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. 5 : Scope of total income-Accrual of income-Receipt of tuition fees-Services rendered next year-Income taxable in the year in which the service was rendered. [S. 4,5(1)(b), 145]

Dy. CIT v. Hyderabad Educational Institutions (P) Ltd (2022) 218 TTJ 487 (Hyd)(Trib)

S. 9(1)(i) : Income deemed to accrue or arise in India-Business connection-Trading-Not furnished supporting documents-Matter remanded-DTAA-India-Japan. [Art. 5(7)(a)]

ITO v. CHU Corporation v. ACIT (IT) (2022) 215 TTJ 680 (Delhi)(Trib.)

S. 4 : Charge of income-tax-Subsidy-Industrial promotion scheme-Capital receipt. [S. 28(i)]

Mahindra Two Wheelers Ltd. v. Dy. CIT (2022) 219 TTJ 136 / 218 DTR 210 / 140 taxmann.com 367 (Mum.)(Trib.)

S. 4 : Charge of income-tax-Industrial undertakings-Incentive Scheme-Subsidy Intended to encourage Industrialization of State-Capital in nature. [S.80IB]

TATA Chemicals Ltd. v. Dy. CIT (2022) 95 ITR 134 / 216 TTJ 402 (Mum.)(Trib.)

S. 4 : Charge of income-tax-Co-Operative Sugar Factory-Sale of sugar at concessional rate to members-Matter remanded to the Assessing Officer. [S. 2(24)]

Sant Tukaram Sahakari Sakhar Karkhana Ltd. v. ITO (2022) 96 ITR 72 (SN) (Pune) (Trib.)

S. 4 : Charge of income-tax-Firm-Partner-Double taxation-Wrong person assessed-Sale to partner without registration in earlier years-Registration deed in latter years-taxable in the year of registration-Partner declaring the income is his hands and paying taxes-Department entitled to tax income in hands of correct person-Partner at liberty to take remedial action for exclusion of amount from his total income. [S. 2(24), 145, Registration Act, 1908, S. 17(1A) 49]

Prathamesh Developers v. ITO (2022) 96 ITR 75 (SN) (Pune) (Trib.)

S. 4 : Charge of income-tax-Capital or revenue-Subsidy-Incentive to encourage development of rural economy-Exemptions from payment of Sales tax/Entry Tax/Electricity dues-Capital receipt-Forfeited amount received in respect of preference shares-Credited receipt in capital reserve account-Capital receipt. [S. 5, 28(i)]

Jindal Steel and Power Ltd. v. Add. CIT (2022) 97 ITR 516 (Delhi) (Trib.)

S. 4 : Charge of income-tax-Capital or revenue-Sale of carbon credits-Capital receipts. [S. 28(i)]

ACIT v. Nahar Industrial Enterprises Ltd. (2022) 219 DTR 73 / 219 TTJ 544 / 99 ITR 562 / 142 taxmann.com 52 (Chd.)(Trib.) ACIT v. Nahar Spinning Mills Ltd (2022) 219 DTR 73 / 219 TTJ 544 / 99 ITR 562 / 142 taxmann.com 52 (Chd.)(Trib.) ACIT v. Oswal Woollen Mills Ltd. (2022) 219 DTR 73/ 219 TTJ 544 /99 ITR 562 / 142 taxmann.com 52 (Chd.)(Trib.)

S. 4 : Charge of income-tax-Capital or revenue receipt-Compensation for termination of marketing support agreement-No loss of source of income-Not capital nature assessable as business income. [S. 28(i)]

Dow Chemical International P. Ltd. v. ITO (2022) 100 ITR 82 (Mum.)(Trib.)

S. 4 : Charge of income-tax-Capital or Revenue-Cancellation of agreement-Right to sue-Compensation or damages for relinquishment of right in property-Avoid legal consequences-Not colourable device-Not taxable as revenue receipt. [S. 2(14),2(47), 25, 28(i), 45]

Khevana Securities & Finstocks Ltd. v. ITO (2022) 215 TTJ 775 /211 DTR 45 (Ahd) (Trib)