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. 80IA : Industrial undertakings-Infrastructure development-Interest income from employees on advances-Equipment hire charges-Ammonia tank wagon hire charges-Cane hire charges-interest income from banks and financial institutions-Interest on deposits-Not derived from industrial undertaking-Not eligible for deduction. [S. 28(i), 32AB, 56]

Krishak Bharati Cooperative Ltd. v. JCIT (2022) 142 taxmmann.com 331 (Delhi)(HC) Editorial : SLP of assessee dismissed, Krishak Bharati Cooperative Ltd. v. JCIT (2022) 289 Taxman 75 (SC)

S. 68 : Cash credits-Loans-Information from Investigation wing-Bogus accommodation entries-Statement was recorded and affidavits filed-Opportunity of cross examination was not granted-Merely on the basis of information from Investigation wing addition is not justified-Order of Tribunal affirmed. [S. 131, 133(6), 153A, 260A]

PCIT v. Oriental Power Cables Ltd. (2022) 143 taxmann.com 370 (Raj.)(HC) Editorial : Notice issued in SLP filed by Revenue, PCIT v. Oriental Power Cables Ltd. (2022) 289 Taxman 625 (SC)

S. 68 : Cash credits-Capital gains-Penny stock-Shell company-Shares held as investments for more than ten years-Addition as cash credit was deleted. [S. 45]

PCIT v. Jagat Pravinbhai Sarabhai (2022) 289 Taxman 298 (Guj.)(HC)

S. 45 : Capital gains-Two separate accounts-Investment portfolio-Stock in trade-Sale of investments assessable as capital gains and not as business income. [S. 28(i)]

Gyan Traders Ltd. v. CIT (2022) 289 Taxman 628 (Cal.)(HC)

S. 43B : Deductions on actual payment-Employees’ contribution towards provident fund and ESI would qualify for deduction even if paid after due date prescribed but before due date of filing of return.-Amendment is prospective in nature. [S. 36(1)(va)]

PCIT v. TV Today Network Ltd. (2022) 289 Taxman 132 / 217 DTR 1 / 328 CTR 204 (Delhi)(HC) Editorial : Refer, Checkmate Services P. Ltd. v. CIT (2022)448 ITR 518/ 218 DTR 218 /329 CTR 1 (SC)

S. 40(a)(ia) : Amounts not deductible-Deduction at source-Commission, brokerage, etc.-Passenger service fee-Withheld by Airlines-Not liable to deduct tax at source-Verify factual aspect, matter was restored to the file of the Assessing Officer. [S. 194H]

Delhi International Airport (P.) Ltd. v. PCIT (2022) 138 taxmann.com 541 (Karn.)(HC) Editorial: Notice issued in SLP filed by Revenue, PCIT v. Delhi International Airport (P.) Ltd. (2022) 289 Taxman 78 (SC)

S. 37(1) : Business expenditure-Consumption incentive-Ascertained liability-Provision-Allowable as deduction. [S. 145]

PCIT v. TV Today Network Ltd. (2022) 289 Taxman 132 / 217 DTR 1 / 328 CTR 204 (Delhi)(HC)

S. 37(1): Business expenditure-Loss on investment in subsidiary-Expansion of business-Permanent diminution in value of investment made in equity shares-Allowable as business expenditure. [S. 28(i), 36(1)(vii]

PCIT v. Vaibhav Global Ltd. (2022) 138 taxmann.com 506 (Raj.)(HC) Editorial : Notice issued in SLP filed by Revenue, PCIT v. Vaibhav Global Ltd. (2022) 289 Taxman 407 (SC)

S. 37(1) : Business expenditure-Donation of amount to BDC for construction of ring road-Allowable as business expenditure.

PCIT v. Mysore Minerals Ltd. (2022) 143 taxmann.com 219 (Karn.)(HC) Editorial: SLP of Revenue dismissed, PCIT v. Mysore Minerals Ltd. (2022) 289 Taxman 408 (SC)

S. 37(1) : Business expenditure-Cancellation of joint venture agreement-Compensation paid-Nexus between cancellation of JDA and execution of construction agreement-Allowable as deduction.

Nitesh Estates (P.) Ltd. v. ACIT (2022) 289 Taxman 45 (Karn.)(HC)