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. 4 : Charge of income-tax-Capital or revenue-Subsidy-Incentive to encourage development of rural economy-Exemptions from payment of Sales tax/Entry Tax/Electricity dues-Capital receipt-Forfeited amount received in respect of preference shares-Credited receipt in capital reserve account-Capital receipt. [S. 5, 28(i)]

Jindal Steel and Power Ltd. v. Add. CIT (2022) 97 ITR 516 (Delhi) (Trib.)

S. 4 : Charge of income-tax-Capital or revenue-Sale of carbon credits-Capital receipts. [S. 28(i)]

ACIT v. Nahar Industrial Enterprises Ltd. (2022) 219 DTR 73 / 219 TTJ 544 / 99 ITR 562 / 142 taxmann.com 52 (Chd.)(Trib.) ACIT v. Nahar Spinning Mills Ltd (2022) 219 DTR 73 / 219 TTJ 544 / 99 ITR 562 / 142 taxmann.com 52 (Chd.)(Trib.) ACIT v. Oswal Woollen Mills Ltd. (2022) 219 DTR 73/ 219 TTJ 544 /99 ITR 562 / 142 taxmann.com 52 (Chd.)(Trib.)

S. 4 : Charge of income-tax-Capital or revenue receipt-Compensation for termination of marketing support agreement-No loss of source of income-Not capital nature assessable as business income. [S. 28(i)]

Dow Chemical International P. Ltd. v. ITO (2022) 100 ITR 82 (Mum.)(Trib.)

S. 4 : Charge of income-tax-Capital or Revenue-Cancellation of agreement-Right to sue-Compensation or damages for relinquishment of right in property-Avoid legal consequences-Not colourable device-Not taxable as revenue receipt. [S. 2(14),2(47), 25, 28(i), 45]

Khevana Securities & Finstocks Ltd. v. ITO (2022) 215 TTJ 775 /211 DTR 45 (Ahd) (Trib)

S. 4: Charge of income-tax-Capital or Revenue-Carbon Credits-Capital Receipt.

Oswal Woollen Mills Ltd. v. Add. CIT (2022) 98 ITR 521 (Chd.) (Trib.)

S. 2(24)(xviii) : Income-Assistance in the form of a subsidy or grant or cash incentive or duty drawback or waiver or concession or reimbursement-Eligible credit under served from India Scheme-Credit to be utilised only against purchase of capital goods and to be set off a portion of excise duty and custom duty only-Does not constitute taxable income [S. 4, 28(i)]

Container Corporation of India Ltd v. Dy.CIT(2022) 100 ITR 74 (Delhi)(Trib)

S. 2(22)(e) : Deemed dividend-Holding shares more than 10 Per Cent-Loans from companies assessable as deemed dividend.

Sanjay Subhashchand Gupta v. ACIT (2022) 95 ITR 89 (SN) (Mum.) (Trib.)

S. 2(22)(e) : Deemed dividend-Business transaction-Special purpose vehicle-Not shareholder in lender company-Advance for business purpose-Not assessable as deemed dividend.

Dy. CIT v. Aalap Digital Music Pvt. Ltd. (2022) 95 ITR 22 (SN) (Delhi) (Trib.)

S. 2(22)(e) : Deemed dividend-Dividend if at all taxable was taxable in the previous financial year and not in the relevant year-Addition was deleted.

Sunil Kanhaiyalal Gidwani v. ACIT (2022) 216 TTJ 54 (UO) / 140 taxmann.com 21 (SMC) (Pune)(Trib.)

S. 2(22)(e) : Deemed dividend-Loans obtained from group companies-Not shareholder of payer group companies-Loan cannot be treated as deemed dividend.

Rainbow Promoters (P.) Ltd. v. ACIT (2022) 95 ITR 232 (Delhi)(Trib.)