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. 45(4) : Capital gains-Distribution of capital asset-Transfer-Dissolution of firm-Revaluation of assets and credit to capital accounts of partners-Introduction of new partners-Withdrawal of credit from capital account-Otherwise-Firm is liable to pay capital gains tax- Review petition is dismissed . [S. 2(47)(ii), 47(ii), 50]

Mansukh Dyeing and Printing Mills v. CIT (2023) 293 Taxman 516/ 334 CTR 4799 (SC) Editorial : Refer CIT v. Mansukh Dyeing and Printing Mills (2022) 449 ITR 439 / 220 DTR 189 / 329 CTR 673 / 145 taxmann.com 151/ / (2023) 290 Taxman 354 (SC)

S. 45 : Capital gains-Long term capital gains from equities-Survey-Report from investigation wing-Accommodation entries-Kolkata based companies-Order of Tribunal allowing the claim is affirmed. [S. 10(38), 68, 69, 133A]

PCIT v. Dipansu Mohapatra (2023) 293 Taxman 173 / (2024) 463 ITR 678 (Orissa)(HC) Editorial : SLP of Revenue is dismissed , delay is not condoned , leaving the questions of law, if any ,open , PCIT v .Dipansu Mohapatra (2024)463 ITR 681 (SC)

S. 43B : Deductions on actual payment-Any sum received from employees-No deduction is available to employer in respect of deposit of employees’ contribution of PF and ESI beyond due date prescribed in relevant Acts. [S. 36(1)(va), 260A)

Diversified Services v. ITO (2023) 293 Taxman 48 (Guj.)(HC)

S. 37(1) : Business expenditure-Repairs and maintenance-Details produced-Disallowance of expenditure is held to be not justified.

Sidhant Leather Exports (P.) Ltd. v. CIT (2023) 459 ITR 318 / 293 Taxman 412 (Cal.)(HC)

S. 37(1) : Business expenditure-Capital or revenue-Current repairs-Steel rolling mill-Expenditure incurred for replacement of steel rolls is revenue expenditure. [S. 31]

CIT v. Jindal India Ltd. (2023) 293 Taxman 478 (Cal.)(HC)

S. 28(i) : Business loss-Burden of proof-Search-Order of Tribunal allowing the loss is held to be perverse-Order of Tribunal is set aside.[S. 132, 153A, 254(1)]

PCIT v. Rajesh Exports Ltd. (2023) 293 Taxman 94 (Karn)(HC)

S. 14A : Disallowance of expenditure-Exempt income-Not recording of satisfaction-Own funds-Order of Tribunal deleting the addition is affirmed. [R. 8D (2)(ii)]

PCIT v. Century Enka Ltd. (2023) 459 ITR 190/293 Taxman 471 (Cal.)(HC)

S. 12AA : Procedure for registration-Trust or institution-Genuineness of activities-Order of Tribunal directing the Commissioner to grant registration is affirmed. [S. 12A]

CIT v. D.N Memorial Trust (2023) 293 Taxman 735 /335 CTR 601 (J&K and Ladakh)(HC)

S. 11 : Property held for charitable purposes – Hospital – Providing medicines and medical aid to needy and poor people – Free distribution of medicines – Tribunal was justified in allowing application of income on account of free distribution of medicines. [S. 133(6)]

CIT (E) v. Anandalok (2023) 293 Taxman 727/(2024) 460 ITR 338 (Cal.)(HC)

S. 4 : Charge of income-tax – Sales tax subsidy – Issue attained finality in assessment year 2002 -03 – Order passed by Tribunal for relevant assessment year was not required to be given effect and order passed by Commissioner (Appeals) was restored. [S. 250]

CIT v. ITC Bhadrachalam Paper Boards Ltd. (2023) 293 Taxman 59 (Cal.)(HC)