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. 80IB : Industrial undertakings – derived from – Profits from Duty Entitlement Passbook Scheme and Duty Drawback claims- Not income “Derived From” Industrial Undertaking-Not eligible for deduction. [28(iiib), 28(iiic), Art, 136]

Saraf Exports v. CIT (2023) 453 ITR 625 / 293 Taxman 280 / 332 CTR 188 / 224 DTR 277 (SC) Editorial: Decision of the Jaipur Bench of the Rajasthan High Court is affirmed, Saraf Exports v. CIT (Raj)(HC) (ITA No. 7 of 2014 dt 4-2 -2016)

S. 80IA : Industrial undertakings-Telecommunication Services Change in shareholding-Block of ten consecutive years-Losses which have lapsed cannot be taken into account for purposes profits of undertaking. [S. 79, 80IA(5)]

ACIT v. Vodafone Essar Gujarat Ltd. (2023) 453 ITR 755/149 taxmann.com 1 (SC) Editorial: Vodafone Essar Gujarat Ltd v. ACIT (2020) 424 ITR 498 (Guj)(HC) is affirmed.

S. 68 : Cash credits – Purchase and sale – Genuineness of the Transactions was established -Order of Tribunal deleting the addition was affirmed. [S. 37(1), 260A]

PCIT v. Gaurav Bagaria (2023) 453 ITR 513 (Raj)(HC) Editorial: SLP of Revenue is dismissed, PCIT v. Gaurav Bagaria (2023) 452 ITR 412 (St) (SC)

S. 50B : Capital gains -Slump sale -Sale of each asset -No liability was transferred -Not a Slump sale -Question of fact. [S.2(19AA), 2(42C), 45, 260A]

PCIT v. Hindustan Engineering and Industries Ltd. (2023) 453 ITR 758 (Cal)(HC) Editorial: SLP of Revenue dismissed, PCIT v. Hindusthan Engineering and Industries Ltd. (2023)453 ITR 763 (SC)

S. 50B : Capital gains -Slump sale -Sale of each asset -No liability was transferred-Not a Slump sale-Question of fact. [S. 2(19AA), 2(42C), 45, Art. 136]

PCIT v. Hindusthan Engineering and Industries Ltd. (2023) 453 ITR 763 /293 Taxman 507 (SC) Editorial: Order of High Court in PCIT v. Hindustan Engineering and Industries Ltd. (2023)453 ITR 758 // 151 taxmann.com 431(Cal)(HC) is affirmed.

S. 45 : Capital gains -Capital loss -Capital asset – Loan given to its subsidiary in India -Short-term capital loss —Order of High Court affirmed -SLP of Revenue dismissed. [S. 2(14), Art, 136]

CIT(IT) v. Siemens Nixdorf Information Systemse Gmbh (2023) 453 ITR 741 / 293 Taxman 1 (SC) Editorial : CIT v. Siemens Nixdorf Information Systemse GmbH (2020) 114 taxmann.com 531 (Bom)(HC) affirmed.

S. 37(1) : Business expenditure-Commission-Residence-Company-Control And Management-Assessee-Companies Registered In Sikkim – Burden not discharged -Round tripping of funds -Liable to tax in India. [S. 2(35), 5, 6(3)(ii), 131, 142(1), 143(2), 148, 234A, 282]

Mansarovar Commercial Pvt. Ltd. v. CIT (2023) 453 ITR 661 / 293 Taxman 312 / 332 CTR 137 / 224 DTR 305 (SC) Editorial: Decision of Delhi High Court, affirmed, CIT v. Mansarovar Commercial Pvt. Ltd (Delhi)(HC) (2016) 134 DTR 105 / 287 CTR 28 (Delhi)(HC). Editorial : Review petition is dismissed , Mansarovar Commercial Pvt. Ltd. v. CIT (2023)453 ITR 661/ 293 Taxman 312 / 332 CTR 137/ 224 DTR 305 (SC)

S. 36(1)(vii) : Bad debt -Trading loss –Stock in trade – No evidence to demonstrate nature of business advances -Question of fact -Disallowance of claim was affirmed. [S. 28(i), 36(2), 260A]

Katti Ma v. Dy. CIT (2023) 453 ITR 258 / 293 Taxman 77 (Mad)(HC)

S. 28(i) : Business loss-Write-Off of Loss-Investment made in subsidiary abroad-Commercial expediency -Transfer pricing adjustment -Book profit -Provision for doubtful debts -Remanded to the Assessing Officer- Question of facts. [S. 37(1), 92C, 115JB, 260A]

PCIT v. Vaibhav Global Ltd. (2023) 453 ITR 24 / 333 CTR 443/ 226 DTR 123 (Raj)(HC) Editorial: SLP of Revenue is dismissed, PCIT v. Vaibhav Global Ltd. (2023)453 ITR 31(SC)

S. 14A : Disallowance of expenditure – Exempt income – Only Investments yielding income can only be taken into account -CBDT Circular dated 11-2-2014(2014) 361 ITR 94 (St), cannot override provisions of Section 14A and Rule 8D. [S. 119, R.8D(2)(iii)]

Cargo Motors Pvt. Ltd. v. Dy. CIT (2023) 453 ITR 554 / 291 Taxman 208 (Delhi)(HC)