87, 88]

PCIT v. Exide Industries Ltd. (2023) 333 CTR 5 /226 CTR 332 /146 taxmann.com 21 /226 DTR 332 (Cal)(HC)

S. 32 : Depreciation-Option-No requirement of particular mode of exercising option-Option To Be Exercised Before Filing Return Or At Time Of Filing Return-Department Not Justified In Reducing Depreciation On Ground Assessee Had Not Specifically Opted For Written Down Value Method. [S. 139(1), Rules, 5(1)(IA)]

CIT v. Jindal Steel and Power Ltd (2023) 335 CTR 1017/. (2024)460 ITR 162/ 297 Taxman 253 (SC) CIT v. Reliance Industries Ltd 9 2023) 335 CTR 1017/. (2024)460 ITR 162/ 297 Taxman 253 (SC) Editorial : Decision of the Punjab and Haryana High Court in CIT v. Jindal Steel and Power Ltd( 2024) 460 ITR 159 (P&H) affirmed.

S. 28(i) : Business loss-Under invoicing of sales to sister concern-Books of account not rejected-Order of Tribunal is affirmed.[S. 4, 69, 145]

PCIT v. Bajaj Herbals (P.) Ltd. (2023) 335 CTR 530 / 148 taxmann.com 147 (Guj)( HC)

S. 10(26) : Schedule Tribes-Income of member of Scheduled Tribe-Individual-Special Bench-Family-Matter remanded to the Tribunal with a request to the President of the Tribunal to constitute a Larger Bench without including either member who was a party to the order for the consideration of the entire gamut of the matter. [S. 2(31), 184, 254(1), 255, 260A]

Ri Kynjai Serenity By The Lake. v. PCIT (2023) 334 CTR 890 (Meghalaya) ( HC) Hotel Centre Point. v. PCIT (2023) 334 CTR 890 (Meghalaya) ( HC)

S. 10 (23C): Educational institution-Interest earned on grants-Quantifying amount of grant-in-aid-Eligible to claim exemption. [10(23C) (iiiac), 11, 13, R. 2BBB]

CIT (E) v. Institute of Liver & Biliary Sciences (2023) 335 CTR 922 / 154 taxmann.com 401 (Delhi) (HC)

S. 10(1) : Agricultural income-Apportionment of expenses-Agricultural and trading-Order of Tribunal is affirmed. [S. 260A]

PCIT v. Prabhat Agri Biotech Ltd (2023) 333 CTR 439 (Telangana)( HC)

S. 271C : Penalty-Failure to deduct at source-External development charges to Haryana Urban Development Authority (HUDA)-Not liable to deduct tax at source-Levy of penalty is not justified.

Regards Developers (P.) Ltd. v. ACIT (2023) 199 ITD 1 (Delhi) (Trib.)

S. 271B :Penalty-Failure to get accounts audited-Builder and developer-Percentage completion of accounts-Gross receipts of were more than Rs. one crore-Levy of penalty is justified.[S.44AB]

Benchmarrk Realty LLP. v. DCIT (2023)199 ITD 511 (Pune) (Trib.)

S. 263 : Commissioner-Revision of orders prejudicial to revenue-Insurance business-Income/funds in shareholders account was taxable separately at rate of 30 per cent instead of 12 per cent-Revision order is quashed. [S.44, 115B]

Tata AIA Life Insurance Company Ltd. v. PCIT (2023) 199 ITD 247 (Mum) (Trib.)