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-Provisions for gratuity and leave encashment-Accounting Standard-15-Claimed only actual payment made to employees-Not to be reduced earlier year provisions from current profit and loss account.[S. 145]

Saurashtra Gramin Bank. v. ACIT (2024) 208 ITD 55 (Rajkot) (Trib.)

S. 36(1)(va): Any sum received from employees-COVID-19-Delay in depositing the amount-EPF Organisation had waived levy of penal damages for delayed payment during lockdown-Disallowance is deleted. [S.43B]

Diamour Jewels (P.) Ltd v. CPC (2024) 208 ITD 189/232 TTJ 389 (Mum) (Trib.)

S. 28(va) : Business income-Cash or kind-Under an agreement-Non-compete fee-Joint venture company-Negative covenant-Loss of source of income-Capital receipt-Finance Act, 2002, with effect from 1-4-2003 applicable only after the assessment year 2003-04. [S. 4]

ACIT v. Lyka Labs Ltd. (2024) 208 ITD 532 (Mum) (Trib.)

S. 28(i) : Business loss-Embezzlement of stock by an employee-FIR is filed-Loss is allowable as business loss. [S. 37(1), 145]

Heena Gems v. ACIT (2024) 208 ITD 481 /114 ITR 30 (SN) (Mum) (Trib.)

S. 28(i) : Business income-Capital gains-Own capital-Share dealings-Assessable as business income.[S. 45]

Madura Biotech (P.) Ltd. v. DCIT (2024) 208 ITD 699 (Delhi) (Trib.)

S. 13 : Denial of exemption-Trust or institution-Investment restrictions-Purchase of luxury vehicle-Registered in name of manging trustee-Not able to establish that vehicle was utilized for purpose of charitable activities-Exemption under sections 11 and 12 is denied on value of vehicle purchased [S. 11, 12, 13(1)(c)]

Sri Karpaga Vinayagar Educational and Charitable Trust v. ITO (2024) 208 ITD 333 (Chennai) (Trib.)

S. 12AB: Procedure for fresh registration-Particular religious community or caste-Trust is in existence since 1946 i.e., prior to Income-tax Act came into force-Provisions of section 13(1)(b) is not be applicable.[S.11, 13(1)(b) Rule,17A]

Levva Patel Gnati v. CIT (2024) 208 ITD 490 (Rajkot) (Trib.)

S. 12AA : Procedure for registration-Trust or institution-Cancellation of registration-Provisions of section 12AA/12AB do not provide for cancellation of registration with retrospective effect. [S.12AB]

Maa Jagat Janani Seva Trust v. CIT (2024) 208 ITD 120 (Cuttack)(Trib.)

S. 12A : Registration-Trust or institution-Failure to comply with show cause notice-Cancellation of provisional registration-Matter remanded to Commissioner (E).[S.12AB]

Institute of Driving and Traffic Research. v. CIT (2024) 208 ITD 671 (Raipur)(Trib.)

S. 12A : Registration-Trust or institution-Technical mistake in preparing application-Typographical error corrected-Remanded back to file of Commissioner (E) for fresh adjudication by considering amended application. [S. 12A(1)(ac)(ii), 12(ac)(iii), Form No10AB.]

Vir Sewa Mandir. v. CIT (2024) 208 ITD 629 (Delhi) (Trib.)