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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Interpretation of taxing statutes — Date of applicability of a statutory amendment – Amending provisions — to be considered in light of history of legislation and what lawmakers intended by amendment – .Aids to construction — Speeches made in legislature can be looked into- Circulars — Binding upon Departmental Authorities if they advance proposition within framework of statute — Not binding where contrary to statute—Not binding on courts-Definition — Unless the context otherwise requires . [ S. 10(20A), 10(23C), 10(46), 11, 11(4), 11(4A), 12, 12A, 12AA, 13(8), 143(3)

ACIT (E) v .Ahmedabad Urban Development Authority (2022)449 ITR 1 / 219 DTR 209/ 329 CTR 297 /(2023) 291 Taxman 11 (SC)

Wealth-Tax Act, 1957

S. 2(ea):Assets — Urban land — Agreement for sale of land to developers in December 2000 — Possession was given to buyers —Buyers conveying the land to third person in August 2007 – Value of land not assessable in hands of assessee. [ S. 2(n) 3, 16(3), 17 ]

Noorani Properties (P.) Ltd. v .CIT (2022)449 ITR 460 / 216 DTR 296/ 328 CTR 702 (Karn)(HC) Verde Developers (P) Ltd v .CIT (2022)449 ITR 460 / 216 DTR 296/ 328 CTR 702 (Karn)(HC) Triad Resorts and Hotels (P) Ltd v .CIT (2022)449 ITR 460 / 216 DTR 296/ 328 CTR 702 (Karn)(HC)

S. 9(1)(vii):Income deemed to accrue or arise in India – Fees for technical services -Technical services do not include construction, assembly and design — Dominant purpose of contract was supply of passenger rolling stock —Amount received under contract could not be deemed to accrue or arise in India [ S. 194J, 201(IA) ]

CIT v .Bangalore Metro Rail Corporation Ltd. (2022)449 ITR 431 288 Taxman 539 (Karn)( HC)

Interpretation of taxing statute – The principles of judicial discipline and propriety and binding precedent – Unless there is a stay obtained by authorities under Income-tax Act, 1961 from higher forum, mere fact of filing appeal or SLP will not entitle authority not to comply with order of High Court- Court directed the Registrar General to forward the copy of the judgement for circulating amongst authorities under the Income tax- Act , 19961 and for the observance of the principles of the judicial discipline and propriety. [ Art , 141, 226 , 227 ]

Mohan Lal Santwani v. UOI (2022)449 ITR 476/ 287 Taxman 634 / 218 DTR 313 / 329 CTR 113 (All)(HC)

S. 148 : Reassessment –Notice – Challenged on several grounds – writ petition dismissed .[ S. 147, Art , 226 ]

Vishal Ashwin Patel v. ACIT ( Bom)( HC) (UR) H.P. Diamond India (P) Ltd v. Dy .CIT ( 2022) 139 taxmann.com 515 ( Bom)(HC) Editorial: Order of High court set aside and directed to decide on merits , Vishal Ashwin Patel v. ACIT (2022)443 ITR 1 / 212 DTR 123/ 325 CTR 699 / 132 taxmann.com 372 /287 Taxman 167 (SC)

S.54F : Capital gains- Investment in a residential house -Co-owner of property – Cannot be treated as absolute owner – Denial of exemption is not valid [ S. 45 ]

Anant R .Gowande v. ACIT ( 2022) The Chamber’s Journal – December – P. 89 ( Mum)( Trib)

S. 23 : Income from house property – Annual value – Property was vacant throughout the year – Addition cannot be made on notional rent [ S. 22, 23(1)( c)]

DCIT v. Dhaval D.Patel ( 2022) 145 taxmann.com 20 / (2023) 198 ITD 293/ 222 TTJ 325 (Ahd)( Trib)

S. 80I : Industrial undertakings – Income derived – Interest received from customers for delay in payment of sale consideration – Entitle to exemption .

Kanakadurga Agro Oil Prodcuts Ltd v. ACIT ( 2022) The Chamber’s Journal -December -P. 86 ( AP)( HC)

S. 41(4) : Profits chargeable to tax – Bad debt – Bad debts recovered by the amalgamated company – Liable to tax [ S. 36(1)(vi), 41(1) ]

Sundaram Finance Ltd v. JCIT ( 2022) 145 taxmann.com 329 (Mad)(HC)/The Chamber’s Journal – December , 2022 -P. 87 ( Mad)(HC)

S. 12AA : Procedure for registration –Trust or institution-Limitation period of six months – Any decision taken afresh in pursuance to directions of the appellate authority the period of limitation of six months is not applicable [ S. 12AA(2), 80G, Form 10A ]

CIT v. Raghuraji Devi Foundation Trust ( 2022) 217 DTR 442 / 328 CTR 610( AP)( HC)