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. 28(i) : Business income-Income earned by letting out of property for running software Technology park-Assessable as business income. [S. 22, 56]

CIT v. Tidel Park Ltd. (2021) 437 ITR 311 (Mad.)(HC)

S. 17(2) : Perquisite-Valuation of perquisites- Salary – Deduction at source -Rent as per Rule 3-Accommodation provided by Central Government and State Government to its employees-Not applicable to undertakings controlled by Central or State Governments. [S. 15, 192, ITR, 1962, R. 3]

Indian Institute of Science v. Dy. CIT (2021) 438 ITR 400 / 204 DTR 329/ 322 CTR 217 (Karn)(HC).Editorial: Affirrmed in Indian Institute of Science v .Dy. CIT (2022) 446 ITR 418 (SC)

S. 14A : Disallowance of expenditure-Exempt income-Failure to examine the contention that no expenses were incurred to earn exempt income-Matter remanded. [S. 254(1), R.8D]

Karur Vysya Bank Ltd. v. CIT (2021) 438 ITR 465 /(2022) 284 Taxman 692 (Mad.)(HC)

S.14A : Disallowance of expenditure-Exempt income-Schedule bank-Stock in trade-Investment in shares and securities-Shares and securities are held as stock in trade-No disallowance can be made-Common funds-Non interest bearing funds more than the investment-There is no statutory provision which obligated the assessee to maintain separate accounts which might justify proportionate disallowance-Proportionate disallowance of expenses cannot be made. [R. 8D]

South Indian Bank Ltd v. CIT (2021) 438 ITR 1 / 205 DTR 337 / 322 CTR 465 / 283 Taxman 178(SC) Catholic Syrian Bank Ltd. v. CIT(2021) 438 ITR 1 / 205 DTR 33 / 322 CTR 465 (SC) Federal Bank Ltd. v. Dy. CIT (2021) 438 ITR 1 / 205 DTR 337 / 322 CTR 465 (SC)

S. 12AB : Procedure for fresh registration-Charitable Trust-Show cause notice for cancellation of registration-New procedure with effect from 1-4-2021-Application on 4-5-2021-Show cause notice dated 10-8-2021-Lack of jurisdiction-Writ is maintainable-Show cause notice was kept in abeyance till order passed on application as per new procedure. [S. 12A, Art, 226]

S. R. Trust v. PCIT (2021) 438 ITR 511 / 208 DTR 329/ 323 CTR 1051/( 2022) 285 Taxman 162 (Mad.)(HC)

S. 12AA : Procedure for registration-Trust or institution-Survey-Donation received by way of cheque was returned to donors by cash-Cancellation registration and 80G exemption was held to be justified. [S.80G (v), 133A]

CIT (E) v. Batanagar Education and Research Trust (2021) 282 Taxman 1 (SC) Editorial : Batanagar Education and Research Trust v. CIT (E) (2021)129 Taxman.com 29 (Cal) (HC), set aside.

S. 12AA : Procedure for registration-Trust or institution-Educational institution-Excess of income over expenditure-Registration cannot be denied. [S. 2(15)]

CIT v. Angels Educational Trust (2021) 282 Taxman 450/ 208 DTR 134/(2022) 440 ITR 449/(2022) 326 CTR 223 (Mad.) (HC)

S. 11 : Property held for charitable purposes-Capital asset-Application of income-Depreciation allowable. [S. 12A, 32]

Mazdoor Welfare Trust v. Dy. CIT (E) (2021) 282 Taxman 146 (Mad.) (HC)

S. 11 : Property held for charitable purposes-Cost of purchase was treated as application of income-Entitle to depreciation. [S. 32]

CIT v. Kongunadu Arts & Science (2021) 282 Taxman 158 (Mad.)(HC)

S. 10A : Free trade zone-Foreign exchange-Software development and consultancy-Technical services-Eligible for exemption-Matter remanded to the Assessing Officer.

Cherrytec Interlisolve Ltd. v. ACIT (2021) 282 Taxman 86 (Mad.) (HC)