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. 40(a)(ia) : Amounts not deductible-Deduction at source-Freight charges-Payments to contractor- Excess of Rs. 50,000 without deducting tax at source-No evidence to prove that there was no contract- High Court held that disallowance is justified- Special leave granted.[S. 194C, Art. 136]

Maruti Subray Patil v. CIT (2024)461 ITR 86 /298 Taxman 2 (SC) Editorial: CIT v. Maruti Subray Patil (2016) 383 ITR 504 (Karn)(HC)

S. 37(1) : Business expenditure-Commission-Reasonableness to be considered from point of view of businessman-Revenue cannot rewrite the agreement-Appeal is allowed. [S. 260A]

Indian Hume Pipe Co. Ltd v. CIT [2023] 155 taxmann.com 415 / [2024] 461 ITR 341 (Bom) (HC)

S. 36(1)(viii) : Eligible business-Special reserve-Rule of consistency-Methodology consistently adopted-deduction allowed for earlier assessment years attaining finality-Deletion of disallowance is affirmed-SLP of Revenue dismissed. [S.145]

PCIT v. PNB Housing Finance Ltd [2024] 297 Taxman 229 /] 461 ITR 481 (SC) Editorial : PCIT v. PNB Housing Finance Ltd [2023] 146 taxmann.com 445 / [2024] 461 ITR 476 (Delhi)(HC)

S. 14A : Disallowance of expenditure-Exempt income-Shares held as stock in trade-Dividend income earned-Order of Tribunal deleting the addition is affirmed by High Court-SLP of Revenue is dismissed. [Art. 136]

PCIT v. PNB Housing Finance Ltd. (2024) 297 Taxman 229 /461 ITR 481 (SC) Editorial : PCIT v. PNB Housing Finance Ltd (2023) 146 taxmann.com 445 / (2024) 461 ITR 476 (Delhi) (HC)

S. 12AA : Procedure for registration-Trust or institution-Violation of provisions of section 13(1)(c)-Rejection of application not erroneous.[S.11, 13(1)(c), 132, 133A]

CIT (E) v. Orissa Cricket Association [2024] 461 ITR 382 (Orissa)(HC) Editorial : Order in Orissa Cricket Association v.CIT(E ) (2018) 61 ITR 675 (Cuttack )(Trib), reversed.

S. 9(1)(vii) : Income deemed to accrue or arise in India-Fees for technical services-Project-specific technical and consultancy services to an Indian company-Did not satisfy the ‘make available’ clause, did not warrant tax under Article 12(4)(b) of the DTAA between India and the US-DTAA-India-USA. [Art. 12(4)(b)]

CIT (IT) v. ABB Inc [2023] 152 taxmann.com 101 /[2024] 461 ITR 297 (Karn)(HC)

S. 9(1)(vi) : Income deemed to accrue or arise in India-Royalty-Computer software- Sale of conditional access systems and middleware products to Indian customers- Not taxable as royalty-DTAA-India-Switzerland.[art. 12(3)]

CIT (IT) v. Nagravision S. A. (2023) 157 taxmann.com 457/ (2024) 461 ITR 143 (Delhi)(HC). Editorial : SLP of Revenue is dismissed, CIT (IT) v. Nagravision S. A. (2024)461 ITR 146/ 297 Taxman 65 (SC)

S. 9(1)(vi) : Income deemed to accrue or arise in India-Royalty-Fees for included services- Reviewing risk factor in particular project- Cannot be deemed to accrue or arise in India- DTAA-India-USA.[S.9(1)(vii), art.12]

CIT (I). v ABB INC. [2023] 152 taxmann.com 101/(2024)461 ITR 297 (Karn)(HC)

S. 9(1)(vi) : Income deemed to accrue or arise in India-Royalty-Computer software- Sale of conditional access systems and middleware products to Indian customers- Not taxable as royalty-SLP dismissed-DTAA-India-Switzerland.[art 12(3)]

CIT (IT) v. Nagravision S. A. (2024)461 ITR 146/ 297 Taxman 65 (SC) Editorial : CIT (IT) v. Nagravision S. A. (2023) 157 taxmann.com 457/ (2024) 461 ITR 143 (Delhi)(HC).

S. 4 : Charge of income-tax-Sales tax incentive-Capital receipt-Not chargeable to tax. [S. 260A]

PCIT v. Shantinath Detergents (P.) Ltd [2023] 151 taxmann.com 68 / [2024] 461 ITR 302 (Cal)(HC)