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. 28(i) : Business Income-Deduction of tax at source-Difference between receipts stated in form 26AS and income shown in profit and loss account cannot be brought to tax in the hands of the assessee.[S. 145, Form No 26AS]
Dy. CIT v. Connect Residuary P. Ltd. (2023) 105 ITR 46 (SN)(Mum) (Trib)
S. 28(i) : Business income-Interest on FDRs-Pledge fixed deposit receipts (FDRs) as margin with the bank-Interest income assessable as business income-High sea sale.[S.43(5)]
Dy. CIT v. G. G. Continental Traders (P.) Ltd. [2023] 201 ITD 440 (Amritsar)(Trib.)
S. 28(i) : Business income-Agricultural income-Apportionment AO is directed to recompute disallowance and only 40% amount to be added to business income. [S. 2(24)(x), 36(1))(v),R. 8(1)]
Hanuman Plantations Ltd. v. ITO (2023)104 ITR 78 (Kol) (Trib)
S. 23 : Income from house property-Annual value – Stock in trade-No addition can be made on account of deemed rent on unsold flats held as stock in trade. [S. 22, 23(4), 23(5)]
Dugad Properties v. DCIT (2023) 103 ITR 65 (SN) (Pune) (Trib.)
S .23 : Income from house property-Annual value-No deemed or Notional Rental Income for the properties held as Stock in Trade.[S. 22, 23(5)]
Modern Abodes Pvt. Ltd. v. ITO (Mum)(Trib.) (UR)
S. 22 : Income from house property – taxed as house property for many years-No change in facts-Cannot be treated as income from business and profession. [S.28(i)]
Pawa Builders Pvt. Ltd. v. Dy. CIT (2023)101 ITR 43 (SN.)(Delhi) (Trib)
S. 17(3) :Salary-Profits in lieu of salary-Ex-gratia –Voluntary payment-Without establishing letter as non-genuine or without examining sanctity of payment made – Addition is not justified .[S. 10(10C), 15,17(3)(iii)]
Mahadev Vasant Dhangekar v. ACIT (2023) 201 ITD 5/ 224 TTJ 1 (UO) (Pune)(Trib.)
S. 14A : Disallowance of expenditure-Exempt income-No exempt income – Disallowance cannot be made-Amendments to section 14A by Finance Act, 2022-No retrospective effect. [R. 8D]
DCIT v. Welspun Steel Ltd (Mum)(Trib)
S. 14A : Disallowance of expenditure-Exempt income-No exempt income – Disallowance cannot be made-Amendment made by Finance Act, 2022 to section 14A by inserting a non-obstante clause and Explanation will take effect from 1-4-2022 and cannot be presumed to have retrospective effects.[R.8D]
ACIT (LTU) v. Tamilnadu Petroproducts Ltd. (2023) 103 ITR 92 (SN) (Chennai)(Trib)
S. 14A : Disallowance of expenditure-Exempt income-Disallowance cannot exceed exempt income-Amendment introduced by Finance Act, 2022, is prospective.[R.8D]
Radison Projects Pvt. Ltd v ITO (2023) 103 ITR 17 (SN)(Kol) (Trib)