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. 11 : Property held for charitable purposes- Res Judicata -Rule of consistency-Benefits granted in earlier years-Order of Tribunal affirmed. [S. 12, 260A]

CIT v. Swami Omkarananda Saraswati Charitable Trust (2023)453 ITR 245 (All)(HC)

S. 11 : Property held for charitable purposes-Imparting education-Surplus in educational activities-Alleged excess remuneration to trustee employees-Revenue has no power to interfere-Exemption cannot be denied -Order of High Court affirmed. [S. 2(15), 12A, 13, Art. 136]

CIT(E) v. Krupanidhi Education Trust (2023)453 ITR 750/ 293 Taxman 2 (SC) Editorial : CIT (E). v. Krupanidhi Education Trust (2022) 441 ITR 154 (Karn)(HC), affirmed.

S. 10(38) : Long term capital gains from equities -Sale of shares- Capital gains -Income from other sources -Deletion of addition by the Tribunal is justified -Question of fact. [S. 45, 56, 260A]

PCIT v. Ritu Agarwal Shreeram Bhawan (2023)453 ITR 520 (Raj) (HC) Editorial: SLP of Department is dismissed, PCIT v. Ritu Agarwal Shreeram Bhawan (2023) 452 ITR 412(St) (SC)

S. 9(1)(vi) : Income deemed to accrue or arise in India – Royalty –
Non-Resident – Import of licensed software directly supplied by foreign vendor to end-user in India under exclusive licences -Not liable to deduct tax at source. [S. 195, 201(1)]

Wipro Ltd. v. Add. CIT (2023)453 ITR 796 (Karn)(HC) Editorial: Add. CIT v. Wipro Ltd (2023) 453 ITR 799 (SC)

S. 9(1)(vi) : Income deemed to accrue or arise in India – Royalty Import of licensed software under exclusive licences -Not royalty -Not liable to deduct tax at source- Pendency of Review petition -SLP of Revenue was dismissed. [S.195, 201 (1), Art, 136]

Add. CIT v. Wipro Ltd. (2023)453 ITR 799 (SC) Editorial : Affirmed, Wipro Ltd. v. Add. CIT (2023) 453 ITR 796 (Karn)(HC)

S. 9(1)(vi) : Income deemed to accrue or arise in India-Royalty-Transferee authorised to use licensed software-No transfer of Copyright-Amount received is not royalty-DTAA-India-USA- SLP of Revenue dismissed. [S. 90(2) Art, 12, Art, 136]

CIT(IT) v. Microsoft Corporation (Ms Corp) (2023)453 ITR 746/293 Taxman 508 (SC) /)/ (2024) 298 Taxman 546 ( SC) Editorial: CIT (IT) v. Microsoft Corporation (Ms Corp) (2022) 445 ITR 6/288 Taxman 32 (Delhi)(HC), affirmed.

S. 4 : Charge of income-tax -Entrance fees paid by Member -Capital receipt. [S. 28(i), Art, 136]

PCIT v. Royal Western India Turf Club Ltd. (2023)453 ITR 460 (SC) Editorial: Order in CIT v. Royal Western India Turf Club Ltd(2023) 450 ITR 707 (Bom)(HC), affirmed

S. 2(14)(iii) : Capital asset-Agricultural land-Capital gains-agricultural lands converted for non-agricultural purpose-lands did not fall within 8 kms from Municipality of Bangalore-Continued agricultural operation-Mere inclusion of land in Special Zone without any infrastructure development does not convert land into non-agricultural land-Not liable to capital gain tax -SLP of Revenue dismissed. [S. 45, Art. 136]

CIT v. M.R. Anandaram (2023) 453 ITR 757/ 292 Taxman 548 (SC) / CIT v. M.R. Seetharaman . ( 2023) 453 ITR 757/ 292 Taxman 548 ( SC) /CIT v. M. R. Prabhavathy (2023) 295 Taxman 415 (SC) Editorial : Refer, CIT v. M.R. Anandaram (HUF) (2022) 289 Taxman 121/ 216 DTR 432/ 328 CTR 90/ /(2023) 450 ITR 94 (Karn)(HC), order of High Court affirmed.

Precedent-Binding nature-Decisions of non-jurisdictional High Court-Only in the absence of benefit of guidance by the jurisdictional High Court on that issue. [S. 68, 153A]

Luxora Infrastructure (P) Ltd. v. Dy CIT (2022) 220 DTR 65 / 220 TTJ 568 / (2023) 198 ITD 0713 (Mum)(Trib)

S .43 : Penalty-Furnishing inaccurate particulars of income-Black money-Information received from investigation wing-Foreign bank account-Search and Seizure-Non-disclosure of account inadvertent mistake-Not a case of diversion of unaccounted Indian wealth to undisclosed foreign bank accounts-Penalty cannot be levied. [S. 2(11), 60]

Add. CIT v. Leena Gandhi Tiwari (2022)96 ITR 384/ 216 TTJ 905 (Mum) (Trib)