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. 47(iv) :Capital gains-Transaction not regarded as transfer-Capital gains Subsidiary-Prerequisites provided to Indian subsidiary company-Assessee inadvertently offered receipt for levy of tax-Tax could not be levied as receipt did not constitute income-Income-tax leviable only in accordance with provisions of Income-tax Act-Admission by assessee is not conclusive. [S.4, 45]

PCIT v. Ansal Properties and Infrastructure Ltd (2023) 152 taxmann.com 49 / (2024) 460 ITR 341 (Delhi) (HC)

S. 45:Capital gains-Business income-Total income-Redemption of mutual fund units-Income taxable as capital gains and not as business income. [2(45), 28(i), 260A]

PCIT v. Wig Investment (2024) 461 ITR 117 / 158 taxmann.com 379 (Delhi HC)

S. 40A(3) : Expenses or payments not deductible-Cash payments exceeding prescribed limits-Genuineness of transaction was in doubt-Order of Tribunal is affirmed. [R.6DD(j)]

Rajesh Kumar v. CIT (2024) 296 Taxman 540/463 ITR 320 (Delhi)(HC) Editorial : SLP filed by assessee is dismissed, before Supreme Court is dismissed ,Rajesh Kumar v. CIT (2024) 298 Taxman 753 / 463 ITR 328 (SC)

S. 40A (2) : Expenses or payments not deductible—Excessive or unreasonable-Burden of proof on Revenue to show that expenditure was Excessive-The Assessing Officer is duty-bound to provide an opportunity to the assessee to place on record the requisite evidence to justify its claim Matter remanded to the file of the Assessing Officer-Directed to issue fresh notice and decide in accordance with law. [S. 40A(2)(a)), 40A(2)(b), 260A]

Mehra Jewel Palace (P.) Ltd. v. PCIT (2024) 460 ITR 209/ 296 Taxman 489(Delhi)(HC)

S. 36(1)(iii) : Interest on borrowed capital-Business of retail lending as well as Long Term finance for construction of homes-Deduction claimed on interest on Long Term housing loan, which has been recalculated by the AO based on total receipt of the business-Rule of consistency is followed-Order of Tribunal deleting the addition is affirmed.[S.260A]

PCIT v. PNB Housing Finance Ltd. (2023) 146 taxmann.com 445 / (2024) 461 ITR 476 (Delhi)(HC)/Editorial : SLP of Revenue dismissed , PCIT v. PNB Housing Finance Ltd [2024] 297 Taxman 229 / ] 461 ITR 481 (SC)

S.14A : Disallowance of expenditure-Exempt income-Shares held as stock in trade-Dividend income earned-Order of Tribunal deleting the addition is affirmed. [S.260A]

PCIT v. PNB Housing Finance Ltd. (2023) 146 taxmann.com 445 / (2024) 461 ITR 476 (Delhi) (HC)/Editorial : SLP dismissed PCIT v. PNB Housing Finance Ltd., (2024) 297 Taxman 229 (SC)/[2024] 461 ITR 481 (SC)

S. 14A : Disallowance of expenditure-Exempt income-Depreciation-Rule of consistency followed-Appeal of Revenue is dismissed.[S. 32, R.8D]

P CIT v. Times Internet Ltd [2023] 156 taxmann.com 577 / (2024)) 296 Taxman 547 (Delhi)(HC)

S. 12AB: Procedure for fresh registration Cancellation of registration with retrospective effect-On writ filed by the petitioner, the Court granted the interim stay. [S. 12A, 12AA, 12AB(4), Art. 226]

Centre for Policy Research v. PCIT (Central) (2023) 156 taxmann.com 279 / (2024) 461 ITR 540 (Delhi)(HC) Editorial : SLP of Revenue is dismissed, PCIT v. Centre for Policy Research [2024] 297 Taxman 135 / 462 ITR 1 (SC)

S. 9(1)(vii) : Income deemed to accrue or arise in India-Fees for technical services-Subscription fee-From members Non-commercial objectives, professional practices, and articles did not reflect any element of commerciality, subscription fee would not be in nature of FTS-Also exempt on principle of mutuality-DTAA-India-Switzerland.[S.4, 260A, Art. 6.2(a), 6(2)(b), 7.5, 12]

CIT (IT) v. Deloitte Touche Tohmatsu(2023) 335 CTR 271/ (2024) 296 Taxman 104 (Delhi)(HC)

S. 9(1)(vi) : Income deemed to accrue or arise in India-Royalty-Income of supply of CAS and middleware products by the Switzerland company to Indian customers-Does not fall within the ambit of ‘royalty’ as defined in section 9(1)(vi) as well as DTAA-Not liable to deduct tax at source-DTAA-India-Switzerland [S.195, 260A, Art. 12(3) [

CIT (IT) v. Nagravision S. A. (2023) 157 taxmann.com 457/ (2024) 461 ITR 143 (Delhi)(HC) Editorial : SLP of Revenue is dismissed, CIT (IT) v. Nagravision S. A (2024) 297 Taxman 65/ 461 ITR 146 (SC)