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
Click here to download the pdf versions of the Digest of case laws

S. 10(23C) : Educational institution-Charitable purpose-Order of High Court affirmed-SLP of Revenue is dismissed. [S. 2(15), 10(23C)(iv), Art. 136]

CIT (E) v. India Trade Promotion Organisation (2023)454 ITR 799 / 294 taxman 1 (SC) Editorial: CIT v. India Trade Promotion Organisation (2023) 454 ITR 795 / 152 taxmann.com 490 (Delhi)(HC), affirmed./. CIT (E) v. India Trade Promotion Organization (2024) 299 Taxman 454 (SC), Review petition of Revenue is dismissed on account of delay as well as on merits .

S. 10(23C) : Educational institution-Activities not solely for educational purposes-Earned profits at 67.81 percent without depreciation and 44.48 Per cent with depreciation-Not entitle to exemption. [S. 10(23C(vi)]

UOI v. Baba Banda Singh Bahadur Education Trust (2023)454 ITR 273 / 293 Taxman 428/ 332 CTR 503 / 225 DTR 255 (SC) Editorial: Baba Banda Singh Bahadur Education Trust v. UOI (P& H)(HC)(C.W.P No. 18251 of 2009 dt. 20-5 2010)

S. 10(22) : Educational institution-Income of trust was utilised personally by managing trustee-Not entitle to exemption. [Art. 136]

Sir M. Visveswaraya Education Trust v. CIT (2023)454 ITR 438/ 293 Taxman 425/ 334 CTR 344 (SC) Editorial : CIT v. Sir M. Visveswaraya Education Trust (2009) 319 ITR 425 (Karn)(HC), affirmed.

S. 9(1)(vii) : Income deemed to accrue or arise in India-Fees for technical services-Centralised services-Not fees for technical services or fees for included services-DTAA-India-USA.[Art. 12(4)(a)

CIT (IT) v. Radisson Hotel Interaction Incorporated (2023) 454 ITR 816 (Delhi)(HC) Editorial: Notice issued in SLP filed by the Revenue, CIT (IT) v. Radisson Hotels International Incorporated (2023)454 ITR 819 (SC)

S. 9(1)(vi) : Income deemed to accrue or arise in India-Royalty-Software receipts is not taxable as royalty.

DIT v. Microsoft Regional Sales PTE. Ltd. (2023)454 ITR 15 (Delhi)(HC) Editorial: SLP of Revenue is dismissed, DIT(IT) v. Microsoft Regional Sales PTE. Ltd. (2023)454 ITR 19 (SC)

S. 9(1)(vi) : Income deemed to accrue or arise in India-Royalty-Receipts from sale of software licences to Indian customers-Software receipts is not taxable as royalty-SLP of Revenue is dismissed. [Art. 136]

DIT(IT) v. Microsoft Regional Sales PTE. Ltd. (2023)454 ITR 19/ 294 Taxman 519 (SC) Editorial: DIT(IT) v. Microsoft Regional Sales PTE. Ltd. (2023)454 ITR 15 (Delhi) (HC), affirmed.

S. 9(1)(vi) : Income deemed to accrue or arise in India-Royalty-Non-Resident-Payment for software not royalty-Explns. 5, 6-DTAA-India-China. [Art. 12(3)].

CIT (IT) v. ZTE Corporation (2023)454 ITR 541/ 293 Taxman 274 (SC) Editorial : CIT (IT) v. ZTE Corporation (2021) 130 taxmann.com 128 (Delhi)(HC)

S.9(1)(i) : Income deemed to accrue or arise in India-Business connection-Non-Resident-Use of copyright in the computer software-Software receipts-Not taxable in India-DTAA-India-USA. [S. 9(1)(vi), 90(2) 195, Art. 12]

CIT (IT) v. Mol Corporation (2023)454 ITR 28 /150 taxmann.com 117 (Delhi)(HC) Editorial : SLP of Revenue is dismissed, CIT v. MOL Corporation (2023)454 ITR 32/ 293 Taxman 74 (SC)

S. 9(1)(i) : Income deemed to accrue or arise in India-Business connection-Non-Resident-Use of copyright in the computer software-Software receipts-Not taxable in India-DTAA-India-USA.[S. 9(1)(vi), 195]

CIT v. MOL Corporation (2023)454 ITR 32/ 293 Taxman 74 (SC) Editorial : Refer, CIT (IT) v. Mol Corporation (2023)454 ITR 28 / 150 taxmann.com 117 (Delhi)(HC)

S. 9(1)(i) : Income deemed to accrue or arise in India-Business connection-Permanent Establishment-Portion of income reasonably attributable to operations in India-Question of fact-Tribunal attributing 15 Per Cent. of total revenues as income accruing or arising in India on basis of functions performed, assets used and risks-Commission paid to distribution agents more than twice this amount and taxed-No further income taxable in India-DTAA-India-USA. [S. 9(1)(i ),n Explanation 1(a), Art. 7]

DIT v. Travelport Inc. (2023) 454 ITR 289 / 293 Taxman 439 / 332 CTR 480 / 225 CTR 201 (SC)/ Galieo International Inc ; DIT v. (2023)454 ITR 289/ 293 Taxman 439/ 332 CTR 480/ 225 CTR 201 (SC) Editorial: Decision of the Delhi High Court in DIT v. Galileo International Inc. (2011) 336 ITR 264 (Delhi)(HC), Galileo Netherland BV. V.ADIT (IT) 2014) 367 ITR 319 (Delhi)(HC), affirmed.