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(10) : Housing projects-Transactions entered into with buyers of flats before introduction of clauses (e) and (f) of section 80IB(10)-Eligible for deduction-Amendment with effect from April 1, 2010 has no application for AY. 2010-2011.
CIT v. Mandavi Builders (2022) 443 ITR 235 / 284 Taxman 371 (SC)
S. 44 : Insurance business-Life insurance Business-Section 44 read with Rule 2 of Part A of First Schedule is applicable and not Rule 5 of Part B.
PCIT v. PNB Metlife India Insurance Company Ltd. (2022) 443 ITR 415 / 209 DTR 383 / 324 CTR 506 (Karn.)(HC)
S. 43B : Deductions on actual payment-Interest-The payment of interest had been made by issue of fully paid up shares to ICICI-Ltd-Disallowance of interest is not justified. [S. 260A]
CIT v. Core Emballage Ltd. (2022) 443 ITR 157/ 215 DTR 313/ 327 CTR 327 (Guj.)(HC)
S. 37(1) : Business expenditure-Capital or revenue-Leasing business-Foreign currency loan-Finance Indian enterprises in acquisition of Plant, Machinery and equipment-Enterprises In Acquisition of Plant, Machinery And Equipment-Loss due to fluctuation in foreign exchange rates-Allowable as revenue expenditure. [S. 32, R.115]
Wipro Finance Ltd. v. CIT (2022) 443 ITR 250 / 212 DTR 269/287 Taxman 155 (SC) Editorial: Decision in CIT v. Wipro Finance Ltd. (2010) 325 ITR 672 (Kran.)(HC) reversed.
S. 37(1) : Business expenditure-Capital or revenue-Leasing business-Foreign currency loan-Finance Indian enterprises in acquisition of Plant, Machinery and equipment-Enterprises In Acquisition of Plant, Machinery And Equipment-Loss due to fluctuation in foreign exchange rates-Allowable as revenue expenditure. [S. 32, R.115]
Wipro Finance Ltd. v. CIT (2022) 443 ITR 250 / 212 DTR 269 (SC) Editorial : Decision in CIT v. Wipro Finance Ltd. (2010) 325 ITR 672 (Kran.)(HC) reversed.
S. 28(i) : Business income-Income from lease-Exploitation of property and not exploitation of business assets-Assessable as income from other sources-Quality loss-No business carried on-Not allowable as deduction. [S. 2(14), 56]
PTL Enterprises Ltd. v. Dy. CIT (2022) 443 ITR 260 / 326 CTR 858 / 286 Taxman 564 (SC) Editorial: Decision in PTL Enterprises Ltd. v Dy. CIT (2021) 439 ITR 365/(2022) 212 DTR 404 / 326 CTR 282/ 286 Taxman 169 (Ker)(HC) affirmed.
S. 13 : Denial of exemption-Trust or institution-Benefit of specified persons-Valuation of rent-Burden to prove inadequacy of rent is on Department-Rent received exceeded valuation adopted by Municipal Corporation for purpose of levying house tax-Merely relying upon the opinion as to rent from property broker firms and websites additions cannot be made-Order of Tribunal is affirmed-Res Judicata-Rule of consistency is followed. [S. 11, 12, 13(2)(b), 13(3)]
CIT(E) v. Hamdard National Foundation (India) (2022) 443 ITR 348 / 212 DTR 38 / 325 CTR 626 / 286 Taxman 441 (Delhi)(HC)
S. 11 : Property held for charitable purposes-Education-Dissemination of knowledge through Museum or Science Parks constitutes education-Entitled to exemption. [S. 2(15), Companies Act, 1956, S. 25]
Creative Museum Designers v. ITO(E) (2022) 443 ITR 173 / 211 DTR 361 / 326 CTR 122 (Cal.)(HC)
S. 11 : Property held for charitable purposes-Method of accounting-Tribunal calling for information and affidavit filed in response by assessee-Affidavit not referred to by Tribunal or by High Court-Orders of Tribunal and High Court set aside and matters remitted to Tribunal for consideration afresh. [S. 254(1), 256(2), 260A]
Prajatantra Prachar Samity v. CIT (2022) 443 ITR 15 / 213 DTR 440 / 326 CTR 569 / 287 Taxman 667 (SC)