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. 14A : Disallowance of expenditure-Exempt income-Disallowance cannot exceed the exempt income [R.8D]

ACIT v. Silver Jubilee Motors Ltd. (2022) 94 ITR 19 (Trib) (SN) (Pune)(Trib.)

S. 14A : Disallowance of expenditure-Exempt income-Exempt income not received during year-No disallowance can be made. [R. 8D]

Lumino Industries Ltd. v. ACIT (2022) 94 ITR 675 / 215 TTJ 62/ 213 DTR 290 (Kol.)(Trib.)

S. 14A : Disallowance of expenditure-Exempt income-Only those investments, which have yielded exempt income has to be considered for the purpose of computing average value of investments for computing the disallowance. [R.8D]

Dell International Services India (P.) Ltd. v. JCIT (2022) 94 ITR 247 (Bang.)(Trib.)

S. 12AA : Procedure for registration-Trust or institution-Interest income earned on investment of surplus funds-Assessable as income from other sources and not as business income-Depreciation not allowable. [S. 32, 56]

Sports Authority of Gujarat v. Dy.CIT(E) (2022) 94 ITR 61 (SN) (Ahd.)(Trib.)

S. 12AA : Procedure for registration-Trust or institution-Advancement of any other object of general public utility-It is not necessary that object of general public utility should be beneficial to whole mankind-Object beneficial to a section of public is also an object of general public utility-Merely leasing of developed plots to its members on basis of their respective contributions does not make assessee ineligible for registration as a charitable entity per se. [S. 2(15), 11]

Confederation of Pharma Dealers Association v. CIT (2022) 94 ITR 629 (Raipur)(Trib.)

S. 12A : Registration-Trust or institution-Assessment order denying the exemption-Commissioner (Exemption) granted exemption from inspection-Rectification application was denied-Entitle to exemption-Directed to rectify the order. [S. 11, 12, 13, 154]

Rotary Presidency Foundation v. ITO (E) (2022)94 ITR 47 (SN.) (Kol.)(Trib.)

S. 11 : Property held for charitable purposes-Income from letting out of building and cultural hall, etc-Medical relief to poor patients, education to deserving students and relief to the needy sections of the society-Denial of exemption is not justified. [S. 2(15), 12AA]

Oswal Bandhu Samaj v. ITO(E) (2022) 195 ITD 200 / 94 ITR 78 (SN) / 215 DTR 374 (Pune)(Trib.)

S. 11 : Property held for charitable purposes-Filing of audit report in Form 10B is procedural requirement can be fulfilled even at a later stage by showing a sufficient cause-Entitled to exemption. [S. 154]

Trinity Education Trust v. ITO(E) (2022) 94 ITR 77 (SN) (Surat) (Trib.)

S. 11 : Property held for charitable purposes-Accumulation of income-Amount spent on the objects of the Trust-Excess of expenditure-Carry forward to subsequent years. [S. 11(1)(a)]

Dy. CIT v. Dr. D. Y. Patil Educational Enterprises Charitable Trust (2022) 94 ITR 65 (Mum.)(Trib.)

S. 11 : Property held for charitable purposes-Corpus donation-amount utilised for acquiring fixed assets-Allowable as deduction. [S. 11(1)(a), 11(1)(d), 11(6)]

JCIT v. Divya Jyoti Trust Tejas Eye Hospital (2022) 194 ITD 772 / 94 ITR 51 (SN) )/ 219 TTJ 1108 / 219 DTR 47 (Ahd.) (Trib.)