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. 10(38) : Long term capital gains from equities – Business income or capital gains-Two portfolios viz., investment portfolio and trading portfolio –Sale of shares from investment portfolio is entitle to exemption.[S.28(i), 45]

ITO v. Nirmal Kotecha (2023) 200 ITD 52 / 102 ITR 60 (SN )(Mum)(Trib)

S.10(37) : Capital gains-Agricultural land-With in specified urban limits-Compensation received on account of compulsory acquisition of agricultural land by state Govt is exempt from tax. [S. 2(14)(iii), 45 (5),Land Acquisition Act, 1894,Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 (RFCTLARR Act.)]

ITO v. Mohd. Aslam Baggar (2023) 200 ITD 712 (Amritsar)(Trib)

S. 10(23C) : Educational institution-Corpus donation-Registration is not mandatory – Matter reamanded for verification. [S.10(23C(iiiad), 12AA]

Guru Govind Singh Educational Society v. ITO (2023) 201 ITD 325(Amritsar)(Trib)

S. 10(20): Local authority-Change of law-For years prior to and subsequent to AY in question assessee treated as “local authority”-To be assessed as local authority for year in question-Not as artificial juridical person. [S. 2(31)(vii)]

Cane Development Council v. ITO (2023)104 ITR 12 (SN)(Delhi) (Trib)

S. 10(13A) : House rent allowance-Rent paid by husband to his wife-house was registered in wife’s name-Rental income was shown by wife in ITR-Deduction of house rent allowance is allowable as deduction.

Aman Kumar Jain v. ITO (Delhi)(Trib.) (UR)

S. 10(2A) : Share income of partner-The Limited Liability of Partnership,(LLP) being a distinct person from its partners can become a partner in a partnership firm and is also eligible to claim the exemption. [S. 2(23), Indian Partnership Act, 1932 ,S. 4,25,26,49, Limited Liability of Partnership ,Act, 2008,S.. 14,General Clauses Act, 1897, 3(42)]

Mulberry Textiles LLP v. ITO (2023) 200 ITD 244 / 226 TTJ 573 (SMC)(Bang)(Trib)

S. 10(1) : Agricultural income —Business of manufacture and sale of sugar-Income from cultivation of sugarcane seeds treated in earlier years as agricultural income-Exempt from tax.

Dy. CIT v. Wahid Sandhar Sugars Ltd. (2023)104 ITR 60 (SN)(Delhi) (Trib)

S. 9(1)(vii):Income deemed to accrue or arise in India-Fees for technical services-Non-resident-Subscription fees receipt from India – Online Database-Not taxable in absence of permanent establishment in India-DTAA-India-USA .[S.9(1)(i), Art. 7]

Relx Inc. v. ACIT (2023) 149 taxmann.com 78 / 103 ITR 54 (SN)(Delhi) (Trib)

S. 9(1)(vii): Income deemed to accrue or arise in India-Fees for technical services – Reimbursement of salaries paid to employees-Employees were high level technical executives-Payments fell under technical services-Tax deducted at source not relevant-Payment taxable. [Explanation. 2]

Panasonic Holdings Corporation v Dy. CIT (2023)101 ITR 5 (SN.)(Delhi) (Trib)

S. 9(1)(vi) : Income deemed to accrue or arise in India-Royalty Granting access to database and earning subscription fee-Income not taxable in India-DTAA-India-USA. [Art. 12(3)]

Uptodate Inc. v. Dy. CIT (IT) (2023) 150 taxmann.com 231 /105 ITR 707 (Delhi)(Trib)