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-Foreign exchange loss-No depreciable assets-Allowable as revenue expenditure-Foreign exchange gain to be assessed as business income.

Paramount Communications Ltd. v. Dy. CIT (2021) 90 ITR 20 (Delhi)(Trib.)

S. 28(i) : Business loss-Speculation Loss-Loss on purchase of commodities on National Spot Exchange for which delivery receipts issued but not delivered-Allowable as business loss-Unsettled contract of purchase or sale is not speculative transaction. [S. 43(5)]

Dy.CIT v. Nirshilp Securities Pvt. Ltd. (2021) 90 ITR 338 (Mum.) (Trib.) Dy.CIT v. Dolat Investment Ltd. (2021) 90 ITR 338 (Mum.)(Trib.)

S. 24 : Income from house property-Deductions-Borrowed money was used for the purpose acquisition and construction of school building-Interest allowable as deduction. [S. 24(b)]

Vidya Education Investment Pvt. Ltd. v. Dy.CIT (2021) 90 ITR 6 (SN) (Delhi)(Trib.)

S. 14A : Disallowance of expenditure-Exempt income-Administrative expenditure-Suo motu disallowance made by the assessee was allowed-Followed earlier year order-Book profit-Expenses Incurred To Earn Exempt Income-Not To Be Added For Computing Book Profits. [S. 115JB, R. 8D(2)]

Rasna Pvt. Ltd. v. Dy.CIT (2021) 90 ITR 39 (SN) (Ahd.)(Trib.)

S. 14A : Disallowance of expenditure-Exempt income-Interest free funds-Presumption that the investment was made from own funds-Disallowance of interest is not warranted-Book profit-Only actual expenses incurred is liable to be excluded. [S. 115JB(2), R. 8D (2)(ii), 8(2)(iii)]

Nirmal Industrial Control P. Ltd. v. ACIT (2021) 90 ITR 34 (SN) (Mum.)(Trib.)

S. 14A : Disallowance of expenditure-Exempt income-Interest free funds-Presumption that the investment was made from own funds-Disallowance of interest is not warranted-Book profit-Only actual expenses incurred is liable to be excluded. [S. 115JB(2), R. 8D(2)(ii), 8(2)(iii)]

Nirmal Industrial Control P. Ltd. v. ACIT (2021) 90 ITR 34 (SN) (Mum.)(Trib.)

S. 14A : Disallowance of expenditure-Exempt income-Investment from interest free funds-Shares held as stock in trade-Matter remanded. [S. 36(1)(iii), R. 8D]

Add. CIT v. PNB Gilts Ltd. (2021) 90 ITR 16 (SN) (Delhi)(Trib.)

S. 12AA : Procedure for registration-Trust or institution-Advancement of any other object of general public utility-Campaign for promotion of trade and commerce-Activities are not in nature of trade, commerce or business-Entitle for registration. [S. 2(15), 11, 12A]

Federation of Trade Association of Pune v. CIT(E) (2021) 90 ITR 79/ 207 DTR 243 / (2022) 192 ITD 138 / 215 TTJ 131 (SN.) (Pune)(Trib.)

S. 12AA : Procedure for registration-Trust or institution-Order refusing to registration was set aside.

Arare Foundation v. CIT(E) (2021) 90 ITR 45 (SN) (Pune)(Trib.)

S. 11 : Property held for charitable purposes-Benefit to related parties-Salary paid to chairman of trust-Held to be reasonable-Denial of exemption was held to be not justified. [S. 13(1)(c), 13(3)]

Mukat Educational Trust v. Dy.CIT(E) (2021) 90 ITR 63 (SN.) (Chd.)(Trib.)