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. 10A : Free trade zone-New unit-The execution of work in a new unit when the agreement of any of its client pre-dates the operational date of the new unit, forms no basis for rejection of the deduction u/s 10A of the Act-Matter remanded-If the forward contracts entered into by the assessee are fully backed by the export then the gain or loss on such forward contracts, would be regarded as business income and the same is deductible under the section, for an eligible unit. [S. 43(5)]

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

S. 10(10D) : Life insurance policy-Keyman insurance policy-Single premium paid-Neither claimed deduction of premium paid nor under section 10(10D)-Offering the receipt to tax after deducting the premium paid-Held to be proper Entire sum received as maturity benefit cannot be taxed. [S. 80C, 194DA]

Sandeep Modi v. Dy. CIT (2022) 94 ITR 69 (SN) (SMC) (Kol.)(Trib.)

S. 9(1)(vi) : Income deemed to accrue or arise in India-Royalty Amounts paid as consideration for resale/use of computer software through EULAs/distribution agreements-Not payment of royalty for use of copyright-Does not give rise to any income taxable in India-Not liable to deduct any TDS under section 195 of the Act. [S. 195]

GE Intelligent Platforms Asia Pacific Pte. Ltd. v. ACIT (2022) 94 ITR 707 (Delhi)(Trib.)

S. 4 : Charge of income-tax-Mutuality-Club-Guests fees from members, hire charges, income from rooms and housie participation fees-Not chargeable as income.

Dy. CIT v. Sports Club of Gujarat Ltd. (2022) 94 ITR 54 (Trib.) (SN) (Ahd.)(Trib.)

S. 4 : Charge of income-tax-Accrual of income-Retention money Retained by Electricity Board subject to fulfilment of no-defect or liability-Cannot be treated as income-Sum taxable only in year of receipt or accrual. [S. 5, 145]

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

S. 11 : Property held for charitable purposes – Education – Study and promote the latest development in the filed of Architecture – Mere surplus arising as a result of charitable activities the Institution does not cease to be a charitable institution – Entitle to exemption. [ S. 2(15), 12A, Architect Act , 1872 ]

The Indian Institute of Architects v. ITO (Mum)( Trib) www.itatonline .org

S.69A: Unexplained money – Demonetization – AIR information -Amount deposited to bank from earlier withdrawals – Addition was deleted – Cash Deposits in Partnership Firm’s bank Account – Amount transferred to partner’s account as withdrawal from capital –Addition cannot be made in the hands of partner . [ S. 2(31)iv),133(6)]

Ajit Bapu Satam v. Dy. CIT (2023) 147 taxmann.com 222(Mum)(Trib.) www.itatonline .org

S. 123(e) : Municipal Property Tax-Exemption-Hospital-Hospital run by Society-Objects of society was not purely charitable-Exemption from Income-tax Act, 1961 was not granted-Hospital not exempt from Municipal Property Tax. [IT Act, 1961, S. 11, 12,12A, Companies Act, 2013, S. 135].

Institute of Franciscan Missionaries of Mary v. Coimbatore City Municipal Corporation (2022) 445 ITR 152 (Mad.)(HC)

S. 2(1)(a)(i) : Appellant-Protective assessment-Amounts paid under protective assessment must be returned to assessee-Same income cannot be assessed in hands of assessee more than once-The Act is not intended either to collect or retain any amount which is not due from an assessee. Under section 237 under Chapter XIX of the Income-tax Act, 1961, there is no limitation prescribed for granting refund of the amount paid in excess as tax. [IT Act, S. 143(3), 154, 237, 244A, Art. 226]

Vyasa Plot and Housing Pvt. Ltd. v. Dy. CIT (2022) 445 ITR 454 /218 DTR 136/ 239 CTR 107 (Mad.)(HC) SSD Homes and Estate Developers Pvt. Ltd. v. Dy. CIT (2022) 445 ITR 454 (Mad.)(HC) Sangupathi Properties Pvt. Ltd. v. Dy.CIT (2022) 445 ITR 454 (Mad.)(HC) Anu Plot and Housing Pvt. Ltd. v. Dy. CIT (2022) 445 ITR 454 (Mad.)(HC)

S. 2(1)(a)(i) : Appellant-Delay in filing appeal condoned-Deemed to have been filed before expiry of limitation-Rejection of declaration was not valid. [Art. 226]

Amina Khatoon (Mrs.) v. UOI (2022) 445 ITR 367/ 217 DTR 225/ 328 CTR 427 (Telangana)(HC)