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. 92 : Transfer pricing-Arm’s length price-Management services, management information services, information resources and system development-Reimbursement of expenses-Order of Tribunal affirmed-DTAA-India-USA. [S. 260A, Art. 12(4)(b)]

CIT(IT) v. Timken Company (2023) 452 ITR 80 / 330 CTR 324 / 221 DTR 369 (Cal.)(HC)

S. 90 : Double taxation relief-Agreement-Taxing receipts-Question of fact-No substantial question of law-DTAA-India-USA. [Art. 12, 260A]

CIT(IT) v. Fujitsu America Inc. (2023) 452 ITR 311 / 333 CTR 409/ 225 DTR 513 (Delhi)(HC)

S. 80G : Donation-Charitable institutions-Registered under section 12AA is not sufficient-Disqualification for spending more than 5 Per cent of receipts for religious purposes-Matter remanded to the Commissioner Exemption for examining the matter afresh. [S. 12AA, 89G(5), Rule 11AA]

CIT(E) v. Sant Girdhar Anand Parmhans Sant Ashram (2023) 452 ITR 52 /292 Taxman 472 /331 CTR 473/ 223 DTR 265 (SC) Editorial : CIT(E) v. Sant Girdhar Anand Parmhans Sant Ashram (2018) 408 ITR 79 (P&H)(HC) set aside.

S. 64 : Clubbing of income-Minor child-Deduction of tax source-Interest-Accrual-Tax to be deducted by bank as and when interest accrued even before child attained majority-Method of accounting-The provisions of section 64(1A) are not ultra vires the Constitution of India. [S. 64(IA), 145, 194A, 197(1), 264]

Sibi Joy v. ITO (TDS) (2023) 452 ITR 71/ 332 CTR 651/ 226 DTR 105 (Ker.)(HC)

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)