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. 11 : Property held for charitable purposes-Education-promotion of science and technology by developing science city project-Activities carried out by assessee being primarily run as a science museum did not qualify as education and order of Commissioner (Appeals) holding so was to be set aside-Activities carried out by assessee were not in nature of imparting education, but were in nature of general public utility activities-Matter remanded to the Assessing Officer. [S. 2(15)]

DCIT v. Gujarat Council of Science City. (2023) 200 ITD 780 (Ahd) (Trib.)

S. 11 : Property held for charitable purposes-Form No 10B-Audit report-Delay condoned by CIT(E)-Denial of exemption is not justified-Return filed under section 139(4)-Exemption cannot be denied-Provisions of section 13(9) would attract only when assessee claims benefit of section 11(2) and its scope would not extend to other sub-sections of section 11. [S. 12A (1)(ba), 13(9), 139(1), 139 (4),13(9), Form No.10B]

Shri Rajkot Vishashrimali Jain Samaj. v. ITO (2023) 200 ITD 662 /225 TTJ 992 //230 DTR 424 /2024)114 ITR 750(Rajkot)(Trib.)

S. 11 : Property held for charitable purposes-Credit for tax deduction at source-Income from property-Application of income-Accumulation of income-The lower authorities were not justified in jettisoning claim of allowing deduction of tax deducted at source in computation of income available for application or accumulation [S.11(1)(a), 11(2)]

Society of Saint Ursula v. ACIT (2023) 200 ITD 471/225 TTJ 119(SMC) (Pune)(Trib.)

S. 9(1)(vii) : Income deemed to accrue or arise in India-Fees for technical services-Training services-Installation and supervision fee was made by assessee to sub-contractor at Belgium-Entitled to claim benefit of restricted definition of fee-DTAA-India-Portugal.[S. 9(1)(vi), Art. 12]

Dieffenbacher GmbH Maschinen Und Anlagenbau. v. ACIT, IT (2023) 200 ITD 760 / (2024) 109 ITR 598 (Mum) (Trib.)

S. 9(1)(vii) : Income deemed to accrue or arise in India-Fees for technical services-Marketing services-Related services to hotels-Distinct and different from license fee-Not to be assessed as FTS-Reimbursement of cost received cannot not be treated as FTS-DTAA-India-Singapore [Art. 12(4)(a)]

Shangri-La International Hotel Management Pte. Ltd. v. ACIT (2023) 106 ITR 52 / 200 ITD 534 (Delhi) (Trib.)

S. 9(1)(vii) : Income deemed to accrue or arise in India-Fees for technical services-Income on account of rendering business support services from Indian-company-Not assessable as FTS-DTAA-India-Netherland.[S.9(1)(vi), Art.12(5)]

Inteva Products Netherlands BV. v. ACIT, IT (2023) 200 ITD 466 (Delhi) (Trib.)

S. 9(1)(vi) : Income deemed to accrue or arise in India-Royalty-Reimbursement of expenses would not constitute royalty-Not taxable in India-DTAA-India-USA [Art. 12]

ACIT v. Convergys Customer Management Group Inc. (2023) 200 ITD 23/102 ITR 21 (SN) (Delhi) (Trib.)

S. 9(1)(vi) : Income deemed to accrue or arise in India-Royalty-Consideration received for Satellite Transmission Services-Not taxable as royalty-DTAA-India-USSA. [Art. 12(3)]

Intelsat US LLC v. ACIT (2023) 200 ITD 154 (Delhi) (Trib.)

S. 9(1)(vi) : Income deemed to accrue or arise in India-Royalty-Sale of software-Not transferred use or right to use of any copyright in software-Cannot be treated as royalty-India-USA. [Art. 12(3)]

Moogsoft Inc. v. CIT (2023) 200 ITD 65 (Delhi)(Trib.)

S. 9(1)(vi) : Income deemed to accrue or arise in India-Royalty-Consideration for resale/use of computer software through EULAs/distribution agreements, is not payment of royalty for use of copyright in computer software, and same does not give rise to any income taxable in India-standard automated services to Indian customers-Matter remanded-DTAA-India-Ireland [S. 9(1)(vii), Art. 12]

Avaya International Sales Ltd. v. ACIT (IT) (2023) 103 ITR 616 / 200 ITD 765 (Delhi) (Trib.)