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-Amount paid to retiring partner as per the provision in partnership deed-Diversion of income at source by overriding title-Allowable as deduction-Availed 2020-SLP of Revenue is dismissed as infructuous.[S. 4, Art. 136]

PCIT v. Wadia Ghandy & Co. (2023) 295 Taxman 229 (SC) Editorial: PCIT v. Wadia Ghandy & Co(2023) 155 taxmann.com 228 (Bom)(HC)

S. 32 : Depreciation-Goodwill created as a result of Amalgamation-Intangible asset-Order of Tribunal allowing the depreciation is affirmed. [S.47, 49(1)(e), 55(2)]

PCIT v. Eltek SGS (P.) Ltd. (2023) 457 ITR 733 / 295 Taxman 40 (Delhi)(HC)

S. 32 : Depreciation-Brand name-Intangible assets-Commercial rights-Depreciation is allowable. [S.32 (1)(ii)]

PCIT v. Kuantum Papers Ltd. (2023) 295 Taxman 546/(2024)462 ITR 194 (Delhi)(HC)

S. 14A : Disallowance of expenditure-Exempt income-Mixed funds-Rule 8 would be attracted automatically is not correct-Disallowance cannot exceed exempt income.[R.8D]

PCIT v. Gujarat Flurochemicals Ltd. (2023) 459 ITR 242/ 295 Taxman 200 (Guj.)(HC)

S. 14A : Disallowance of expenditure-Exempt income-Not recording of satisfaction-Not examined the shared accounts-Order of Tribunal deleting the addition is affirmed.[R.8D, 260A]

PCIT v. Security Printing and Mining Corporation of India Ltd. (2023) 459 ITR 261/295 Taxman 732 (Delhi)(HC)

S. 12AA : Procedure for registration-Trust or institution-Preservation of environment-Control of Irrigation Department of State Government-Registration was allowed-Order of High Court affirmed.[S. 2(15)]

CIT(E) v. Water & Land Management Training & Research Institute (2023) 295 Taxman 753/(2024) 461 ITR 1/337 CTR 252 (SC) Editorial: CIT (E) v. Water & Land Management Training & Research Institute (2017) 83 taxmann.com 234 /398 ITR 282(AP& Telengana (HC), affirmed./Refer , Water & Land Management Training & Research Institute v.DIT ( E ) (2015) 40 ITR 559(Hyd)( Trib)

S. 9(1)(vi) : Income deemed to accrue or arise in India-Royalty-Fess for technical services-Computer software-Non-resident computer software manufacturers/suppliers-, Consideration for resale/use of computer software through EULAs/distribution agreement-Not payment of royalty for use of copyright in computer software-Not taxable in India-DTAA-India-Netherland-Appeal of Revenue is dismissed. [S. 9(1)(vii), 260A, Art. 12]

CIT (IT) NET APP B V (2023) 155 taxmann.com 274 /(2024) 460 ITR 152 (Delhi)(HC) Editorial: CIT (IT) v. NET APP B V (2023) 295 Taxman 216/ 460 ITR 154 (SC)

S. 153A : Assessment – Search – Non -abated assessment – No incriminating material is found – Order of High Court is affirmed – SLP of Revenue is dismissed . [ S. 132 , Art. 136 ]

PCIT (Central) v. King Buildcon (P.) Ltd. (2023) 436 ITR 770/ 295 Taxman 413/ 333 CTR 449 (SC) Editorial : PCIT v. LKG Builders (P) Ltd ( 2023) 455 ITR 520/ 154 Taxman.com 188 ( Delhi) ( HC)

S. 9(1)(vi) : Income deemed to accrue or arise in India-Royalty-Fess for technical services-Computer software-Non-resident computer software manufacturers/suppliers-, Consideration for resale/use of computer software through EULAs/distribution agreement-Not payment of royalty for use of copyright in computer software-Not taxable in India-DTAA-India-Netherland-SLP of Revenue is dismissed.[S. 9(1)(vii) Art. 12, Art. 136]

CIT (IT) v. NET APP B V (2023) 295 Taxman 216/ 460 ITR 154 (SC) Editorial: CIT (IT) NET APP B V (2023) 155 taxmann.com 274 /(2024) 460 ITR 152 (Delhi)(HC)

S. 9(1)(iv) : Income deemed to accrue or arise in India-Dividend from JV registered as company under Omani Laws-Tax credit-Method of Eliminating of Double Taxation-Exempt from tax-DTAA-India-Oman [S. 90, 263, Art. 8(bis, 11, 25,]

PCIT v. Krishak Bharti Co-operative Ltd (2023) 458 ITR 190/295 Taxman 110/ 334 CTR 507 (SC) Editorial: PCIT v. Krishak Bharti Co-operative Ltd (2017) 247 Taxman 317/395 ITR 572 (Delhi)(HC)