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 : Capital gains-Sale of Non-Convertible Debentures With Detachable Warrants-Valuation of cost of detachable warrants-Valuation was accepted by assessee-Tribunal affirming the cost-Order of Tribunal affirmed.

Deepak Nitrite Ltd. v. Dy. CIT (2023) 452 ITR 10 / 330 CTR 680 / 222 DTR 193// 292 Taxman 357 (Guj.)(HC)

S. 37(1) : Business expenditure-Commission-Not supported by evidence-Disallowance is affirmed.

Shree Govind Buildneed Pvt. Ltd. v. ACIT (2023) 452 ITR 212/292 Taxman 37 (SC) Editorial : Shree Govind Buildneed Pvt. Ltd. v. ACIT (D.B.I.T.A. No. 24 of 2019 dt. 16-7 2019)(Raj)(HC), affirmed.

S. 37(1) : Business expenditure-Capital or revenue-Repairs and improvements in leased premises-Allowable as revenue expenditure. [Art. 136]

PCIT v. Joy Alukkas (India) Pvt. Ltd. (2023) 452 ITR 271 (SC) Editorial: PCIT v. Joy Alukkas (India) Pvt. Ltd. (ITA No. 92/Coch/2016 dt. 26-9-2017)(Ker.)(HC) affirmed. Followed Joy Alukkas (India) Pvt. Ltd. (2015) 5 ITR-OL 340 (Ker) / (2016) 282 CTR 531 (Ker.)(HC)

S. 14A : Disallowance of expenditure-Exempt income-No exempt income during the year-Deletion of addition is justified. [R. 8D]

PCIT v Amadeus India Pvt. Ltd. (No. 2) (2023) 452 ITR 206 / 290 Taxman 201 (Delhi)(HC)

S. 11 : Property held for charitable purposes-Charitable purposes-Business activity-Amendment makes it necessary to ascertain if activities are for earning profit or for purposes of charitable institution-Ascertainment of facts could not be made in writ proceedings-Writ petition was dismissed. [S. 2(15) Art. 226]

Tamizhavel P. T. Rajan v. ITO(E) (2023) 452 ITR 45/ 333 CTR 420/ 227 DTR 51 (Mad.)(HC)

S. 11 : Property held for charitable purposes-Charitable purpose-Purpose of securing and assisting rapid and orderly establishment and organization of industrial areas and industrial estates in the State-Proviso not attracted-Entitle for exemption. [S. 2(15), 12, 13(8)]

CIT(E) v. Gujarat Industrial Development Corporation (2023) 452 ITR 27/292 Taxman 207 (Guj.)(HC)

S. 11 : Property held for charitable purposes-Charitable Purpose-School-Income from newspapers, which included advertisement revenue and surplus-Matter remanded for fresh consideration of nature of receipts and whether they qualified for exemption. [S. 2(15)]

PCIT(E) v. Servants of People Society (2023) 452 ITR 1 / 330 CTR 617 / 222 DTR 185 (SC) Editorial : PCIT (E) v. Servants of People Society (2022) 447 ITR 99 (Delhi)(HC) partly reversed.

Expenditure Tax Act, 1987

S. 2(6): Hotel – Dual occupancy room in Hotels — Expenditure-Tax chargeable where room charges “Per Individual” Less than Rs. 1,200 — Exemption not allowable .[ S. 2(8),2(10) , 3 , 4(a) , Art 136 ]

Fomento Resorts and Hotels Ltd. v. ACIT (2023)452 ITR 248 (SC) Editorial: SLP of the assessee is dismissed, Fomento Resorts and Hotels Ltd. v. ACIT ( T.A. No. 64 of 2007 dt 30 -8 -2019 ( Bom)( HC )

Direct Tax Vivad Se Vishwas Scheme, 2020

S.4: Filing of declaration and particulars to be furnished — Delay in filing appeal – Delay of 958 days was condoned – Delay was condoned – Directed to accept the declaration filed by the assessee. [ S 2(1)(a) ITACT , S. 250, 260A ]

PCIT v. Aditya Saraf (HUF) (2023) 452 ITR 87/ 330 CTR 321/ 221 DTR 241 (Cal)(HC)

S. 144B : Faceless Assessment – Natural justice – Hearing though video conference – Voluminous documents – Department has agreed to provide physical hearing at Chennai – Faceless converted to interface – Assessment order was set aside – Petitioner was directed to appear before Assessing Officer at Chennai . [ S. 11, 260A, Art ,226 ]

Chennai Port Authority v. NFAC ( 2023)) 454 ITR 692 ( Mad)( HC) www.itatonline .org