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. 36(1)(viii) : Eligible business-Special reserve-Agricultural development-Eligible business-Dairy or animal husbandry activities-Providing long term finance to various dairy co-operatives engaged in producing milk-Not eligible to claim deduction.

National Dairy Development Board v. Addl. CIT (2022) 220 DTR 273 / 143 taxmann.com 282 / (2023) 290 Taxman 181 / 330 DTR 273(Guj.)(HC)

S. 36(1)(v) : Contribution to approved gratuity fund-Gratuity trust-Deed of variation pending for approval-Not allowable as deduction.[S. 43B]

National Dairy Development Board v. Addl. CIT (2022) 220 DTR 273 / 143 taxmann.com 282 / (2023) 290 Taxman 181/ 330 CTR 464 (Guj.)(HC)

S. 14A : Disallowance of expenditure-Exempt income-No exempt income-No disallowance can be made [R. 8D]

Delhi International Airport Ltd. v. PCIT (2022) 210 DTR 881 / 325 CTR 361 / 138 taxmann.com 541 (Karn.)(HC)

Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015

S.10: Assessment – Denial of liability – Foreign assets claimed to be acquired out of income not taxable in India – Income not taxable in India – Alternative remedy – Writ is not maintainable- Directed to pursue alternative remedy of appeal . [ S.14, 15, Art , 226 ]

Tabasum Mir v. UOI (2022) 218 DTR 1/328 CTR 737 / 142 taxmann.com 343 (J & K )(HC),Abdul Rashid Mir v. UOI (2022) 218 DTR 1 / 328 CTR 737 (J & K)( HC) Amir Mir v .UO (2022) 218 DTR 1 / 328 CTR 737 (J & K)( HC)

S. 56 : Income from other sources – Relative – Individual – Private discretionary trust – Gift of equity shares to trust – Trust crested for the benefit of self and relatives – Any sum received without consideration , aggregate value of which exceeds fifty thousand rupees – Pass through entity – Provision of section 56(2)(x) is not applicable [ S. 56(2)(x)) ] S. 56 : Income from other sources – Relative – Individual – Private discretionary trust – Gift of equity shares to trust – Trust crested for the benefit of self and relatives – Any sum received without consideration , aggregate value of which exceeds fifty thousand rupees – Pass through entity – Provision of section 56(2)(x) is not applicable [ S. 56(2)(x)) ]

ITO v. Aam Family Private Trust ( Mum)( Trib) www.itatonlline .org

S. 148A: Reassessment – Limitation – Notices issued pursuant to the case of UOI v. Ashish Agarwal (2022) 444 ITR 1/ 213 DTR 217/ 326 CTR 473/ 286 Taxman / AIR 2022 SC 2781 (SC) – Notice issued on or after 01.04.2021, the period concerned is between 01.04.2021 to 30.06.2021-Relaxation Act will not apply – The law as per Finance Act, 2021 has to be followed- Notice issued for Assessment years 2013 -14 and 2014 -15 are barred by limitation – The submission that the UOI v. Ashish Agarwal (Supra) would be applicable to the cases, where such notices have been challenged before different High Courts only, were not accepted. [S. 119, 147, 148, 148A(d), 149, 151, 151A, Taxation and Other Laws (Relaxation & Amendment of Certain Provisions) Act, 2020, S. 3(1), CBDT Instruction, 31-3-2021, Art. 226]

Keenara Industries Private Ltd v. ITO (2023 )453 ITR 51 / 147 taxmann.com 585// 331 CTR 477/ 223 DTR 273 (Guj) (HC) www.itatonline.org.Editorial: Touchstone Holdings Pvt Ltd v. ITO ( 2023) 451 ITR 196( Delhi)( HC), dissented from .Editorial: Notice issued in SLP order of High Court , ITO v. Keenara Industries (P.) Ltd. (2023) 294 Taxman 344 (SC) Editorial: Notice issued in SLP order of High Court , ITO v. Keenara Industries (P.) Ltd. (2023) 294 Taxman 344 (SC)

S. 148A: Reassessment – Conducting inquiry, providing opportunity before the issue of notice – Limitation – Notices issued pursuant to the case of UOI v. Ashish Agarwal (2022) 444 ITR 1/ 213 DTR 217/ 326 CTR 473/ 286 Taxman / AIR 2022 SC 2781 (SC) – Notice issued on or after 01.04.2021, the period concerned is between 01.04.2021 to 30.06.2021-Relaxation Act will not apply – the law as per Finance Act, 2021 has to be followed.-CBDT Instructions No.1 of 2022 (2022) 444 ITR 43 ( St)- Interpretation Of Taxing Statutes — Strict Interpretation. [S. 119, 147, 148, 148A(d), 149, 151, 151A, Taxation and Other Laws (Relaxation & Amendment of Certain Provisions) Act, 2020, S. 3(1), CBDT Notification, 31-3-2021, Art. 226]

Rajeev Bansal v. UOI (2023)453 ITR 153/ 331 CTR 609/ 223 DTR 177 / 147 taxmann.com 549 (All)(HC) www.itatonline.org

S. 260A : Appeal-High Court-Finding of fact-High Court must frame the substantial question of law-Order setting aside the order of Tribunal was quashed and set aside-Order of Tribunal was affirmed. [Interest-tax Act, 1974, S. 2(5A), 2(5B), 2(7)]

Muthoot Leasing and Finance Ltd. v. CIT (2023) 450 ITR 496 /292 Taxman 5 / 330 CTR 209 (SC)

S. 201 : Deduction at source-Failure to deduct or pay-Payments to non-resident-Tribunal setting aside order holding assessee in default-High court affirming Tribunal-Question of taxability in case of recipient pending before high court-Order of High court affirmed with direction to assessing officer to proceed in matter after decision of high court in pending appeals. [S. 260A, Art. 32]

ITO(IT) v. Gia Laboratory Pvt. Ltd. (2023) 450 ITR 11 (SC) Editorial: Refer Gia Laboratory Pvt. Ltd. v. ITO(IT) (2023) 450 ITR 7 (Bom)(HC), affirmed.

S. 179 : Private company-Liability of directors-Recovery of tax-Private company-liability primarily that of company-Assessing officer to make efforts for recovery of tax from company-Directors showing that non-recovery of tax not attributable to their gross negligence, misfeasance or breach of duty-Order against directors was quashed. [S. 156, Art. 226]

Devendra Babulal Jain v. ITO (2023) 450 ITR 520 (Guj.)(HC)