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. 48 : Capital gains –Mode of Computation-Interest paid on loan-Clear another loan-Required to be reduced from sale consideration received by assessee, being one of components of cost of acquisition.[S. 45]
Ramesh Munaiah Chintakunta. v. DCIT (2025) 212 ITD 117 (Hyd) (Trib.)
S. 9(1)(vi): Income deemed to accrue or arise in India – Aircraft leasing – Multilateral Instrument (MLI) – Principal Purpose Test (PPT) cannot be applied in absence of specific Sec. 90(1) notification – Lease rentals not taxable as royalty – No Permanent establishment in India- Entitle to treaty benefit – DTAA -India Ireland .[ S. 9(1)(i) , 90(1) , 143(3) 144C(13), 234A, 234B, 270A, Art . 5, 6, 7 , 8(1) , 12(3)(a) ]
Sky High Leasing Company Ltd. v. ACIT (Intl. Tax) (Mum)( Trib ) www.itatonline org .
S. 45(4) : Capital gains-Distribution of capital asset-Dissolution of firm-Depreciable assets-Block of assets-Transfer of depreciable capital assets-Incoming partner-Liable to capital gains tax under Section 45(4), even though there was no distribution of assets among partners upon dissolution-Section 50 does not apply when asset’s value has already been taxed as capital gains under Section 45(4) [S. 2(11), 45, 50, 50A]
ACIT V. PVR Tourist Home. (2025) 212 ITD 381 (Cochin)(Trib.)
S. 45 : Capital gains-Development agreement-Mere licence granted to developer without possession-No transfer-No capital gains.[S. 2(47)(v), Transfer of Property Act, 1882, S. 53A]
Balasaheb Popatrao Phadol v. ITO (2025) 212 ITD 280 (Pune)(Trib.)
S. 45 : Capital gains-Business income-Sale of land-Part of property-No change in nature-Assessable as capital gains and not as business income. [S.28(i)]
ACIT v. Ambey Associates. (2025) 212 ITD 62 (Dehradun) (Trib.)
S. 45 : Capital gains-Property sold by firm-Land was belong to one of the partner-Assessing Officer was required to arrive at figures of amounts realized on sale of assets owned by firm and compute profits on sale of same after deducting written down value as it stood in books of assessee-firm-No return was filed-Reassessment is affirmed. S. 147,148]
DCIT v. Shree Bhawani Mills. (2025) 212 ITD 530 (Lucknow) (Trib.)
S. 40(a)(ia): Amounts not deductible-Deduction at source-catering expenditure for purpose of supply of food packets to its employees-Subjected to GST-Not contract-Not liable to deduct tax at source-Business promotion expenses to promote business and rewards to employees to achieve work targets-Facilities/amenities made available by hotel to its customers do not constitute ‘work’ within meaning of section 194C-Hotel room booking expenses incurred by assessee were not liable to TDS under section 194C. [S. 194C]
Infoobjects Software India (P.) Ltd. v. DCIT (2025) 212 ITD 546 (Jaipur) (Trib.)
S.37(1): Business expenditure-Investments in subsidiaries-Expenditure is allowable as business expenditure-Excess remuneration to directors-Matter remanded. [S. 2(13)]
NDTV Networks Ltd. v. DCIT (2025) 212 ITD 167 (Delhi) (Trib.)
S.37(1): Business expenditure-Interest on loan taken from State Government-Allowable as deduction.
Kumaon Mandal Vikash Nigam Ltd. v. ACIT (2025) 212 ITD 217 (Dehradun) (Trib.)
S.37(1): Business expenditure-Provision for claim payout on basis of actuarial report furnished by an independent actuary-Allowable as deduction. [S. 145]
Credit Guarantee Fund For Micro Units. v. NFAC DCIT (2025) 212 ITD 1 (Mum) (Trib.)