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. 36(1)(viia) : Bad debt-Provision for bad and doubtful debts-Schedule bank-Advances written off-Allowable as deduction-Limited purpose the matter is remanded to the Assessing Officer. [S. 36(1)(v), S.36(1)(vii), 36(2)]

CIT v. City Union Bank Ltd. (2023) 456 ITR 513 (Mad)(HC)

S. 36(1)(iii) : Interest on borrowed capital-Tribunal deciding on the basis of Judgement of High Court-High Court judgement is overruled by Supreme Court-Directed to recompute the disallowance in line with Supreme Court judgement.[S. 260A]

Beekons Industries Ltd. v CIT (2023)456 ITR 431 (P&H)(HC)

S. 28(i) : Business loss-Bad debts-Commercial expediency-Expenditures incurred by subsidiary till its winding up-Amount disallowed as bad debt can be claimed as business loss. [S. 36(1)(vii), 36(2), 37(1)]

Mahindra And Mahindra Ltd. v CIT (2023)456 ITR 723 /151 taxmann.com 332 / 333 CTR 665(Bom)(HC)

S. 12A : Registration-Trust or institution-Registration is granted based on facts-Order of Tribunal is affirmed. [S. 12AA, 13(1) (c), 260A]

CIT v. President, Seth Malukchand Hirachand Digambar Jain Goth Bees Panthi Mandir Dharmik Avam Paramarthik Trust (2023)456 ITR 70 /154 taxmann.com 537 (MP)(HC)

S. 11 : Property held for charitable purposes-Activities of Commercial nature-Exclusive rights relating to GSI coding in India-Receipts from trade and business significantly high-Not entitle to exemption. [S. 2(15), 12]

CIT v.GS1 India (2023)456 ITR 30 /294 Taxman 426 (SC) Editorial : CIT (E) v.GS1 India (2023) 153 taxmann.com 387 (Delhi)(HC) is set aside.

S. 11 : Property held for charitable purposes-Warehousing agricultural produce and connected activities-Activities incidental to main objects-Entitle to exemption.[S.2(15) 12, 12AA]

CIT v. Haryana Warehousing Corporation (2023)456 ITR 778 /295 Taxman 315 / 334 CTR 6 (SC) Editorial : CIT v. Haryana Warehousing Corporation (2011) 196 taxman 260 (P& H)(HC), affirmed.

S. 10(46) : Body or Authority-Specified income-Industrial Development Authority constituted by Government for public benefit-Directions issued to concerned authority to pass speaking order. [Art. 226]

Yamuna Expressway Industrial Development Authority v. UOI (2023)456 ITR 204/154 taxmann.com 287 (Delhi)(HC)

S. 9(1)(vii) : Income deemed to accrue or arise in India-Fees for technical services-Royalty-Computer software-Maintenance and support services-Not payment of royalty for use of copyright in computer software-Not taxable in India-SLP of Revenue dismissed-DTAA-India-Singapore. [S. 9(1)(i), 9(1)(vi), 195, Art. 12]

CIT(IT) v. Symantec Asia Pacific Pte. Ltd. (2023) 456 ITR 356 / 294 Taxman 340 (SC) Editorial : CIT (IT) v. Symantec Asia Pacific Pte. Ltd (2023) 153 taxmann.com 26 (Delhi) (HC)

S.271C: Penalty- Failure to deduct at source- Purchased two immovable properties-Bonafide mistake – Furnished documents in support that the recipients /payee had shown the sale consideration in their respective returns of income and paid taxes- Penalty levied is deleted .[ S. [S.194IA , 201]

Arrone Ceramic v. JCIT (2023) 203 ITD 123 (Rajkot) (Trib)

S.271B: Penalty- Failure to get accounts audited-Books of account not maintained – Can be penalised under section 271A and not under section 271B. [S.44AA, 44AB ,271A]

Santosh Jain v. ITO (2023) 203 ITD 102/108 ITR 636 /225 TTJ 388 (Raipur) (Trib)