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. 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)

S. 275 : Penalty-Bar of limitation-From the date of initiation of penalty proceedings by the competent authority-Penalty order is not barred by limitation-Penalty deleted on merits [S. 269SS, 269T, 271D, 271E, 275(1)(c)]

Sudhir Kumar Rawat v. ITO (2022) 219 TTJ 1004 / 218 DTR 337 (Jab)(Trib)

S. 271D : Penalty-Takes or accepts any loan or deposit-Cash payment to wife-Sale consideration-Levy of penalty is not justified [S. 269SS, 271E]

Sudhir Kumar Rawat v. ITO (2022) 219 TTJ 1004 / 218 DTR 337 (Jab)(Trib)

S. 271D : Penalty-Takes or accepts any loan or deposit-Limitation–Action for imposition of penalty initiated by notice-Time for passing of penalty order to be reckoned from that date of initiation-Order is barred by limitation. [S. 271E, 275(1)(c)]

Triumph Securities Ltd. v. Add. CIT (2022)99 ITR 58 (SN)(Mum) (Trib)