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)(iii) : Interest on borrowed capital-Diversion of funds-Proportionate interest paid on said diverted funds was to be disallowed.

Garve Motors (P.) Ltd. v. ACIT (2023) 199 ITD 136 (Pune) (Trib.)

S. 30 : Rent rates, taxes, repairs and insurance for buildings-Premises on short-term lease-Allowable as revenue expenditure.

Garve Motors (P.) Ltd. v. ACIT (2023) 199 ITD 136 (Pune) (Trib.)

S. 28(i) : Business income-Letting out properties-Assessable as income from business and not as income from house property.[S.22)

ACIT v. Tupelo Builders (P.) Ltd. (2023) 199 ITD 58 / 221 TTJ 192 (Delhi)(Trib)

S. 12A : Registration-Trust or institution-Voluntary contributions-Trust is not registered-Corpus donation will form part of taxable income-Failure to produce vouchers disallowance of expenditure is justified. [S. 2(24(iia), 11, 37 (1)]

Akshay Educational & Social Welfare Charitable Trust. v. DCIT (2023) 199 ITD 328 / 222 TTJ 14/ 223 DTR 9 (Patna) (Trib.)

S. 11 : Property held for charitable purposes-Lease rent-Lessee companies were part of same group where trustees of assessee-trust and their relatives held more than 50 per cent of shares, tenants of rented property-Section 13(3) and as provisions of section 13(1)(c) read with section 13(1)(b) were violated-Assessee is not entitled to claim exemption under section 11. [S. 12AA, 13(1)(b), 13(1(c), 13(3)]

TVS Charities. v. ITO (2023) 199 ITD 813/224 TTJ 842 (Chennai) (Trib.)

S. 11 : Property held for charitable purposes-Lease of properties-Rental income-Order of the Assessing Officer estimating the income at notional rental income is deleted-Only actual rental income be assessed. [S. 12AA, 13, 22, 23]

TVS Charities. v. ITO (2023) 199 ITD 813 / 224 TTJ 842 (Chennai) (Trib.)

S. 10(23C) : Educational institution-Condonation of delay-Commissioner (E) is not vested with any power to condone delay involved in filing application for grant of approval under section 10(23C)(vi) [S. 10(23C)(vi)]

Manav Rachana Education Society v. CIT(E) (2023) 199 ITD 589 (Raipur) (Trib.)

S. 10(23C) : Educational institution-Hospitals-Treatment at concessional rate provided by hospital to patients accounted for less than 1 per cent of revenue-Denial of exemption is justified. [S. 10(23C)(vi), 12AA, 80G(5)(vi), Companies Act, 2013, S. 8]

Fernandez Foundation. v. CIT (E) (2023) 199 ITD 37/ 221 TTJ 109 (Hyd) (Trib.)

S. 10 (23C): Educational institution-Donations-not wholly or substantially financed by Government of India-Matter remanded to the file of CIT(A) for reconsideration. [S. 10(23C)(iiiab)]

Joint CIT (OSD) (E) v. Deccan Education Society. (2023) 199 ITD 424 (Pune) (Trib.)

S. 10(2A) : Share income of partner- No distributable profits-Partnership firm had earned profit-Partner is eligible to claim exemption.

Davalagiri Property Developers (P.) Ltd. v. DCIT (2023) 199 ITD 416 (Bang) (Trib.)