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. 28(i) : Business loss-Guarantor-Allowable as business loss. [S. 37 (1)]

CIT v. Apollo Tyres Ltd. (No. 3) (2022) 447 ITR 393 (Ker.)(HC)

S. 14A : Disallowance of expenditure-Exempt income-Without giving finding how much administrative expenditure incurred to earn exempt income-Disallowance not Justified. [R.8D]

CIT v. UTI Bank Ltd. (2022)447 ITR 662 / 219 DTR 528 / 329 CTR 597 / 289 Taxman 238 (SC) Editorial : Decision in CIT v. UTI Bank Ltd (2014) 2 ITR-OL 366 (Guj)(HC), affirmed.

S. 12AA : Procedure for registration-Trust or institution-Registration cannot be denied for failure to start charitable activities. [S. 12A,12AA(3)]

DIT(E) v. Meenakshi Amma Endowment Trust (2022)447 ITR 663 / 219 DTR 505 / 329 CTR 594 / 289 Taxman 405(SC) Editorial : Decision in DIT (E) v. Meenakshi Amma Endowment Trust (2013) 354 ITR 219 (Karn.)(HC), affirmed.

S. 11 : Property held for charitable purposes-Rule of consistency-No change in activities-Supervision or monitoring of activities by donor not sufficient to hold that any profit motive is involved-Grant of exemption is valid. [S. 2(15)]

CIT v. Professional Assistance for Development Action (2022) 447 ITR 103 (Delhi)(HC)

S. 11 : Property held for charitable purposes-Object improve public transport system and to assist its members-Charitable object entitle to exemption-Order of Tribunal is affirmed. [S. 2(15), 10(23C)(vi), 12A, 260A]

CIT(E) v. Association of State Road Transport Undertakings (2022) 447 ITR 95 (Delhi)(HC)

S. 10(20) :Local authority-Appeal to High Court-Assessee not claiming benefit under section 10(20)-High Court not justified in dismissing Department’s appeals granting benefit-Order of High Court set aside with the direction to consider the appeals afresh in accordance with law and on merits. [S. 260A]

CIT(E) v. Jaipur Development Authority (2022) 447 ITR 646 /218 DTR 530 / 329 CTR 222 / 145 taxmann.com 119/ (2023) 290 Taxman 109 (SC)

S. 10(5) : Travel concession or assistance-Leave travel allowance-State Bank of India Officers’ Service Rules stating that leave travel concession available only to travel inside India-Administrative instructions extending leave travel concession for travel outside India-Not valid-Not entitled to additional benefit. [Art. 226]

All India State Bank Officers Federation v. State Bank of India (2022)447 ITR 559 (Mad.)(HC)

S. 9(1)(vi) : Income deemed to accrue or arise in India-Royalty-Payment of subscription for online journal-Matter remanded to High Court to consider facts-DTAA-India-USA. [S. 195, 201(1), (1A), Art. 12]

Infosys Technologies Ltd. v. CIT (2022)447 ITR 666 /220 DTR 41 / 329 CTR 688/ 289 Taxman 296(SC) Wipro Ltd. v. CIT (2022) 447 ITR 666// 220 DTR 41 (SC) Editorial : Decision in CIT v. Wipro Ltd (2013) 355 ITR 284 (Karn)(HC) set aside.

S. 4 : Charge of income-tax-Income or capital-Compensation for cancellation of agreement-Long term capital gain-Income from other sources-Compensation received by assessee to indemnify developer against action by persons who had booked flats through assessee-Taxable income [S. 2(24), 45, 56].

Manoj B. Joshi v. 8th ITO (2022) 447 ITR 757 / 220 DTR 301 / 329 CTR 959/ 289 Taxman 623(SC) Editorial : Order in Manoj B. Joshi v.8th ITO (2009) 179 Taxman 30 224 CTR 481 (Bom)(HC), affirmed.

S. 147 : Reassessment –With in four years- Share capital – Share premium – Income from other sources – Produced evidence in support of increase of authorised share capital , share allotment and names and address of parties from whom share premium received – Change of opinion – Reassessment was quashed . [ S. 56 (2)(viib), 148 Art , 226 ]

Kalpataru Land Pvt. Ltd v. ACIT ( 2022) 136 taxmann.com 434 (Bom) (HC) Editorial : SLP of Revenue dismissed ACIT . v. Kalpataru Land Pvt. Ltd. (2022)447 ITR 364 (SC)