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. 80IB : Industrial undertakings-Manufacture of article falling under Eleventh Schedule-Polyurethane foam-Manufacturing polyurethane foam and supplying it in different sizes and designs to assembly operator for use ultimately for car seats-Not entitled to deduction. [S. 80IB(2)(iii), Sch. XI, Entry 25.]

Polyflex (India) Pvt. Ltd. v. CIT (2022) 449 ITR 244 / 219 DTR 521 / 329 CTR 587 / (2023) 290 Taxman 366 (SC) Editorial: CIT v. Polyflex (India) Pvt. Ltd (2014) 363 ITR 224(Karn)(HC), affirmed.

S. 45(4) : Capital gains-Distribution of capital asset-Transfer-Dissolution of firm-Revaluation of assets and credit to capital accounts of partners-Introduction of new partners-Withdrawal of credit from capital account-Otherwise-Firm is liable to pay capital gains tax. [S. 2(47)(ii), 47(ii), 50]

CIT v. Mansukh Dyeing and Printing Mills (2022) 449 ITR 439 /220 DTR 189 / 329 CTR 673 / 145 taxmann.com 151 / (2023) 290 Taxman 277 (SC) Editorial: Review petition of assessee is dismissed , Mansukh Dyeing and Printing Mills v.CIT ( 2023) 293 Taxman 516 ( SC) / Order of Bombay High Court, CIT v. Mansukh Dyeing and Printing Mills (ITA Nos. 1074 and 1147 of 2009 dt. 24-6-2013 (Bom)(HC), reversed.

S. 43B : Deductions on actual payment-Mercantile system of accounting-Electricity duty-Agency to collect electricity duty-Provision is not applicable. [S. 43B(a), Electricity Act, 2003]

PCIT v. Dakshin Haryana Bijli Vitran Nigam Ltd. (2022) 449 ITR 605 (P&H)(HC).Editorial: SLP of Revenue is dismissed , PCIT v. Dakshin Haryana Bijli Vitran Nigam Ltd ( 2023) PCIT v. Dakshin Haryana Bijli Vitran Nigam Ltd( 2023) 454 ITR 801 ( SC)

S. 36(1)(ii) : Bonus or commission-Bonus paid-Avoid payment of dividend distribution tax-Disallowance affirmed.

SRC Aviation P. Ltd. v. ACIT (2022)449 ITR 169 /(2023) 290 Taxman 3 (SC) Editorial : SRC Aviation P. Ltd. v. ACIT (2022) 445 ITR 40/ 140 taxmann.com 193/ 288 Taxman 159 (Delhi)(HC), affirmed.

S. 32 : Depreciation-Based on evidence-No question of law. [S. 260A]

PCIT v. PTC India Financial Services Ltd. (2022)449 ITR 309 (Delhi)(HC)

S. 28(i) : Business income-Capital gains-Purchase and sale of shares-Short period of holding and frequency of transactions-Assessable as business income. [S. 45]

Equity Intelligence India Pvt. Ltd. v. ACIT (2022) 449 ITR 396 / 329 CTR 793 / 220 DTR 193 (SC) Editorial : Equity Intelligence India Pvt. Ltd. v. ACIT(2015) 376 ITR 321 (Ker)(HC), partly affirmed.

S. 14A : Disallowance of expenditure-Exempt income-Interest on borrowed capital-Investments made from own funds-Disallowance is not justified. [R. 8D, 260A]

PCIT v. PTC India Financial Services Ltd. (2022)449 ITR 309 (Delhi)(HC)

S. 10 (23C) : Educational institution-Placement services-Associated with education-Fee charged-Entitle to exemption [S. 10(23C)(vi), Art. 226]

Orissa Trust of Technical Education and Training v. CCIT (2022) 449 ITR 334 (Orissa)(HC)

S. 9(1)(vii) : Income deemed to accrue or arise in India-Fees for technical services-Payments received from Indian customers for centralised services–Not taxable as fees for technical services or fees for included services-DTAA-India-USA. [Art. 12(4)(a)]

CIT(IT) v. Westin Hotel Management LP (2022) 449 ITR 489/ (2023) 290 Taxman 262 (Delhi)(HC) CIT(IT) v. Sheraton Overseas Management Corporation (2022) 449 ITR 489 (Delhi)(HC).Editorial : Notice issued in SLP against High Court order , CIT(IT) v. Westin Hotel Management LP ( 2023) 294 Taxman 430 ( SC)

S. 2(15) : Charitable purpose-Exemption-Object of general public utility-Clarification-Law declared by court to be applied for assessment years in question, which were before court and were decided-Appeals decided against department, matter to be treated as final-For assessment years not before Court, authorities to apply law declared in judgment, having regard to facts of each year. [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 389 / (2023) 290 Taxman 137 (SC) Editorial : Clarification, ACIT(E) v. Ahmedabad Urban Development Authority(2022) 449 ITR 1 (SC)