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. 12AA : Procedure for registration-Trust or institution-Order refusing to registration was set aside.

Arare Foundation v. CIT(E) (2021) 90 ITR 45 (SN) (Pune)(Trib.)

S. 11 : Property held for charitable purposes-Benefit to related parties-Salary paid to chairman of trust-Held to be reasonable-Denial of exemption was held to be not justified. [S. 13(1)(c), 13(3)]

Mukat Educational Trust v. Dy.CIT(E) (2021) 90 ITR 63 (SN.) (Chd.)(Trib.)

S. 11 : Property held for charitable purposes-Excess fees charged-Exemption cannot be denied-Failure to produce depositors-Loans cannot be treated as anonymous donations. [S. 12AA, 68, 115BBC]

Dy. CIT(E) v. Ram Nath Memorial Trust Society (2021) 90 ITR 51 (SN) (Delhi)(Trib.)

S. 10B : Export oriented undertakings-Separate books of account-No disallowance could be made-Matter remanded.

Progress Software Solutions India P. Ltd. v. Dy.CIT (2021) 90 ITR 70 (SN) / 214 TTJ 1 (SMC) (Mum.)(Trib.)

S. 10AA : Special Economic Zones-Amount written back on account of unclaimed balances-Brought forward losses not to be reduced from profits of current year. [S. 10A]

TCS E-Serve International Ltd. v. ACIT (2021) 90 ITR 22 (SN) (Delhi)(Trib.)

S. 10A : Free trade zone-Additions agreed under Mutual Agreement Procedure-Entitled to benefit of deduction-Export turnover-Total turnover.

Dell International Services India P. Ltd. v. Add. CIT (LTU) (2021) 90 ITR 61 (SN.) (Bang.)(Trib.)

S. 9(1)(vi) : Income deemed to accrue or arise in India-Royalty-Sale of software-No specific finding with regard to licence agreement-Matter remanded.

Nice Systems Technologies Inc. v. JCIT (2021) 90 ITR 19 (SN) (Bang.)(Trib.)

S. 9(1)(vii) : Income deemed to accrue or arise in India-Fees for technical services-Payments for services relating to Hotel Management-Not taxable as fees for technical services-DTAA India-USA. [Art. 7, 12]

ACIT (IT) v. Starwood (M) International Inc. (2021) 90 ITR 9 (SN) (Delhi)(Trib.) Westin Hotel Management LP (2021) 90 ITR 9 (SN)(Delhi)(Trib.)

S. 9(1)(vii) : Income deemed to accrue or arise in India-Fees for technical services-Intermediary services-No technology made available-Not fees for technical services-Not taxable in India-Sale of equipment and payments carried outside India-Income attributable to Permanent Establishment is not taxable-DTAA-India-Sweden. [S. 9(1)(i), Art. 12]

Bombardier Transportation Sweden AB v. Dy. CIT(IT) (2021) 90 ITR 405 / 199 DTR 108 / 209 TTJ 804 (Delhi)(Trib.)

S. 4 : Charge of income-tax-Foreign currency-Convertible bonds-Buy back of foreign currency bonds at discounted price-Foreign currency convertible bond proceeds were utilized for setting up a new manufacturing facility or expansion of manufacturing facility-Discount is capital receipt. [S. 28(i)]

Paramount Communications Ltd. v. Dy.CIT (2021) 90 ITR 20 (Delhi)(Trib.)