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. 9(1)(vi) : Income deemed to accrue or arise in India-Royalty-Fees for technical services-Revenue from software sales to Indian clients, said revenue could not be treated as royalty and subjected to Indian taxation-DTAA-India-USA [S.9(1)(vii), 195, art. 12, Art.136]

CIT (IT) v. Microsoft Regional Sales Pte.Ltd (2024) 298 Taxman 3 (SC) Editorial : CIT(IT) v. Microsoft Regional Sales Pte.Ltd (2024) 159 taxmann.com 278 (Delhi)(HC)

S. 9(1)(v) : Income deemed to accrue or arise in India-Interest-Banking business-Interest earned by it in India on securities, being beneficially owned by it-Exempt from tax-DTAA-India-Mauritius.[S.90, 260A, art. 11(3)(c)]

CIT (IT) v. HSBC Bank (Mauritius) Ltd (2024) 298 Taxman 54 (Bom)(HC)

S. 5 : Scope of total income-Accrual of income-Charge of income-tax-Real income-Redevelopment agreement-Corpus fund-Not given possession- Capital gains -Not taxable in the year under consideration. [S.2(24), 4, 5, 45, 260A

PCIT v. MIG Co-op. Hsg. Soc. Group II Ltd. (2024) 298 Taxman 284 /467 ITR 524 (Bom.)(HC)

S. 4 : Charge of income-tax-Consideration received for relingiushment of trustee ship-Not capital in nature-Assessable as income-Reimbursements of certain sum for construction expenses-Not taxable in the hands of trustees-Not taxable in the hands of trustees-Donations were received by trusts-Not taxable in the hands of the Trustees. [S. 132, 260A]

PCIT v. Gracy Babu (2024) 298 Taxman 722 /471 ITR 377 /341 CTR 630 / 243 DTR 65 (Ker.)(HC)/Editorial : SLP of assessee is dismissed , Jose Thomas, Etc. v .PCIT (2024)468 ITR 108 / 301 Taxman 170 (SC)

S. 4 : Charge of income-tax-Income-Redevelopment agreement-Amount paid to members of society-Members offered the amount for taxation-Not taxable in the assessee society- Capital gains- Not taxable in the year under consideration [S.2(24),4, 5 , 45 , 56 260A]

PCIT v. MIG Co-op. Hsg. Soc. Group II Ltd. (2024) 298 Taxman 284 / 467 ITR 524 (Bom.)(HC)

Prohibition of Benami Property Transactions Act, 1988 , as amended by Benami Transactions (Prohibition) Amendment Act, 2016

S. 5 : Property held benami liable to confiscation – Provisions of section 5 of Prohibition of Benami Property Transactions Act, 1988 as amended by Benami Transactions (Prohibition) Amendment Act, 2016 have to be applied prospectively and not retrospectively . [ Art. 226 [

Dy. CIT (Benami Prohibition) v. MARG Ltd. (2024) 298 Taxman 655 (Mad.)(HC)

Chartered Accountants Act, 1949.

S. 21A :Board of Discipline – Professional misconduct – Power of Central Government to make rules – Matter referred to Disciplinary Committee – Reference is held to be valid – Apppeal is dismissed . [S. 21A(4),29A(1) Chartered Accountants (Procedure of Investigations of Professional and Other Misconduct and Conduct of Cases) Rules, 2007 , Rule 9(3)(b) ]

Naresh Chandra Agrawal v. Institute of Chartered Accountants of India (2024) 298 Taxman 91 (SC)

Wealth -tax Act , 1957

S.35B: Failure to furnish returns of net wealth-Mechanical approval – High Court quashed the proceedings – Death of assessee – Criminal appeal abated Non-filing of return is not a continuing offence – Court held that since sole assessee had died and she had been discharged, criminal appeal stood abated and disposed of . [ Art. 136 ]

ACWT v. J. Jayalalitha (2024) 298 Taxman 5 /337 CTR 379(SC) Editorial: J.Jayalalitha v. ACWT (2011) 337 ITR 1/ (2012) 20 taxmann.com 736 (Mad)( HC)

S. 279 : Offences and prosecutions-Sanction-Chief Commissioner-Delay in filing of return-After receiving the summons filed compounding application-Application rejected on grounds of exceeding time limit specified in guidelines issued by Central Board of Direct Taxes on 14-6-2019-On writ the Court held that order was to be quashed and compounding application of assessee was directed to be considered and disposed of on merits.[S. 139, Art. 226]

Photon Kathaas Production (P.) Ltd. v. DGIT (Inv) (2024) 297 Taxman 311/464 ITR 89 (Mad.)(HC)

S. 276B : Offences and prosecutions-Failure to pay to the credit tax deducted at source-Principal Officer-An independent, non-executive, and nominee director-Prosecution is quashed and set aside. [S. 2(35)(b) 278B]

Anish Modi v. UOI (2024) 297 Taxman 490/469 ITR 487 (Bom.)(HC)